Kennady Diamonds Announces C$20M Non-Brokered Private Placement

Shares Issued and Outstanding: 23,627,175


TORONTO, Feb. 9, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (TSX-V: KDI) today announced that the Company is undertaking a non-brokered private placement ("Placement") to raise approximately C$20M through the placement of a combination of common shares and flow-through common shares. The common shares to be issued under the Placement have been priced at C$3.55 per share and the flow-through common shares have been priced at C$5.00 per share. The Placement is expected to close on or about February 17, 2015, and is subject to regulatory approval.

The Company's major shareholder, Bottin (International) Investment Ltd., has advised the Company that they will be subscribing for shares under the Placement. Shareholders requiring further information should contact Patrick Evans, CEO, at (416) 670-5114.

The proceeds from the Placement will be used to fund the Company's 2015 winter exploration program and for general corporate purposes. The exploration program includes a 500 to 700 tonne bulk sample from the Kelvin kimberlite, delineation drilling at the Kelvin and Faraday kimberlites, exploration drilling at the MZ and Doyle kimberlites as well as testing of a number of new exploration targets at the Kennady North project.

Proceeds from flow-through shares issued under the Placement will be used for Canadian Exploration Expenses within the meaning of the Income Tax Act (Canada). The Company shall use its best efforts to ensure that an amount equal to such proceeds will be used to incur Canadian Exploration Expenses, for purposes of the Income Tax Act (Canada), related to the Company's exploration projects. The Company will renounce such Canadian Exploration Expenses with an effective date no later than December 31, 2015.


About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 9 and 12 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday kimberlite corridor is a target for further exploration.  The tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain whether further exploration will result in the target being delineated as a mineral resource.


Qualified Persons
This news release has been prepared under the supervision of Carl G. Verley, P. Geo., who serves as the Qualified Person under National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company's strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Kennady Diamonds Inc.

For further information: Kennady Diamonds Inc.: Patrick Evans, President and CEO, (416) 640-1111,


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