Update on the Kennady North winter drilling program
Friday, Apr 06, 2018
Kennady Diamonds Inc. is pleased to provide an update on the winter drilling program at their Kennady North Project. Drilling is progressing steadily with a total of 2,597 meters completed to date. Included in today's release are one delineation hole and one geotechnical/delineation hole completed on the Faraday 2 kimberlite. All thirteen drill holes completed on the program to date have intersected kimberlite.

Both drill rigs are currently drilling on the northwest extension to the Faraday 2 kimberlite. The northwest extension was discovered during the summer 2017 program and extends the Faraday 2 kimberlite by over 150 meters. Detailed core logging has confirmed that the geologic units within the inferred resource continue into the northwest extension (see news release, March 7, 2018). Information from the current drilling will be used to advance the pipe shell model to an inferred level of confidence.

President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "While the delineation and geotechnical programs on the Faraday kimberlites have been very successful, we are anxious to take advantage of the improving weather conditions and longer daylight hours to move on to exploration drilling as soon as possible. For this reason, the decision was taken to add a third drill rig to the program". He went on to say, "The new rig arrived on site on March 30 before the winter road was closed for the season, and we expect to be drilling the first of several exploration targets in the Kelvin-Faraday Corridor on the weekend". Dr. Moore emphasized that the addition of the third rig will not require a budget revision as program timelines will be shortened with the improved production rate.

Financing

Kennady has also closed the third tranche of the private placement of common shares announced in connection with the transaction with Mountain Province Diamonds. The Company has issued 1,000,000 common shares at a price of $2.50 per share for proceeds of $2,500,000. The shares are subject to a four month hold period expiring on July 29, 2018.

Proceeds of the offering will be used to fund the Company's 2018 winter exploration program on the Kennady North Project and for general corporate purposes.

For more information, please visit: http://www.kennadydiamonds.com

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