Kennady Diamonds Inc. announced an update on progress at the Company's 100 percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Infill drilling at the Kelvin kimberlite commenced on schedule last week and three drill holes have been completed to date. Kennady Diamonds also announced that an amended Exploration Agreement for the Kennady North diamond project has been concluded with the Lutsel K'e Dene First Nation (Lutsel K'e). The amended Exploration Agreement establishes the basis for Kennady Diamonds and the Lutsel K'e to work collaboratively to advance the exploration program at the expanded Kennady North project, which includes additional leases and claims acquired and staked to the south and west of the Kelvin - Faraday kimberlite corridor.

Kennady Diamonds President and CEO, Patrick Evans said, "Our success at Kennady North is dependent upon a mutually beneficial and respectful relationship and we are committed to working in partnership with the Lutsel K'e."

The Company also announced that the Mackenzie Valley Land and Water Board has issued a Type A Land Use Permit and Type B Water License for the Kennady North diamond project.