Karelian Diamond Resources announced that it has Reached an agreement with mining giant Rio Tinto under which Rio Tinto will disclose to Karelian confidential information and physical geological samples relating to exploration in Finland, where Karelian is considering potential explorations.



In exchange for the information Karelian has agreed that Rio Tinto will have the option to have a 51% stake in any project identified by Karelian in Finland, by paying the direct cash expenditures incurred in developing the possible diamond recovery project.



Rio Tinto Diamonds is the third largest supplier of diamonds in the world with diamond production ranging from the unique pink diamonds of the Argyle mine in Australia to the spectacular whites of Diavik’s high value gemstones in Canada.



Karelian Chairman Prof. Richard Conroy said: “I am delighted with the Agreement with Rio Tinto. The confidential information and physical samples now being made available to Karelian will be a significant addition to Karelian’s existing knowledge base and mineral exploration program, which itself has already led to the delineation by Karelian

of the largest diamondiferous kimberlite pipe yet discovered in Finland.



"The Company’s objective remains to make a major diamond discovery in Finland comparable to the world class discoveries already made on the Russian side of the structure.”