Annual Report and Financial Statements 2024 Contents 2 Chairman’s Statement 5 Professor Richard Conroy – an Appreciation 8 Company Information 9 Board of Directors 10 Directors’ Report 20 Independent Auditor’s Report 27 Statement of profit or loss 28 Statement of comprehensive income 29 Statement of financial position 30 Statement of changes in equity 31 Statement of cash flows 32 Notes to and forming part of the financial statements 1 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc 2 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Brendan McMorrow I have pleasure in presenting the Company's Annual Report and Financial Statements for the year ended 31 May 2024. However it is also tinged with great sadness as I do so following the passing of our founder and Executive Chairman, Professor Richard Conroy after a brief illness. Basal till sampling at green diamond target. Professor Conroy with fellow Directors before a Board meeting. Richard’s accomplishments across the diverse range of medicine, politics and indeed mineral exploration garnered respect from all. His entrepreneurial and inquiring spirit was excited by the opportunities in mine exploration and development, and his skills, honed in zinc and gold projects in Ireland, spread to Finland where his vision of the Karelian Craton having the potential for a significant European diamond mine is being steadily realised by the Company. Equally, the Company’s recent progress on its Copper, Nickel and Platinum-Group Elements project in Northern Ireland held true to his belief in the potential of Ireland to provide a European solution to the shortfall in critical minerals necessary for a modern economy. In Karelian Diamond Resources, we intend to continue to build on his substantial legacy and deliver on Richard’s vision for the company. The Lahtojoki Diamond Deposit The mine boundaries for the Lahtojoki diamond deposit were finalised, post year end, at a hearing of the Finnish Land Court resulting in no change to the existing boundaries. This decision in relation to the boundaries was an essential and long awaited step as the Company proceeds with its plans for the proposed development of the Lahtojoki diamond deposit. Additionally, regarding the appeals by two landowners regarding the amount of compensation payable to them, the majority of the items upon which they had based their claims were rejected by the Land Court, except for three items which were referred back to the Land Survey to review. The appellants were also required to contribute to the Company’s legal costs. We will provide further updates on this matter as and when we are in a position to do so. Chairman’s Statement 3 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Diamond Exploration Programme in Finland The Company is, however, not only involved in the development of the Lahtojoki diamond deposit in Finland, which it owns, but is also active in an increasingly exciting diamond exploration programme in Finland. Diamond kimberlites are generally found in Cratons. These are areas of ancient crustal stability such as those found in Southern Africa and in Canada. The Karelian Craton which extends across Finland, is one of the largest Cratons in the world and has been proven to contain world class diamond deposits. In general terms the larger the Craton, the larger the kimberlites. The presence of the Lahtojoki diamond deposit confirms that the Finnish section of the Karelian Craton is diamondiferous, and the sheer size of the Karelian Craton in Finland suggests the potential for the occurrence of a world class diamond deposit. The Company has carried out an extensive and systematic exploration programme for diamonds in Finland using, inter alia, geology, geophysics, kimberlitic indicator trains, airborne and UAV (unmanned aerial vehicle) drone surveys together with excavation and drilling and the analysis of basal till samples. The programme led to the previous discovery of a green diamond in the Kuhmo region of Finland – the best possible kimberlitic indicator. Analysis of basal till samples excavated at various target locations in the Kuhmo region of Finland, suggests that the Company’s search for the source of the green diamond has narrowed, with garnets identified in two sample locations which suggest close proximity to a kimberlite source. Reviewing Kimberlite drill core in Finland. Exploration for Nickel, Copper and Platinum Group Metals in Northern Ireland It is not entirely unusual for a company engaged in diamond exploration to be successful in Nickel, Copper and Platinum – Group Elements exploration. One of the most successful discoveries in this context was the Voisey’s Bay nickel – copper – cobalt deposit in Labrador, Canada, one of the largest nickel discoveries in the world. The Company’s exploration programme for Nickel, Copper and Platinum- Group Elements in Northern Ireland adds a significant, exciting and possibly very important wing to the Company’s diamond exploration and development programme in Finland. Gravity map: Company’s Northern Ireland licence area. 4 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc The Company now holds three prospecting licences, totalling an area of approximately 750Km2, in Northern Ireland. Samples from a stream sediment sampling programme over the prospecting licences were previously dispatched to Overburden Drilling Management Limited (“ODM”) in Canada for mineral concentration, picking and analysis for indicator mineralogy using ODM’S trade- marked metamorphic/ magmatic massive sulphide indicator minerals (MMSIMS) technique. ODM has been a key contributor to numerous discoveries world-wide, including the Voisey’s Bay discovery in Canada. The results of this programme, taken in conjunction with results from a previous programme indicate a highly anomalous river catchment area. Five samples each yielded over 1,000 indicator minerals for Nickel, Copper and Platinum mineralisation. An independent assessment by Dr Larry Hulbert, an internationally recognised expert in Nickel, Copper and Platinum – Group Elements, confirmed the potential for Nickel, Copper and Platinum-Group Elements in the Company’s licence areas in Northern Ireland. Dr Hulbert’s review also noted marked resemblances to the Baraga Basin in Michigan that hosts the world class Eagle and Eagle East Nickel – Copper and Platinum–Group Elements deposits and recommended that the Eagle deposit should serve as Karelian’s exploration model. Environmental, Social and Governance Issues Environmental, social and governance (ESG) issues are becoming increasingly critical in the Mining industry. Great emphasis is placed by the Company on these issues and the Company is committed to high standards of corporate governance and integrity in all its activities and operations, including rigorous health and safety compliance, environmental consciousness and the promotion of a culture of good ethical values and behaviour. Financials The loss after taxation from continuing operations for the financial year ended 31 May 2024 was €237,160 (31 May 2023: loss of €291,467) and the net assets of the Company at 31 May 2024 were €9,741,609 (31 May 2023: €9,786,074). During the year there was a fundraising of £250,000 at 2.5 pence per ordinary share. Post year end a further fundraising of £328,747 at 1.5 pence per ordinary share was concluded. Directors and Staff I would like to express my very deep appreciation of the support and dedication of Directors, staff, and consultants which has made possible the continued progress and success which the Company has achieved. Future Outlook I look forward with confidence to continued success for the Company both in diamond exploration and development in Finland and in Nickel, Copper and Platinum-Group Elements exploration in Northern Ireland. Brendan McMorrow Chairman 26 November 2024 Excavation programme at Kuhmo to locate source of green diamond. Stream sediment sampling on Company’s Nickle – Copper – Platinum Group Metals target in Northern Ireland. 5 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Professor Richard Conroy (1933-2024) – Former Chief Executive and Chairman of the Board of Directors Professor Richard T. W. L. Conroy, who died on the 14th October 2024, was a proud Irishman whose life in all its forms was an inspiration to all, especially those close to him and those who will remember him for his devotion to family, his great faith and enduring courtesy, and for his work in public office, medicine, education and natural resources exploration and development. His was a long and productive life exemplified by his many undertakings and achievements. He leaves a rich legacy not least amongst those who loved and admired him as family, neighbours, colleagues, and all who enjoyed his friendship, and amongst those dedicated colleagues and associates inspired by his incredible intellect, energy and passion. Born in Birmingham in 1933, Richard returned to Ireland at age 5, prior to the demise of his father, himself a Professor of Spanish. A gentleman, entrepreneur, businessman, diplomat and politician, Richard was deeply devoted to his family, and generous in contributing his deep knowledge, experience, and expertise to a wide range of disciplines across the many and varied fields in which he was successful. Qualified as a medical doctor, his pioneering work on the study of Circadian Rhythms gained him his PhD. In 1969 he was appointed Professor of Physiology at the Royal College of Surgeons in Ireland – one of the youngest ever professional appointments in the British Isles, and a post he held until his retirement in 1998. A Founder Fellow of the Faculty of Occupational Medicine and an eundem Fellow of the Royal College of Physicians of Ireland, Richard brought his business acumen to the fore as Chairman of Tallaght Hospital Board, successfully overseeing its construction and commissioning, under budget and on time. A proud Irishman and member of Fianna Fail, he was elected a member of Seanad Eireann on two separate occasions (1977-1981 & 1989-1993) holding posts as Government spokesman in the Upper House on Industry and Commerce, Foreign Affairs, and Northern Ireland. In local government, he served as a member of Dublin County Council for Ballybrack (1991-1994) and Dún Laoghaire-Rathdown County Council (1994-1999) holding the position of ‘Cathaoirleach’ (Chairman). Until his death, Richard also represented Ireland as member of the Executive Council and Chairman of the Irish group on the Trilateral Commission – a body founded in 1973 to foster closer cooperation between Western Europe, Japan, and North America. A champion of the Irish natural resource sector, Richard’s fascination with the world of geology, the process of exploration, the joy of discovery, and his unswerving drive to prove that Ireland is indeed a nation ‘rich in natural resources’ together combined to find expression in a way that younger generations now working in the sector may well reflect upon with admiration. With Dr Des Conroy and Geoffrey Keating of Conroy Petroleum and Natural Resources. His activities in the natural resource sector began with the establishment of Trans-International Oil Exploration Ltd in 1975 – a venture that later merged with Aran Energy and was subsequently acquired by Statoil in 1979. Enough to light the flame that was to inspire him throughout his commercial life, Richard founded Conroy Petroleum and Natural Resources in 1980 which, only six years later, went on to discover the Galmoy, Co. Kilkenny zinc and lead deposit. Critical for the revival of the minerals industry in Ireland - it being the first commercial discovery since the Navan mine in 1970 - Richard brought Galmoy from a greenfield discovery through feasibility studies, the environmental impact phase, and the permitting process. This vital work led to the emergence of Galmoy as an operating mine, generating over 200 jobs within the local area, 300 additional jobs in the wider economy, and a contribution to the State of €65m in royalties, taxes, and rates. (Significant in this context was the discovery along trend in 1990 of the adjacent Lisheen deposit) Early board of Conroy Diamonds and Gold P.L.C. Professor Richard Conroy – an Appreciation 6 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Professor Richard Conroy – an Appreciation Before moving into gold exploration with the setting up of Conroy Diamonds and Gold, Richard’s appetite for exploration had been whetted by the success of Stoneboy consortium whose discovery of the Pogo gold deposit in Alaska transformed into a world-class gold mine that is still in production. With Conroy Diamonds and Gold formed, Richard turned his focus towards Clontibret in Co. Monaghan, inspired by his memory as a young man of a gold discovery made there in 1956, down what was an old Antimony mine. Virtually in parallel, his knowledge of Finland, the story of a diamond found in till in Eastern Finland, and his awareness that significant diamond deposits existed across the border in Russia, together led Richard and Conroy Diamonds and Gold to conduct a diamond exploration programme in that country. One of the first foreign companies granted an exploration licence after Finland had opened its doors to foreign investment, in order to facilitate this and other plans he had in mind, Karelian Diamond Resources was formed while Conroy Diamonds and Gold evolved into the more appropriately named Conroy Gold and Natural Resources. Pursuing his belief - triggered by his memory of gold found there in an old Antimony mine – Richard steered Conroy Gold and Natural Resources towards Clontibret where - through an extensive exploration programme - a 517,00- ounce Au JORC Resource, open in all directions, has been defined there in the heart of what later proved to be the highly-prospective Longford-Down Massif. Fervent in his belief that Ireland was an emerging gold province with significant potential for economic scale ore bodies, Richard’s inquisitive mind led him to explore the wider potential of the region, a pursuit in which two district scale gold trends were discovered: the Orlock and Skullmartin discoveries with a combined surface gold anomalism of 90kms. This systematic approach to exploration recently led to the discovery of visible 123.0 g/t Au (native) gold in outcrop. In Finland, his leadership at Karelian Diamond Resources has moved the dial forward from a belief that diamonds may exist there to the discovery of a new emerging kimberlite province in that country’s Kuhmo region. On site with the team in Finland. There, the Company has discovered the Riihivaara kimberlite and established the Seitaperä kimberlite pipe as the largest (6.9Ha) kimberlite in Finland. In addition, the Company has discovered a green diamond in till and identified a series of significant regional kimberlitic indicator mineral anomalies. Reviewing core with Mrs Mary Claire Ward and Dr. Sorċa Conroy. Of special interest is the Lahtojoki diamond deposit acquired by the Company – now at an advanced stage of being granted a mining permit to proceed with development. A key feature of the Lahtojoki diamond deposit highlighted by Richard is the significant percentage of coloured (pink) diamonds believed to be present there which, upon recovery, would create at Lahtojoki the first diamond mine in the EU. Richard’s vision always was the discovery of world class deposits that could be proven economic through development into mines: a vision he demonstrated at Galmoy and Pogo, and currently in the development of Clontibret and at Lahtojoki. Ever focused as he was, he had an amazing eye for detail, a naturally inquisitive mind, and an ability to look at things just slightly differently, manifest in the number of successes he has seen, and in his contention that a ‘little bit of luck’ is very often the vital element that every successful explorer needs. 7 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc General meeting of Conroy Gold and Natural Resources P.L.C. Intrigued by that thought, and by the story of the discovery in 1816 of a diamond in Co. Fermanagh known as ‘The Brookeborough Diamond’, another major chapter in the life of Professor Richard Conroy has opened which, at his death, was coming to fruition. Code named the Fermanagh Ni-Cu- PGE project, it represents yet another example of the genius that Richard brought to his various undertakings. With the knowledge in the mid-1990s of the discovery in Fermanagh - revealing potential kimberlite indicator minerals – Richard felt that further investigation was warranted, particularly in conjunction with the TELLUS airborne geophysical data. From Medicine to Mining, Richard has left a rich and enduring legacy. Those close to him will be sustained by the memory of an exceedingly kind and courteous gentleman and a man of great faith; a loving family man devoted to his late wife Pamela, and to his daughters Deirdre and Sorċa, Maureen, his grandchildren, sons-in-law and their loved ones all. May he Rest in Peace. Ní bheidh a leithéid arís ann, ar dheis Dé go raibh a anam dilis. As the world class Nickel discovery at Voisey’s Bay in Canada would suggest, diamond exploration can sometimes lead to the discovery of Nickel-Copper- PGE. Following positive results from a stream sampling programme on Karelian’s licences, the exploration programme carried out by the Company in Fermanagh led to an exciting new development: revealed in a detailed technical review was the potential for the discovery in Northern Ireland of a major Nickel, Copper, and Platinum Group elements deposit. Zinc mine at Galmoy. Airborne Geophysical Survey A steadfast and consistent voice in the support and promotion of the Irish exploration and mining industry, and the attractiveness of Ireland as a destination for inward investment, Richard was a popular and familiar delegate and exhibitor at leading industry-related events. A steadfast supporter of the Irish Association for Economic Geology, he attended all major events, always willing to provide sponsorship for activities - one being the Prospectors Developers Association Convention in Toronto. 8 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Company Information Directors Brendan McMorrow Chairman/Non-executive Director* Maureen T.A. Jones Managing Director* Dr. Sorċa Conroy Non-executive Director*§ Séamus P. FitzPatrick Non-executive Director+§ Howard Bird Non-executive Director*+ * Member of the Executive Committee + Member of the Remuneration Committee § Member of the Audit Committee Company registration number 382499 Company secretary Cathal Jones Registered office Shannon Airport House Shannon Free Zone Shannon Co. Clare, V14E370 Ireland Nominated adviser (NOMAD) Allenby Capital Limited 5 St. Helen’s Place, London, EC3A 6AB, United Kingdom Broker Peterhouse Capital Limited 3rd Floor, 80 Cheapside London, EC2V 6EE United Kingdom CMC Markets UK Plc 113 Houndsditch London, Ec3A 7BX United Kingdom Statutory audit firm Deloitte Ireland LLP Chartered Accountants and Statutory Audit Firm 6 Lapps Quay Cork, T12 VY7W Ireland Bankers AIB 1-4 Lower Baggot Street Dublin 2, D02 X342 Ireland Nordea Bank Satamaradankatu 5 Helsinki Finland Registrar Avenir Registrars Limited No. 1 Main Street Blessington Co. Wicklow, W91 V82T Ireland www.avenir-registrars.ie Legal advisers William Fry Solicitors 2 Grand Canal Square Dublin 2, D02 A342 Ireland Brendan McMorrow Chairman/ Non-Executive Director Maureen T.A. Jones Managing Director Dr. Sorc˙a C. Conroy Non-Executive Director . Seamus P. FitzPatrick Non-Executive Director Howard M. Bird Non-Executive Director HPP Attorneys Ltd. Bulevardi 1 A FI-00100 Helsinki Finland Head office Karelian Diamond Resources P.L.C. Shannon Airport House Shannon Free Zone Shannon Co. Clare, V14E370 Ireland www.kareliandiamondresources.com Public relations Lothbury Financial Services 1st Floor, 17 St Swithins Lane London, EC4N 8AL United Kingdom Hall Communications 1 Northumberland Road Dublin 4, D04 F578 Ireland London Stock Exchange AIM Market Symbol: KDR SEDOL: BD09HK6 ISIN number: IE00BD09HK61 9 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Board of Directors Together, the Directors form the Board of Directors with a gender balance of four and two. The mix of experience that the Directors bring to the Board include financial and managerial experience, mining, development and natural resources experience which are crucial to the business of the Company and crucial to the smooth running of a Board of Directors and company. Brendan McMorrow – Chairman/Non-executive Director Brendan McMorrow has taken on the role of Chairman and is responsible for leading the Board and ensuring it operates in an effective manner while promoting communication with shareholders. He brings a broad range of knowledge gained through holding senior roles in a variety of listed public companies in the natural resources sector. Experience Brendan McMorrow has over 30 years’ experience in a number of public companies in the oil and gas and base metals mining sectors listed in London, Toronto and Dublin where he held senior executive finance roles. He is currently Chief Executive Officer of Ormonde Mining P.L.C., a natural resources exploration company. Prior to that he was Chief Financial Officer of Circle Oil P.L.C. from 2005 to 2015, an AIM listed oil and gas exploration, development and production company, with operations in North Africa and the Middle East. Brendan is a Fellow of the Chartered Association of Certified Accountants. Maureen T.A. Jones – Managing Director Maureen T.A. Jones oversees all of the Company’s business and is responsible for formulating the Company’s objectives and strategy. Experience Maureen T.A. Jones joined Conroy Petroleum on its foundation in 1980 and was a Director and a member of the Board of Directors of Conroy Petroleum/ARCON from 1986 to 1994. Maureen T.A. Jones has a medical background and specialised in the radiographic aspects of nuclear medicine before becoming a manager of International Medical Corporation in 1977. Maureen T.A. Jones has over twenty years’ experience at senior level in the natural resource sector. She is Managing Director of Karelian Diamond Resources P.L.C. and was a founding Director of the Company. Maureen T.A. Jones brings a vast amount of managerial experience to the Board along with extensive experience of the exploration industry. Howard Bird – Non-executive Director Howard Bird brings a broad range of knowledge gained through holding senior positions in a variety of different roles in the natural resources sector. He was appointed to the Board on 17 September 2019. Experience Howard Bird is an internationally experienced Professional Geoscientist (diamonds, gold, platinum and base metals) and has over 30 years’ diverse junior and senior mining company exploration, development and mining experience, including over 15 years at senior executive management level. Howard has extensive worldwide experience and was involved in programmes that have led to the discovery of over 100 kimberlites, working in Canada, Australia, Brazil, South Africa, Angola, Zimbabwe, Democratic Republic of Congo, Botswana and Gabon. Dr. Sorċa Conroy – Non-executive Director Dr. Sorċa Conroy brings a broad range of knowledge to bear on the Company through her capital markets experience and her experience in the natural resources sector. Experience Dr. Sorċa Conroy was recruited to ING Bank in 2006 and whilst there was ranked second in the Extel Survey for Biotechnology Specialist Sales. Dr. Sorċa Conroy had previously worked in specialist sales for life sciences and institutional equities at Canaccord Adams (2005-2006; where she ranked fourth in the 2006 Extel survey) and Hoodless Brennan (2004-2005). A medical graduate of The Royal College of Surgeons in Ireland, Dr. Sorċa Conroy held a number of clinical positions between her graduation in 1995 and joining Hoodless Brennan and is a director of Conroy Gold and Natural Resources P.L.C. for over 10 years. Séamus P. FitzPatrick – Non-executive Director Séamus FitzPatrick has significant corporate governance and capital markets experience and brings this knowledge to the board. He is the Chairman of the Company’s audit and remuneration committees. Experience Mr FitzPatrick is the Managing Partner and a co-founder of CapVest, a private equity firm, established in London in 1999. Mr FitzPatrick has recently been actively involved in fund raising for CapVest III, IV and V, and on various substantial co-investor entities. He was formerly Chairman of Mater Private, Youngs Bluecrest, FoodVest, Vaasan & Vaasan and Valeo Foods, and was a director of RenoNorden, Scandi Standard, Curium and the 850 Food Group. He is currently a director of Kerridge Commercial Systems. Prior to co-founding CapVest, Mr FitzPatrick worked in investment banking and private equity with Morgan Stanley, Chase, and Bankers Trust, in both London and New York. Mr FitzPatrick holds an honours degree in English and Psychology from Trinity. 10 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Directors' Report dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƐƵďŵŝƚƚŚĞŝƌĂŶŶƵĂůƌĞƉŽƌƚƚŽŐĞƚŚĞƌǁŝƚŚƚŚĞĂƵĚŝƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨ<ĂƌĞůŝĂŶŝĂŵŽŶĚ Resources P.L.C. (the “Company”) for the financial year ended 31 May 20Ϯϰ͘ WƌŝŶĐŝƉĂůĂĐƚŝǀŝƚŝĞƐ͕ďƵƐŝŶĞƐƐƌĞǀŝĞǁĂŶĚĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚƐ Information with respect to the Company’s ƉƌŝŶĐŝƉĂůĂĐƚŝǀŝƚŝĞƐĂŶĚƚŚĞƌĞǀŝĞǁŽĨƚŚĞďƵƐŝŶĞƐƐĂŶĚĨƵƚƵƌĞĚĞǀĞůŽƉŵĞŶƚƐ as required by Section 327 of the Companies Act 2014 is contained in the Chairman’s ƐƚĂƚĞŵĞŶƚŽŶƉĂŐĞƐϯƚŽϰ͘dŚĞ ŽŵƉĂŶLJŝƐĂŵŝŶĞƌĂůĞdžƉůŽƌĂƚŝŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚĐŽŵƉĂŶLJǁŚŽƐĞŽďũĞĐƚŝǀĞĂŶĚƐƚƌĂƚĞŐLJŝƐƚŽĚŝƐĐŽǀĞƌĂŶĚĚĞǀĞůŽƉ ǁŽƌůĚĐůĂƐƐĚŝĂŵŽŶĚƉƌŽũĞĐƚƐŝŶƉŽůŝƚŝĐĂůůLJƐƚĂďůĞĂŶĚŐĞŽŐƌĂƉŚŝĐĂůůLJĂƚƚƌĂĐƚŝǀĞĐŽƵŶƚƌŝĞƐƐƵĐŚĂƐ&ŝŶůĂŶĚĂŶĚ/ƌĞůĂŶĚŝŶ ŽƌĚĞƌƚŽĐƌĞĂƚĞǀĂůƵĞĨŽƌƐŚĂƌĞŚŽůĚĞƌƐ͘ƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͕ƚŚĞƉƌŝŶĐŝƉĂůĨŽĐƵƐŽĨŵĂŶĂŐĞŵĞŶƚǁĂƐ ƚŽĐŽŶƚŝŶƵĞƚŽĚĞǀĞůŽƉƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞŽŵƉĂŶLJ͕ĐŽŶĐĞŶƚƌĂƚŝŶŐƉĂƌƚŝĐƵůĂƌůLJŽŶĚŝĂŵŽŶĚĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶ͘ dŚĞĐŚĂůůĞŶŐĞƐĨĂĐŝŶŐƚŚĞŽŵƉĂŶLJŝŶĂĐŚŝĞǀŝŶŐƚŚŝƐƐƚƌĂƚĞŐLJĂƌĞǁŽƌůĚĐŽŵŵŽĚŝƚLJƉƌŝĐĞƐĂŶĚŐĞŶĞƌĂůĞĐŽŶŽŵŝĐĂĐƚŝǀŝƚLJ͕ ĞŶƐƵƌŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ŐŽǀĞƌŶŵĞŶƚĂů ĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂů ůĞŐŝƐůĂƚŝŽŶ ĂŶĚ ŵĞĞƚŝŶŐ ǁŽƌŬ ĐŽŵŵŝƚŵĞŶƚƐ ƵŶĚĞƌ ĞdžƉůŽƌĂƚŝŽŶƉĞƌŵŝƚƐĂŶĚůŝĐĞŶĐĞƐƐƵĨĨŝĐŝĞŶƚƚŽŵĂŝŶƚĂŝŶƚŚe Company’s interest therein. dŽĂĐĐŽŵƉůŝƐŚŝƚƐƐƚƌĂƚĞŐLJĂŶĚ ŵĂŶĂŐĞ ƚŚĞ ĐŚĂůůĞŶŐĞƐ ŝŶǀŽůǀĞĚ͕ ƚŚĞ ŽŵƉĂŶLJ ĞŵƉůŽLJƐ ĞdžƉĞƌŝĞŶĐĞĚ ŝŶĚŝǀŝĚƵĂůƐ ǁŝƚŚ Ă ƚƌĂĐŬ ƌĞĐŽƌĚ ŽĨ ƐƵĐĐĞƐƐ ŽĨ ĚŝƐĐŽǀĞƌŝŶŐǁŽƌůĚĐůĂƐƐŽƌĞďŽĚŝĞƐƚŽŐĞƚŚĞƌǁŝƚŚƐƵŝƚĂďůLJƋƵĂůŝĨŝĞĚƚĞĐŚŶŝĐĂůƉĞƌƐŽŶŶĞůĂŶĚĐŽŶƐƵůƚĂŶƚƐ͕ĞdžƉĞƌŝĞŶĐĞĚ ĚƌŝůůŝŶŐĂŶĚŐĞŽƉŚLJƐŝĐĂůĂŶĚŽƚŚĞƌĐŽŶƚƌĂĐƚŽƌƐĂŶĚƵƐĞƐĂĐĐƌĞĚŝƚĞĚŝŶƚĞƌŶĂƚŝŽŶĂůůĂďŽƌĂƚŽƌŝĞƐĂŶĚƚĞĐŚŶŽůŽŐLJƚŽŝŶƚĞƌƉƌĞƚ ĂŶĚĂƐƐĂLJƚĞĐŚŶŝĐĂůƌĞƐƵůƚƐ͘ĚĚŝƚŝŽŶĂůůLJ͕ƚŚĞŽŵƉĂŶLJĞŶƐƵƌĞƐĂƐĨĂƌĂƐƉŽƐƐŝďůĞƚŽŽďƚĂŝŶĂĚĞƋƵĂƚĞǁŽƌŬŝŶŐĐĂƉŝƚĂůƚŽ ĐĂƌƌLJŽƵƚŝƚƐǁŽƌŬŽďůŝŐĂƚŝŽŶƐĂŶĚĐŽŵŵŝƚŵĞŶƚƐ͘WůĞĂƐĞƌĞĨĞƌƚŽƚŚĞƐĞĐƚŝŽŶŽŶƌŝƐŬƐĂŶĚƵŶĐĞƌƚĂŝŶƚŝĞƐŽŶƉĂŐĞƐϭϲĂŶĚ ϭϳĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ LJĐŽͲŽƌĚŝŶĂƚŝŶŐĂůůŽĨƚŚĞĂďŽǀĞ͕ƚŚŝƐƐŚŽƵůĚƌĞƐƵůƚŝŶĂƐĂƚŝƐĨĂĐƚŽƌLJƌĞƚƵƌŶĂŶĚǀĂůƵĞĨŽƌƐŚĂƌĞŚŽůĚĞƌƐ͘ ZĞƐƵůƚƐĨŽƌƚŚĞLJĞĂƌĂŶĚƐƚĂƚĞŽĨĂĨĨĂŝƌƐĂƚϯϭDĂLJϮϬϮϰ dŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰĂŶĚƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂƚƚŚĂƚ ĚĂƚĞĂƌĞƐĞƚŽƵƚŽŶƉĂŐĞƐϮϳĂŶĚϮϵƌĞƐƉĞĐƚŝǀĞůLJ͘dŚĞůŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůyear amounted to €Ϯϯϳ͕ϭϲϬ;ϯϭDĂLJϮϬϮϯ͗ ůŽƐƐŽĨ€291,467ͿĂŶĚŶĞƚĂƐƐĞƚƐĂƚϯϭDĂLJϮϬϮϰǁĞƌĞ€ϵ͕ϳϰϭ͕ϲϬϵ;ϯϭDĂLJϮϬϮϯ͗€ϵ͕ϳϴϲ͕ϬϳϰͿ͘EŽŝŶƚĞƌŝŵŽƌĨŝŶĂůĚŝǀŝĚĞŶĚƐ ŚĂǀĞďĞĞŶŽƌĂƌĞƌĞĐŽŵŵĞŶĚĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͘ dŚĞŽŵƉĂŶLJŚĂƐŶŽƚLJĞƚďƌŽƵŐŚƚĂŶLJŽĨŝƚƐĂƐƐĞƚƐŝŶƚŽƉƌŽĚƵĐƚŝŽŶĂŶĚĂĐĐŽƌĚŝŶŐůLJŚĂƐŶŽŝŶĐŽŵĞ͘ŽŶƐĞƋƵĞŶƚůLJ͕ƚŚĞ ŽŵƉĂŶLJŝƐŶŽƚĞdžƉĞĐƚĞĚƚŽƌĞƉŽƌƚŵĂƚĞƌŝĂůƉƌŽĨŝƚƐƵŶƚŝůŝƚĚŝƐƉŽƐĞƐŽĨŽƌŝƐĂďůĞƚŽƉƌŽĨŝƚĂďůLJĚĞǀĞůŽƉŽƌŽƚŚĞƌǁŝƐĞƚƵƌŶ ƚŽĂĐĐŽƵŶƚŝƚƐĞdžƉůŽƌĂƚŝŽŶƉƌŽũĞĐƚƐ͘dŚĞŝƌĞĐƚŽƌƐŵŽŶŝƚŽƌƚŚĞĂĐƚŝǀŝƚŝĞƐĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽŵƉĂŶLJŽŶĂƌĞŐƵůĂƌ ďĂƐŝƐĂŶĚƵƐĞƐďŽƚŚĨŝŶĂŶĐŝĂůĂŶĚŶŽŶͲĨŝŶĂŶĐŝĂůŝŶĚŝĐĂƚŽƌƐto assess the Company’s performance.ƵƌŝŶŐƚŚĞLJĞĂƌ͕ƚŚĞ ŽŵƉĂŶLJƌĂŝƐĞĚάϮϱϬ͕ϬϬϬďĞĨŽƌĞĞdžƉĞŶƐĞƐĨƌŽŵĂŶŝƐƐƵĞŽĨŶĞǁŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚĂƉƌŝĐĞŽĨάϬ͘ϬϮϱƉĞƌƐŚĂƌĞ͘dŚĞ ǁĂƌƌĂŶƚƐŝƐƐƵĞĚĂƐƉĂƌƚŽĨƚŚŝƐĨƵŶĚƌĂŝƐĞĐƌĞĂƚĞĚĂŶŽŶͲĐĂƐŚůŝĂďŝůŝƚLJŽĨ€108,510ǁŚŝĐŚǁĂƐĚĞĚƵĐƚĞĚĨƌŽŵƐŚĂƌĞƉƌĞŵŝƵŵ ĂƐĂƐŚĂƌĞŝƐƐƵĞĐŽƐƚ͘ /ŵƉŽƌƚĂŶƚĞǀĞŶƚƐƐŝŶĐĞƚŚĞLJĞĂƌͲĞŶĚ WŽƐƚLJĞĂƌĞŶĚƚŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚƚŚĂƚĂŶĂƐƐĞƐƐŵĞŶƚƉƌĞƉĂƌĞĚďLJĂŶŝŶĚĞƉĞŶĚĞŶƚŐĞŽůŽŐŝĐĂůĐŽŶƐƵůƚĂŶƚĐŽŶĨŝƌŵƐ ƚŚĞƉŽƚĞŶƚŝĂůĨŽƌEŝĐŬĞů͕ŽƉƉĞƌĂŶĚWůĂƚŝŶƵŵͲGroup Elements, in the Company’s licence areas in Northern Ireland. A series of targets within the Company’s licence area in Northern Ireland were identified during the course of ƚŚŝƐƌĞǀŝĞǁ ĂŶĚƌĞĐŽŵŵĞŶĚĞĚĨŽƌĨŽůůŽǁƵƉ͘ dŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚŽŶϭϯƚŚƵŐƵƐƚϮϬϮϰƚŚĂƚŝƚŚĂĚƌĞĐĞŝǀĞĚƚŚĞĚĞĐŝƐŝŽŶŽĨƚŚĞ&ŝŶŶŝƐŚ>ĂŶĚŽƵƌƚǁŚŝĐŚďƌŽƵŐŚƚ ĨŝŶĂůŝƐĂƚŝŽŶƚŽƚŚĞĞƐƚĂďůŝƐŚŵĞŶƚŽĨƚŚĞŵŝŶĞďŽƵŶĚĂƌŝĞƐĂƚ>ĂŚƚŽũŽŬŝ͕ǁŝƚŚŶŽĐŚĂŶŐĞĞŶƐƵŝŶŐ͘/ƚĨƵƌƚŚĞƌĂŶŶŽƵŶĐĞĚƚŚĂƚ ŝŶƌĞŐĂƌĚƚŽƚŚĞĂŵŽƵŶƚŽĨĐŽŵƉĞŶƐĂƚŝŽŶƉĂLJĂďůĞƚŽƚŚĞƚǁŽĂƉƉĞůůĂŶƚůĂŶĚŽǁŶĞƌƐ͕ƚŚĞŵĂũŽƌŝƚLJŽĨƚŚĞŝƚĞŵƐƵƉŽŶǁŚŝĐŚ ƚŚĞLJďĂƐĞĚƚŚĞŝƌĐůĂŝŵƐǁĞƌĞƌĞũĞĐƚĞĚďLJƚŚĞ&ŝŶŶŝƐŚ>ĂŶĚŽƵƌƚĞdžĐĞƉƚĨŽƌƚŚƌĞĞŝƚĞŵƐǁŚŝĐŚǁĞƌĞƌĞĨĞƌƌĞĚďĂĐŬƚŽƚŚĞ EĂƚŝŽŶĂů>ĂŶĚ^ƵƌǀĞLJƚŽƌĞǀŝĞǁ͘The appellants were also required to contribute to the Company’s legal costs. On 18th KĐƚŽďĞƌϮϬϮϰ͕ƚŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚƚŚĂƚƚŚĞƐŝdžƚLJͲĚĂLJĂƉƉĞĂůƉĞƌŝŽĚƚŽƚŚŝƐĚĞĐŝƐŝŽŶŚĂĚŶŽǁƉĂƐƐĞĚĂŶĚƚŚĂƚĂƐ ƐƵĐŚ͕ƚŚĞĚĞĐŝƐŝŽŶŶŽǁŚĂĚŐĂŝŶĞĚůĞŐĂůĨŽƌĐĞ͘ 11 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc /ŵƉŽƌƚĂŶƚĞǀĞŶƚƐƐŝŶĐĞƚŚĞLJĞĂƌͲĞŶĚ;ĐŽŶƚŝŶƵĞĚͿ dŚĞŽŵƉĂŶLJĂůƐŽƌĂŝƐĞĚĨƵŶĚƐŽĨ€386,761;άϯϮϴ͕ϳϰϳͿŝŶ:ƵůLJϮϬϮϰ;ŝŶĐůƵĚŝŶŐ€64,408 (άϱϰ͕ϳϰϳͿĨƌŽŵŽĂƌĚŵĞŵďĞƌƐͿ ǁŝƚŚĂǀŝĞǁƚŽĐĂƌƌLJŝŶŐŽƵƚĨŽůůŽǁƵƉĞdžƉůŽƌĂƚŝŽŶŝŶEŽƌƚŚĞƌŶ/ƌĞůĂŶĚĂŶĚƚŽĐŽŶƚŝŶƵĞŝƚƐŽŶŐŽŝŶŐǁŽƌŬŝŶ&ŝŶůĂŶĚ͘ƐƉĂƌƚ ŽĨƚŚŝƐƚƌĂŶƐĂĐƚŝŽŶĂĨƵƌƚŚĞƌ€29,709 (£25,253) of amounts owing by the company were also converted into equity. dŚĞƌĞǁĞƌĞŶŽĨƵƌƚŚĞƌŝŵƉŽƌƚĂŶƚĞǀĞŶƚƐƚŽŶŽƚĞƉŽƐƚLJĞĂƌĞŶĚ͘ ŝƌĞĐƚŽƌƐ dŚĞĚŝƌĞĐƚŽƌƐ͕ǁŚŽƐĞƌǀĞĚĂƚĂŶLJƚŝŵĞĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͕ǁĞƌĞĂƐĨŽůůŽǁƐ͗ WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ^ĠĂŵƵƐW͘&ŝƚnjƉĂƚƌŝĐŬ DĂƵƌĞĞŶd͘:ŽŶĞƐ ƌ͘Sorċa Conroy ƌĞŶĚĂŶDĐDŽƌƌŽǁ ,ŽǁĂƌĚŝƌĚ džĐĞƉƚĂƐĚŝƐĐůŽƐĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐƚĂďůĞƐ͕ŶĞŝƚŚĞƌƚŚĞŝƌĞĐƚŽƌƐŶŽƌƚŚĞŝƌĨĂŵŝůŝĞƐŚĂĚĂŶLJďĞŶĞĨŝĐŝĂůŝŶƚĞƌĞƐƚŝŶƚŚĞƐŚĂƌĞ ĐĂƉŝƚĂůŽĨƚŚĞŽŵƉĂŶLJ͘ƉĂƌƚĨƌŽŵDirectors’ remuneration (detailed in Note 2 and Note 4), there here have been no ĐŽŶƚƌĂĐƚƐŽƌĂƌƌĂŶŐĞŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝŶǁŚŝĐŚĂŝƌĞĐƚŽƌŽĨƚŚĞŽŵƉĂŶLJŚĂĚĂŵĂƚĞƌŝĂů ŝŶƚĞƌĞƐƚ͘ZĞĨĞƌƚŽEŽƚĞϭϰĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ ŽŵƉĂŶLJƐĞĐƌĞƚĂƌLJ DĂƵƌĞĞŶd͘͘:ŽŶĞƐƐĞƌǀĞĚĂƐŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJƚŚƌŽƵŐŚƚŚĞĨŝƌƐƚƉĂƌƚŽĨƚŚĞLJĞĂƌĂŶĚƌĞƐŝŐŶĞĚŽŶϮϮEŽǀĞŵďĞƌϮϬϮϯ͘ ĂƚŚĂů:ŽŶĞƐǁĂƐĂƉƉŽŝŶƚĞĚĂƐŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJŽŶƚŚĂƚĚĂƚĞ͘ Directors’ shareholdings and other interests dŚĞŝŶƚĞƌĞƐƚƐŽĨƚŚĞŝƌĞĐƚŽƌƐĂŶĚƚŚĞŝƌĐŽŶŶĞĐƚĞĚƉĞƌƐŽŶƐŝŶƚŚĞƐŚĂƌĞĐĂƉŝƚĂůŽĨƚŚĞŽŵƉĂŶLJǁĞƌĞĂƐĨŽůůŽǁƐ͗ ŝƌĞĐƚŽƌ ĂƚĞŽĨƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƚĞŽĨ ƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϰ Ϭϭ:ƵŶĞϮϬϮϯ Ϭϭ:ƵŶĞϮϬϮϯ KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €0.00025 each tĂƌƌĂŶƚƐ KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €Ϭ͘ϬϬϬϮϱĞĂĐŚ tĂƌƌĂŶƚƐ KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €0.00025ĞĂĐŚ tĂƌƌĂŶƚƐ WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ϭϱ͕ϭϲϯ͕ϵϭϮ ϯ͕ϰϱϬ͕ϬϬϬ ϭϮ͕Ϯϲϯ͕ϵϭϮΎ Ϯ͕ϬϬϬ͕ϬϬϬ ϭϬ͕Ϯϲϯ͕ϵϭϮ ϭ͕ϴϱϬ͕ϬϬϬ ƌ^ŽƌĐĂŽŶƌŽLJ ϯ͕ϴϵϮ͕ϵϴϭ Ϯ͕ϯϳϰ͕ϵϬϴ ϯ͕ϭϰϯ͕ϭϲϱ Ϯ͕ϬϬϬ͕ϬϬϬ ϭ͕ϭϮϵ͕ϵϭϭ Ͳ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ϳϴϵ͕ϵϵϬ Ͳ ϳϴϵ͕ϵϵϬ Ͳ ϳϴϵ͕ϵϵϬ ϭϱϬ͕ϬϬϬ ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ ϰϴϭ͕ϯϰϭ Ͳ ϰϴϭ͕ϯϰϭ Ͳ ϰϴϭ͕ϯϰϭ Ͳ ƌĞŶĚĂŶDĐDŽƌƌŽǁ Ϯϴϱ͕ϬϬϬ Ͳ Ϯϴϱ͕ϬϬϬ Ͳ Ϯϴϱ͕ϬϬϬ Ͳ ΎKĨƚŚĞϭϮ͕Ϯϲϯ͕ϵϭϮ;ϯϭDĂLJϮϬϮϯ͗ϭϬ͕Ϯϲϯ͕ϵϭϮͿŽƌĚŝŶĂƌLJƐŚĂƌĞƐďĞŶĞĨŝĐŝĂůůLJŚĞůĚďLJWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJĂƚϯϭDĂLJϮϬϮϰ͕ϭ͕ϮϯϮ͕ϲϬϭ;Ϭϭ:ƵŶĞϮϬϮϯ͗ ϭ͕ϮϯϮ͕ϲϬϭͿĂƌĞŚĞůĚďLJŽŶƌŽLJW͘>͕͘͘ĂĐŽŵƉĂŶLJŝŶǁŚŝĐŚWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJŚĂƐĂĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚ͘ ĞƚĂŝůƐŽĨǁĂƌƌĂŶƚƐ͕ĂƌĞĂƐĨŽůůŽǁƐ͗ ŝƌĞĐƚŽƌ ĂƚĞŽĨ ƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƚĞŽĨ ƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϰ Ϭϭ:ƵŶĞ ϮϬϮϯ Ϭϭ:ƵŶĞ ϮϬϮϯ džƉŝƌLJĂƚĞ tĂƌƌĂŶƚƐ WƌŝĐĞά tĂƌƌĂŶƚƐ WƌŝĐĞά tĂƌƌĂŶƚƐ WƌŝĐĞά WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ Ͳ Ͳ Ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘Ϭϰ Ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘Ϭϰ ϮϳKĐƚŽďĞƌϮϬϮϰ ƌ^ŽƌĐĂŽŶƌŽLJ Ͳ Ͳ Ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘Ϭϰ Ϯ͕ϬϬϬ͕ϬϬϬ Ϭ͘Ϭϰ ϮϳKĐƚŽďĞƌϮϬϮϰ WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ϭ͕ϰϱϬ͕ϬϬϬ Ϭ͘Ϭϯ Ͳ Ͳ Ͳ Ͳ Ϭϱ:ƵůLJϮϬϮϱ ƌ^ŽƌĐĂŽŶƌŽLJ ϯϳϰ͕ϵϬϴ Ϭ͘Ϭϯ Ͳ Ͳ Ͳ Ͳ Ϭϱ:ƵůLJϮϬϮϱ ƵƌŝŶŐƚŚĞLJĞĂƌ͕Ϯ͕ϬϬϬ͕ϬϬϬǁĂƌƌĂŶƚƐŚĞůĚďLJƚŚĞĚŝƌĞĐƚŽƌƐĞdžĞƌĐŝƐĂďůĞĂƚάϬ͘ϬϴƉĞƌƐŚĂƌĞůĂƉƐĞĚŽŶϵĞĐĞŵďĞƌϮϬϮϯ͘ 12 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ^ƵďƐƚĂŶƚŝĂůƐŚĂƌĞŚŽůĚŝŶŐƐ ^ŽĨĂƌĂƐƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂƌĞĂǁĂƌĞ͕ŶŽƉĞƌƐŽŶŽƌĐŽŵƉĂŶLJ͕ŽƚŚĞƌƚŚĂŶƚŚĞƐŚĂƌĞŚŽůĚĞƌƐůŝƐƚĞĚďĞůŽǁ͕ŚĞůĚϯйŽƌŵŽƌĞ ŽĨƚŚĞŝƐƐƵĞĚŽƌĚŝŶĂƌLJƐŚĂƌĞĐĂƉŝƚĂůŽĨƚŚĞŽŵƉĂŶLJ͘ ^ŚĂƌĞŚŽůĚĞƌ ĂƚĞŽĨƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĂƚĞŽĨ ƐŝŐŶŝŶŐ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϰ Ϭϭ:ƵŶĞ ϮϬϮϯ Ϭϭ:ƵŶĞ ϮϬϮϯ KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €0.00025 each й KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €0.00025 each й KƌĚŝŶĂƌLJ^ŚĂƌĞƐ of €0.0ϬϬϮϱĞĂĐŚ й WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJΎ ϭϱ͕ϭϲϯ͕ϵϭϮ ϭϭ͘ϳϴй ϭϮ͕Ϯϲϯ͕ϵϭϮΎ ϭϭ͘ϲϳй ϭϬ͕Ϯϲϯ͕ϵϭϮ ϭϬ͘ϴϲй ĂǀŝĚ:ŽŚŶEĂLJůŽƌ ϵ͕Ϭϴϴ͕Ϭϱϲ ϳ͘Ϭϲй ϱ͕ϯϱϱ͕Ϭϱϳ ϱ͘ϭϬй Ͳ Ͳ Dƌ͘^ƚĞǀĞŶŽŽŵďĞƌ ϴ͕ϴϭϯ͕Ϯϲϯ ϲ͘ϴϱй ϳ͕ϱϬϬ͕ϬϬϬ ϳ͘ϭϰй ϳ͕ϲϭϯ͕ϭϭϲ ϴ͘Ϭϲй &ƌĞĚƌŝŬũƂƌŶďĞƌŐ ϲ͕ϰϱϬ͕ϬϬϬ ϱ͘Ϭϭй ϲ͕ϰϱϬ͕ϬϬϬ ϲ͘ϭϰй ϲ͕ϰϱϬ͕ϬϬϬ ϲ͘ϴϯй Dƌ͘<ĞǀŝŶdĂLJůŽƌ ϲ͕ϬϬϬ͕ϬϬϬ ϰ͘ϲϲй ϲ͕ϵϯϲ͕ϯϱϲ ϲ͘ϲϬй ϲ͕ϬϬϬ͕ϬϬϬ ϲ͘ϯϱй ŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂů ZĞƐŽƵƌĐĞƐƉůĐ ϱ͕ϬϬϬ͕ϬϬϬ ϯ͘ϴϵй ϱ͕ϬϬϬ͕ϬϬϬ ϰ͘ϳϲй ϱ͕ϬϬϬ͕ϬϬϬ ϱ͘Ϯϵй DĂƌƚĞůůŽ,ŽůĚŝŶŐƐ>ŝŵŝƚĞĚ ϰ͕ϭϳϴ͕ϱϳϭ ϯ͘Ϯϱй ϰ͕ϭϳϴ͕ϱϳϭ ϯ͘ϵϴй ϰ͕ϭϳϴ͕ϱϳϭ ϰ͘ϰϮй ƌ^ŽƌĐĂŽŶƌŽLJ ϯ͕ϴϵϮ͕ϵϴϭ ϯ͘Ϭϯй ϯ͕ϭϰϯ͕ϭϲϱ ϯ͘ϯϯй ϭ͕ϭϮϵ͕ϵϭϭ ϭ͘ϮϬй ΎKĨƚŚĞϭϮ͕Ϯϲϯ͕ϵϭϮ;ϯϭDĂLJϮϬϮϯ͗ϭϬ͕Ϯϲϯ͕ϵϭϮͿŽƌĚŝŶĂƌLJƐŚĂƌĞƐďĞŶĞĨŝĐŝĂůůLJŚĞůĚďLJWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJĂƚϯϭDĂLJϮϬϮϰ͕ϭ͕ϮϯϮ͕ϲϬϭ;Ϭϭ:ƵŶĞϮϬϮϯ͗ ϭ͕ϮϯϮ͕ϲϬϭͿĂƌĞŚĞůĚďLJŽŶƌŽLJW͘>͕͘͘ĂĐŽŵƉĂŶLJŝŶǁŚŝĐŚWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJŚĂƐĂĐŽŶƚƌŽůůŝŶŐŝŶƚĞƌĞƐƚ͘ ŽŵƉůŝĂŶĐĞƉŽůŝĐLJƐƚĂƚĞŵĞŶƚŽĨ<ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ dŚĞŝƌĞĐƚŽƌƐ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞĐƚŝŽŶϮϮϱ;ϮͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͕ĂĐŬŶŽǁůĞĚŐĞƚŚĂƚƚŚĞLJĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌ securing the Company’s compliance with ĐĞƌƚĂŝŶ ŽďůŝŐĂƚŝŽŶƐ ƐƉĞĐŝĨŝĞĚ ŝŶ ƚŚĂƚ ƐĞĐƚŝŽŶ ;‘ƌĞůĞǀĂŶƚ ŽďůŝŐĂƚŝŽŶƐ’Ϳ͘ dŚĞ ŝƌĞĐƚŽƌƐĐŽŶĨŝƌŵƚŚĂƚ͗ • a compliance policy statement has been drawn up setting out the Company’s policies that in their opinion are ĂƉƉƌŽƉƌŝĂƚĞǁŝƚŚƌĞŐĂƌĚƚŽĐŽŵƉůŝĂŶĐĞǁŝƚŚƌĞůĞǀĂŶƚŽďůŝŐĂƚŝŽŶƐ͖ • ĂƉƉƌŽƉƌŝĂƚĞĂƌƌĂŶŐĞŵĞŶƚƐĂŶĚƐƚƌƵĐƚƵƌĞƐŚĂǀĞďĞĞŶƉƵƚŝŶƉůĂĐĞƚŚĂƚ͕ŝŶƚŚĞŝƌŽƉŝŶŝŽŶ͕ĂƌĞĚĞƐŝŐŶĞĚƚŽƉƌŽǀŝĚĞ ƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŽĨĐŽŵƉůŝĂŶĐĞŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐǁŝƚŚƚŚŽƐĞƌĞůĞǀĂŶƚŽďůŝŐĂƚŝŽŶƐ͖ĂŶĚ • ĂƌĞǀŝĞǁŚĂƐďĞĞŶĐŽŶĚƵĐƚĞĚ͕ĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͕ŽĨƚŚŽƐĞĂƌƌĂŶŐĞŵĞŶƚƐĂŶĚƐƚƌƵĐƚƵƌĞƐ͘ /ƚŝƐƚŚĞƉŽůŝĐLJŽĨƚŚĞŽŵƉĂŶLJƚŽƌĞǀŝĞǁĚƵƌŝŶŐƚŚĞĐŽƵƌƐĞŽĨĞĂĐŚĨŝŶĂŶĐŝĂůLJĞĂƌƚŚĞĂƌƌĂŶŐĞŵĞŶƚƐĂŶĚƐƚƌƵĐƚƵƌĞƐ ƌĞĨĞƌƌĞĚƚŽĂďŽǀĞǁŚŝĐŚŚĂǀĞďĞĞŶŝŵƉůĞŵĞŶƚĞĚǁŝƚŚĂǀŝĞǁƚŽĚĞƚĞƌŵŝŶŝŶŐŝĨƚŚĞLJƉƌŽǀŝĚĞĂƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŽĨ ĐŽŵƉůŝĂŶĐĞŝŶĂůůŵĂƚĞƌŝĂůƌĞƐƉĞĐƚƐǁŝƚŚƌĞůĞǀĂŶƚŽďůŝŐĂƚŝŽŶƐ͘ Statement of Directors’ responsibilities in respect of the financial statements dŚĞ ŝƌĞĐƚŽƌƐ ĂƌĞ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ ƉƌĞƉĂƌŝŶŐ ƚŚĞ ĂŶŶƵĂů ƌĞƉŽƌƚ͕ including the Directors’ Report ĂŶĚ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰĂŶĚƚŚĞĂƉƉůŝĐĂďůĞƌĞŐƵůĂƚŝŽŶƐ͘/ƌŝƐŚŽŵƉĂŶLJůĂǁƌĞƋƵŝƌĞƐƚŚĞ ŝƌĞĐƚŽƌƐ ƚŽ ƉƌĞƉĂƌĞĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ĨŽƌ ĞĂĐŚ ĨŝŶĂŶĐŝĂů LJĞĂƌ͘hŶĚĞƌ ƚŚĂƚůĂǁ͕ ƚŚĞLJ ŚĂǀĞ ĞůĞĐƚĞĚ ƚŽ ƉƌĞƉĂƌĞ ƚŚĞ Company’s financial statements in accordance with International Financial Reporting Standards (“IFRS”) as adopted by ƚŚĞ hĂŶĚĂƉƉůŝĐĂďůĞůĂǁ͘ hŶĚĞƌĐŽŵƉĂŶLJůĂǁ͕ƚŚĞŝƌĞĐƚŽƌƐŵƵƐƚŶŽƚĂƉƉƌŽǀĞƚŚĞŽŵƉĂŶLJĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƵŶůĞƐƐƚŚĞLJĂƌĞƐĂƚŝƐĨŝĞĚƚŚĂƚ they give a true and fair view of the assets, liabilities and financial position of the Company and of the Company’s profit Žƌ ůŽƐƐ ĨŽƌ ƚŚĂƚ LJĞĂƌ ĂŶĚ ŽƚŚĞƌǁŝƐĞ ĐŽŵƉůLJ ǁŝƚŚ ƚŚĞ ŽŵƉĂŶŝĞƐ Đƚ ϮϬϭϰ͘ /Ŷ ƉƌĞƉĂƌŝŶŐ ƚŚĞ ŽŵƉĂŶLJ’s ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ƚŚĞŝƌĞĐƚŽƌƐĂƌĞƌĞƋƵŝƌĞĚƚŽ͗ • ƐĞůĞĐƚƐƵŝƚĂďůĞĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐĨŽƌƚŚĞŽŵƉĂŶLJ’sĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚƚŚĞŶĂƉƉůLJƚŚĞŵĐŽŶƐŝƐƚĞŶƚůLJ͖ • ŵĂŬĞũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐƚŚĂƚĂƌĞƌĞĂƐŽŶĂďůĞĂŶĚƉƌƵĚĞŶƚ͖ • ƐƚĂƚĞ ǁŚĞƚŚĞƌ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŚĂǀĞ ďĞĞŶ ƉƌĞƉĂƌĞĚ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ĂƉƉůŝĐĂďůĞ ĂĐĐŽƵŶƚŝŶŐ ƐƚĂŶĚĂƌĚƐ͕ŝĚĞŶƚŝĨLJƚŚŽƐĞƐƚĂŶĚĂƌĚƐ͕ĂŶĚŶŽƚĞƚŚĞĞĨĨĞĐƚĂŶĚƚŚĞƌĞĂƐŽŶĨŽƌĂŶLJŵĂƚĞƌŝĂůĚĞƉĂƌƚƵƌĞĨƌŽŵƚŚĞƐĞ ƐƚĂŶĚĂƌĚƐ͖ĂŶĚ • ƉƌĞƉĂƌĞ ƚŚĞ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ŽŶ ƚŚĞ ŐŽŝŶŐ ĐŽŶĐĞƌŶ ďĂƐŝƐ ƵŶůĞƐƐ ŝƚŝƐ ŝŶĂƉƉƌŽƉƌŝĂƚĞ ƚŽ ƉƌĞƐƵŵĞ ƚŚĂƚ ƚŚĞ ŽŵƉĂŶLJǁŝůůĐŽŶƚŝŶƵĞŝŶďƵƐŝŶĞƐƐ͘ Directors' Report [continued] 13 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Statement of Directors’ responsibilities in respect of the financial statements ;ĐŽŶƚŝŶƵĞĚͿ dŚĞŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌŬĞĞƉŝŶŐĂĚĞƋƵĂƚĞĂĐĐŽƵŶƚŝŶŐƌĞĐŽƌĚƐǁŚŝĐŚĚŝƐĐůŽƐĞǁŝƚŚƌĞĂƐŽŶĂďůĞĂĐĐƵƌĂĐLJĂƚĂŶLJ ƚŝŵĞƚŚĞĂƐƐĞƚƐ͕ůŝĂďŝůŝƚŝĞƐ͕ĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĂŶĚƉƌŽĨŝƚŽƌůŽƐƐŽĨƚŚĞŽŵƉĂŶLJĂŶĚǁŚŝĐŚĞŶĂďůĞƚŚĞŵƚŽĞŶƐƵƌĞƚŚĂƚƚŚĞ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞƉƌĞƉĂƌĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƌĞůĞǀĂŶƚĂĐĐŽƵŶƚŝŶŐĨƌĂŵĞǁŽƌŬĂŶĚĐŽŵƉůLJ ǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͘dŚĞLJŚĂǀĞŐĞŶĞƌĂůƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌƚĂŬŝŶŐƐƵĐŚƐƚĞƉƐĂƐĂƌĞƌĞĂƐŽŶĂďůLJ ŽƉĞŶƚŽƚŚĞŵƚŽƐĂĨĞŐƵĂƌĚƚŚĞĂƐƐĞƚƐŽĨƚŚĞŽŵƉĂŶLJĂŶĚƚŽƉƌĞǀĞŶƚĂŶĚĚĞƚĞĐƚĨƌĂƵĚĂŶĚŽƚŚĞƌŝƌƌĞŐƵůĂƌŝƚŝĞƐ͘dŚĞ Directors are also responsible for preparing a Directors’ Report that complies with the requirements of the Companies ĐƚϮϬϭϰ͘ dŚĞŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞŵĂŝŶƚĞŶĂŶĐĞĂŶĚŝŶƚĞŐƌŝƚLJŽĨƚŚĞĐŽƌƉŽƌĂƚĞĂŶĚĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶŝŶĐůƵĚĞĚŽŶ the Company’s website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial ƐƚĂƚĞŵĞŶƚƐŵĂLJĚŝĨĨĞƌĨƌŽŵůĞŐŝƐůĂƚŝŽŶŝŶŽƚŚĞƌũƵƌŝƐĚŝĐƚŝŽŶƐ͘ 'ŽŝŶŐĐŽŶĐĞƌŶ /ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƚŚĞĚŝƌĞĐƚŽƌƐĐŽŶƐŝĚĞƌŝƚĂƉƉƌŽƉƌŝĂƚĞƚŽƵƐĞƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶĂƐƐƵŵƉƚŝŽŶ͕ǁŚŝĐŚ ĂƐƐƵŵĞƐƚŚĞĐŽŵƉĂŶLJǁŝůůŚĂǀĞƐƵĨĨŝĐŝĞŶƚƌĞƐŽƵƌĐĞƐƚŽĞŶĂďůĞŝƚƚŽŵĞĞƚŝƚƐůŝĂďŝůŝƚŝĞƐĂƐƚŚĞLJĨĂůůĚƵĞ͘dŚĞŽŵƉĂŶLJ ƌĞĐŽƌĚĞĚĂůŽƐƐŽĨ€Ϯϯϳ͕ϭϲϬ;ϯϭDĂLJϮϬϮϯ͗ůŽƐƐŽĨ€Ϯϵϭ͕ϰϲϳͿĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͘dŚĞŽŵƉĂŶLJŚĂĚ net assets of €ϵ͕ϳϰϭ͕ϲϬϵ;ϯϭDĂLJϮϬϮϯ͗€ϵ͕ϳϴϲ͕ϬϳϰͿĂƚƚŚĂƚĚĂƚĞ͘The Company had net current liabilities of €ϭ͕ϵϰϴ͕ϱϴϱ ;ϯϭDĂLJϮϬϮϯ͗€ϭ͕Ϯϰϭ͕ϬϰϲͿĂƚƚŚĂƚĚĂƚĞ͘The Company had cash and cash equivalents of €ϯϵ͕ϱϵϳ;ϯϭDĂLJϮϬϮϯ͗€ϭϭϲ͕ϬϯϴͿ ĂƚϯϭDĂLJϮϬϮϰ͘As set out in the Chairman’s statement, the Company expects to incur capital expenditure in 2024 and ϮϬϮϱ͕ĐŽŶƐŝƐƚĞŶƚǁŝƚŚŝƚƐƐƚƌĂƚĞŐLJĂƐĂŶĞdžƉůŽƌĂƚŝŽŶĐŽŵƉĂŶLJ͘ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂǀĞĐŽŶƐŝĚĞƌĞĚĐĂƌĞĨƵůůLJƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨƚŚĞŽŵƉĂŶLJĂŶĚŝŶƚŚĂƚĐŽŶƚĞdžƚ͕ŚĂǀĞƉƌĞƉĂƌĞĚ ĂŶĚƌĞǀŝĞǁĞĚĐĂƐŚĨůŽǁĨŽƌĞĐĂƐƚƐĨŽƌƚŚĞƉĞƌŝŽĚƚŽϯϬEŽǀĞŵďĞƌϮϬϮϱ͘dŚĞŝƌĞĐƚŽƌƐƌĞĐŽŐŶŝƐĞƚŚĂƚŶĞƚĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ of €1,ϵϰϴ͕ϱϴϱ(31 May 2023: €1,241,046) is a material uncertainty that may cast significant doubt on the Company’s ĂďŝůŝƚLJƚŽĐŽŶƚŝŶƵĞĂƐĂŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚ͕ƚŚĞƌĞĨŽƌĞ͕ƚŚĂƚŝƚŵĂLJďĞƵŶĂďůĞƚŽƌĞĂůŝƐĞŝƚƐĂƐƐĞƚƐĂŶĚĚŝƐĐŚĂƌŐĞŝƚƐůŝĂďŝůŝƚŝĞƐ ŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐ͘/ŶƚŚŝƐĐŽŶƚĞdžƚƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŶŽƚĞƚŚĂƚƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶŝƐŽŶƚŚĞďĂƐŝƐƚŚĂƚ ĂůůĚŝƌĞĐƚŽƌƐ͕ŶĂŵĞůLJƌĞŶĚĂŶDĐDŽƌƌŽǁ͕Maureen T.A. Jones, Dr. Sorċa Conroy, Howard Bird, ĂŶĚ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ͕ ĂŶĚ ĨŽƌŵĞƌ ŝƌĞĐƚŽƌƐ͕ ŶĂŵĞůLJ :ĂŵĞƐ W͘ :ŽŶĞƐ ĂŶĚ WƌŽĨĞƐƐŽƌ ZŝĐŚĂƌĚ ŽŶƌŽLJ ;ĂŶĚ ŚŝƐ ďĞŶĞĨŝĐŝĂƌŝĞƐͿ͕ ǁŝůů ŶŽƚ ƐĞĞŬ repayment of amounts owed to them by the Company of €ϭ͕ϰϳϲ͕ϵϳϬ;ϯϭDĂLJϮϬϮϯ: €1,291,969) for a minimum period ŽĨϭϮŵŽŶƚŚƐĨƌŽŵƚŚĞĚĂƚĞŽĨĂƉƉƌŽǀĂůŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƵŶůĞƐƐƚŚĞŽŵƉĂŶLJŚĂƐƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐƚŽƌĞƉĂLJ͘ ůůŽĨƚŚĞƐĞŝƌĞĐƚŽƌƐĂŶĚĨŽƌŵĞƌŝƌĞĐƚŽƌƐŚĂǀĞĐŽŶĨŝƌŵĞĚƚŚŝƐƚŽďĞƚŚĞĐĂƐĞ͘&ƵƌƚŚĞƌŵŽƌĞŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂů ZĞƐŽƵƌĐĞƐ ƉůĐ;ĂƌĞůĂƚĞĚ ĐŽŵƉĂŶLJ ǁŝƚŚ ǁŚŝĐŚ ŝƚ ŚĂƐ Ă ĐŽƐƚ ƐŚĂƌŝŶŐ ĂƌƌĂŶŐĞŵĞŶƚ ĂƐ ƐĞƚ ŽƵƚ ŝŶ ŶŽƚĞ ϭϰ ;ĂͿͿ ŚĂƐ ĂůƐŽ ĐŽŶĨŝƌŵĞĚƚŚĂƚŝƚǁŝůůŶŽƚƐĞĞŬƌĞƉĂLJŵĞŶƚŽĨĂŵŽƵŶƚƐŽǁĞĚƚŽŝƚĨŽƌĂƐŝŵŝůĂƌƉĞƌŝŽĚƵŶůĞƐƐƚŚĞŽŵƉĂŶLJŝƐŝŶĂƉŽƐŝƚŝŽŶ ƚŽƌĞƉĂLJ͘dŚĞĐĂƐŚĨůŽǁƐŝŶĐůƵĚĞƉůĂŶƐƚŽƌĂŝƐĞĨƵŶĚƐƚŽĐĂƌƌLJŽƵƚƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞĐŽŵƉĂŶLJĂŶĚƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ ĂƌĞĐŽŶĨŝĚĞŶƚƚŚĂƚĂĚĞƋƵĂƚĞĨƵŶĚƐĐĂŶďĞƌĂŝƐĞĚƚŚƌŽƵŐŚƐƚƌĂƚĞŐŝĐƉĂƌƚŶĞƌƐŚŝƉƐŽƌĚŝƌĞĐƚŵĂƌŬĞƚĨƵŶĚƌĂŝƐŝŶŐƚŽŵĞĞƚƚŚĞŝƌ ŽďũĞĐƚŝǀĞƐ͘dŽ ŵŝƚŝŐĂƚĞ ƚŚĞ ƌŝƐŬ ŽĨƚŚĞ ƚŝŵŝŶŐ ĂŶĚ ƐĐĂůĞŽĨ ŝŶǀĞƐƚŵĞŶƚ ŶŽƚ ďĞŝŶŐŵĞƚ͕ ƚŚĞŽĂƌĚ ĂŶĚŵĂŶĂŐĞŵĞŶƚ ĐŽŶƚŝŶƵĞƚŽƚĂŬĞĂĐƚŝŽŶƐƚŽŵŽŶŝƚŽƌĂŶĚŵĂŶĂŐĞƚŚĞĐŽƐƚďĂƐĞĂŶĚƉƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶƉůĂŶƐĂƐĂƉƉƌŽƉƌŝĂƚĞ͘ /Ŷ ƌĞǀŝĞǁŝŶŐ ƚŚĞ ƉƌŽƉŽƐĞĚ ǁŽƌŬ ƉƌŽŐƌĂŵŵĞ ĨŽƌ ĞdžƉůŽƌĂƚŝŽŶ ĂŶĚ ĞǀĂůƵĂƚŝŽŶ ĂƐƐĞƚƐ͕ ƚŚĞ ƌĞƐƵůƚƐ ŽďƚĂŝŶĞĚ ĨƌŽŵ ƚŚĞ ĞdžƉůŽƌĂƚŝŽŶƉƌŽŐƌĂŵŵĞ͕ƚŚĞƐƵƉƉŽƌƚŶŽƚĞĚĂďŽǀĞĨƌŽŵƚŚĞŽĂƌĚ;ĂŶĚƉĂƐƚŽĂƌĚŵĞŵďĞƌƐͿ͕ƚŚĞĨƵŶĚƐƌĂŝƐĞĚƉŽƐƚLJĞĂƌ ĞŶĚĂŶĚƚŚĞƉƌŽƐƉĞĐƚƐĨŽƌƌĂŝƐŝŶŐĂĚĚŝƚŝŽŶĂůĨƵŶĚƐĂƐƌĞƋƵŝƌĞĚ͕ƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂƌĞƐĂƚŝƐĨŝĞĚƚŚĂƚŝƚŝƐĂƉƉƌŽƉƌŝĂƚĞ ƚŽƉƌĞƉĂƌĞƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽŶĂŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐ͘ ŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞ The Board adopted the QCA Corporate Governance Code (“QCA Code”), which is derived from the 2018 UK Corporate 'ŽǀĞƌŶĂŶĐĞŽĚĞĂŶĚƚŚĞ'ƵŝĚĂŶĐĞŽŶŽĂƌĚEffectiveness (the “Code”) but adapted to the needs of smaller quoted ĐŽŵƉĂŶŝĞƐ͘dŚĞŽŵƉĂŶLJĂŐƌĞĞƐƚŚĂƚŐŽŽĚŐŽǀĞƌŶĂŶĐĞĐŽŶƚƌŝďƵƚĞƐƚŽƐƵƐƚĂŝŶĂďůĞƐƵĐĐĞƐƐĂŶĚƌĞĐŽŐŶŝƐĞƐƚŚĞƌĞŶĞǁĞĚ ĞŵƉŚĂƐŝƐŽŶďƵƐŝŶĞƐƐďƵŝůĚŝŶŐƚƌƵƐƚďLJĨŽƌŐŝŶŐƐƚƌŽŶŐƌĞůĂƚŝŽŶƐŚŝƉƐǁŝƚŚŬĞLJƐƚĂŬĞŚŽůĚĞƌƐ͘dŚĞŽŵƉĂŶLJƵŶĚĞƌƐƚĂŶĚƐƚŚĞ importance of a corporate culture that is aligned with the Company’s purpose and business strategy, and which promotes ŝŶƚĞŐƌŝƚLJĂŶĚŝŶĐůƵĚĞƐĚŝǀĞƌƐŝƚLJ͘dŚĞŽŵƉĂŶLJĐŽŶĚƵĐƚƐŝƚƐďƵƐŝŶĞƐƐǁŝƚŚŝŶƚĞŐƌŝƚLJ͕ŚŽŶĞƐƚLJĂŶĚĨĂŝƌŶĞƐƐĂŶĚƌĞƋƵŝƌĞƐŝƚƐ ƉĂƌƚŶĞƌƐ͕ĐŽŶƚƌĂĐƚŽƌƐĂŶĚƐƵƉƉůŝĞƌƐƚŽŵĞĞƚƐŝŵŝůĂƌĞƚŚŝĐĂůƐƚĂŶĚĂƌĚƐ͘dŚĞŽĂƌĚŝƐƐĂƚŝƐĨŝĞĚƚŚĂƚŝƚƐĐŽƌƉŽƌĂƚĞĐƵůƚƵƌĞĂŶĚ culture of its employees aligns the Company’s objectives, strategy and business model. /ƚŝƐĂŶŽďũĞĐƚŝǀĞŽĨƚŚĞŽŵƉĂŶLJ ƚŚĂƚĂůůŝŶĚŝǀŝĚƵĂůƐĂƌĞĂǁĂƌĞŽĨƚŚĞŝƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶĂƉƉůLJŝŶŐĂŶĚŵĂŝŶƚĂŝŶŝŶŐƚŚĞƐĞƐƚĂŶĚĂƌĚƐŝŶĂůůƚŚĞŝƌĂĐƚŝŽŶƐ͘ 14 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞ;ĐŽŶƚŝŶƵĞĚͿ dŚĞŽĂƌĚĞŶƐƵƌĞƐƚŚĂƚƐƵƉƉŽƌƚŝƐĂǀĂŝůĂďůĞŝŶƚŚĞĨŽƌŵŽĨƐƚĂĨĨƚƌĂŝŶŝŶŐĂŶĚƵƉĚĂƚŝŶŐŝƚƐĞŵƉůŽLJĞĞŚĂŶĚŬƐƵĐŚƚŚĂƚ ƐƚĂĨĨŵĞŵďĞƌƐƵŶĚĞƌƐƚĂŶĚǁŚĂƚŝƐĞdžƉĞĐƚĞĚŽĨƚŚĞŵ͘dŚĞŽĂƌĚŝƐĂǁĂƌĞŽĨƚŚĞƵƉĚĂƚĞƐƚŽƚŚĞYĐŽĚĞůĂƵŶĐŚĞĚŝŶ EŽǀĞŵďĞƌϮϬϮϯĨŽƌĨŝŶĂŶĐŝĂůLJĞĂƌƐĐŽŵŵĞŶĐŝŶŐƉŽƐƚϭƉƌŝůϮϬϮϰĂŶĚǁŝůůĂƉƉůLJĂůůƌĞůĞǀĂŶƚƵƉĚĂƚĞƐƚŽŝƚƐŶĞdžƚƐĞƚŽĨ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƐƌĞƋƵŝƌĞĚ͘The Company’s Statement of Compliance with the ten principles of the QCA code and how it has addressed each of these is set out in detail under the section “ Corporate Governance” on its webƐŝƚĞ͗ ǁǁǁ͘ŬĂƌĞůŝĂŶĚŝĂŵŽŶĚƌĞƐŽƵƌĐĞƐ͘ĐŽŵͬĐŽƌƉŽƌĂƚĞͲŐŽǀĞƌŶĂŶĐĞ͘ ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐŵĂĚĞƵƉŽĨŽŶĞĞdžĞĐƵƚŝǀĞĂŶĚĨŽƵƌŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐ͘ŝŽŐƌĂƉŚŝĞƐŽĨĞĂĐŚŽĨƚŚĞŝƌĞĐƚŽƌƐ ĂƌĞƐĞƚŽƵƚŽŶƉĂŐĞϵ͘ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŐƌĞĞƐĂƐĐŚĞĚƵůĞŽĨƌĞŐƵůĂƌŵĞĞƚŝŶŐƐƚŽďĞŚĞůĚŝŶĞĂĐŚĐĂůĞŶĚĂƌLJĞĂƌĂŶĚĂůƐŽŵĞĞƚƐŽŶŽƚŚĞƌ ŽĐĐĂƐŝŽŶƐĂƐŶĞĐĞƐƐĂƌLJ͘DĞĞƚŝŶŐƐĂƌĞƵƐƵĂůůLJŚĞůĚĂƚƚŚĞŚĞĂĚŽĨĨŝĐĞŝŶ ^ŚĂŶŶŽŶŝƌƉŽƌƚ,ŽƵƐĞ͕^ŚĂŶŶŽŶ&ƌĞĞŽŶĞ͕ ^ŚĂŶŶŽŶ͕ Ž͘ ůĂƌĞ͕ sϭϰ ϯϳϬ͕/ƌĞůĂŶĚǁŝƚŚ ĂƉƉƌŽƉƌŝĂƚĞ ĂƌƌĂŶŐĞŵĞŶƚƐŵĂĚĞ ƚŽ ĨĂĐŝůŝƚĂƚĞƌĞŵŽƚĞ ĂƚƚĞŶĚĂŶĐĞ ǁŚĞƌĞ ƌĞƋƵŝƌĞĚďLJǁĂLJŽĨƚĞůĞĐŽŶĨĞƌĞŶĐĞĐĂůůƐ͘ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ŵĞĞƚŝŶŐƐǁĞƌĞŚĞůĚŽŶϴŽĐĐĂƐŝŽŶƐĨƌŽŵϭ:ƵŶĞϮϬϮϯƚŽϯϭ DĂLJϮϬϮϰĂŶĚĂƚƚĞŶĚĂŶĐĞĂƚƚŚĞƐĞŵĞĞƚŝŶŐƐŝƐƐĞƚŽƵƚŝŶƚŚĞƚĂďůĞďĞůŽǁ͘ŶĂŐĞŶĚĂĂŶĚƐƵƉƉŽƌƚŝŶŐĚŽĐƵŵĞŶƚĂƚŝŽŶ ǁĞƌĞĐŝƌĐƵůĂƚĞĚŝŶĂĚǀĂŶĐĞŽĨĞĂĐŚŵĞĞƚŝŶŐ͘ ŽĂƌĚ ƚƚĞŶĚĂŶĐĞ DĞĞƚŝŶŐƐŚĞůĚĚƵƌŝŶŐƚŚĞLJĞĂƌ ϴ WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ϴ ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ ϱ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ϴ Dr. Sorċa Conroy ϳ ƌĞŶĚĂŶDĐDŽƌƌŽǁ ϴ ,ŽǁĂƌĚŝƌĚ ϱ dŚĞƌĞŝƐĂŶĂŐƌĞĞĚůŝƐƚŽĨŵĂƚƚĞƌƐǁŚŝĐŚƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂƐĨŽƌŵĂůůLJƌĞƐĞƌǀĞĚƚŽŝƚƐĞůĨĨŽƌĚĞĐŝƐŝŽŶ͕ƐƵĐŚĂƐĂƉƉƌŽǀĂů ŽĨ ƚŚĞ ŽŵƉĂŶLJ’s commercial strategy, trading and capital budgets, financial statements, Board of Directors’ ŵĞŵďĞƌƐŚŝƉ͕ŵĂũŽƌĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞĂŶĚƌŝƐŬŵĂŶĂŐĞŵĞŶƚƉŽůŝĐŝĞƐ͘ZĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌĐĞƌƚĂŝŶŵĂƚƚĞƌƐŝƐĚĞůĞŐĂƚĞĚƚŽ ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ĐŽŵŵŝƚƚĞĞƐ͘ džĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐƐƉĞŶĚĂƐŵƵĐŚƚŝŵĞŽŶCompany’sŵĂƚƚĞƌƐĂƐŝƐŶĞĐĞƐƐĂƌLJĨŽƌƚŚĞ ƉƌŽƉĞƌƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŝƌĚƵƚŝĞƐ͘EŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐĂƌĞĞdžƉĞĐƚĞĚƚŽƐƉĞŶĚĂŵŝŶŝŵƵŵŽĨŽŶĞĚĂLJĂŵŽŶƚŚŽŶ Company’sĂĐƚŝǀŝƚŝĞƐŝŶĂĚĚŝƚŝŽŶƚŽƉƌĞƉĂƌĂƚŝŽŶĨŽƌĂŶĚĂƚƚĞŶĚĂŶĐĞĂƚŽĂƌĚĂŶĚƐƵďͲĐŽŵŵŝƚƚĞĞŵĞĞƚŝŶŐƐ͘ dŚĞƌĞŝƐĂŶĂŐƌĞĞĚƉƌŽĐĞĚƵƌĞĨŽƌŝƌĞĐƚŽƌƐƚŽƚĂŬĞŝŶĚĞƉĞŶĚĞŶƚůĞŐĂůĂĚǀŝĐĞ͘dŚĞŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌ ĞŶƐƵƌŝŶŐƚŚĂƚŽĂƌĚŽĨŝƌĞĐƚŽr’sƉƌŽĐĞĚƵƌĞƐĂƌĞĨŽůůŽǁĞĚ͕ĂŶĚĂůůŝƌĞĐƚŽƌƐŚĂǀĞĚŝƌĞĐƚĂĐĐĞƐƐƚŽƚŚĞŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJ͘ ůůŝƌĞĐƚŽƌƐƌĞĐĞŝǀĞƌĞŐƵůĂƌƌĞƉŽƌƚƐĂŶĚĨƵůůŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ƉĂƉĞƌƐĂƌĞƐĞŶƚƚŽĞĂĐŚŝƌĞĐƚŽƌŝŶƐƵĨĨŝĐŝĞŶƚƚŝŵĞďĞĨŽƌĞ ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ŵĞĞƚŝŶŐƐ͕ĂŶĚĂŶLJĨƵƌƚŚĞƌƐƵƉƉŽƌƚŝŶŐƉĂƉĞƌƐĂŶĚŝŶĨŽƌŵĂƚŝŽŶĂƌĞƌĞĂĚŝůLJĂǀĂŝůĂďůĞƚŽĂůůŝƌĞĐƚŽƌƐŽŶ ƌĞƋƵĞƐƚ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ƉĂƉĞƌƐŝŶĐůƵĚĞƚŚĞŵŝŶƵƚĞƐŽĨĂůůĐŽŵŵŝƚƚĞĞƐŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐǁŚŝĐŚŚĂǀĞďĞĞŶ ŚĞůĚƐŝŶĐĞƚŚĞƉƌĞǀŝŽƵƐŽĂƌĚŽĨŝƌĞĐƚŽƌ’ƐŵĞĞƚŝŶŐ͕ĂŶĚ͕ƚŚĞŚĂŝƌŵĂŶŽĨĞĂĐŚĐŽŵŵŝƚƚĞĞŝƐĂǀĂŝůĂďůĞƚŽŐŝǀĞĂƌĞƉŽƌƚ on the committee’s proceedings at Board of Director’ƐŵĞĞƚŝŶŐƐŝĨĂƉƉƌŽƉƌŝĂƚĞ͘ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂƐĂƉƌŽĐĞƐƐǁŚĞƌĞďLJĞĂĐŚLJĞĂƌĞǀĞƌLJŝƌĞĐƚŽƌŵĂLJŵĞĞƚƚŚĞŚĂŝƌŵĂŶƚŽƌĞǀŝĞǁƚŚĞĐŽŶĚƵĐƚŽĨ ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ’ŵĞĞƚŝŶŐƐĂŶĚƚŚĞŐĞŶĞƌĂůĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞŽĨƚŚĞŽŵƉĂŶLJ͘dŚĞŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐ;ŽƚŚĞƌ ƚŚĂŶƌ͘SorċaŽŶƌŽLJͿĂƌĞƌĞŐĂƌĚĞĚĂƐŝŶĚĞƉĞŶĚĞŶƚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚŚĂǀĞŶŽŵĂƚĞƌŝĂůŝŶƚĞƌĞƐƚŽƌŽƚŚĞƌ ƌĞůĂƚŝŽŶƐŚŝƉǁŝƚŚƚŚĞŽŵƉĂŶLJ;ƌ͘Sorċa Conroy is a daughter of ProĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJͿ͘ dŚĞŽĂƌĚ͕ŚĂǀŝŶŐĨƵůůLJĐŽŶƐŝĚĞƌĞĚƚŚĞĐŽƌƉŽƌĂƚĞŶĞĞĚƐŽĨƚŚĞŽŵƉĂŶLJ͕ŝƐƐĂƚŝƐĨŝĞĚƚŚĂƚŝƚŚĂƐĂŶĂƉƉƌŽƉƌŝĂƚĞďĂůĂŶĐĞŽĨ ĞdžƉĞƌŝĞŶĐĞĂŶĚƐŬŝůůƐƚŽĐĂƌƌLJŽƵƚŝƚƐĚƵƚŝĞƐ͘dŚĞŚĂŝƌŵĂŶĂŶĚƚŚĞŽĂƌĚ͕ĐŽŶƐŝĚĞƌĂŶĚƌĞǀŝĞǁƚŚĞŝŶĚĞƉĞŶĚĞŶĐĞŽĨƚŚĞ ŝƌĞĐƚŽƌƐŽŶĂŶĂŶŶƵĂůďĂƐŝƐ͘dŚĞŚĂŝƌŵĂŶŽĨƚŚĞŽŵƉĂŶLJŽǀĞƌƐĞĞƐƚŚŝƐƉƌŽĐĞƐƐĂŶĚƌĞǀŝĞǁƐƚŚĞŽĂƌĚĐŽŵƉŽƐŝƚŝŽŶ ƚŽĞŶƐƵƌĞŝƚŚĂƐƚŚĞŶĞĐĞƐƐĂƌLJĞdžƉĞƌŝĞŶĐĞ͕ƐŬŝůůƐĂŶĚĐĂƉĂďŝůŝƚŝĞƐ͘ Directors' Report [continued] 15 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ;ĐŽŶƚŝŶƵĞĚͿ dŚĞĐƵƌƌĞŶƚŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐŚĂǀĞĂǁŝĚĞƌĂŶŐĞŽĨĨŝŶĂŶĐŝĂůĂŶĚƚĞĐŚŶŝĐĂůƐŬŝůůƐďĂƐĞĚŽŶďŽƚŚƋƵĂůŝĨŝĐĂƚŝŽŶƐĂŶĚ ĞdžƉĞƌŝĞŶĐĞ͕ŝŶĐůƵĚŝŶŐƐŝŐŶŝĨŝĐĂŶƚĨƵŶĚƌĂŝƐŝŶŐƐ͕ĨŝŶĂŶĐŝĂůŵĂŶĂŐĞŵĞŶƚ͕ƚĞĐŚŶŝĐĂůĞdžƉĞƌƚŝƐĞĂŶĚƚŚĞĚŝƐĐŽǀĞƌLJĂŶĚďƌŝŶŐŝŶŐ ŝŶƚŽƉƌŽĚƵĐƚŝŽŶŽĨŽƉĞƌĂƚŝŶŐŵŝŶĞƐ͘ ĂĐŚďŽĂƌĚŵĞŵďĞƌŬĞĞƉƐƚŚĞŝƌƐŬŝůůƐƵƉƚŽĚĂƚĞƚŚƌŽƵŐŚĂĐŽŵďŝŶĂƚŝŽŶŽĨĐŽƵƌƐĞƐ͕ ĐŽŶƚŝŶƵŝŶŐƉƌŽĨĞƐƐŝŽŶĂůĚĞǀĞůŽƉŵĞŶƚƚŚƌŽƵŐŚƉƌŽĨĞƐƐŝŽŶĂůďŽĚŝĞƐĂŶĚƌĞĂĚŝŶŐ͘ dŚĞŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJƉƌŽǀŝĚĞƐŝƌĞĐƚŽƌƐǁŝƚŚƵƉĚĂƚĞƐŽŶŬĞLJĚĞǀĞůŽƉŵĞŶƚƐƌĞůĂƚŝŶŐƚŽƚŚĞŽŵƉĂŶLJ͕ƚŚĞƐĞĐƚŽƌŝŶ which the Company operates, legal and governance matters including advice from the Company’s broker, lawyers and ĂĚǀŝƐŽƌƐ͘ ŽĂƌĚƉĞƌĨŽƌŵĂŶĐĞ dŚĞŽĂƌĚ͕ƚŚƌŽƵŐŚŝƚƐŚĂŝƌŵĂŶ͕ǁŝůů͕ŝŶƚŚĞĐŽŵŝŶŐLJĞĂƌĞǀĂůƵĂƚĞŝƚƐŽŶŐŽŝŶŐƉĞƌĨŽƌŵĂŶĐĞ͕ďĂƐĞĚŽŶƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨƚŚĞďƵƐŝŶĞƐƐĂŶĚĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞƐƚĂŶĚĂƌĚƐ͘ /ƚŝƐĞŶǀŝƐĂŐĞĚƚŚĂƚƚŚĞƌĞǀŝĞǁƉƌŽĐĞƐƐǁŝůůŝŶĐůƵĚĞƚŚĞƵƐĞŽĨŝŶƚĞƌŶĂůƌĞǀŝĞǁƐĂŶĚƉĞƌŝŽĚŝĐĞdžƚĞƌŶĂůĨĂĐŝůŝƚĂƚŝŽŶ͘dŚĞƌĞƐƵůƚƐ ŽĨƐƵĐŚƌĞǀŝĞǁƐǁŝůůďĞƵƐĞĚƚŽĚĞƚĞƌŵŝŶĞǁŚĞƚŚĞƌĂŶLJĂůƚĞƌĂƚŝŽŶƐĂƌĞŶĞĞĚĞĚĂƚĞŝƚŚĞƌĂďŽĂƌĚŽƌƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚ ůĞǀĞůŽƌǁŚĞƚŚĞƌĂŶLJĂĚĚŝƚŝŽŶĂůƚƌĂŝŶŝŶŐǁŽƵůĚďĞďĞŶĞĨŝĐŝĂů͘/ƚŝƐŝŶƚĞŶĚĞĚƚŚĂƚǁŝƚŚĞĨĨĞĐƚĨƌŽŵƚŚĞĞŶĚŽĨƚŚĞŶĞdžƚ ĨŝŶĂŶĐŝĂů LJĞĂƌ͕ ƚŚĞƐĞ ĞǀĂůƵĂƚŝŽŶƐ ǁŝůů ďĞ ƵŶĚĞƌƚĂŬĞŶ ĂŶŶƵĂůůLJ͕ ĂĨƚĞƌ ƚŚĞ ĞŶĚ ŽĨ ĞĂĐŚ ĨŝŶĂŶĐŝĂů LJĞĂƌ ďƵƚ ƉƌŝŽƌ ƚŽ ƚŚĞ ƉƵďůŝĐĂƚŝŽŶŽĨƚŚĞƌĞƐƉĞĐƚŝǀĞĂŶŶƵĂůƌĞƉŽƌƚĂŶĚĂĐĐŽƵŶƚƐ͘ Director’s performance will ďĞŵĞĂƐƵƌĞĚďLJǁĂLJŽĨƐƵĐŚŵĂƚƚĞƌƐĂƐ͗ • ŽŵŵŝƚŵĞŶƚ͖ • /ŶĚĞƉĞŶĚĞŶĐĞ͖ • ZĞůĞǀĂŶƚĞdžƉĞƌŝĞŶĐĞ͖ • /ŵƉĂƌƚŝĂůŝƚLJ͖ • ^ƉĞĐŝĂůŝƐƚŬŶŽǁůĞĚŐĞ͖ĂŶĚ • ĨĨĞĐƚŝǀĞŶĞƐƐŽŶƚŚĞŽĂƌĚ͘ ƐƐĞƚŽƵƚŝŶƚŚĞŽŶƐƚŝƚƵƚŝŽŶŽĨƚŚĞŽŵƉĂŶLJ͕ĞĂĐŚLJĞĂƌ͕ŽŶĞƚŚŝƌĚŽĨƚŚĞŝƌĞĐƚŽƌƐǁŝƚŚƚŚĞĞdžĐĞƉƚŝŽŶŽĨƚŚĞŚĂŝƌŵĂŶ ĂŶĚƚŚĞDĂŶĂŐŝŶŐŝƌĞĐƚŽƌ͕ƌĞƚŝƌĞĨƌŽŵƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐďLJƌŽƚĂƚŝŽŶ͘ ĨĨĞĐƚŝǀĞůLJ͕ƚŚĞƌĞĨŽƌĞ͕ĞĂĐŚƐƵĐŚŝƌĞĐƚŽƌǁŝůů ƌĞƚŝƌĞďLJƌŽƚĂƚŝŽŶǁŝƚŚŝŶĂƚŚƌĞĞͲLJĞĂƌƉĞƌŝŽĚ͘ ƚŚŝĐĂůǀĂůƵĞƐĂŶĚďĞŚĂǀŝŽƵƌƐ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐĐŽŵŵŝƚƚĞĚƚŽŚŝŐŚƐƚĂŶĚĂƌĚƐŽĨĐŽƌƉŽƌĂƚĞŐŽǀĞƌŶĂŶĐĞĂŶĚŝŶƚĞŐƌŝƚLJŝŶĂůůŝƚƐĂĐƚŝǀŝƚŝĞƐĂŶĚ ŽƉĞƌĂƚŝŽŶƐ ĂŶĚ ƉƌŽŵŽƚĞƐ Ă ĐƵůƚƵƌĞ ŽĨ ŐŽŽĚ ĞƚŚŝĐĂů ǀĂůƵĞƐ ĂŶĚ ďĞŚĂǀŝŽƵƌ͘ dŚĞ ŽŵƉĂŶLJ ĐŽŶĚƵĐƚƐ ŝƚƐ ďƵƐŝŶĞƐƐ ǁŝƚŚ ŝŶƚĞŐƌŝƚLJ͕ŚŽŶĞƐƚLJĂŶĚĨĂŝƌŶĞƐƐĂŶĚƌĞƋƵŝƌĞƐŝƚƐƉĂƌƚŶĞƌƐ͕ĐŽŶƚƌĂĐƚŽƌƐĂŶĚƐƵƉƉůŝĞƌƐƚŽŵĞĞƚƐŝŵŝůĂƌĞƚŚŝĐĂůƐƚĂŶĚĂƌĚƐ͘ /ŶĚŝǀŝĚƵĂůƐƚĂĨĨŵĞŵďĞƌƐŵƵƐƚĞŶƐƵƌĞƚŚĂƚƚŚĞLJĂƉƉůLJĂŶĚŵĂŝŶƚĂŝŶƚŚĞƐĞƐƚĂŶĚĂƌĚƐŝŶĂůůƚŚĞŝƌĂĐƚŝŽŶƐ͘ The Chairman of the Board of Directors regularly monitors and reviews the Company’s ethical standards and cultural ĞŶǀŝƌŽŶŵĞŶƚĂŶĚǁŚĞƌĞŶĞĐĞƐƐĂƌLJƚĂŬĞƐĂƉƉƌŽƉƌŝĂƚĞĂĐƚŝŽŶƚŽĞŶƐƵƌĞƉƌŽƉĞƌƐƚĂŶĚĂƌĚƐĂƌĞŵĂŝŶƚĂŝŶĞĚ͘ƵĞƚŽƚŚĞƐŝnjĞ ĂŶĚĂǀĂŝůĂďůĞƌĞƐŽƵƌĐĞƐŽĨƚŚĞŽŵƉĂŶLJ͕ƚŚĞŚĂŝƌŵĂŶŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĐĂƌƌŝĞƐŽƵƚĞdžĞĐƵƚŝǀĞĨƵŶĐƚŝŽŶƐ͘dŚĞ ŽŵƉĂŶLJŝƐĨƵůůLJĐŽŵŵŝƚƚĞĚƚŽĐŽŵƉůLJŝŶŐǁŝƚŚĂůůƌĞůĞǀĂŶƚŚĞĂůƚŚ͕ƐĂĨĞƚLJĂŶĚĞŶǀŝƌŽŶŵĞŶƚƌƵůĞƐĂŶĚƌĞŐƵůĂƚŝŽŶƐĂƐƚŚĞƐĞ ĂƉƉůLJƚŽŝƚƐŽƉĞƌĂƚŝŽŶƐ͘/ƚŝƐĂŶŽďũĞĐƚŝǀĞŽĨƚŚĞŽŵƉĂŶLJƚŚĂƚĂůůŝŶĚŝǀŝĚƵĂůƐĂƌĞĂǁĂƌĞŽĨƚŚĞŝƌƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐŝŶƉƌŽǀŝĚŝŶŐ ĂƐĂĨĞĂŶĚƐĞĐƵƌĞǁŽƌŬŝŶŐĞŶǀŝƌŽŶŵĞŶƚ͘ 16 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ;ĐŽŶƚŝŶƵĞĚͿ ŽĂƌĚŽŵŵŝƚƚĞĞƐ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂƐŝŵƉůĞŵĞŶƚĞĚĂŶĞĨĨĞĐƚŝǀĞĐŽŵŵŝƚƚĞĞƐƚƌƵĐƚƵƌĞƚŽĂƐƐŝƐƚŝŶƚŚĞĚŝƐĐŚĂƌŐĞŽĨŝƚƐƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐ͘ dŚĞĐŽŵŵŝƚƚĞĞƐĂŶĚƚŚĞŝƌŵĞŵďĞƌƐĂƌĞůŝƐƚĞĚŽŶƉĂŐĞϴŽĨƚŚŝƐƌĞƉŽƌƚ͘DĞŵďĞƌƐŚŝƉŽĨƚŚĞƵĚŝƚĂŶĚZĞŵƵŶĞƌĂƚŝŽŶ ŽŵŵŝƚƚĞĞƐŝƐĐŽŵƉƌŝƐĞĚĞdžĐůƵƐŝǀĞůLJŽĨŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐ͘dŚĞƌĞǁĞƌĞŶŽZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞŵĞĞƚŝŶŐƐŝŶ ƚŚĞLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁĂŶĚĂƚƚĞŶĚĂŶĐĞĂƚƚŚĞƵĚŝƚŽŵŵŝƚƚĞĞŵĞĞƚŝŶŐƐŝƐƐĞƚŽƵƚŝŶƚŚĞƚĂďůĞďĞůŽǁ͗ ƵĚŝƚ ŽŵŵŝƚƚĞĞ ƚƚĞŶĚĂŶĐĞ ZĞŵƵŶĞƌĂƚŝŽŶ ŽŵŵŝƚƚĞĞ ƚƚĞŶĚĂŶĐĞ DĞĞƚŝŶŐƐŚĞůĚĚƵƌŝŶŐƚŚĞLJĞĂƌ ϯ Ͳ ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ Ϯ Ͳ ƌĞŶĚĂŶDĐDŽƌƌŽǁ ϯ Ͳ ƌ͘^ŽƌĐĂŽŶƌŽLJ ϯ ŶͬĂ ,ŽǁĂƌĚŝƌĚ ŶͬĂ Ͳ ƵĚŝƚŽŵŵŝƚƚĞĞ The Audit Committee’s terms of reference have been approved by the Board of Directors. The Audit Committee, ĐŽŶƐƚŝƚƵƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞĐƚŝŽŶϭϬϵϳŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͕ĐŽŵƉƌŝƐĞƐƚŚƌĞĞŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐĂŶĚŝƐ ĐŚĂŝƌĞĚďLJ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ͘dŚĞƵĚŝƚŽŵŵŝƚƚĞĞƌĞǀŝĞǁƐƚŚĞĂĐĐŽƵŶƚŝŶŐƉƌŝŶĐŝƉůĞƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌĂĐƚŝĐĞƐĂĚŽƉƚĞĚ͕ ĂŶĚ ĂƌĞĂƐ ŽĨ ŵĂŶĂŐĞŵĞŶƚ ũƵĚŐĞŵĞŶƚ ĂŶĚ ĞƐƚŝŵĂƚŝŽŶ ĚƵƌŝŶŐ ƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ƚŚĞ ŝŶƚĞƌŝŵ ĂŶĚ ĂŶŶƵĂů ĨŝŶĂŶĐŝĂů statements and discusses with the Company’s Auditor the rĞƐƵůƚƐĂŶĚƐĐŽƉĞŽĨƚŚĞĂƵĚŝƚ͘dŚĞĞdžƚĞƌŶĂůĂƵĚŝƚŽƌŚĂƐƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJƚŽŵĞĞƚǁŝƚŚƚŚĞŵĞŵďĞƌƐŽĨƚŚĞƵĚŝƚŽŵŵŝƚƚĞĞĂůŽŶĞĂƚůĞĂƐƚŽŶĐĞĂLJĞĂƌ͘ dŚĞ ƵĚŝƚ ŽŵŵŝƚƚĞĞ ĂůƐŽĂĚǀŝƐĞƐ ƚŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŽŶ ƚŚĞĂƉƉŽŝŶƚŵĞŶƚ ŽĨ ƚŚĞ ĞdžƚĞƌŶĂů ĂƵĚŝƚŽƌ ĂŶĚ ŽŶ ƚŚĞŝƌ ƌĞŵƵŶĞƌĂƚŝŽŶ͘ŶĂŶĂůLJƐŝƐŽĨƚŚĞĨĞĞƐƉĂLJĂďůĞƚŽƚŚĞĞdžƚĞƌŶĂůĂƵĚŝƚĨŝƌŵŝŶƌĞƐƉĞĐƚŽĨĂƵĚŝƚƐĞƌǀŝĐĞƐĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂů LJĞĂƌŝƐĚĞƚĂŝůĞĚŝŶEŽƚĞϯƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘dŚĞƵĚŝƚŽŵŵŝƚƚĞĞĂůƐŽƵŶĚĞƌƚĂŬĞƐĂƌĞǀŝĞǁŽĨĂŶLJŶŽŶͲĂƵĚŝƚ ƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚƚŽƚŚĞŽŵƉĂŶLJ͘dŚĞƌĞǁĞƌĞŶŽƐƵĐŚŶŽŶͲĂƵĚŝƚƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚĚƵƌŝŶŐƚŚĞƉĞƌŝŽĚƵŶĚĞƌƌĞǀŝĞǁ͘ dŚĞƵĚŝƚŽŵŵŝƚƚĞĞŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌŵŽŶŝƚŽƌŝŶŐƚŚĞĐŽŶƚƌŽůƐǁŚŝĐŚĂƌĞŝŶĨŽƌĐĞƚŽĞŶƐƵƌĞƚŚĞŝŶĨŽƌŵĂƚŝŽŶƌĞƉŽƌƚĞĚƚŽ ƚŚĞ ƐŚĂƌĞŚŽůĚĞƌƐ ŝƐ ĂĐĐƵƌĂƚĞ ĂŶĚ ĐŽŵƉůĞƚĞ͘ dŚĞ ƵĚŝƚ ŽŵŵŝƚƚĞĞ ĂůƐŽ ƌĞǀŝĞǁƐ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽůƐ ĂŶĚ ƌĞǀŝĞǁƐ ƚŚĞ ĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞŽŵƉĂŶLJ’s internal controls and risk management systems. It also considers the need for an internal ĂƵĚŝƚĨƵŶĐƚŝŽŶ͕ǁŚŝĐŚŝƚďĞůŝĞǀĞƐŝƐŶŽƚƉƌŝŵĂƌŝůLJƌĞƋƵŝƌĞĚĂƚƉƌĞƐĞŶƚďĞĐĂƵƐĞŽĨƚŚĞƐŝnjĞŽĨƚŚĞŽŵƉĂŶLJ’s operations. The ŵĞŵďĞƌƐŽĨƚŚĞƵĚŝƚŽŵŵŝƚƚĞĞŚĂǀĞĂŐƌĞĞĚƚŽŵĂŬĞƚŚĞŵƐĞůǀĞƐĂǀĂŝůĂďůĞƐŚŽƵůĚĂŶLJŵĞŵďĞƌŽĨƐƚĂĨĨǁŝƐŚƚŽŵĂŬĞ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐƚŽƚŚĞŵĂďŽƵƚƚŚĞĐŽŶĚƵĐƚŽĨƚŚĞĂĨĨĂŝƌƐŽĨƚŚĞŽŵƉĂŶLJ͘ ZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞ The Remuneration Committee’s terms of reference ŚĂǀĞďĞĞŶĂƉƉƌŽǀĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚĂƌĞŝŶĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚƚŚĞYZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞ'ƵŝĚĞĨŽƌ^ŵĂůůĂŶĚDŝĚͲ^ŝnjĞYƵŽƚĞĚŽŵƉĂŶŝĞƐ͘dŚĞZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞ ĐŽŵƉƌŝƐĞƐƚŚƌĞĞŶŽŶͲĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐĂŶĚŝƐĐŚĂŝƌĞĚďLJ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ͘ ŵŽůƵŵĞŶƚƐŽĨĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐĂŶĚ ƐĞŶŝŽƌ ŵĂŶĂŐĞŵĞŶƚ ĂƌĞ ĚĞƚĞƌŵŝŶĞĚ ďLJ ƚŚĞ ZĞŵƵŶĞƌĂƚŝŽŶ ŽŵŵŝƚƚĞĞ͘ /Ŷ ƚŚĞ ĐŽƵƌƐĞ ŽĨ ĞĂĐŚ ĨŝŶĂŶĐŝĂů LJĞĂƌ͕ ƚŚĞ ZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞĚĞƚĞƌŵŝŶĞƐĂŶLJĐŽŶƚƌĂĐƚƚĞƌŵƐ͕ƌĞŵƵŶĞƌĂƚŝŽŶĂŶĚŽƚŚĞƌďĞŶĞĨŝƚƐ͕ŝŶĐůƵĚŝŶŐƐŚĂƌĞŽƉƚŝŽŶƐ͕ĨŽƌ ĞĂĐŚŽĨƚŚĞĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐ͘dŚĞZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞĂƉƉůŝĞƐƚŚĞƐĂŵĞƉŚŝůŽƐŽƉŚLJŝŶĚĞƚĞƌŵŝŶŝŶŐĞdžĞĐƵƚŝǀĞ Directors’ remuneration as is applied in respect of all employees. The underlying objective is to ensure that individuals ĂƌĞĂƉƉƌŽƉƌŝĂƚĞůLJƌĞǁĂƌĚĞĚƌĞůĂƚŝǀĞƚŽƚŚĞŝƌƌĞƐƉŽŶƐŝďŝůŝƚLJ͕ĞdžƉĞƌŝĞŶĐĞĂŶĚǀĂůƵĞƚŽƚŚĞŽŵƉĂŶLJ͘EŽŵĞĞƚŝŶŐƐŽĨƚŚĞ ZĞŵƵŶĞƌĂƚŝŽŶŽŵŵŝƚƚĞĞǁĞƌĞŚĞůĚŝŶƚŚĞƉĞƌŝŽĚƵŶĚĞƌƌĞǀŝĞǁ͘ Directors' Report [continued] 17 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ŽĂƌĚŽĨŝƌĞĐƚŽƌƐ;ĐŽŶƚŝŶƵĞĚͿ dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŝƚƐĞůĨ ĚĞƚĞƌŵŝŶĞƐ ƚŚĞ ƌĞŵƵŶĞƌĂƚŝŽŶ ŽĨ ƚŚĞ ŶŽŶͲĞdžĞĐƵƚŝǀĞ ŝƌĞĐƚŽƌƐ͘ Details of Directors’ ƌĞŵƵŶĞƌĂƚŝŽŶĨŽƌƚŚĞĐƵƌƌĞŶƚƉĞƌŝŽĚĂƌĞĚĞƚĂŝůĞĚŝŶEŽƚĞϮĂŶĚEŽƚĞϰƚŽƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘ džĞĐƵƚŝǀĞŽŵŵŝƚƚĞĞ dŚĞ džĞĐƵƚŝǀĞ ŽŵŵŝƚƚĞĞ ĐŽŵƉƌŝƐĞƐWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚ ŽŶƌŽLJ͕ ƌ͘ Sorċa Conroy͕DƐ͘DĂƵƌĞĞŶ d͘͘ :ŽŶĞƐ͕ ƌĞŶĚĂŶ DĐDŽƌƌŽǁĂŶĚ,ŽǁĂƌĚŝƌĚ͘/ƚƐƉƵƌƉŽƐĞŝƐƚŽƐƵƉƉŽƌƚƚŚĞDĂŶĂŐŝŶŐŝƌĞĐƚŽƌŝŶĐĂƌƌLJŝŶŐŽƵƚƚŚĞĚƵƚŝĞƐĚĞůĞŐĂƚĞĚƚŽŚĞƌ ďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͘/ƚĂůƐŽĞŶƐƵƌĞƐƚŚĂƚƌĞŐƵůĂƌĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƐĂƌĞƉƌĞƐĞŶƚĞĚƚŽƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕ƚŚĂƚ ĞĨĨĞĐƚŝǀĞ ŝŶƚĞƌŶĂů ĐŽŶƚƌŽůƐ ĂƌĞ ŝŶ ƉůĂĐĞ ĂŶĚ ĨƵŶĐƚŝŽŶŝŶŐ͕ ĂŶĚ ƚŚĂƚ ƚŚĞƌĞ ŝƐ ĂŶ ĞĨĨĞĐƚŝǀĞ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƉƌŽĐĞƐƐ ŝŶ ŽƉĞƌĂƚŝŽŶƚŚƌŽƵŐŚŽƵƚƚŚĞŽŵƉĂŶLJ͘dŚĞƚŚƌĞĞŶŽŶͲĞdžĞĐƵƚŝǀĞĚŝƌĞĐƚŽƌƐĂƌĞŶŽƚŝŶǀŽůǀĞĚŝŶƚŚĞĚĂŝůLJŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞ ŽŵƉĂŶLJ͘ /ŶƚĞƌŶĂůĐŽŶƚƌŽů dŚĞ Directors have overall responsibility for the Company’s system of internal control to safeguard shareholders’ ŝŶǀĞƐƚŵĞŶƚƐĂŶĚƚŚĞŽŵƉĂŶLJĂƐƐĞƚƐ͘dŚĞLJŽƉĞƌĂƚĞĂƐLJƐƚĞŵŽĨĨŝŶĂŶĐŝĂůĐŽŶƚƌŽůƐǁŚŝĐŚĞŶĂďůĞƐƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ to meet its responsibilities for the integrity and accuracy of the Company’s accounting records. Among the processes ĂƉƉůŝĞĚŝŶƌĞǀŝĞǁŝŶŐƚŚĞĞĨĨĞĐƚŝǀĞŶĞƐƐŽĨƚŚĞƐLJƐƚĞŵŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐĂƌĞƚŚĞĨŽůůŽǁŝŶŐ͗ • dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĞƐƚĂďůŝƐŚĞƐƌŝƐŬƉŽůŝĐŝĞƐĂƐĂƉƉƌŽƉƌŝĂƚĞ͕ĨŽƌŝŵƉůĞŵĞŶƚĂƚŝŽŶďLJĞdžĞĐƵƚŝǀĞŵĂŶĂŐĞŵĞŶƚ͖ • ůůĐŽŵŵŝƚŵĞŶƚƐĨŽƌĞdžƉĞŶĚŝƚƵƌĞĂŶĚƉĂLJŵĞŶƚƐĂƌĞƐƵďũĞĐƚƚŽĂƉƉƌŽǀĂůďLJƉĞƌƐŽŶŶĞůĚĞƐŝŐŶĂƚĞĚďLJƚŚĞŽĂƌĚ ŽĨŝƌĞĐƚŽƌƐ͖ĂŶĚ • ZĞŐƵůĂƌŵĂŶĂŐĞŵĞŶƚŵĞĞƚŝŶŐƐƚĂŬĞƉůĂĐĞƚŽƌĞǀŝĞǁĨŝŶĂŶĐŝĂůĂŶĚŽƉĞƌĂƚŝŽŶĂůĂĐƚŝǀŝƚŝĞƐ͘ dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŚĂƐ ĐŽŶƐŝĚĞƌĞĚ ƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚ ĨŽƌ ĂŶ ŝŶƚĞƌŶĂů ĂƵĚŝƚ ĨƵŶĐƚŝŽŶ͘ ĂƐĞĚ ŽŶ ƚŚĞ ƐĐĂůĞ ŽĨ ƚŚĞ Company’s operations and close involvement of the Board of Directors, the Directors have concluded that an internal ĂƵĚŝƚĨƵŶĐƚŝŽŶŝƐŶŽƚĐƵƌƌĞŶƚůLJƌĞƋƵŝƌĞĚ͘ ZŝƐŬƐĂŶĚƵŶĐĞƌƚĂŝŶƚŝĞƐ dŚĞŽŵƉĂŶLJŝƐƐƵďũĞĐƚƚŽĂŶƵŵďĞƌŽĨƉŽƚĞŶƚŝĂůƌŝƐŬƐĂŶĚƵŶĐĞƌƚĂŝŶƚŝĞƐ͕ǁŚŝĐŚĐŽƵůĚŚĂǀĞĂŵĂƚĞƌŝĂůŝŵƉĂĐƚŽŶƚŚĞůŽŶŐͲ ƚĞƌŵƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŽŵƉĂŶLJĂŶĚĐŽƵůĚĐĂƵƐĞĂĐƚƵĂůƌĞƐƵůƚƐƚŽĚŝĨĨĞƌŵĂƚĞƌŝĂůůLJĨƌŽŵĞdžƉĞĐƚĂƚŝŽŶ͘dŚĞŵĂŶĂŐĞŵĞŶƚ ŽĨƌŝƐŬŝƐƚŚĞĐŽůůĞĐƚŝǀĞƌĞƐƉŽŶƐŝďŝůŝƚLJŽĨƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚŝƐĐŽŶƐŝĚĞƌĞĚĂƐƉĂƌƚŽĨĂůůŽĂƌĚŵĞĞƚŝŶŐƐ͘ŶŽŶŐŽŝŶŐ ƉƌŽĐĞƐƐĨŽƌŝĚĞŶƚŝĨLJŝŶŐ͕ĞǀĂůƵĂƚŝŶŐĂŶĚŵĂŶĂŐŝŶŐŽƌŵŝƚŝŐĂƚŝŶŐƚŚĞƉƌŝŶĐŝƉĂůƌŝƐŬƐĨĂĐĞĚďLJƚŚĞŽŵƉĂŶLJŚĂƐďĞĞŶŝŶƉůĂĐĞ ƚŚƌŽƵŐŚŽƵƚƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĂŶĚŚĂƐƌĞŵĂŝŶĞĚŝŶƉůĂĐĞƵƉƚŽƚŚĞĂƉƉƌŽǀĂůĚĂƚĞŽĨƚŚĞƌĞƉŽƌƚĂŶĚĂĐĐŽƵŶƚƐ͘dŚĞŽĂƌĚ ŝŶƚĞŶĚƐƚŽŬĞĞƉŝƚƐƌŝƐŬĐŽŶƚƌŽůƉƌŽĐĞĚƵƌĞƐƵŶĚĞƌĐŽŶƐƚĂŶƚƌĞǀŝĞǁ͕ƉĂƌƚŝĐƵůĂƌůLJǁŝƚŚƌĞŐĂƌĚƚŽƚŚĞŶĞĞĚƚŽĞŵďĞĚŝŶƚĞƌŶĂů ĐŽŶƚƌŽů ĂŶĚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƉƌŽĐĞĚƵƌĞƐ ĨƵƌƚŚĞƌ ŝŶƚŽ ƚŚĞ ŽƉĞƌĂƚŝŽŶƐ ŽĨ ƚŚĞ ďƵƐŝŶĞƐƐ ĂŶĚ ƚŽ ĚĞĂů ǁŝƚŚ ĂƌĞĂƐ ŽĨ improvement which come to management’s and the Board’s attention. ƐŵŝŐŚƚďĞĞdžƉĞĐƚĞĚŝŶĂŽŵƉĂŶLJŽĨƚŚŝƐƐŝnjĞ͕ĂŬĞLJĐŽŶƚƌŽůƉƌŽĐĞĚƵƌĞŝƐƚŚĞĚĂLJͲƚŽͲĚĂLJƐƵƉĞƌǀŝƐŝŽŶŽĨƚŚĞďƵƐŝŶĞƐƐďLJ ƚŚĞ džĞĐƵƚŝǀĞ ŝƌĞĐƚŽƌƐ͕ ƐƵƉƉŽƌƚĞĚ ďLJ ƚŚĞ ƐĞŶŝŽƌ ŵĂŶĂŐĞƌƐ ǁŝƚŚ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ĨŽƌ ŬĞLJ ŽƉĞƌĂƚŝŽŶƐ͘ dŚĞ ŽĂƌĚ ŚĂƐ ĐŽŶƐŝĚĞƌĞĚƚŚĞŝŵƉĂĐƚŽĨƚŚĞǀĂůƵĞƐĂŶĚĐƵůƚƵƌĞŽĨƚŚĞŽŵƉĂŶLJĂŶĚĞŶƐƵƌĞƐƚŚĂƚ͕ƚŚƌŽƵŐŚƐƚĂĨĨĐŽŵŵƵŶŝĐĂƚŝŽŶĂŶĚ training, the Board’s expectations and attitude to risk and internal control are embedded in the business. The Board of ŝƌĞĐƚŽƌƐĐŽŶƐŝĚĞƌƚŚĞĨŽůůŽǁŝŶŐƌŝƐŬƐƚŽďĞƚŚĞƉƌŝŶĐŝƉĂůƌŝƐŬƐĂĨĨĞĐƚŝŶŐƚŚĞďƵƐŝŶĞƐƐ͘ 'ĞŶĞƌĂů/ŶĚƵƐƚƌLJZŝƐŬ The Company’s business may be affected by the general risks associated with all companies in the diamond exploration ŝŶĚƵƐƚƌLJ͘dŚĞƐĞƌŝƐŬƐ;ƚŚĞůŝƐƚŽĨǁŚŝĐŚŝƐŶŽƚĞdžŚĂƵƐƚŝǀĞͿŝŶĐůƵĚĞ͗ŐĞŶĞƌĂůĞĐŽŶŽŵŝĐĂĐƚŝǀŝƚLJ͕ƚŚĞǁŽƌůĚĚŝĂŵŽŶĚƉƌŝĐĞƐ͕ ŐŽǀĞƌŶŵĞŶƚĂŶĚĞŶǀŝƌŽŶŵĞŶƚĂůƌĞŐƵůĂƚŝŽŶƐ͕ƉĞƌŵŝƚƐĂŶĚůŝĐĞŶƐĞƐ͕ĨůƵĐƚƵĂƚŝŶŐŵĞƚĂůƉƌŝĐĞƐ͕ƚŚĞƌĞƋƵŝƌĞŵĞŶƚĂŶĚĂďŝůŝƚLJ ƚŽƌĂŝƐĞĂĚĚŝƚŝŽŶĂůĐĂƉŝƚĂůƚŚƌŽƵŐŚĨƵƚƵƌĞĨŝŶĂŶĐŝŶŐƐĂŶĚƉƌŝĐĞǀŽůĂƚŝůŝƚLJŽĨƉƵďůŝĐůLJƚƌĂĚĞĚƐĞĐƵƌŝƚŝĞƐ͘ƐƐƵĐŚƚŚĞƌĞŝƐŶŽ ŐƵĂƌĂŶƚĞĞƚŚĂƚĨƵƚƵƌĞŵĂƌŬĞƚĐŽŶĚŝƚŝŽŶƐǁŝůůƉĞƌŵŝƚƚŚĞƌĂŝƐŝŶŐŽĨƚŚĞŶĞĐĞƐƐĂƌLJĨƵŶĚƐďLJǁĂLJŽĨŝƐƐƵĞŽĨŶĞǁĞƋƵŝƚLJ͕ ĚĞďƚ ĨŝŶĂŶĐŝŶŐ Žƌ ĨĂƌŵŝŶŐ ŽƵƚ ŽĨ ŝŶƚĞƌĞƐƚƐ͘ dŽ ŵŝƚŝŐĂƚĞ ƚŚŝƐ ƌŝƐŬ͕ ƚŚĞ ŽĂƌĚ ƌĞŐƵůĂƌůLJ ƌĞǀŝĞǁƐ ŽŵƉĂŶLJ ĐĂƐŚ ĨůŽǁ ƉƌŽũĞĐƚŝŽŶƐĂŶĚĐŽŶƐŝĚĞƌƐĚŝĨĨĞƌĞŶƚƐŽƵƌĐĞƐŽĨĨƵŶĚƐ͘ 18 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ZŝƐŬƐĂŶĚƵŶĐĞƌƚĂŝŶƚŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ŶǀŝƌŽŶŵĞŶƚĂůZŝƐŬĂŶĚůŝŵĂƚĞŚĂŶŐĞ ŶǀŝƌŽŶŵĞŶƚĂůĂŶĚƐĂĨĞƚLJůĞŐŝƐůĂƚŝŽŶŵĂLJĐŚĂŶŐĞŝŶĂŵĂŶŶĞƌƚŚĂƚŵĂLJƌĞƋƵŝƌĞƐƚƌŝĐƚĞƌŽƌĂĚĚŝƚŝŽŶĂůƐƚĂŶĚĂƌĚƐƚŚĂŶƚŚŽƐĞ ŶŽǁŝŶĞĨĨĞĐƚ͘dŚĞƐĞĐŽƵůĚƌĞƐƵůƚŝŶŚĞŝŐŚƚĞŶĞĚƌĞƐƉŽŶƐŝďŝůŝƚŝĞƐĨŽƌƚŚĞŽŵƉĂŶLJĂŶĚĐŽƵůĚĐĂƵƐĞĂĚĚŝƚŝŽŶĂůĞdžƉĞŶƐĞ͕ ĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞƐ͕ƌĞƐƚƌŝĐƚŝŽŶƐĂŶĚĚĞůĂLJƐŝŶƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞŽŵƉĂŶLJ͕ƚŚĞĞdžƚĞŶƚŽĨǁŚŝĐŚĐĂŶŶŽƚďĞƉƌĞĚŝĐƚĞĚ͘ dŚĞƉƌŝŵĂƌLJĂƌĞĂƚŚĂƚŝƐĞdžƉĞĐƚĞĚƚŽŝŵƉĂĐƚƚŚĞŽŵƉĂŶLJŝƐŝŶƚŚĞĂƌĞĂŽĨĐůŝŵĂƚĞĐŚĂŶŐĞǁŚĞƌĞƌĞůĂƚĞĚůĞŐŝƐůĂƚŝŽŶĂŶĚ ƌĞŐƵůĂƚŝŽŶƐĂƌĞĞǀŽůǀŝŶŐŝŶƉƵƌƐƵŝƚŽĨŶĂƚŝŽŶĂůĂŶĚŝŶƚĞƌŶĂƚŝŽŶĂůĐůŝŵĂƚĞĐŚĂŶŐĞŽďũĞĐƚŝǀĞƐ͘dŚĞƌĞǁŝůůĐĂƵƐĞĂŶLJĂƉƉůŝĐĂďůĞ ƐƚĂŶĚĂƌĚƐ ƚŽ ďĞ ŵŽƌĞ ƐƚƌŝŶŐĞŶƚ ĂŶĚ ƚŚĞ ŝŵƉĂĐƚ ŽĨ ƚŚŝƐ ƌŝƐŬ ǁŝůů ĐŽŶƚŝŶƵĞ ƚŽ ďĞ ŵŽŶŝƚŽƌĞĚ ďLJ ƚŚĞ ŝƌĞĐƚŽƌƐ ĂŶĚ ŵĂŶĂŐĞŵĞŶƚ͘dŚĞŽĂƌĚŝƐĂǁĂƌĞŽĨƚŚĞĨĂĐƚƚŚĂƚƚŚĞ ƵƌŽƉĞĂŶ^ZŝƌĞĐƚŝǀĞǁŝůůĂƉƉůLJƚŽƚŚĞ'ƌŽƵƉĨŽƌĂĐĐŽƵŶƚŝŶŐ ƉĞƌŝŽĚƐĐŽŵŵĞŶĐŝŶŐŝŶ:ƵŶĞϮϬϮϱĂŶĚƉůĂŶƐƚŽƚĂŬĞƌĞůĞǀĂŶƚƐƚĞƉƐƚŽƉƌĞƉĂƌĞĨŽƌƚŚŝƐŝŶĞĂƌůLJϮϬϮϱďLJƌĞĨĞƌĞŶĐĞƚŽŝƚƐ ĂƉƉůŝĐĂďŝůŝƚLJƚŽƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞĐŽŵƉĂŶLJ͘DĂŶĂŐĞŵĞŶƚǁŝůůĐŽŶƚŝŶƵĞƚŽĐůŽƐĞůLJŵŽŶŝƚŽƌĂŶLJƌĞŐƵůĂƚŽƌLJƵƉĚĂƚĞƐŝŶ ƚŚŝƐĂƌĞĂĂŶĚŝƚƐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚŽŶƚŚĞŽŵƉĂŶLJ͘dŚĞŽŵƉĂŶLJĞŵƉůŽLJƐƐƚĂĨĨĂŶĚĐŽŶƐƵůƚĂŶƚƐĞdžƉĞƌŝĞŶĐĞĚŝŶƚŚĞ ƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞƌĞůĞǀĂŶƚĞŶǀŝƌŽŶŵĞŶƚĂůĂƵƚŚŽƌŝƚŝĞƐĂŶĚƐĞĞŬƐ͕ƚŚƌŽƵŐŚƚŚĞŝƌĞdžƉĞƌŝĞŶĐĞ͕ƚŽŵŝƚŝŐĂƚĞƚŚĞƌŝƐŬŽĨŶŽŶͲ ĐŽŵƉůŝĂŶĐĞǁŝƚŚĂĐĐĞƉƚĞĚďĞƐƚƉƌĂĐƚŝĐĞ͘ džƉůŽƌĂƚŝŽŶZŝƐŬ ůůĚƌŝůůŝŶŐƚŽĞƐƚĂďůŝƐŚƉƌŽĚƵĐƚŝǀĞĚŝĂŵŽŶĚƌĞƐŽƵƌĐĞƐŝƐŝŶŚĞƌĞŶƚůLJƐƉĞĐƵůĂƚŝǀĞ͕ĂŶĚ͕ƚŚĞƌĞĨŽƌĞ͕ĂĐŽŶƐŝĚĞƌĂďůĞĂŵŽƵŶƚŽĨ ƉƌŽĨĞƐƐŝŽŶĂů ũƵĚŐĞŵĞŶƚ ŝƐ ŝŶǀŽůǀĞĚ ŝŶ ƚŚĞ ƐĞůĞĐƚŝŽŶ ŽĨ ĂŶLJ ƉƌŽƐƉĞĐƚ ĨŽƌ ĚƌŝůůŝŶŐ͘ /Ŷ ĂĚĚŝƚŝŽŶ͕ ŝŶ ƚŚĞ ĞǀĞŶƚ ĚƌŝůůŝŶŐ ƐƵĐĐĞƐƐĨƵůůLJĞŶĐŽƵŶƚĞƌƐĚŝĂŵŽŶĚƐ͕ƵŶĨŽƌĞƐĞĞĂďůĞŽƉĞƌĂƚŝŶŐƉƌŽďůĞŵƐŵĂLJĂƌŝƐĞǁŚŝĐŚƌĞŶĚĞƌŝƚƵŶĞĐŽŶŽŵŝĐƚŽĞdžƉůŽŝƚ ƐƵĐŚĨŝŶĚƐ͘ ƐƚŝŵĂƚĞƐŽĨƉŽƚĞŶƚŝĂůƌĞƐŽƵƌĐĞƐŝŶĐůƵĚĞƐƵďƐƚĂŶƚŝĂůƉƌŽƉŽƌƚŝŽŶƐǁŚŝĐŚĂƌĞƵŶĚĞǀĞůŽƉĞĚ͘dŚĞƐĞƌĞƐŽƵƌĐĞƐ ƌĞƋƵŝƌĞĨƵƌƚŚĞƌĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞŝŶŽƌĚĞƌƚŽďƌŝŶŐƚŚĞŵŝŶƚŽƉƌŽĚƵĐƚŝŽŶ͘EŽŐƵĂƌĂŶƚĞĞĐĂŶďĞŐŝǀĞŶĂƐƚŽƚŚĞƐƵĐĐĞƐƐ ŽĨĚƌŝůůŝŶŐƉƌŽŐƌĂŵŵĞƐŝŶǁŚŝĐŚƚŚĞŽŵƉĂŶLJŚĂƐĂŶŝŶƚĞƌĞƐƚ͘dŚĞŽŵƉĂŶLJĞŵƉůŽLJƐŚŝŐŚůLJĐŽŵƉĞƚĞŶƚĞdžƉĞƌŝĞŶĐĞĚƐƚĂĨĨ ĂŶĚƵƐĞƐĂƌĂŶŐĞŽĨƚĞĐŚŶŝƋƵĞƐƚŽŵŝŶŝŵŝƐĞƌŝƐŬƉƌŝŽƌƚŽĚƌŝůůŝŶŐĂŶĚƵƚŝůŝƐĞƐŝŶĚĞƉĞŶĚĞŶƚĞdžƉĞƌƚƐƚŽĂƐƐĞƐƐƚŚĞƌĞƐƵůƚƐŽĨ ĞdžƉůŽƌĂƚŝŽŶĂĐƚŝǀŝƚLJ͘ &ŝŶĂŶĐŝĂůZŝƐŬ ZĞĨĞƌƚŽEŽƚĞϭϲŝŶƌĞůĂƚŝŽŶƚŽƚŚĞƵƐĞŽĨĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐďLJƚŚĞŽŵƉĂŶLJ͕ƚŚĞĨŝŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŽďũĞĐƚŝǀĞƐ of the Company and the Company’s exposure to ŝŶĨůĂƚŝŽŶ͕ŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬ͕ĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬ͕ůŝƋƵŝĚŝƚLJƌŝƐŬĂŶĚĐƌĞĚŝƚ ƌŝƐŬ͘DĂŶĂŐĞŵĞŶƚŝƐĂƵƚŚŽƌŝƐĞĚƚŽĂĐŚŝĞǀĞďĞƐƚĂǀĂŝůĂďůĞƌĂƚĞƐŝŶƌĞƐƉĞĐƚŽĨĞĂĐŚĨŽƌĞĐĂƐƚĐƵƌƌĞŶĐLJƌĞƋƵŝƌĞŵĞŶƚ͘ ŽŵŵƵŶŝĐĂƚŝŽŶǁŝƚŚƐŚĂƌĞŚŽůĚĞƌƐ dŚĞŽŵƉĂŶLJŐŝǀĞƐŚŝŐŚƉƌŝŽƌŝƚLJƚŽĐŽŵŵƵŶŝĐĂƚŝŽŶǁŝƚŚďŽƚŚƐŚĂƌĞŚŽůĚĞƌƐĂŶĚĂůůŽƚŚĞƌƐƚĂŬĞŚŽůĚĞƌŐƌŽƵƉƐ͘dŚŝƐŝƐ achieved through publications such as the annual and interim report, and news releases on the Company’s website ǁǁǁ͘ŬĂƌĞůŝĂŶĚŝĂŵŽŶĚƌĞƐŽƵƌĐĞƐ͘ĐŽŵ͕ǁŚŝĐŚŝƐƌĞŐƵůĂƌůLJƵƉĚĂƚĞĚ͘ dŚĞ ŽŵƉĂŶLJ ĞŶĐŽƵƌĂŐĞƐ ƐŚĂƌĞŚŽůĚĞƌƐ ƚŽ ĂƚƚĞŶĚ ƚŚĞ ŶŶƵĂů 'ĞŶĞƌĂů DĞĞƚŝŶŐ ;'DͿ ƚŽ ŵĞĞƚ͕ ĞdžĐŚĂŶŐĞ ǀŝĞǁƐ ĂŶĚ ĚŝƐĐƵƐƐƚŚĞƉƌŽŐƌĞƐƐŽĨƚŚĞŽŵƉĂŶLJ͘dŚĞŝƌĞĐƚŽƌƐĂƌĞĂǀĂŝůĂďůĞĂĨƚĞƌƚŚĞĐŽŶĐůƵƐŝŽŶŽĨƚŚĞĨŽƌŵĂůďƵƐŝŶĞƐƐŽĨƚŚĞ'D ƚŽŵĞĞƚ͕ůŝƐƚĞŶƚŽƐŚĂƌĞŚŽůĚĞƌƐĂŶĚĚŝƐĐƵƐƐĂŶLJƌĞůĞǀĂŶƚŵĂƚƚĞƌƐĂƌŝƐŝŶŐ͘ WŽůŝƚŝĐĂůĚŽŶĂƚŝŽŶƐ dŚĞƌĞǁĞƌĞŶŽƉŽůŝƚŝĐĂůĚŽŶĂƚŝŽŶƐĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ;ϯϭDĂLJϮϬϮϯ: €EŝůͿ͘ ĐĐŽƵŶƚŝŶŐƌĞĐŽƌĚƐ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂƌĞƌĞƐƉŽŶƐŝďůĞĨŽƌĞŶƐƵƌŝŶŐĂĚĞƋƵĂƚĞĂĐĐŽƵŶƚŝŶŐƌĞĐŽƌĚƐ͕ĂƐŽƵƚůŝŶĞĚŝŶ^ĞĐƚŝŽŶƐϮϴϭƚŽϮϴϱŽĨ ƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͕ĂƌĞŬĞƉƚďLJƚŚĞŽŵƉĂŶLJ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐ͕ƚŚƌŽƵŐŚƚŚĞƵƐĞŽĨĂƉƉƌŽƉƌŝĂƚĞƉƌŽĐĞĚƵƌĞƐ ĂŶĚƐLJƐƚĞŵƐĂŶĚƚŚĞĞŵƉůŽLJŵĞŶƚŽĨĐŽŵƉĞƚĞŶƚƉĞƌƐŽŶƐŚĂǀĞĞŶƐƵƌĞĚƚŚĂƚŵĞĂƐƵƌĞƐĂƌĞŝŶƉůĂĐĞƚŽƐĞĐƵƌĞĐŽŵƉůŝĂŶĐĞ ǁŝƚŚƚŚĞƐĞƌĞƋƵŝƌĞŵĞŶƚƐ͘ The accounting records are maintained at the Company’s business address, 3300 Lake Drive, Citywest Business Campus, ƵďůŝŶϮϰ͕ϮϰdϮϭ͕/ƌĞůĂŶĚ͘ ZĞƐĞĂƌĐŚĂŶĚĚĞǀĞůŽƉŵĞŶƚ dŚĞŽŵƉĂŶLJĚŝĚŶŽƚŝŶĐƵƌĂŶLJƌĞƐĞĂƌĐŚĂŶĚĚĞǀĞůŽƉŵĞŶƚĞdžƉĞŶĚŝƚƵƌĞŝŶƚŚĞĐƵƌƌĞŶƚŽƌƉƌŝŽƌĨŝŶĂŶĐŝĂůLJĞĂƌ͘ Directors' Report [continued] 19 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc ŝƐĐůŽƐƵƌĞŽĨŝŶĨŽƌŵĂƚŝŽŶƚŽĂƵĚŝƚŽƌ ^ŽĨĂƌĂƐĞĂĐŚŽĨƚŚĞŝƌĞĐƚŽƌƐŝŶŽĨĨŝĐĞĂƚƚŚĞĚĂƚĞŽĨĂƉƉƌŽǀĂůŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŝƐĂǁĂƌĞ͗ • dŚĞƌĞŝƐŶŽƌĞůĞǀĂŶƚĂƵĚŝƚŝŶĨŽƌŵĂƚŝŽŶŽĨǁŚŝĐŚƚŚĞompany’s auditor ŝƐƵŶĂǁĂƌĞ͖ĂŶĚ • dŚĞŝƌĞĐƚŽƌƐŚĂǀĞƚĂŬĞŶĂůůƐƚĞƉƐƚŚĂƚƚŚĞLJŽƵŐŚƚƚŽŚĂǀĞƚĂŬĞŶĂƐŝƌĞĐƚŽƌƐŝŶŽƌĚĞƌƚŽŵĂŬĞƚŚĞŵƐĞůǀĞƐĂǁĂƌĞ of any relevant audit information and to establish that the Company’s auditor ŝƐĂǁĂƌĞŽĨƚŚĂƚŝŶĨŽƌŵĂƚŝŽŶ͘ dŚŝƐŝŶĨŽƌŵĂƚŝŽŶŝƐŐŝǀĞŶĂŶĚƐŚŽƵůĚďĞŝŶƚĞƌƉƌĞƚĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚƚŚĞƉƌŽǀŝƐŝŽŶƐŽĨ^ĞĐƚŝŽŶϯϯϬŽĨƚŚĞŽŵƉĂŶŝĞƐ ĐƚϮϬϭϰ͘ ƵĚŝƚŽƌ ĞůŽŝƚƚĞ/ƌĞůĂŶĚ>>WǁŝůůĐŽŶƚŝŶƵĞŝŶŽĨĨŝĐĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ^ĞĐƚŝŽŶϯϴϯ;ϮͿŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͘^ŚĂƌĞŚŽůĚĞƌƐ ǁŝůůďĞĂƐŬĞĚƚŽĂƵƚŚŽƌŝƐĞƚŚĞŝƌĞĐƚŽƌƐƚŽĨŝdžƚŚĞŝƌƌĞŵƵŶĞƌĂƚŝŽŶ͘ KŶďĞŚĂůĨŽĨƚŚĞŝƌĞĐƚŽƌƐ͗ ƌĞŶĚĂŶDĐDŽƌƌŽǁ;ŚĂŝƌŵĂŶͿ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ;DĂŶĂŐŝŶŐŝƌĞĐƚŽƌͿ 26EŽǀĞŵďĞƌϮϬϮϰ 20 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Report on the audit of the financial statements Opinion on the financial statements of Karelian Diamond Resources P.L.C. (the ‘Company’) In our opinion the financial statements: • give a true and fair view of the assets, liabilities and financial position of the Company as at 31 May 2024 and of the loss for the financial year then ended; and • have been properly prepared in accordance with the relevant financial reporting framework and, in particular, with the requirements of the Companies Act 2014. The financial statements we have audited comprise: • the Statement of profit or loss; • the Statement of comprehensive income; • the Statement of financial position; • the Statement of changes in equity; • the Statement of cash flows; and • the related notes 1 to 18, including a summary of material accounting policy information as set out in note 1. The relevant financial reporting framework that has been applied in their preparation is the Companies Act 2014 and International Financial Reporting Standards (IFRS) as adopted by the European Union (“the relevant financial reporting framework”). Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are described below in the “Auditor's responsibilities for the audit of the financial statements” section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority, as applied to listed entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. We draw attention to Note 1 in the financial statements, which indicates that the Company recorded a loss of €237,160 for the financial year ended 31 May 2024 and had net current liabilities of €1,948,585 as at that date. As stated in Note 1, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of accounting included: Independent Auditor's Report 21 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc • obtaining an understanding of the Company’s relevant controls over the preparation of cash flow forecasts and approval of the projections and assumptions used in cash flow forecasts to support the going concern assumption; • assessing the design and determining the implementation of these relevant controls; • evaluating directors’ plans and their feasibility by agreeing the inputs used in the cash flow forecast to expenditure commitments and other supporting documentation; • challenging the reasonableness of the assumptions applied by the directors in their going concern assessment; • obtaining confirmations received by the Company from the directors and former directors evidencing that they will not seek repayment of amounts owed to them by the Company within 12 months of the date of approval of the financial statements, unless the Company has sufficient funds to repay; • assessing the mechanical accuracy of the cash flow forecast model; and • assessing the adequacy of the disclosures made in the financial statements. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Summary of our audit approach Key audit matters The key audit matters that we identified in the current year were: • Going concern (see material uncertainty related to going concern section); and • Valuation of Intangible Assets. Within this report, any new key audit matters are identified with and any key audit matters which are the same as the prior year identified with . Materiality The materiality that we used in the current year was €280,000 which was determined on the basis of 2.89% of Shareholder’s Equity. Scoping We determined the scope of our audit by obtaining an understanding of the Company and its environment and assessing the risks of material misstatement. Significant changes in our approach There were no significant changes in our approach. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current financial year and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the material uncertainty relating to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. 22 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Valuation of Intangible Assets Key audit matter description As at 31 May 2024, the carrying value of exploration and evaluation assets included in intangible assets in the statement of financial position amounted to €11,690,194. We draw your attention to the disclosures made in notes 1(a), 1(n) and 7 to the financial statements concerning the valuation of intangible assets held. The valuation of intangible assets by the Company is dependent on the further successful development and ultimate production of the mineral resources and the availability of sufficient finance to bring the resources to economic maturity and profitability. The valuation of intangible assets in the statement of financial position was assessed as a significant risk and given the balance constitutes the majority of the total assets in the statement of financial position, we considered it a key audit matter. How the scope of our audit responded to the key audit matter We performed the following procedures: • We evaluated the design and determined the implementation of relevant controls in place over the capitalisation and subsequent valuation of intangible assets; • We inspected documentation in respect of new and current licenses held (as relevant); • We challenged the directors’ assessment of indicators of impairment in relation to exploration and evaluation assets. We also performed a review of the proposed exploration programme in respect of the Company’s asset to consider indicators of impairment; • We performed a review of Board of Directors meeting minutes and press releases issued by the Company in relation to the status of exploration and evaluation assets; • We performed a review of budgeted expenditure for the next 12 months from the date of approval of the financial statements; and • We also considered the adequacy of the disclosure in the financial statements. Key observations A significant uncertainty exists in relation to the ability of the Company to release the exploration and evaluation assets capitalised to intangible assets. As noted above, we draw your attention to the disclosures made in notes 1(a), 1(n) and 7 to the financial statements concerning the valuation of intangible assets. The valuation of intangible assets by the Company is dependant on the successful renewal of certain licenses, the further successful development and ultimate production of the mineral resources and the availability of sufficient finance to bring the resources to economic maturity and profitability. The financial statements do not include any adjustments in relation to these uncertainties and the ultimate outcome cannot, at present, be determined. Our opinion is not modified in respect of this matter. Our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole, and not to express an opinion on individual accounts or disclosures. Our opinion on the financial statements is not modified with respect to any of the risks described above, and we do not express an opinion on these individual matters. Independent Auditor's Report [continued] 23 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Our application of materiality We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and in evaluating the results of our work. Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: Materiality €280,000 (2023: €280,000) Basis for determining materiality 2.89% of Shareholder’s Equity. Rationale for the benchmark applied We have considered the Shareholder’s Equity to be the critical component for determining materiality as we determined the Shareholder’s Equity position to be of most importance to the principal external users of the financial statements. Raising equity funding is of key importance to the Company in continuing its current operations and is reflective of the current business life cycle of the Company. We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole. We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole. Performance materiality was set at 80% of materiality for the 2024 audit (2023: 64%). In determining performance materiality, we considered the following factors: a. our understanding of the Company; b. the quality of the Company’s internal control environment and whether we were able to rely on controls; c. the nature and extent of uncorrected misstatements identified in previous audits; and d. our expectations in relation to misstatements in the current period. We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of €14,000 (2023: €14,000), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation of the financial statements. Shareholder's Equity €9.7m Materiality €280,000 Audit Committee Reporting Threshold €14,000 Shareholder's Equity Materiality 24 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc An overview of the scope of our audit We determined the scope of our audit by obtaining an understanding of the Company and its environment and assessing the risks of material misstatement within the Company. We did not identify any significant changes in the Company in the current year therefore there has been no change in audit scope compared with the prior year. The key audit matters we identified have remained consistent with prior year. Other information The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of directors As explained more fully in the Directors’ Report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act 2014, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on IAASA’s website at: https://iaasa.ie/publications/description-of-the-auditors-responsibilities-for-the-audit-of-the- financial-statements/. This description forms part of our auditor’s report. Independent Auditor's Report [continued] 25 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following: • the nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets; • results of our enquiries of management and the audit committee about their own identification and assessment of the risks of irregularities; • any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; • the matters discussed among the audit engagement team and relevant internal specialists, including valuation specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. In common with all audits under ISAs (Ireland), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2014, Alternative Investment Market Rules, Irish Tax legislation and Pension Regulations. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included regulations as applicable to the environment, health and safety, and exploration and mining activities. Audit response to risks identified As a result of performing the above, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations. Our procedures to respond to risks identified included the following: • reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • enquiring of management, the audit committee and external legal counsel concerning actual and potential litigation and claims; • performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • reading minutes of meetings of those charged with governance; and Audit response to risks identified 26 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc • in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Report on other legal and regulatory requirements Opinion on other matters prescribed by the Companies Act 2014 Based solely on the work undertaken in the course of the audit, we report that: • We have obtained all the information and explanations which we consider necessary for the purposes of our audit. • In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited. • The financial statements are in agreement with the accounting records. • In our opinion the information given in the directors’ report is consistent with the financial statements and the directors’ report has been prepared in accordance with the Companies Act 2014. Matters on which we are required to report by exception Based on the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report We have nothing to report in respect of the provisions in the Companies Act 2014 which require us to report to you if, in our opinion, the disclosures of directors’ remuneration and transactions specified by law are not made. Use of our report This report is made solely to the Company’s members, as a body, in accordance with Section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Kevin Butler For and on behalf of Deloitte Ireland LLP Chartered Accountants and Statutory Audit Firm No.6 Lapp’s Quay Cork Date: 26 November 2024 Notes: An audit does not provide assurance on the maintenance and integrity of the website, including controls used to achieve this, and in particular on whether any changes may have occurred to the financial statements since first published. These matters are the responsibility of the directors but no control procedures can provide absolute assurance in this area. Legislation in Ireland governing the preparation and dissemination of financial statements differs from legislation in other jurisdictions. Independent Auditor's Report [continued] 27 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ ^ƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐ ĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ EŽƚĞ ϮϬϮϰ ϮϬϮϯ € € ŽŶƚŝŶƵŝŶŐŽƉĞƌĂƚŝŽŶƐ KƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ Ϯ ;ϰϭϴ͕ϯϭϮͿ ;Ϯϵϳ͕ϯϴϲͿ DŽǀĞŵĞŶƚŝŶĨĂŝƌǀĂůƵĞŽĨǁĂƌƌĂŶƚƐ ϭϭ ϭϴϳ͕ϲϮϴ ϵ͕ϱϲϱ KƉĞƌĂƚŝŶŐůŽƐƐ ;ϮϯϬ͕ϲϴϰͿ ;Ϯϴϳ͕ϴϮϭͿ /ŶƚĞƌĞƐƚĞdžƉĞŶƐĞ ϭϭ ;ϲ͕ϰϳϲͿ ;ϯ͕ϲϰϲͿ dŽƚĂůĨŝŶĂŶĐĞĐŽƐƚƐ ;ϲ͕ϰϳϲͿ ;ϯ͕ϲϰϲͿ >ŽƐƐďĞĨŽƌĞƚĂdžĂƚŝŽŶ ϯ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞ ϱ Ͳ Ͳ >ŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ >ŽƐƐƉĞƌƐŚĂƌĞ ĂƐŝĐĂŶĚĚŝůƵƚĞĚůŽƐƐƉĞƌƐŚĂƌĞ ϲ ;Ϭ͘ϬϬϮϯͿ ;Ϭ͘ϬϬϯϴͿ dŚĞƚŽƚĂůůŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝƐĞŶƚŝƌĞůLJĂƚƚƌŝďƵƚĂďůĞƚŽĞƋƵŝƚLJŚŽůĚĞƌƐŽĨƚŚĞŽŵƉĂŶLJ͘ ƌĞŶĚĂŶDĐDŽƌƌŽǁ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ŚĂŝƌŵĂŶ DĂŶĂŐŝŶŐŝƌĞĐƚŽƌ 28 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ ^ƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ ĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ ϮϬϮϰ ϮϬϮϯ € € >ŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ /ŶĐŽŵĞƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ Ͳ Ͳ dŽƚĂůĐŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ dŚĞƚŽƚĂůĐŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝƐĞŶƚŝƌĞůLJĂƚƚƌŝďƵƚĂďůĞƚŽĞƋƵŝƚLJŚŽůĚĞƌƐŽĨƚŚĞŽŵƉĂŶLJ͘ 29 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ ^ƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ ĂƐĂƚϯϭDĂLJϮϬϮϰ ϯϭDĂLJ ϯϭDĂLJ EŽƚĞ ϮϬϮϰ ϮϬϮϯ € € ƐƐĞƚƐ EŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ ϳ ϭϭ͕ϲϵϬ͕ϭϵϰ ϭϭ͕Ϯϲϱ͕ϴϵϰ dŽƚĂůŶŽŶͲĐƵƌƌĞŶƚĂƐƐĞƚƐ ϭϭ͕ϲϵϬ͕ϭϵϰ ϭϭ͕Ϯϲϱ͕ϴϵϰ ƵƌƌĞŶƚĂƐƐĞƚƐ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ϴ ϯϵ͕ϱϵϳ ϭϭϲ͕Ϭϯϴ KƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ϵ ϴϭ͕ϱϱϭ ϳϵ͕ϬϬϯ dŽƚĂůĐƵƌƌĞŶƚĂƐƐĞƚƐ ϭϮϭ͕ϭϰϴ ϭϵϱ͕Ϭϰϭ dŽƚĂůĂƐƐĞƚƐ ϭϭ͕ϴϭϭ͕ϯϰϮ ϭϭ͕ϰϲϬ͕ϵϯϱ ƋƵŝƚLJ ĂƉŝƚĂůĂŶĚƌĞƐĞƌǀĞƐ ^ŚĂƌĞĐĂƉŝƚĂůƉƌĞƐĞŶƚĞĚĂƐĞƋƵŝƚLJ ϭϮ ϯ͕ϮϬϯ͕ϱϯϮ ϯ͕ϮϬϬ͕ϴϴϮ ^ŚĂƌĞƉƌĞŵŝƵŵ ϭϮ ϭϬ͕ϳϯϲ͕ϴϴϵ ϭϬ͕ϱϰϲ͕ϴϰϰ ^ŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƐƌĞƐĞƌǀĞ ϰϱϬ͕ϲϱϴ ϰϱϬ͕ϲϱϴ ZĞƚĂŝŶĞĚĚĞĨŝĐŝƚ ;ϰ͕ϲϰϵ͕ϰϳϬͿ ;ϰ͕ϰϭϮ͕ϯϭϬͿ dŽƚĂůĞƋƵŝƚLJ ϵ͕ϳϰϭ͕ϲϬϵ ϵ͕ϳϴϲ͕Ϭϳϰ >ŝĂďŝůŝƚŝĞƐ EŽŶͲĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ϭϬ Ͳ ϭϬ͕ϯϬϰ ŽŶǀĞƌƚŝďůĞůŽĂŶ ϭϬ Ͳ ϭϭϵ͕Ϯϰϲ tĂƌƌĂŶƚůŝĂďŝůŝƚŝĞƐ ϭϬ͕ϭϱ Ͳ ϭϬϵ͕ϮϮϰ dŽƚĂůŶŽŶͲĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ Ͳ Ϯϯϴ͕ϳϳϰ ƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ dƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ ϭϭ ϭ͕ϵϬϯ͕ϲϬϭ ϭ͕ϰϯϲ͕Ϭϴϳ ŽŶǀĞƌƚŝďůĞůŽĂŶ ϭϬ͕ϭϭ ϭϮϱ͕ϳϮϮ Ͳ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ϭϬ͕ϭϭ ϭϬ͕ϯϬϰ Ͳ tĂƌƌĂŶƚůŝĂďŝůŝƚŝĞƐ ϭϭ ϯϬ͕ϭϬϲ Ͳ dŽƚĂůĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ Ϯ͕Ϭϲϵ͕ϳϯϯ ϭ͕ϰϯϲ͕Ϭϴϳ dŽƚĂůůŝĂďŝůŝƚŝĞƐ Ϯ͕Ϭϲϵ͕ϳϯϯ ϭ͕ϲϳϰ͕ϴϲϭ dŽƚĂůĞƋƵŝƚLJĂŶĚůŝĂďŝůŝƚŝĞƐ ϭϭ͕ϴϭϭ͕ϯϰϮ ϭϭ͕ϰϲϬ͕ϵϯϱ dŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞĂƉƉƌŽǀĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽŶϮϮEŽǀĞŵďĞƌϮϬϮϰĂŶĚĂƵƚŚŽƌŝƐĞĚĨŽƌŝƐƐƵĞŽŶϮ6 EŽǀĞŵďĞƌϮϬϮϰ͘dŚĞLJĂƌĞƐŝŐŶĞĚŽŶŝƚƐďĞŚĂůĨďLJ͗ ƌĞŶĚĂŶDĐDŽƌƌŽǁ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ŚĂŝƌŵĂŶ DĂŶĂŐŝŶŐŝƌĞĐƚŽƌ 30 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ ^ƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJ ĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ ^ŚĂƌĞ ĐĂƉŝƚĂů ^ŚĂƌĞ ƉƌĞŵŝƵŵ ^ŚĂƌĞͲďĂƐĞĚ ƉĂLJŵĞŶƚ ƌĞƐĞƌǀĞ ZĞƚĂŝŶĞĚ ĚĞĨŝĐŝƚ dŽƚĂů ĞƋƵŝƚLJ EŽƚĞ € € € € € ĂůĂŶĐĞĂƚϭ:ƵŶĞϮϬϮϯ ϯ͕ϮϬϬ͕ϴϴϮ ϭϬ͕ϱϰϲ͕ϴϰϰ ϰϱϬ͕ϲϱϴ ;ϰ͕ϰϭϮ͕ϯϭϬͿ ϵ͕ϳϴϲ͕Ϭϳϰ ^ŚĂƌĞŝƐƐƵĞ ϭϮ Ϯ͕ϲϱϬ Ϯϵϴ͕ϱϱϱ Ͳ Ͳ ϯϬϭ͕ϮϬϱ ^ŚĂƌĞŝƐƐƵĞĐŽƐƚƐ ϭϱ Ͳ ;ϭϬϴ͕ϱϭϬͿ Ͳ Ͳ ;ϭϬϴ͕ϱϭϬͿ >ŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂů LJĞĂƌ Ͳ Ͳ Ͳ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϯϳ͕ϭϲϬͿ ĂůĂŶĐĞĂƚϯϭDĂLJϮϬϮϰ ϯ͕ϮϬϯ͕ϱϯϮ ϭϬ͕ϳϯϲ͕ϴϴϵ ϰϱϬ͕ϲϱϴ ;ϰ͕ϲϰϵ͕ϰϳϬͿ ϵ͕ϳϰϭ͕ϲϬϵ ĂůĂŶĐĞĂƚϭ:ƵŶĞϮϬϮϮ ϯ͕ϭϵϭ͕ϴϬϳ ϵ͕ϵϱϵ͕ϭϴϭ ϰϱϬ͕ϲϱϴ ;ϰ͕ϭϮϬ͕ϴϰϯͿ ϵ͕ϰϴϬ͕ϴϬϯ ^ŚĂƌĞŝƐƐƵĞ ϭϮ ϵ͕Ϭϳϱ ϲϭϬ͕ϴϮϰ Ͳ Ͳ ϲϭϵ͕ϴϵϵ ^ŚĂƌĞŝƐƐƵĞĐŽƐƚƐ Ͳ ;Ϯϯ͕ϭϲϭͿ Ͳ Ͳ ;Ϯϯ͕ϭϲϭͿ >ŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂů LJĞĂƌ Ͳ Ͳ Ͳ ;Ϯϵϭ͕ϰϲϳͿ ;Ϯϵϭ͕ϰϲϳͿ ĂůĂŶĐĞĂƚϯϭDĂLJϮϬϮϯ ϯ͕ϮϬϬ͕ϴϴϮ ϭϬ͕ϱϰϲ͕ϴϰϰ ϰϱϬ͕ϲϱϴ ;ϰ͕ϰϭϮ͕ϯϭϬͿ ϵ͕ϳϴϲ͕Ϭϳϰ ^ŚĂƌĞĐĂƉŝƚĂů dŚĞƐŚĂƌĞĐĂƉŝƚĂůĐŽŵƉƌŝƐĞƐŽĨƚŚĞŶŽŵŝŶĂůǀĂůƵĞƐŚĂƌĞĐĂƉŝƚĂůŝƐƐƵĞĚĨŽƌĐĂƐŚĂŶĚŶŽŶͲĐĂƐŚĐŽŶƐŝĚĞƌĂƚŝŽŶ͘dŚĞƐŚĂƌĞ ĐĂƉŝƚĂůĂůƐŽĐŽŵƉƌŝƐĞƐĚĞĨĞƌƌĞĚƐŚĂƌĞĐĂƉŝƚĂů͘dŚĞĚĞĨĞƌƌĞĚƐŚĂƌĞĐĂƉŝƚĂůĂƌŽƐĞƚŚƌŽƵŐŚƚŚĞƌĞƐƚƌƵĐƚƵƌŝŶŐŽĨƐŚĂƌĞĐĂƉŝƚĂů ǁŚŝĐŚǁĂƐĂƉƉƌŽǀĞĚĂƚƚŚĞŶŶƵĂů'ĞŶĞƌĂůDĞĞƚŝŶŐŚĞůĚŽŶϵĞĐĞŵďĞƌϮϬϭϲ͘ĚĞƚĂŝůĞĚďƌĞĂŬĚŽǁŶŽĨƚŚĞƐŚĂƌĞĐĂƉŝƚĂů ĨŝŐƵƌĞŝƐŝŶĐůƵĚĞĚŝŶEŽƚĞϭϮ͘ ^ŚĂƌĞƉƌĞŵŝƵŵ dŚĞƐŚĂƌĞƉƌĞŵŝƵŵƌĞƐĞƌǀĞĐŽŵƉƌŝƐĞƐŽĨƚŚĞĞdžĐĞƐƐĐŽŶƐŝĚĞƌĂƚŝŽŶƌĞĐĞŝǀĞĚŝŶƌĞƐƉĞĐƚŽĨƐŚĂƌĞĐĂƉŝƚĂůŽǀĞƌƚŚĞŶŽŵŝŶĂů ǀĂůƵĞŽĨƐŚĂƌĞƐŝƐƐƵĞĚŶĞƚŽĨĂŶLJĚŝƌĞĐƚƐŚĂƌĞŝƐƐƵĞĐŽƐƚƐǁŚŝĐŚĂƌĞĚĞĚƵĐƚĞĚĨƌŽŵƐŚĂƌĞƉƌĞŵŝƵŵŝŶůŝŶĞǁŝƚŚƚŚĞ Company’s accounting policies. dŚĞĨĂŝƌǀĂůƵĞŽĨǁĂƌƌĂŶƚƐŝƐƐƵĞĚĂƐƉĂƌƚŽĨĂĨƵŶĚƌĂŝƐĞĂƌĞŝŶĐůƵĚĞĚŝŶĚŝƌĞĐƚƐŚĂƌĞŝƐƐƵĞ ĐŽƐƚƐ;ƐĞĞEŽƚĞϭϱͿ͘ ZĞƚĂŝŶĞĚĚĞĨŝĐŝƚ dŚŝƐƌĞƐĞƌǀĞƌĞƉƌĞƐĞŶƚƐƚŚĞĂĐĐƵŵƵůĂƚĞĚůŽƐƐĞƐĂďƐŽƌďĞĚďLJƚŚĞŽŵƉĂŶLJƚŽƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶĚĂƚĞ͘ 31 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ ^ƚĂƚĞŵĞŶƚŽĨĐĂƐŚĨůŽǁƐ ĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ ϮϬϮϰ ϮϬϮϯ € € ĂƐŚĨůŽǁƐĨƌŽŵŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ EŽƚĞ >ŽƐƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ ĚũƵƐƚŵĞŶƚƐĨŽƌ͗ DŽǀĞŵĞŶƚŝŶĨĂŝƌǀĂůƵĞŽĨǁĂƌƌĂŶƚƐ ϭϭ ;ϭϴϳ͕ϲϮϴͿ ϭϬϵ͕ϮϮϰ /ŶƚĞƌĞƐƚĞdžƉĞŶƐĞ ϲ͕ϰϳϲ ϯ͕ϲϰϲ ;ϰϭϴ͕ϯϭϮͿ ;ϭϳϴ͕ϱϵϳͿ /ŶĐƌĞĂƐĞŝŶƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ ϭϭ ϰϰϰ͕ϱϬϳ ϭ͕ϯϲϭ /ŶĐƌĞĂƐĞŝŶŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ϵ ;Ϯ͕ϱϰϴͿ ;ϭϴ͕ϴϮϱͿ EĞƚĐĂƐŚĨƌŽŵͬ;ƵƐĞĚͿŝŶŽƉĞƌĂƚŝŶŐĂĐƚŝǀŝƚŝĞƐ ϰϰϭ͕ϵϱϵ ;ϭϳ͕ϰϲϰͿ ĂƐŚĨůŽǁƐĨƌŽŵŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐ džƉĞŶĚŝƚƵƌĞŽŶŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ ϳ ;ϰϮϰ͕ϯϬϬͿ ;ϯϱϰ͕ϵϲϯͿ EĞƚĐĂƐŚƵƐĞĚŝŶŝŶǀĞƐƚŝŶŐĂĐƚŝǀŝƚŝĞƐ ;ϰϮϰ͕ϯϬϬͿ ;ϯϱϰ͕ϵϲϯͿ ĂƐŚĨůŽǁƐĨƌŽŵĨŝŶĂŶĐŝŶŐĂĐƚŝǀŝƚŝĞƐ /ƐƐƵĞŽĨƐŚĂƌĞĐĂƉŝƚĂů ϭϮ ϯϬϭ͕ϮϬϱ ϰϱϯ͕ϭϬϵ ^ŚĂƌĞŝƐƐƵĞĐŽƐƚƐ ϭϮ Ͳ ;Ϯϯ͕ϭϲϭͿ ĚǀĂŶĐĞĨƌŽŵŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐWůĐ Ϯϯ͕ϬϬϳ ϭϭϵ͕Ϯϰϲ EĞƚĐĂƐŚƉƌŽǀŝĚĞĚďLJĨŝŶĂŶĐŝŶŐĂĐƚŝǀŝƚŝĞƐ ϯϮϰ͕ϮϭϮ ϱϰϵ͕ϭϴϰ ĞĐƌĞĂƐĞŝŶĐĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ;ϳϲ͕ϰϰϭͿ ;ϭ͕ϴϯϬͿ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚďĞŐŝŶŶŝŶŐŽĨĨŝŶĂŶĐŝĂůLJĞĂƌ ϭϭϲ͕Ϭϯϴ ϭϭϳ͕ϴϲϴ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĂƚĞŶĚŽĨĨŝŶĂŶĐŝĂůLJĞĂƌ ϯϵ͕ϱϵϳ ϭϭϲ͕Ϭϯϴ 32 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ ZĞƉŽƌƚŝŶŐĞŶƚŝƚLJ Karelian Diamond Resources P.L.C. (the “Company”) is a company domiciled in Ireland. The Company is a ƉƵďůŝĐ ůŝŵŝƚĞĚ ĐŽŵƉĂŶLJ ŝŶĐŽƌƉŽƌĂƚĞĚ ŝŶ /ƌĞůĂŶĚ ƵŶĚĞƌ ƌĞŐŝƐƚƌĂƚŝŽŶ ŶƵŵďĞƌ ϯϴϮϰϵϵ͘ dŚĞ ƌĞŐŝƐƚĞƌĞĚ ŽĨĨŝĐĞ ŝƐ ůŽĐĂƚĞĚ Ăƚ ^ŚĂŶŶŽŶŝƌƉŽƌƚ,ŽƵƐĞ͕^ŚĂŶŶŽŶ&ƌĞĞŽŶĞ͕^ŚĂŶŶŽŶ͕Ž͘ůĂƌĞ͕sϭϰ ϯϳϬ͕/ƌĞůĂŶĚ͘ dŚĞƉƌŝŶĐŝƉĂůĂĐƚŝǀŝƚLJŽĨƚŚĞŽŵƉĂŶLJĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝƐŵŝŶĞƌĂůĞdžƉůŽƌĂƚŝŽŶĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘ ĂƐŝƐŽĨƉƌĞƉĂƌĂƚŝŽŶ dŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƐĞŶƚĞĚŝŶ uro (“€”). The € is the functional currency of the Company. The financial ƐƚĂƚĞŵĞŶƚƐĂƌĞƉƌĞƉĂƌĞĚƵŶĚĞƌƚŚĞŚŝƐƚŽƌŝĐĂůĐŽƐƚďĂƐŝƐĞdžĐĞƉƚĨŽƌĚĞƌŝǀĂƚŝǀĞĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐǁŚŝĐŚ͕ŝĨĂŶLJ͕ĂƌĞ ŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞĂƚĞĂĐŚƌĞƉŽƌƚŝŶŐĚĂƚĞ͘ dŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ ƌĞƋƵŝƌĞƐ ƚŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ĂŶĚ ŵĂŶĂŐĞŵĞŶƚ ƚŽ ƵƐĞ ũƵĚŐĞŵĞŶƚƐ͕ ĞƐƚŝŵĂƚĞƐĂŶĚĂƐƐƵŵƉƚŝŽŶƐƚŚĂƚĂĨĨĞĐƚƚŚĞĂƉƉůŝĐĂƚŝŽŶŽĨƉŽůŝĐŝĞƐĂŶĚƌĞƉŽƌƚĞĚĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐ͕ůŝĂďŝůŝƚŝĞƐ͕ŝŶĐŽŵĞ ĂŶĚĞdžƉĞŶƐĞƐ͘ĐƚƵĂůƌĞƐƵůƚƐŵĂLJĚŝĨĨĞƌĨƌŽŵƚŚŽƐĞĞƐƚŝŵĂƚĞƐ͘ ƐƚŝŵĂƚĞƐĂŶĚƵŶĚĞƌůLJŝŶŐĂƐƐƵŵƉƚŝŽŶƐĂƌĞƌĞǀŝĞǁĞĚ ŽŶĂŶŽŶŐŽŝŶŐďĂƐŝƐ͘ZĞǀŝƐŝŽŶƐƚŽĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞĞƐƚŝŵĂƚĞŝƐƌĞǀŝƐĞĚ ĂŶĚŝŶĂŶLJĨƵƚƵƌĞƉĞƌŝŽĚƐĂĨĨĞĐƚĞĚ͘ĞƚĂŝůƐŽĨƐŝŐŶŝĨŝĐĂŶƚũƵĚŐĞŵĞŶƚƐĂƌĞĚŝƐĐůŽƐĞĚŝŶƚŚĞĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ͘dŚĞ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞĂƵƚŚŽƌŝƐĞĚĨŽƌŝƐƐƵĞďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽŶϮ6EŽǀĞŵďĞƌϮϬϮϰ͘ 'ŽŝŶŐĐŽŶĐĞƌŶ /ŶƉƌĞƉĂƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƚŚĞĚŝƌĞĐƚŽƌƐĐŽŶƐŝĚĞƌŝƚĂƉƉƌŽƉƌŝĂƚĞƚŽƵƐĞƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶĂƐƐƵŵƉƚŝŽŶ͕ ǁŚŝĐŚĂƐƐƵŵĞƐƚŚĞĐŽŵƉĂŶLJǁŝůůŚĂǀĞƐƵĨĨŝĐŝĞŶƚƌĞƐŽƵƌĐĞƐƚŽĞŶĂďůĞŝƚƚŽŵĞĞƚŝƚƐůŝĂďŝůŝƚŝĞƐĂƐƚŚĞLJĨĂůůĚƵĞ͘ dŚĞ ŽŵƉĂŶLJƌĞĐŽƌĚĞĚĂloss of €237,160 (31 May 2023: loss of €291,467) for the financial year ended 31 May 2024. The Company had net assets of €9,741,609 (31 May 2023: €9,786,074) at that date. The Company had net current liabilities of €1,9ϰϴ͕ϱϴϱ(31 May 2023: €1,241,046) at that date. The Company had cash and cash equivalents of €39,597 (31 May 2023: €116,038) at 31 May 2024. As set out in the Chairman’s statement, the Company expects ƚŽŝŶĐƵƌĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞŝŶϮϬϮϰĂŶĚϮϬϮϱ͕ĐŽŶƐŝƐƚĞŶƚǁŝƚŚŝƚƐƐƚƌĂƚĞŐLJĂƐĂŶĞdžƉůŽƌĂƚŝŽŶĐŽŵƉĂŶLJ͘ dŚĞŝƌĞĐƚŽƌƐŚĂǀĞĐŽŶƐŝĚĞƌĞĚĐĂƌĞĨƵůůLJƚŚĞĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶŽĨƚŚĞŽŵƉĂŶLJĂŶĚŝŶƚŚĂƚĐŽŶƚĞdžƚ͕ŚĂǀĞƉƌĞƉĂƌĞĚ ĂŶĚƌĞǀŝĞǁĞĚĐĂƐŚĨůŽǁĨŽƌĞĐĂƐƚƐĨŽƌƚŚĞƉĞƌŝŽĚƚŽϯϬEŽǀĞŵďĞƌϮϬϮϱ͘dŚĞŝƌĞĐƚŽƌƐƌĞĐŽŐŶŝƐĞƚŚĂƚŶĞƚĐƵƌƌĞŶƚ liabilities of €ϭ͕ϵϰϴ͕ϱϴϱ;ϯϭDĂLJϮϬϮϯ: €1,241,046)ŝƐĂŵĂƚĞƌŝĂůƵŶĐĞƌƚĂŝŶƚLJƚŚĂƚŵĂLJĐĂƐƚƐŝŐŶŝĨŝĐĂŶƚĚŽƵďƚŽŶƚŚĞ Company’s ability to continue as aŐŽŝŶŐĐŽŶĐĞƌŶĂŶĚ͕ƚŚĞƌĞĨŽƌĞ͕ƚŚĂƚŝƚŵĂLJďĞƵŶĂďůĞƚŽƌĞĂůŝƐĞŝƚƐĂƐƐĞƚƐĂŶĚ ĚŝƐĐŚĂƌŐĞŝƚƐůŝĂďŝůŝƚŝĞƐŝŶƚŚĞŶŽƌŵĂůĐŽƵƌƐĞŽĨďƵƐŝŶĞƐƐ͘/ŶƚŚŝƐĐŽŶƚĞdžƚƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŶŽƚĞƚŚĂƚƚŚĞŐŽŝŶŐ ĐŽŶĐĞƌŶŝƐŽŶƚŚĞďĂƐŝƐƚŚĂƚall directors, namely, Brendan McMorrow, Maureen T.A. Jones, Howard Bird, Dr. Sorċa ŽŶƌŽLJĂŶĚ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ͕ĂŶĚĨŽƌŵĞƌŝƌĞĐƚŽƌƐŶĂŵĞůLJ:ĂŵĞƐW͘:ŽŶĞƐĂŶĚWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ;ĂŶĚ ŚŝƐďĞŶĞĨŝĐŝĂƌŝĞƐͿ͕ǁŝůůŶŽƚƐĞĞŬƌĞƉĂLJŵĞŶƚŽĨĂŵŽƵŶƚƐŽǁĞĚƚo them by the Company of €1,476,970 (31 May 2023: €1,291,969) for a minimum period of 12 months from the date of approval of the financial statements, unless the ŽŵƉĂŶLJŚĂƐƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐƚŽƌĞƉĂLJ͘ůůŽĨƚŚĞƐĞŝƌĞĐƚŽƌƐĂŶĚĨŽƌŵĞƌŝƌĞĐƚŽƌƐŚĂǀĞĐŽŶĨŝƌŵĞĚƚŚŝƐƚŽďĞƚŚĞ ĐĂƐĞ͘&ƵƌƚŚĞƌŵŽƌĞŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐƉůĐ;ĂƐŚĂƌĞŚŽůĚĞƌŝŶƚŚĞŽŵƉĂŶLJǁŚŝĐŚŝƚŚĂƐĂĐŽƐƚƐŚĂƌŝŶŐ ĂƌƌĂŶŐĞŵĞŶƚĂƐƐĞƚŽƵƚŝŶŶŽƚĞϭϰ;ďͿͿŚĂƐĐŽŶĨŝƌŵĞĚƚŚĂƚŝƚǁŝůůŶŽƚƐĞĞŬƌĞƉĂLJŵĞŶƚŽĨĂŶLJĂŵŽƵŶƚƐĚƵĞƵŶůĞƐƐƚŚĞ ŽŵƉĂŶLJŚĂƐƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐƚŽƌĞƉĂLJĨŽƌĂƐŝŵŝůĂƌƉĞƌŝŽĚ͘dŚĞĐĂƐŚĨůŽǁƐŝŶĐůƵĚĞƉůĂŶƐƚŽƌĂŝƐĞĨƵŶĚƐƚŽĐĂƌƌLJŽƵƚ ƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞĐŽŵƉĂŶLJĂŶĚƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂƌĞĐŽŶĨŝĚĞŶƚƚŚĂƚĂĚĞƋƵĂƚĞĨƵŶĚƐĐĂŶďĞƌĂŝƐĞĚƚŚƌŽƵŐŚ ƐƚƌĂƚĞŐŝĐƉĂƌƚŶĞƌƐŚŝƉƐŽƌĚŝƌĞĐƚŵĂƌŬĞƚĨƵŶĚƌĂŝƐŝŶŐƚŽŵĞĞƚƚŚĞŝƌŽďũĞĐƚŝǀĞƐ͘dŽŵŝƚŝŐĂƚĞƚŚĞƌŝƐŬŽĨƚŚĞƚŝŵŝŶŐĂŶĚ ƐĐĂůĞŽĨŝŶǀĞƐƚŵĞŶƚŶŽƚďĞŝŶŐŵĞƚ͕ƚŚĞŽĂƌĚĂŶĚŵĂŶĂŐĞŵĞŶƚĐŽŶƚŝŶƵĞƚŽƚĂŬĞĂĐƚŝŽŶƐƚŽŵŽŶŝƚŽƌĂŶĚŵĂŶĂŐĞ ƚŚĞĐŽƐƚďĂƐĞĂŶĚƉƌŽũĞĐƚŝŵƉůĞŵĞŶƚĂƚŝŽŶƉůĂŶƐĂƐĂƉƉƌŽƉƌŝĂƚĞ͘ /ŶƌĞǀŝĞǁŝŶŐƚŚĞƉƌŽƉŽƐĞĚǁŽƌŬƉƌŽŐƌĂŵŵĞĨŽƌĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ͕ƚŚĞƌĞƐƵůƚƐŽďƚĂŝŶĞĚĨƌŽŵƚŚĞ ĞdžƉůŽƌĂƚŝŽŶƉƌŽŐƌĂŵŵĞ͕ƚŚĞƐƵƉƉŽƌƚŶŽƚĞĚĂďŽǀĞĨƌŽŵƚŚĞŽĂƌĚ;ĂŶĚƉĂƐƚŽĂƌĚŵĞŵďĞƌƐͿ͕ƚŚĞĨƵŶĚƐƌĂŝƐĞĚƉŽƐƚ LJĞĂƌĞŶĚĂŶĚƚŚĞƉƌŽƐƉĞĐƚƐĨŽƌƌĂŝƐŝŶŐĂĚĚŝƚŝŽŶĂůĨƵŶĚƐĂƐƌĞƋƵŝƌĞĚ͕ƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂƌĞƐĂƚŝƐĨŝĞĚƚŚĂƚŝƚŝƐ ĂƉƉƌŽƉƌŝĂƚĞƚŽƉƌĞƉĂƌĞƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽŶĂŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐ͘dŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĚŽŶŽƚŝŶĐůƵĚĞ ĂŶLJĂĚũƵƐƚŵĞŶƚƐƚŽƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞĂŶĚĐůĂƐƐŝĨŝĐĂƚŝŽŶŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐƚŚĂƚǁŽƵůĚĂƌŝƐĞŝĨƚŚĞŽŵƉĂŶLJǁĂƐ ƵŶĂďůĞƚŽĐŽŶƚŝŶƵĞĂƐŐŽŝŶŐĐŽŶĐĞƌŶ͘ 33 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ^ƚĂƚĞŵĞŶƚŽĨĐŽŵƉůŝĂŶĐĞ The Company’s financial statements have been prepared in accordance with IFRS as adopted by the European Union (“EU”)ĂŶĚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͘ ZĞĐĞŶƚĂĐĐŽƵŶƚŝŶŐƉƌŽŶŽƵŶĐĞŵĞŶƚƐ ;ŝͿEĞǁĂŶĚĂŵĞŶĚĞĚƐƚĂŶĚĂƌĚƐĂĚŽƉƚĞĚďLJƚŚĞŽŵƉĂŶLJ dŚĞŽŵƉĂŶLJŚĂƐĂĚŽƉƚĞĚƚŚĞĨŽůůŽǁŝŶŐĂŵĞŶĚŵĞŶƚƐƚŽƐƚĂŶĚĂƌĚƐĨŽƌƚŚĞĨŝƌƐƚƚŝŵĞĨŽƌŝƚƐĂŶŶƵĂůƌĞƉŽƌƚŝŶŐLJĞĂƌ ĐŽŵŵĞŶĐŝŶŐϭ:ƵŶĞϮϬϮϯ͗ • /^ϴĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐƚŚĞĚĞĨŝŶŝƚŝŽŶŽĨĂĐĐŽƵŶƚŝŶŐĞƐƚŝŵĂƚĞƐ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϯ͖ • /^ϭĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐƚŚĞĚŝƐĐůŽƐƵƌĞŽĨĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐͲ ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϯ͖ • /^ϭϮĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐĞĨĞƌƌĞĚdĂdžƌĞůĂƚĞĚƚŽƐƐĞƚƐĂŶĚ>ŝĂďŝůŝƚŝĞƐĂƌŝƐŝŶŐĨƌŽŵĂ^ŝŶŐůĞdƌĂŶƐĂĐƚŝŽŶ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϯ͖ • /^ϭϮĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐ/ŶƚĞƌŶĂƚŝŽŶĂůdĂdžZĞĨŽƌŵĂŶĚWŝůůĂƌdǁŽDŽĚĞůZƵůĞƐ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJ ϮϬϮϯ͖ • /&Z^ϭϳ/ŶƐƵƌĂŶĐĞĐŽŶƚƌĂĐƚƐ– ĨĨĞĐƚŝǀĞĚĂƚĞƚŽϭ:ĂŶƵĂƌLJϮϬϮϯ͖ • /&Z^ϭϳĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐŝŶŝƚŝĂůĂƉƉůŝĐĂƚŝŽŶŽĨ/&Z^ϭϳĂŶĚ/&Z^ϵŽĨĐŽŵƉĂƌĂƚŝǀĞŝŶĨŽƌŵĂƚŝŽŶ͖ĂŶĚ • /&Z^ϰĂŵĞŶĚŵĞŶƚƐƌĞŐĂƌĚŝŶŐĞdžƚĞŶƐŝŽŶŽĨƚŚĞdĞŵƉŽƌĂƌLJ džĞŵƉƚŝŽŶĨƌŽŵƉƉůLJŝŶŐ/&Z^ϵ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ :ĂŶƵĂƌLJϮϬϮϯ dŚĞĂĚŽƉƚŝŽŶŽĨƚŚĞĂďŽǀĞĂŵĞŶĚŵĞŶƚƐƚŽƐƚĂŶĚĂƌĚƐŚĂĚŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ ŽŵƉĂŶLJĞŝƚŚĞƌĚƵĞƚŽďĞŝŶŐŶŽƚĂƉƉůŝĐĂďůĞŽƌŝŵŵĂƚĞƌŝĂů͘ ;ŝŝͿEĞǁƐƚĂŶĚĂƌĚƐĂŶĚŝŶƚĞƌƉƌĞƚĂƚŝŽŶƐŶŽƚLJĞƚĂĚŽƉƚĞĚďLJƚŚĞŽŵƉĂŶLJ ĞƌƚĂŝŶŶĞǁĂĐĐŽƵŶƚŝŶŐƐƚĂŶĚĂƌĚƐĂŶĚŝŶƚĞƌƉƌĞƚĂƚŝŽŶƐŚĂǀĞďĞĞŶƉƵďůŝƐŚĞĚƚŚĂƚĂƌĞŶŽƚŵĂŶĚĂƚŽƌLJĨŽƌϯϭDĂLJϮϬϮϰ ƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚƐĂŶĚŚĂǀĞŶŽƚďĞĞŶĞĂƌůLJĂĚŽƉƚĞĚďLJƚŚĞŽŵƉĂŶLJ͘ dŚĞĨŽůůŽǁŝŶŐŶĞǁƐƚĂŶĚĂƌĚƐĂŶĚĂŵĞŶĚŵĞŶƚƐƚŽƐƚĂŶĚĂƌĚƐŚĂǀĞďĞĞŶŝƐƐƵĞĚďLJƚŚĞ/ŶƚĞƌŶĂƚŝŽŶĂůĐĐŽƵŶƚŝŶŐ^ƚĂŶĚͲ ĂƌĚƐŽĂƌĚďƵƚŚĂǀĞŶŽƚLJĞƚďĞĞŶĞŶĚŽƌƐĞĚďLJƚŚĞ h͕ĂĐĐŽƌĚŝŶŐůLJ͕ŶŽŶĞŽĨƚŚĞƐĞƐƚĂŶĚĂƌĚƐŚĂǀĞďĞĞŶĂƉƉůŝĞĚŝŶ ƚŚĞĐƵƌƌĞŶƚLJĞĂƌ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐĐƵƌƌĞŶƚůLJĂƐƐĞƐƐŝŶŐǁŚĞƚŚĞƌƚŚĞƐĞƐƚĂŶĚĂƌĚƐŽŶĐĞĞŶĚŽƌƐĞĚďLJƚŚĞ h ǁŝůůŚĂǀĞĂŶLJŝŵƉĂĐƚŽŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞŽŵƉĂŶLJ͘ • ŵĞŶĚŵĞŶƚƐƚŽ/^Ϯϭ>ĂĐŬŽĨ džĐŚĂŶŐĞĂďŝůŝƚLJ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϱ͖ • ŵĞŶĚŵĞŶƚƐƚŽ/&Z^ϵĂŶĚ/&Z^ϳƌĞŐĂƌĚŝŶŐĐůĂƐƐŝĨŝĐĂƚŝŽŶĂŶĚŵĞĂƐƵƌĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ– ĨĨĞĐƚŝǀĞ ĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϲ͖ • ŶŶƵĂů/ŵƉƌŽǀĞŵĞŶƚƐƚŽ/&Z^ĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐ–sŽůƵŵĞϭϭ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϲ͖ • /&Z^ϭϴWƌĞƐĞŶƚĂƚŝŽŶĂŶĚŝƐĐůŽƐƵƌĞŝŶ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϳ͖ • /&Z^ϭϵ^ƵďƐŝĚŝĂƌŝĞƐǁŝƚŚŽƵƚWƵďůŝĐĐĐŽƵŶƚĂďŝůŝƚLJ͗ŝƐĐůŽƐƵƌĞƐ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϳ͖ • /&Z^^ϭ'ĞŶĞƌĂůZĞƋƵŝƌĞŵĞŶƚƐĨŽƌŝƐĐůŽƐƵƌĞŽĨ^ƵƐƚĂŝŶĂďŝůŝƚLJͲƌĞůĂƚĞĚĨŝŶĂŶĐŝĂůŝŶĨŽƌŵĂƚŝŽŶ͖ • /&Z^^ϮůŝŵĂƚĞͲƌĞůĂƚĞĚĚŝƐĐůŽƐƵƌĞƐ͖ • ŵĞŶĚŵĞŶƚƐƚŽ^^ƐƚĂŶĚĂƌĚƐƌĞŐĂƌĚŝŶŐĞŶŚĂŶĐĞŵĞŶƚŽĨƚŚĞŝƌŝŶƚĞƌŶĂƚŝŽŶĂůĂƉƉůŝĐĂďŝůŝƚLJ͖ • ŵĞŶĚŵĞŶƚƐƚŽ/^ϳĂŶĚ/&Z^ϭϳƌĞŐĂƌĚŝŶŐƐƵƉƉůŝĞƌĨŝŶĂŶĐĞĂƌƌĂŶŐĞŵĞŶƚƐ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϱ͖ • ŵĞŶĚŵĞŶƚƐƚŽ/&Z^ϭϲ>ĞĂƐĞƐ͗>ĞĂƐĞůŝĂďŝůŝƚLJŝŶĂƐĂůĞĂŶĚůĞĂƐĞďĂĐŬ– ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϰ͖ĂŶĚ • ŵĞŶĚŵĞŶƚƐƚŽ/^ϭWƌĞƐĞŶƚĂƚŝŽŶŽĨ&ŝŶĂŶĐŝĂů^ƚĂƚĞŵĞŶƚƐ͗ůĂƐƐŝĨŝĐĂƚŝŽŶŽĨůŝĂďŝůŝƚŝĞƐĂƐĐƵƌƌĞŶƚŽƌŶŽŶͲĐƵƌƌĞŶƚ – ĨĨĞĐƚŝǀĞĚĂƚĞϭ:ĂŶƵĂƌLJϮϬϮϰ͘ dŚĞĂĚŽƉƚŝŽŶŽĨƚŚĞĂďŽǀĞĂŵĞŶĚŵĞŶƚƐƚŽƐƚĂŶĚĂƌĚƐŚĂĚŶŽƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽĨƚŚĞ ŽŵƉĂŶLJĞŝƚŚĞƌĚƵĞƚŽďĞŝŶŐŶŽƚĂƉƉůŝĐĂďůĞŽƌŝŵŵĂƚĞƌŝĂů͘ 34 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĂͿ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ dŚĞŽŵƉĂŶLJĂĐĐŽƵŶƚƐĨŽƌŵŝŶĞƌĂůĞdžƉĞŶĚŝƚƵƌĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/&Z^ϲ͗ džƉůŽƌĂƚŝŽŶĨŽƌĂŶĚ ǀĂůƵĂƚŝŽŶŽĨ DŝŶĞƌĂůZĞƐŽƵƌĐĞƐ͘ ;ŝͿĂƉŝƚĂůŝƐĂƚŝŽŶ ůůĐŽƐƚƐƌĞůĂƚĞĚƚŽĂĐƋƵŝƌŝŶŐƚŚĞůĞŐĂůƌŝŐŚƚƐƚŽĞdžƉůŽƌĞǁŝůůďĞĐĂƉŝƚĂůŝƐĞĚ͘ůůŽƚŚĞƌĐŽƐƚƐŝŶĐƵƌƌĞĚƉƌŝŽƌƚŽĂĐͲ ƋƵŝƌŝŶŐƚŚĞƌŝŐŚƚƐƚŽĞdžƉůŽƌĞĂƌĞĐŚĂƌŐĞĚĚŝƌĞĐƚůLJƚŽƚŚĞĐŽŶƐŽůŝĚĂƚĞĚƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐ͘ džƉůŽƌĂƚŝŽŶ͕ ĂƉƉƌĂŝƐĂůĂŶĚĚĞǀĞůŽƉŵĞŶƚĞdžƉĞŶĚŝƚƵƌĞŝŶĐƵƌƌĞĚŽŶĞdžƉůŽƌŝŶŐ͕ĂŶĚƚĞƐƚŝŶŐĞdžƉůŽƌĂƚŝŽŶƉƌŽƐƉĞĐƚƐĂƌĞĂĐĐƵŵƵͲ lated and capitalised as intangible exploration and evaluation (“E&E”) assets͘ Θ ĐĂƉŝƚĂůŝƐĞĚĐŽƐƚƐŝŶĐůƵĚĞŐĞŽůŽŐŝĐĂůĂŶĚŐĞŽƉŚLJƐŝĐĂůĐŽƐƚƐ͕ĂŶĚŽƚŚĞƌĚŝƌĞĐƚĐŽƐƚƐŽĨĞdžƉůŽƌĂƚŝŽŶ;ĚƌŝůůŝŶŐ͕ ƚƌĞŶĐŚŝŶŐ͕ƐĂŵƉůŝŶŐĂŶĚƚĞĐŚŶŝĐĂůĨĞĂƐŝďŝůŝƚLJĂŶĚĐŽŵŵĞƌĐŝĂůǀŝĂďŝůŝƚLJĂĐƚŝǀŝƚŝĞƐͿ͘/ŶĂĚĚŝƚŝŽŶ͕ Θ ĐĂƉŝƚĂůŝƐĞĚĐŽƐƚƐ ŝŶĐůƵĚĞĂŶĂůůŽĐĂƚŝŽŶĨƌŽŵŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ͕ŝŶĐůƵĚŝŶŐƐŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƐ͘ůůƐƵĐŚĐŽƐƚƐĂƌĞŶĞĐĞƐƐĂƌLJĨŽƌ ĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂĐƚŝǀŝƚŝĞƐ͘ Θ ĐĂƉŝƚĂůŝƐĞĚĐŽƐƚƐĂƌĞŶŽƚĂŵŽƌƚŝƐĞĚƉƌŝŽƌƚŽƚŚĞĐŽŶĐůƵƐŝŽŶŽĨĂƉƉƌĂŝƐĂůĂĐƚŝǀŝƚŝĞƐ͘ ƚ ĐŽŵƉůĞƚŝŽŶ ŽĨ ĂƉƉƌĂŝƐĂů ĂĐƚŝǀŝƚŝĞƐ ŝĨ ƚĞĐŚŶŝĐĂů ĨĞĂƐŝďŝůŝƚLJ ŝƐ ĚĞŵŽŶƐƚƌĂƚĞĚ ĂŶĚ ĐŽŵŵĞƌĐŝĂů ƌĞƐŽƵƌĐĞƐ ĂƌĞ ĚŝƐĐŽǀĞƌĞĚ͕ ƚŚĞŶ ƚŚĞ ĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚ ŽĨ ƚŚĞ ƌĞůĞǀĂŶƚ Θ ĂƐƐĞƚ ǁŝůů ďĞ ƌĞĐůĂƐƐŝĨŝĞĚ ĂƐ Ă ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƉƌŽĚƵĐƚŝŽŶĂƐƐĞƚ͕ŽŶĐĞƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨƚŚĞĂƐƐĞƚŚĂƐďĞĞŶĂƐƐĞƐƐĞĚĨŽƌŝŵƉĂŝƌŵĞŶƚ͘/ĨĨŽůůŽǁŝŶŐĐŽŵƉůĞƚŝŽŶ ŽĨĂƉƉƌĂŝƐĂůĂĐƚŝǀŝƚŝĞƐŝŶĂŶĂƌĞĂ͕ŝƚŝƐŶŽƚƉŽƐƐŝďůĞƚŽĚĞƚĞƌŵŝŶĞƚĞĐŚŶŝĐĂůĨĞĂƐŝďŝůŝƚLJĂŶĚĐŽŵŵĞƌĐŝĂůǀŝĂďŝůŝƚLJ͕ŽƌŝĨ ƚŚĞƌŝŐŚƚƚŽĞdžƉůŽƌĞĞdžƉŝƌĞƐ͕ƚŚĞŶƚŚĞĐŽƐƚƐŽĨƐƵĐŚƵŶƐƵĐĐĞƐƐĨƵůĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƌĞǁƌŝƚƚĞŶŽĨĨƚŽƚŚĞ ƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐŝŶƚŚĞƉĞƌŝŽĚŝŶǁŚŝĐŚƚŚĞĞǀĞŶƚŽĐĐƵƌƌĞĚ͘ ;ŝŝͿ/ŵƉĂŝƌŵĞŶƚ /ĨĨĂĐƚƐĂŶĚĐŝƌĐƵŵƐƚĂŶĐĞƐŝŶĚŝĐĂƚĞƚŚĂƚƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨĂŶ Θ ĂƐƐĞƚŵĂLJĞdžĐĞĞĚŝƚƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͕ ĂŶŝŵƉĂŝƌŵĞŶƚƌĞǀŝĞǁŝƐƉĞƌĨŽƌŵĞĚ͘dŚĞĨŽůůŽǁŝŶŐĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞŬĞLJŝŶĚŝĐĂƚŽƌƐŽĨŝŵƉĂŝƌŵĞŶƚŝŶƌĞůĂƚŝŽŶ ƚŽ Θ ĂƐƐĞƚƐ͗ • dŚĞƉĞƌŝŽĚĨŽƌǁŚŝĐŚƚŚĞĞŶƚŝƚLJŚĂƐƚŚĞƌŝŐŚƚƚŽĞdžƉůŽƌĞŝŶƚŚĞƐƉĞĐŝĨŝĐĂƌĞĂŚĂƐĞdžƉŝƌĞĚŽƌǁŝůůĞdžƉŝƌĞŝŶƚŚĞ ŶĞĂƌĨƵƚƵƌĞĂŶĚŝƐŶŽƚĞdžƉĞĐƚĞĚƚŽďĞƌĞŶĞǁĞĚ͘ • ^ƵďƐƚĂŶƚŝǀĞĞdžƉĞŶĚŝƚƵƌĞŽŶĨƵƌƚŚĞƌĞdžƉůŽƌĂƚŝŽŶĨŽƌĂŶĚĞǀĂůƵĂƚŝŽŶŽĨŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐŝŶƚŚĞƐƉĞĐŝĨŝĐĂƌĞĂ ŝƐŶĞŝƚŚĞƌďƵĚŐĞƚĞĚŶŽƌƉůĂŶŶĞĚ͘ • džƉůŽƌĂƚŝŽŶĨŽƌĂŶĚĞǀĂůƵĂƚŝŽŶŽĨŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐŝŶƚŚĞƐƉĞĐŝĨŝĐĂƌĞĂŚĂǀĞŶŽƚůĞĚƚŽƚŚĞĚŝƐĐŽǀĞƌLJŽĨ ĐŽŵŵĞƌĐŝĂůůLJǀŝĂďůĞƋƵĂŶƚŝƚŝĞƐŽĨŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐĂŶĚƚŚĞĞŶƚŝƚLJŚĂƐĚĞĐŝĚĞĚƚŽĚŝƐĐŽŶƚŝŶƵĞƐƵĐŚĂĐƚŝǀŝƚŝĞƐ ŝŶƚŚĞƐƉĞĐŝĨŝĐĂƌĞĂ͘ • ^ƵĨĨŝĐŝĞŶƚĚĂƚĂĞdžŝƐƚƐƚŽŝŶĚŝĐĂƚĞƚŚĂƚ͕ĂůƚŚŽƵŐŚĂĚĞǀĞůŽƉŵĞŶƚŝŶƚŚĞƐƉĞĐŝĨŝĐĂƌĞĂŝƐůŝŬĞůLJƚŽƉƌŽĐĞĞĚ͕ƚŚĞ ĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚŝƐƵŶůŝŬĞůLJƚŽďĞƌĞĐŽǀĞƌĞĚŝŶĨƵůůĨƌŽŵƐƵĐĐĞƐƐĨƵů ĚĞǀĞůŽƉŵĞŶƚŽƌďLJƐĂůĞ͘ 35 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĂͿ/ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ;ĐŽŶƚŝŶƵĞĚͿ ;ŝŝͿ/ŵƉĂŝƌŵĞŶƚ;ĐŽŶƚŝŶƵĞĚͿ &Žƌ Θ ĂƐƐĞƚƐ͕ǁŚĞƌĞƚŚĞĂďŽǀĞŝŶĚŝĐĂƚŽƌƐĞdžŝƐƚŽƌŽŶĂŶĂŶŶƵĂůďĂƐŝƐ͕ĂŶŝŵƉĂŝƌŵĞŶƚƚĞƐƚŝƐĐĂƌƌŝĞĚŽƵƚ͘dŚĞ Θ ĂƐƐĞƚƐ ĂƌĞĐĂƚĞŐŽƌŝƐĞĚ ŝŶƚŽ ĂƐŚGenerating Units (“CGU”) on a countryͲďLJͲĐŽƵŶƚƌLJ ;ǁŚĞƌĞ ŵĂƚĞƌŝĂůͿďĂƐŝƐ͘dŚĞ ĐĂƌƌLJŝŶŐǀĂůƵĞŽĨƚŚĞ'hŝƐĐŽŵƉĂƌĞĚƚŽŝƚƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚĂŶĚĂŶLJƌĞƐƵůƚŝŶŐŝŵƉĂŝƌŵĞŶƚůŽƐƐŝƐǁƌŝƚƚĞŶŽĨĨƚŽ ƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐ͘dŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨƚŚĞ'hŝƐĂƐƐĞƐƐĞĚĂƐƚŚĞŚŝŐŚĞƌŽĨŝƚƐĨĂŝƌǀĂůƵĞ͕ůĞƐƐ ĐŽƐƚƐƚŽƐĞůů͕ĂŶĚŝƚƐǀĂůƵĞŝŶƵƐĞ͘ ;ďͿ /ŶĐŽŵĞƚĂdžĂƚŝŽŶĞdžƉĞŶƐĞ /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞĐŽŵƉƌŝƐĞƐĐƵƌƌĞŶƚĂŶĚĚĞĨĞƌƌĞĚƚĂdž͘/ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚ ŽƌůŽƐƐĞdžĐĞƉƚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚƌĞůĂƚĞƐƚŽŝƚĞŵƐƌĞĐŽŐŶŝƐĞĚĚŝƌĞĐƚůLJŝŶŽƚŚĞƌĐŽŵƉƌĞŚĞŶƐŝǀĞůŽƐƐ͕ŝŶǁŚŝĐŚĐĂƐĞ ŝƚŝƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŽŵƉƌĞŚĞŶƐŝǀĞŝŶĐŽŵĞ͘ƵƌƌĞŶƚƚĂdžŝƐƚŚĞĞdžƉĞĐƚĞĚƚĂdžƉĂLJĂďůĞŽŶƚŚĞƚĂdžĂďůĞ ŝŶĐŽŵĞĨŽƌƚŚĞLJĞĂƌ͕ƵƐŝŶŐƚĂdžƌĂƚĞƐĞŶĂĐƚĞĚŽƌƐƵďƐƚĂŶƚŝǀĞůLJĞŶĂĐƚĞĚĂƚƚŚĞƌĞƉŽƌƚŝŶŐĚĂƚĞ͕ĂŶĚĂŶLJĂĚũƵƐƚŵĞŶƚƚŽ ƚĂdžƉĂLJĂďůĞŝŶƌĞƐƉĞĐƚŽĨƉƌĞǀŝŽƵƐLJĞĂƌƐ͘ ĞĨĞƌƌĞĚƚĂdžŝƐƚŚĞƚĂdžĞdžƉĞĐƚĞĚƚŽďĞƉĂLJĂďůĞŽƌƌĞĐŽǀĞƌĂďůĞŽŶĚŝĨĨĞƌĞŶĐĞƐďĞƚǁĞĞŶƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐ ĂŶĚůŝĂďŝůŝƚŝĞƐŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĂŶĚƚŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐƚĂdžďĂƐĞƐƵƐĞĚŝŶƚŚĞĐŽŵƉƵƚĂƚŝŽŶŽĨƚĂdžĂďůĞƉƌŽĨŝƚ ĂŶĚ ŝƐ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ƵƐŝŶŐ ƚŚĞ ůŝĂďŝůŝƚLJ ŵĞƚŚŽĚ͘ ĞĨĞƌƌĞĚ ƚĂdž ůŝĂďŝůŝƚŝĞƐ ĂƌĞ ŐĞŶĞƌĂůůLJ ƌĞĐŽŐŶŝƐĞĚ ĨŽƌ Ăůů ƚĂdžĂďůĞ ƚĞŵƉŽƌĂƌLJĚŝĨĨĞƌĞŶĐĞƐĂŶĚĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚƐĂƌĞƌĞĐŽŐŶŝƐĞĚƚŽƚŚĞĞdžƚĞŶƚƚŚĂƚŝƚŝƐƉƌŽďĂďůĞƚŚĂƚƚĂdžĂďůĞƉƌŽĨŝƚƐ ǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚĚĞĚƵĐƚŝďůĞƚĞŵƉŽƌĂƌLJĚŝĨĨĞƌĞŶĐĞƐĐĂŶďĞƵƚŝůŝƐĞĚ͘ ;ĐͿ ^ŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƐ dŚĞ ŽŵƉĂŶLJ ĐůĂƐƐŝĨŝĞƐ ŝŶƐƚƌƵŵĞŶƚƐ ŝƐƐƵĞĚ ĂƐ ĨŝŶĂŶĐŝĂů ůŝĂďŝůŝƚŝĞƐ Žƌ ĞƋƵŝƚLJ ŝŶƐƚƌƵŵĞŶƚƐ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ƚŚĞ ƐƵďƐƚĂŶĐĞŽĨƚŚĞĐŽŶƚƌĂĐƚƵĂůƚĞƌŵƐŽĨƚŚĞŝŶƐƚƌƵŵĞŶƚƐ͘tŚĞŶƚŚĞǁĂƌƌĂŶƚƐŝƐƐƵĞĚ;ƐĞĞŶŽƚĞϭϲĨŽƌĚĞƚĂŝůƐͿŚĂǀĞĂŶ ĞdžĞƌĐŝƐĞƉƌŝĐĞŝŶƐƚĞƌůŝŶŐ͕ƚŚĞLJĂƌĞĚĞƌŝǀĂƚŝǀĞŝŶŶĂƚƵƌĞĂŶĚĂƌĞůŝĂďŝůŝƚLJĐůĂƐƐŝĨŝĞĚ͘dŚĞLJĚŽŶŽƚƋƵĂůŝĨLJĨŽƌĞƋƵŝƚLJ ĐůĂƐƐŝĨŝĐĂƚŝŽŶĂƐĂŶLJĐĂƐŚƐĞƚƚůĞŵĞŶƚŽŶĞdžĞƌĐŝƐĞŽĨƚŚĞƐĞǁĂƌƌĂŶƚƐǁŝůůďĞƌĞĐĞŝǀĞĚŝŶĂĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJ͘tŚĞƌĞ ǁĂƌƌĂŶƚƐĂƌĞŝƐƐƵĞĚŝŶƚŚĞĨƵŶĐƚŝŽŶĂůĐƵƌƌĞŶĐLJŽĨƚŚĞŽŵƉĂŶLJĂŶĚŵĞĞƚƚŚĞŽƚŚĞƌŶĞĐĞƐƐĂƌLJĐŽŶĚŝƚŝŽŶƐ͕ƚŚĞLJĂƌĞ ƌĞĐŽŐŶŝƐĞĚĂƐĞƋƵŝƚLJŝŶƐƚƌƵŵĞŶƚƐ͘dŚĞǁĂƌƌĂŶƚůŝĂďŝůŝƚŝĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƚƚŚĞŝƌĨĂŝƌǀĂůƵĞŽŶŝŶŝƚŝĂůƌĞĐŽŐŶŝƚŝŽŶĂŶĚ ƐƵďƐĞƋƵĞŶƚůLJĂƌĞŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐ͘ŶLJŝŶĐƌĞŵĞŶƚĂůĚŝƌĞĐƚĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚƚŚĞŝƐƐƵĂŶĐĞŽĨǁĂƌƌĂŶƚƐĂƌĞƚĂŬĞŶĂƐĂŶŝŵŵĞĚŝĂƚĞĐŚĂƌŐĞƚŽĨŝŶĂŶĐĞĐŽƐƚƐƚŚƌŽƵŐŚƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌ ůŽƐƐ͘^ĞĞŶŽƚĞϭϭĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ &ŽƌĞƋƵŝƚLJͲƐĞƚƚůĞĚƐŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƚƌĂŶƐĂĐƚŝŽŶƐ;ŝ͘Ğ͘ƚŚĞŐƌĂŶƚŝŶŐŽĨƐŚĂƌĞŽƉƚŝŽŶƐĂŶĚƐŚĂƌĞǁĂƌƌĂŶƚƐͿ͕ƚŚĞ ŽŵƉĂŶLJŵĞĂƐƵƌĞƐƚŚĞƐĞƌǀŝĐĞƐĂŶĚƚŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐŝŶĐƌĞĂƐĞŝŶĞƋƵŝƚLJĂƚĨĂŝƌǀĂůƵĞĂƚƚŚĞŵĞĂƐƵƌĞŵĞŶƚĚĂƚĞ ;ǁŚŝĐŚŝƐƚŚĞŐƌĂŶƚĚĂƚĞͿƵƐŝŶŐĂƌĞĐŽŐŶŝƐĞĚǀĂůƵĂƚŝŽŶŵĞƚŚŽĚŽůŽŐLJĨŽƌƚŚĞƉƌŝĐŝŶŐŽĨĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ;ŝŶŽŵŝĂů >ĂƚƚŝĐĞDŽĚĞůŽƌůĂĐŬ^ĐŚŽůĞƐDŽĚĞůͿ͘ ;ĚͿ dƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĂŶĚƉĂLJĂďůĞƐ dƌĂĚĞĂŶĚŽƚŚĞƌƌĞĐĞŝǀĂďůĞƐĂƌĞŵĞĂƐƵƌĞĚĂƚƚŚĞŝƌƚƌĂŶƐĂĐƚŝŽŶƉƌŝĐĞĂŶĚƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚ͘ dƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐĂƌĞŵĞĂƐƵƌĞĚĂƚŝŶŝƚŝĂůƌĞĐŽŐŶŝƚŝŽŶĂƚĨĂŝƌǀĂůƵĞ͕ĂŶĚƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚ ĐŽƐƚ͘ ;ĞͿ ĂƌŶŝŶŐƐƉĞƌƐŚĂƌĞ The Company presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS is ĐĂůĐƵůĂƚĞĚďLJĚŝǀŝĚŝŶŐƚŚĞƉƌŽĨŝƚŽƌůŽƐƐĂƚƚƌŝďƵƚĂďůĞƚŽŽƌĚŝŶĂƌLJƐŚĂƌĞŚŽůĚĞƌƐďLJƚŚĞǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨ ŽƌĚŝŶĂƌLJƐŚĂƌĞƐŽƵƚƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞƉĞƌŝŽĚ͘ŝůƵƚĞĚ W^ŝƐĚĞƚĞƌŵŝŶĞĚďLJĂĚũƵƐƚŝŶŐƚŚĞƉƌŽĨŝƚĂƚƚƌŝďƵƚĂďůĞƚŽ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞŚŽůĚĞƌƐ ĂŶĚ ƚŚĞ ǁĞŝŐŚƚĞĚ ĂǀĞƌĂŐĞ ŶƵŵďĞƌ ŽĨ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞƐ ŽƵƚƐƚĂŶĚŝŶŐ ĨŽƌ ƚŚĞ ĞĨĨĞĐƚƐ ŽĨ Ăůů ƉŽƚĞŶƚŝĂůůLJĚŝůƵƚŝǀĞŽƌĚŝŶĂƌLJƐŚĂƌĞƐ͘ 36 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĨͿ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐĐŽŶƐŝƐƚŽĨĐĂƐŚĂƚďĂŶŬŚĞůĚďLJƚŚĞŽŵƉĂŶLJĂŶĚƐŚŽƌƚͲƚĞƌŵďĂŶŬĚĞƉŽƐŝƚƐǁŝƚŚĂŵĂƚƵƌŝƚLJ ŽĨ ƚŚƌĞĞ ŵŽŶƚŚƐ Žƌ ůĞƐƐ͘ ĂƐŚ ĂŶĚ ĐĂƐŚ ĞƋƵŝǀĂůĞŶƚƐ ĂƌĞ ŚĞůĚ ĨŽƌ ƚŚĞ ƉƵƌƉŽƐĞ ŽĨ ŵĞĞƚŝŶŐ ƐŚŽƌƚͲƚĞƌŵ ĐĂƐŚ ĐŽŵŵŝƚŵĞŶƚƐ͘ ;ŐͿ WĞŶƐŝŽŶĐŽƐƚƐ dŚĞŽŵƉĂŶLJƉƌŽǀŝĚĞƐĨŽƌƉĞŶƐŝŽŶƐĨŽƌĐĞƌƚĂŝŶĞŵƉůŽLJĞĞƐƚŚƌŽƵŐŚĂĚĞĨŝŶĞĚĐŽŶƚƌŝďƵƚŝŽŶƉĞŶƐŝŽŶƐĐŚĞŵĞ͘ dŚĞ ĂŵŽƵŶƚĐŚĂƌŐĞĚƚŽƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐŝƐƚŚĞĐŽŶƚƌŝďƵƚŝŽŶƉĂLJĂďůĞŝŶƚŚĂƚĨŝŶĂŶĐŝĂůLJĞĂƌ͘ŶLJĚŝĨĨĞƌĞŶĐĞ ďĞƚǁĞĞŶĂŵŽƵŶƚƐĐŚĂƌŐĞĚĂŶĚĐŽŶƚƌŝďƵƚŝŽŶƐƉĂŝĚƚŽƚŚĞƉĞŶƐŝŽŶƐĐŚĞŵĞŝƐŝŶĐůƵĚĞĚŝŶƌĞĐĞŝǀĂďůĞƐŽƌƉĂLJĂďůĞƐŝŶ ƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͘ ;ŚͿ &ŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐ dƌĂŶƐĂĐƚŝŽŶƐĚĞŶŽŵŝŶĂƚĞĚŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐƌĞůĂƚŝŶŐƚŽĐŽƐƚƐĂŶĚŶŽŶͲmonetary assets are translated into € at ƚŚĞ ƌĂƚĞƐ ŽĨ ĞdžĐŚĂŶŐĞ ƌƵůŝŶŐ ŽŶ ƚŚĞ ĚĂƚĞƐ ŽŶ ǁŚŝĐŚ ƚŚĞ ƚƌĂŶƐĂĐƚŝŽŶƐ ŽĐĐƵƌƌĞĚ͘ DŽŶĞƚĂƌLJ ĂƐƐĞƚƐ ĂŶĚ ůŝĂďŝůŝƚŝĞƐ ĚĞŶŽŵŝŶĂƚĞĚŝŶĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞs are translated into € at the rate of exchange ruling at the statement of financial ƉŽƐŝƚŝŽŶĚĂƚĞ͘dŚĞƌĞƐƵůƚŝŶŐƉƌŽĨŝƚƐŽƌůŽƐƐĞƐĂƌĞĚĞĂůƚǁŝƚŚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐ͘ ;ŝͿ Directors’ >ŽĂŶƐ irectors’ ůŽĂŶƐĂƌĞŝŶŝƚŝĂůůLJŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞ͕ŶĞƚŽĨƚƌĂŶƐĂĐƚŝŽŶĐŽƐƚƐĂŶĚƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚ ĐŽƐƚƵƐŝŶŐƚŚĞĞĨĨĞĐƚŝǀĞŝŶƚĞƌĞƐƚŵĞƚŚŽĚ͕ǁŝƚŚŝŶƚĞƌĞƐƚĞdžƉĞŶƐĞƌĞĐŽŐŶŝƐĞĚŽŶƚŚĞĞĨĨĞĐƚŝǀĞŝŶƚĞƌĞƐƚƌĂƚĞŵĞƚŚŽĚ͘ dŚĞĞĨĨĞĐƚŝǀĞŝŶƚĞƌĞƐƚŵĞƚŚŽĚŝƐĂŵĞƚŚŽĚŽĨĐĂůĐƵůĂƚŝŶŐƚŚĞĂŵŽƌƚŝƐĞĚĐŽƐƚŽĨĂĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚLJĂŶĚŽĨĂůůŽĐĂƚŝŶŐ ŝŶƚĞƌĞƐƚĞdžƉĞŶƐĞŽǀĞƌƚŚĞƌĞůĞǀĂŶƚƉĞƌŝŽĚ͘dŚĞĞĨĨĞĐƚŝǀĞŝŶƚĞƌĞƐƚƌĂƚĞŝƐƚŚĞƌĂƚĞƚŚĂƚĞdžĂĐƚůLJĚŝƐĐŽƵŶƚƐĞƐƚŝŵĂƚĞĚ ĨƵƚƵƌĞĐĂƐŚƉĂLJŵĞŶƚƐƚŚƌŽƵŐŚƚŚĞĞdžƉĞĐƚĞĚůŝĨĞŽĨƚŚĞĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚLJ͘ ;ũͿŽŶǀĞƌƚŝďůĞůŽĂŶ ƐƚŚĞĐŽŶǀĞƌƚŝďůĞůŽĂŶŝƐŵĂĚĞƵƉŽĨďŽƚŚůŝĂďŝůŝƚLJĂŶĚĚĞƌŝǀĂƚŝǀĞĐŽŵƉŽŶĞŶƚƐ͕ŝƚŝƐĐŽŶƐŝĚĞƌĞĚƚŽďĞĂĐŽŵƉŽƵŶĚ ĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚ͘ƚŝŶŝƚŝĂůƌĞĐŽŐŶŝƚŝŽŶ͕ƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨĂĐŽŵƉŽƵŶĚĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚŝƐĂůůŽĐĂƚĞĚƚŽ ŝƚƐůŝĂďŝůŝƚLJĂŶĚĚĞƌŝǀĂƚŝǀĞĐŽŵƉŽŶĞŶƚƐ͘dŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞůŝĂďŝůŝƚLJ͕ǁŚŝĐŚŝƐƚŚĞĚŝĨĨĞƌĞŶĐĞďĞƚǁĞĞŶƚŚĞƚƌĂŶƐĂĐƚŝŽŶ ƉƌŝĐĞĂŶĚƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞĐŽŶǀĞƌƐŝŽŶĨĞĂƚƵƌĞ͕ĂŶĚĚĞƌŝǀĂƚŝǀĞŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂůŝĂďŝůŝƚLJŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨ ĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͘dŚĞĐŽŶǀĞƌƐŝŽŶĨĞĂƚƵƌĞŝƐƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞǁŝƚŚĐŚĂŶŐĞƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĨŝƚ ŽƌůŽƐƐ͘dŚĞůŝĂďŝůŝƚLJŝƐƐƵďƐĞƋƵĞŶƚůLJŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚ͘dŚĞŽŵƉĂŶLJĂĐĐŽƵŶƚƐĨŽƌƚŚĞŝŶƚĞƌĞƐƚĞdžƉĞŶƐĞŽĨ ƚŚĞ ĐŽŶǀĞƌƚŝďůĞ ůŽĂŶ ŶŽƚĞ Ăƚ ƚŚĞ ĞĨĨĞĐƚŝǀĞ ŝŶƚĞƌĞƐƚ ƌĂƚĞ͘dŚĞ ĚŝĨĨĞƌĞŶĐĞ ďĞƚǁĞĞŶ ƚŚĞ ĞĨĨĞĐƚŝǀĞ ŝŶƚĞƌĞƐƚ ƌĂƚĞ ĂŶĚ ŝŶƚĞƌĞƐƚƌĂƚĞĂƚƚĂĐŚĞĚƚŽƚŚĞĐŽŶǀĞƌƚŝďůĞůŽĂŶŝŶĐƌĞĂƐĞƐƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨƚŚĞůŝĂďŝůŝƚLJƐŽƚŚĂƚ͕ŽŶŵĂƚƵƌŝƚLJ͕ƚŚĞ ĐĂƌƌLJŝŶŐĂŵŽƵŶƚŝƐĞƋƵĂůƚŽƚŚĞĐĂƉŝƚĂůĐĂƐŚƌĞƉĂLJŵĞŶƚƚŚĂƚƚŚĞŽŵƉĂŶLJŵĂLJďĞƌĞƋƵŝƌĞĚƚŽƉĂLJ͘ ;ŬͿKƌĚŝŶĂƌLJƐŚĂƌĞƐ KƌĚŝŶĂƌLJƐŚĂƌĞƐĂƌĞĐůĂƐƐŝĨŝĞĚĂƐĞƋƵŝƚLJ͘ŽƐƚƐĚŝƌĞĐƚůLJĂƚƚƌŝďƵƚĂďůĞƚŽƚŚĞŝƐƐƵĞŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƌĞƌĞĐŽŐŶŝƐĞĚĂƐ ĂĚĞĚƵĐƚŝŽŶĨƌŽŵƌĞƚĂŝŶĞĚĞĂƌŶŝŶŐƐ͕ŶĞƚŽĨĂŶLJƚĂdžĞĨĨĞĐƚƐ͘tŚĞƌĞǁĂƌƌĂŶƚƐĂƌĞŝƐƐƵĞĚĨŽƌƚŚĞƐŽůĞƉƵƌƉŽƐĞŽĨ ĂƐƐŝƐƚŝŶŐǁŝƚŚĂŶŝƐƐƵĞŽĨĞƋƵŝƚLJŽƌƚŽŵĞĞƚďƌŽŬĞƌƚƌĂŶƐĂĐƚŝŽŶĐŽƐƚƐĚŝƌĞĐƚůLJĂƚƚƌŝďƵƚĂďůĞƚŽƚŚĞŝƐƐƵĞŽĨĞƋƵŝƚLJ͕ƚŚĞ ĂŵŽƵŶƚŝŶŝƚŝĂůůLJƌĞĐŽŐŶŝƐĞĚ͕ƚŚĂƚŝƐƚŚĞŝƌĨĂŝƌǀĂůƵĞ͕ŝƐĚĞĚƵĐƚĞĚĨƌŽŵƐŚĂƌĞƉƌĞŵŝƵŵ͘^ƵďƐĞƋƵĞŶƚůLJ͕ǁŚĞƌĞƚŚĞ ǁĂƌƌĂŶƚƐƋƵĂůŝĨLJĂƐĞƋƵŝƚLJƚŚĞLJĂƌĞƌĞĐŽŐŶŝƐĞĚŝŶŽƚŚĞƌƌĞƐĞƌǀĞƐĂŶĚƚŚĞĂŵŽƵŶƚƌĞĐŽŐŶŝƐĞĚŝƐŶŽƚĐŚĂŶŐĞĚ͘/ĨƚŚĞ ǁĂƌƌĂŶƚƐƋƵĂůŝĨLJĂƐĂůŝĂďŝůŝƚLJƚŚĞĨĂŝƌǀĂůƵĞŝƐƚƌƵĞĚƵƉĨƌŽŵŽŶĞƌĞƉŽƌƚŝŶŐƉĞƌŝŽĚƚŽƚŚĞŶĞdžƚƚŚƌŽƵŐŚƉƌŽĨŝƚŽƌůŽƐƐ͘ 37 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ůͿ/ŵƉĂŝƌŵĞŶƚͲĨŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚ &ŝŶĂŶĐŝĂůĂƐƐĞƚƐŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚĂƌĞƌĞǀŝĞǁĞĚĨŽƌŝŵƉĂŝƌŵĞŶƚůŽƐƐĂƚĞĂĐŚƌĞƉŽƌƚŝŶŐĚĂƚĞ͘ dŚĞŽŵƉĂŶLJŵĞĂƐƵƌĞƐƚŚĞůŽƐƐĂůůŽǁĂŶĐĞĂƚĂŶĂŵŽƵŶƚĞƋƵĂůƚŽƚŚĞůŝĨĞƚŝŵĞĞdžƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐĞƐĂƐƌĞƋƵŝƌĞĚ ƵŶĚĞƌĂƐŝŵƉůŝĨŝĞĚĂƉƉƌŽĂĐŚĨŽƌƚƌĂĚĞƌĞĐĞŝǀĂďůĞƐƚŚĂƚĚŽŶŽƚĐŽŶƚĂŝŶĂĨŝŶĂŶĐŝŶŐĐŽŵƉŽŶĞŶƚ͘ The Company’s approach to expected credit losses (“ECL”) reflects a probabilityͲǁĞŝŐŚƚĞĚŽƵƚĐŽŵĞ͕ƚŚĞƚŝŵĞǀĂůƵĞ ŽĨŵŽŶĞLJĂŶĚƌĞĂƐŽŶĂďůĞĂŶĚƐƵƉƉŽƌƚĂďůĞŝŶĨŽƌŵĂƚŝŽŶƚŚĂƚŝƐĂǀĂŝůĂďůĞǁŝƚŚŽƵƚƵŶĚƵĞĐŽƐƚŽƌĞĨĨŽƌƚĂƚƚŚĞƌĞƉŽƌƚŝŶŐ ĚĂƚĞ ĂďŽƵƚ ƉĂƐƚ ĞǀĞŶƚƐ͕ ĐƵƌƌĞŶƚ ĐŽŶĚŝƚŝŽŶƐ ĂŶĚ ĨŽƌĞĐĂƐƚƐ ŽĨ ĨƵƚƵƌĞ ĞĐŽŶŽŵŝĐ ĐŽŶĚŝƚŝŽŶƐ͘ ^ŝŐŶŝĨŝĐĂŶƚ ĨŝŶĂŶĐŝĂů ĚŝĨĨŝĐƵůƚŝĞƐŽĨƚŚĞĐŽƵŶƚĞƌƉĂƌƚLJ͕ƉƌŽďĂďŝůŝƚLJƚŚĂƚƚŚĞĐŽƵŶƚĞƌƉĂƌƚLJǁŝůůĞŶƚĞƌďĂŶŬƌƵƉƚĐLJŽƌĨŝŶĂŶĐŝĂůƌĞͲŽƌŐĂŶŝƐĂƚŝŽŶ ĂŶĚĚĞĨĂƵůƚŝŶƉĂLJŵĞŶƚƐĂƌĞĂůůĐŽŶƐŝĚĞƌĞĚŝŶĚŝĐĂƚŽƌƐĨŽƌŝŶĐƌĞĂƐĞƐŝŶĐƌĞĚŝƚƌŝƐŬƐ͘ /ĨƚŚĞĐƌĞĚŝƚƌŝƐŬŝŶĐƌĞĂƐĞƐƚŽƚŚĞƉŽŝŶƚƚŚĂƚŝƚŝƐĐŽŶƐŝĚĞƌĞĚƚŽďĞĐƌĞĚŝƚŝŵƉĂŝƌĞĚ͕ŝŶƚĞƌĞƐƚŝŶĐŽŵĞǁŝůůďĞĐĂůĐƵůĂƚĞĚ ďĂƐĞĚŽŶƚŚĞŐƌŽƐƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚĂĚũƵƐƚĞĚĨŽƌƚŚĞůŽƐƐĂůůŽǁĂŶĐĞ͘ŶLJĐŽŶƚƌĂĐƚƵĂůƉĂLJŵĞŶƚǁŚŝĐŚŝƐŵŽƌĞƚŚĂŶ ϵϬĚĂLJƐƉĂƐƚĚƵĞŝƐĐŽŶƐŝĚĞƌĞĚĐƌĞĚŝƚŝŵƉĂŝƌĞĚ͘ ;ŵͿ&ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ ZĞĐŽŐŶŝƚŝŽŶĂŶĚĚĞƌĞĐŽŐŶŝƚŝŽŶ &ŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ĂŶĚ ĨŝŶĂŶĐŝĂů ůŝĂďŝůŝƚŝĞƐ ĂƌĞ ƌĞĐŽŐŶŝƐĞĚ ǁŚĞŶ ƚŚĞ ŽŵƉĂŶLJ ďĞĐŽŵĞƐ Ă ƉĂƌƚLJ ƚŽ ƚŚĞ ĐŽŶƚƌĂĐƚƵĂů ƉƌŽǀŝƐŝŽŶƐŽĨƚŚĞĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚ͘ &ŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶƚŚĞĐŽŶƚƌĂĐƚƵĂůƌŝŐŚƚƐƚŽƚŚĞĐĂƐŚĨůŽǁƐĨƌŽŵƚŚĞĨŝŶĂŶĐŝĂůĂƐƐĞƚĞdžƉŝƌĞ͕Žƌ ǁŚĞŶ ƚŚĞ ĨŝŶĂŶĐŝĂů ĂƐƐĞƚ ĂŶĚ ƐƵďƐƚĂŶƚŝĂůůLJ Ăůů ƚŚĞ ƌŝƐŬƐ ĂŶĚ ƌĞǁĂƌĚƐ ĂƌĞ ƚƌĂŶƐĨĞƌƌĞĚ͘ ĨŝŶĂŶĐŝĂů ůŝĂďŝůŝƚLJ ŝƐ ĚĞƌĞĐŽŐŶŝƐĞĚǁŚĞŶŝƚŝƐĞdžƚŝŶŐƵŝƐŚĞĚ͕ĚŝƐĐŚĂƌŐĞĚ͕ĐĂŶĐĞůůĞĚŽƌĞdžƉŝƌĞƐ͘ ůĂƐƐŝĨŝĐĂƚŝŽŶĂŶĚŝŶŝƚŝĂůŵĞĂƐƵƌĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĂƐƐĞƚƐ džĐĞƉƚĨŽƌƚŚŽƐĞƚƌĂĚĞƌĞĐĞŝǀĂďůĞƐƚŚĂƚĚŽŶŽƚĐŽŶƚĂŝŶĂƐŝŐŶŝĨŝĐĂŶƚĨŝŶĂŶĐŝŶŐĐŽŵƉŽŶĞŶƚĂŶĚĂƌĞŵĞĂƐƵƌĞĚĂƚƚŚĞ ƚƌĂŶƐĂĐƚŝŽŶƉƌŝĐĞŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/&Z^ϭϱ͕ĂůůĨŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƌĞŝŶŝƚŝĂůůLJŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞĂĚũƵƐƚĞĚĨŽƌ ƚƌĂŶƐĂĐƚŝŽŶĐŽƐƚƐ;ǁŚĞƌĞĂƉƉůŝĐĂďůĞͿ͘ /ŵƉĂŝƌŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĂƐƐĞƚƐ /FRS 9’s impairment ƌĞƋƵŝƌĞŵĞŶƚƐ ƵƐĞ ĨŽƌǁĂƌĚͲůŽŽŬŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶ ƚŽ ƌĞĐŽŐŶŝƐĞ ĞdžƉĞĐƚĞĚ ĐƌĞĚŝƚ ůŽƐƐĞƐ – ƚŚĞ ‘expected credit loss (ECL) model’. Instruments within the scope of the requirements included loans and other debtͲ ƚLJƉĞ ĨŝŶĂŶĐŝĂů ĂƐƐĞƚƐ ŵĞĂƐƵƌĞĚ Ăƚ ĂŵŽƌƚŝƐĞĚ ĐŽƐƚ ĂŶĚ &sK/͕ ƚƌĂĚĞ ƌĞĐĞŝǀĂďůĞƐ͕ĐŽŶƚƌĂĐƚ ĂƐƐĞƚƐƌĞĐŽŐŶŝƐĞĚ ĂŶĚ ŵĞĂƐƵƌĞĚƵŶĚĞƌ/&Z^ϭϱĂŶĚůŽĂŶĐŽŵŵŝƚŵĞŶƚƐĂŶĚƐŽŵĞĨŝŶĂŶĐŝĂůŐƵĂƌĂŶƚĞĞĐŽŶƚƌĂĐƚƐ;ĨŽƌƚŚĞŝƐƐƵĞƌͿƚŚĂƚĂƌĞŶŽƚ ŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞƚŚƌŽƵŐŚƉƌŽĨŝƚŽƌůŽƐƐ͘dŚĞ'ƌŽƵƉĐŽŶƐŝĚĞƌƐĂďƌŽĂĚĞƌƌĂŶŐĞŽĨŝŶĨŽƌŵĂƚŝŽŶǁŚĞŶĂƐƐĞƐƐŝŶŐ ĐƌĞĚŝƚ ƌŝƐŬ ĂŶĚ ŵĞĂƐƵƌŝŶŐ ĞdžƉĞĐƚĞĚ ĐƌĞĚŝƚ ůŽƐƐĞƐ͕ ŝŶĐůƵĚŝŶŐ ƉĂƐƚ ĞǀĞŶƚƐ͕ ĐƵƌƌĞŶƚ ĐŽŶĚŝƚŝŽŶƐ͕ ƌĞĂƐŽŶĂďůĞ ĂŶĚ ƐƵƉƉŽƌƚĂďůĞĨŽƌĞĐĂƐƚƐƚŚĂƚĂĨĨĞĐƚƚŚĞĞdžƉĞĐƚĞĚĐŽůůĞĐƚĂďŝůŝƚLJŽĨƚŚĞĨƵƚƵƌĞĐĂƐŚĨůŽǁƐŽĨƚŚĞŝŶƐƚƌƵŵĞŶƚ͘ ^ƵďƐĞƋƵĞŶƚŵĞĂƐƵƌĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůĂƐƐĞƚƐ Financial assets held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are ĐĂƚĞŐŽƌŝƐĞĚĂƚ&sdW>͘&ƵƌƚŚĞƌ͕ŝƌƌĞƐƉĞĐƚŝǀĞŽĨƚŚĞďƵƐŝŶĞƐƐŵŽĚĞůƵƐĞĚ͕ĨŝŶĂŶĐŝĂůĂƐƐĞƚƐǁŚŽƐĞĐŽŶƚƌĂĐƚƵĂůĐĂƐŚĨůŽǁƐ ĂƌĞŶŽƚƐŽůĞůLJƉĂLJŵĞŶƚƐŽĨƉƌŝŶĐŝƉĂůĂŶĚŝŶƚĞƌĞƐƚĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌĂƚ&sdW>͘ůůĚĞƌŝǀĂƚŝǀĞĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐĨĂůů ŝŶƚŽƚŚŝƐĐĂƚĞŐŽƌLJ͕ĞdžĐĞƉƚĨŽƌƚŚŽƐĞĚĞƐŝŐŶĂƚĞĚĂŶĚĞĨĨĞĐƚŝǀĞĂƐŚĞĚŐŝŶŐŝŶƐƚƌƵŵĞŶƚƐ͕ĨŽƌǁŚŝĐŚƚŚĞŚĞĚŐĞĂĐĐŽƵŶƚŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ ĂƉƉůLJ ;ƐĞĞ ďĞůŽǁͿ͘ dŚĞĐĂƚĞŐŽƌLJ ĂůƐŽ ĐŽŶƚĂŝŶƐ ĂŶ ĞƋƵŝƚLJ ŝŶǀĞƐƚŵĞŶƚ͘dŚĞ'ƌŽƵƉ ĂĐĐŽƵŶƚƐ ĨŽƌ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚĂƚ&sdW>ĂŶĚĚŝĚŶŽƚŵĂŬĞƚŚĞŝƌƌĞǀŽĐĂďůĞĞůĞĐƚŝŽŶƚŽĂĐĐŽƵŶƚĨŽƌƚŚĞŝŶǀĞƐƚŵĞŶƚŝŶyz>ƚĚĂŶĚůŝƐƚĞĚ ĞƋƵŝƚLJ ƐĞĐƵƌŝƚŝĞƐ Ăƚ &sK/͘dŚĞĨĂŝƌ ǀĂůƵĞ ǁĂƐ ĚĞƚĞƌŵŝŶĞĚ ŝŶ ůŝŶĞǁŝƚŚ ƚŚe requirements of IFRS 13 ‘Fair Value Measurement’. Assets in this category are measured at fair value with gains or losses recognised in profit or loss. 38 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ŵͿ&ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ;ĐŽŶƚŝŶƵĞĚͿ dŚĞĨĂŝƌǀĂůƵĞƐŽĨĨŝŶĂŶĐŝĂůĂƐƐĞƚƐŝŶƚŚŝƐĐĂƚĞŐŽƌLJĂƌĞĚĞƚĞƌŵŝŶĞĚďLJƌĞĨĞƌĞŶĐĞƚŽĂĐƚŝǀĞŵĂƌŬĞƚƚƌĂŶƐĂĐƚŝŽŶƐŽƌƵƐŝŶŐ ĂǀĂůƵĂƚŝŽŶƚĞĐŚŶŝƋƵĞǁŚĞƌĞŶŽĂĐƚŝǀĞŵĂƌŬĞƚĞdžŝƐƚƐ͘ ůĂƐƐŝĨŝĐĂƚŝŽŶĂŶĚŵĞĂƐƵƌĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐ dŚĞŽŵƉĂŶLJ’s financial liabilities ŝŶĐůƵĚĞƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐĂŶĚĚĞƌŝǀĂƚŝǀĞĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͘&ŝŶĂŶĐŝĂů ůŝĂďŝůŝƚŝĞƐĂƌĞŝŶŝƚŝĂůůLJŵĞĂƐƵƌĞĚĂƚĨĂŝƌǀĂůƵĞ͕ĂŶĚ͕ǁŚĞƌĞĂƉƉůŝĐĂďůĞ͘^ƵďƐĞƋƵĞŶƚůLJ͕ĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐĂƌĞŵĞĂƐƵƌĞĚ ĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚƵƐŝŶŐƚŚĞĞĨĨĞĐƚŝǀĞŝŶƚĞƌĞƐƚŵĞƚŚŽĚĞdžĐĞƉƚĨŽƌĚĞƌŝǀĂƚŝǀĞƐĂŶĚĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐĚĞƐŝŐŶĂƚĞĚĂƚ &sdW>͕ǁŚŝĐŚĂƌĞĐĂƌƌŝĞĚƐƵďƐĞƋƵĞŶƚůLJĂƚĨĂŝƌǀĂůƵĞǁŝƚŚŐĂŝŶƐŽƌůŽƐƐĞƐƌĞĐŽŐŶŝƐĞĚŝŶƉƌŽĨŝƚŽƌůŽƐƐ;ŽƚŚĞƌƚŚĂŶ ĚĞƌŝǀĂƚŝǀĞ ĨŝŶĂŶĐŝĂů ŝŶƐƚƌƵŵĞŶƚƐ ƚŚĂƚ ĂƌĞ ĚĞƐŝŐŶĂƚĞĚ ĂŶĚ ĞĨĨĞĐƚŝǀĞ ĂƐ ŚĞĚŐŝŶŐ ŝŶƐƚƌƵŵĞŶƚƐͿ͘ ůů ŝŶƚĞƌĞƐƚͲƌĞůĂƚĞĚ charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included within ĨŝŶĂŶĐĞĐŽƐƚƐŽƌĨŝŶĂŶĐĞŝŶĐŽŵĞ͘ ;ŶͿ ^ŝŐŶŝĨŝĐĂŶƚĂĐĐŽƵŶƚŝŶŐũƵĚŐĞŵĞŶƚƐĂŶĚŬĞLJƐŽƵƌĐĞƐŽĨĞƐƚŝŵĂƚŝŽŶƵŶĐĞƌƚĂŝŶƚLJ ^ŝŐŶŝĨŝĐĂŶƚjudgements in applying the Company’s accounting policies dŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƌĞƋƵŝƌĞƐƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐƚŽŵĂŬĞũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐĂŶĚ ĨŽƌŵĂƐƐƵŵƉƚŝŽŶƐƚŚĂƚĂĨĨĞĐƚƚŚĞĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐ͕ůŝĂďŝůŝƚŝĞƐ͕ĐŽŶƚŝŶŐĞŶƚůŝĂďŝůŝƚŝĞƐ͕ƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶƐĞƐƌĞƉŽƌƚĞĚ ŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͘KŶĂŶŽŶŐŽŝŶŐďĂƐŝƐ͕ƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĞǀĂůƵĂƚĞƐŝƚƐũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐŝŶ ƌĞůĂƚŝŽŶ ƚŽ ĂƐƐĞƚƐ͕ ůŝĂďŝůŝƚŝĞƐ͕ ĐŽŶƚŝŶŐĞŶƚ ůŝĂďŝůŝƚŝĞƐ͕ ƌĞǀĞŶƵĞ ĂŶĚ ĞdžƉĞŶƐĞƐ͘ dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ďĂƐĞƐ ŝƚƐ ũƵĚŐĞŵĞŶƚƐĂŶĚĞƐƚŝŵĂƚĞƐŽŶŚŝƐƚŽƌŝĐĂůĞdžƉĞƌŝĞŶĐĞĂŶĚŽŶŽƚŚĞƌĨĂĐƚŽƌƐŝƚďĞůŝĞǀĞƐƚŽďĞƌĞĂƐŽŶĂďůĞƵŶĚĞƌƚŚĞ ĐŝƌĐƵŵƐƚĂŶĐĞƐ͕ƚŚĞƌĞƐƵůƚƐŽĨǁŚŝĐŚĨŽƌŵƚŚĞďĂƐŝƐŽĨƚŚĞƌĞƉŽƌƚĞĚĂŵŽƵŶƚƐƚŚĂƚĂƌĞŶŽƚƌĞĂĚŝůLJĂƉƉĂƌĞŶƚĨƌŽŵŽƚŚĞƌ ƐŽƵƌĐĞƐ͘ĐƚƵĂůƌĞƐƵůƚƐŵĂLJĚŝĨĨĞƌĨƌŽŵƚŚĞƐĞĞƐƚŝŵĂƚĞƐƵŶĚĞƌĚŝĨĨĞƌĞŶƚĂƐƐƵŵƉƚŝŽŶƐĂŶĚĐŽŶĚŝƚŝŽŶƐ͘/ŶƚŚĞƉƌŽĐĞƐƐ of applying the Company’s accounting policies above, the Board of Directors have idenƚŝĨŝĞĚƚŚĞũƵĚŐĞŵĞŶƚĂůĂƌĞĂƐ ƚŚĂƚŚĂǀĞƚŚĞŵŽƐƚƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚŽŶƚŚĞĂŵŽƵŶƚƐƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ;ĂƉĂƌƚĨƌŽŵƚŚŽƐĞ ŝŶǀŽůǀŝŶŐĞƐƚŝŵĂƚŝŽŶƐͿ͕ǁŚŝĐŚĂƌĞĚĞĂůƚǁŝƚŚĂƐĨŽůůŽǁƐ͗ džƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ dŚĞĂƐƐĞƐƐŵĞŶƚŽĨǁŚĞƚŚĞƌŽƉĞƌĂƚŝŶŐĐŽƐƚƐĂŶĚƐĂůĂƌLJĐŽƐƚƐĂƌĞĐĂƉŝƚĂůŝƐĞĚƚŽĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĐŽƐƚƐŽƌ ĞdžƉĞŶƐĞĚŝŶǀŽůǀĞƐũƵĚŐĞŵĞŶƚ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĐŽŶƐŝĚĞƌƚŚĞŶĂƚƵƌĞŽĨĞĂĐŚĐŽƐƚŝŶĐƵƌƌĞĚĂŶĚǁŚĞƚŚĞƌŝƚŝƐ ĚĞĞŵĞĚĂƉƉƌŽƉƌŝĂƚĞƚŽĐĂƉŝƚĂůŝƐĞŝƚǁŝƚŚŝŶĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ͘'ŝǀĞŶƚŚĂƚƚŚĞĂĐƚŝǀŝƚLJŽĨŵĂŶĂŐĞŵĞŶƚ and the resultant administration and salary costs are primarily focused on the Company’s diamond prospects, the ŽĂƌĚŽĨŝƌĞĐƚŽƌƐĐŽŶƐŝĚĞƌŝƚĂƉƉƌŽƉƌŝĂƚĞƚŽĐĂƉŝƚĂůŝƐĞĂƉŽƌƚŝŽŶŽĨƐƵĐŚĐŽƐƚƐ͘dŚĞƐĞĐŽƐƚƐĂƌĞƌĞǀŝĞǁĞĚŽŶĂůŝŶĞͲ ďLJͲůŝŶĞďĂƐŝƐǁŝƚŚƚŚĞƌĞƐƵůƚĂŶƚĐĂůĐƵůĂƚŝŽŶŽĨƚŚĞĂŵŽƵŶƚƚŽďĞĐĂƉŝƚĂůŝƐĞĚďĞŝŶŐƐƉĞĐŝĨŝĐƚŽƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞ ŽŵƉĂŶLJŝŶĂŶLJŐŝǀĞŶLJĞĂƌ͘ ĂƐŚŐĞŶĞƌĂƚŝŶŐƵŶŝƚƐ ƐŽƵƚůŝŶĞĚŝŶƚŚĞŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐĂĐĐŽƵŶƚŝŶŐƉŽůŝĐLJ͕ƚŚĞĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐƐŚŽƵůĚďĞĂůůŽĐĂƚĞĚƚŽ 'hƐ͘dŚĞĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨǁŚĂƚĐŽŶƐƚŝƚƵƚĞƐĂ'hƌĞƋƵŝƌĞƐũƵĚŐĞŵĞŶƚ͘ dŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨĞĂĐŚ'hŝƐĐŽŵƉĂƌĞĚƚŽŝƚƐƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚ͘dŚĞƌĞĐŽǀĞƌĂďůĞĂŵŽƵŶƚŽĨƚŚĞ'hŝƐ ĂƐƐĞƐƐĞĚĂƐƚŚĞŚŝŐŚĞƌŽĨŝƚƐĨĂŝƌǀĂůƵĞůĞƐƐĐŽƐƚƐƚŽƐĞůůĂŶĚŝƚƐǀĂůƵĞŝŶƵƐĞ͘dŚĞĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨǀĂůƵĞŝŶƵƐĞƌĞƋƵŝƌĞƐ ƚŚĞĨŽůůŽǁŝŶŐũƵĚŐĞŵĞŶƚƐ͗ • ƐƚŝŵĂƚŝŽŶŽĨĨƵƚƵƌĞĐĂƐŚĨůŽǁƐĞdžƉĞĐƚĞĚƚŽďĞĚĞƌŝǀĞĚĨƌŽŵƚŚĞĂƐƐĞƚ͘ • džƉĞĐƚĂƚŝŽŶĂďŽƵƚƉŽƐƐŝďůĞǀĂƌŝĂƚŝŽŶƐŝŶƚŚĞĂŵŽƵŶƚŽƌƚŝŵŝŶŐŽĨƚŚĞĨƵƚƵƌĞĐĂƐŚĨůŽǁƐ͘ • dŚĞĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨĂŶĂƉƉƌŽƉƌŝĂƚĞĚŝƐĐŽƵŶƚƌĂƚĞ͘ 39 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭ DĂƚĞƌŝĂůĂĐĐŽƵŶƚŝŶŐƉŽůŝĐŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ŶͿ^ŝŐŶŝĨŝĐĂŶƚĂĐĐŽƵŶƚŝŶŐũƵĚŐĞŵĞŶƚƐĂŶĚŬĞLJƐŽƵƌĐĞƐŽĨĞƐƚŝŵĂƚŝŽŶƵŶĐĞƌƚĂŝŶƚLJ;ĐŽŶƚŝŶƵĞĚͿ ^ŝŐŶŝĨŝĐĂŶƚjudgements in applying the Company’s accounting policies;ĐŽŶƚŝŶƵĞĚͿ 'ŽŝŶŐĐŽŶĐĞƌŶ dŚĞƉƌĞƉĂƌĂƚŝŽŶŽĨĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐƌĞƋƵŝƌĞƐĂŶĂƐƐĞƐƐŵĞŶƚŽŶƚŚĞǀĂůŝĚŝƚLJŽĨƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶĂƐƐƵŵƉƚŝŽŶ͘dŚĞ ǀĂůŝĚŝƚLJ ŽĨ ƚŚĞ ŐŽŝŶŐ ĐŽŶĐĞƌŶ ĂƐƐƵŵƉƚŝŽŶ ŝƐ ĚĞƉĞŶĚĞŶƚ ŽŶ ƚŚĞ ƐƵĐĐĞƐƐĨƵů ĨƵƌƚŚĞƌ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƵůƚŝŵĂƚĞ ƉƌŽĚƵĐƚŝŽŶŽĨƚŚĞŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐĂŶĚƚŚĞĂǀĂŝůĂďŝůŝƚLJŽĨƐƵĨĨŝĐŝĞŶƚĨŝŶĂŶĐĞƚŽďƌŝŶŐƚŚĞƌĞƐŽƵƌĐĞƐƚŽĞĐŽŶŽŵŝĐ ŵĂƚƵƌŝƚLJ ĂŶĚ ƉƌŽĨŝƚĂďŝůŝƚLJ͘dŚĞ ŽĂƌĚ ŽĨŝƌĞĐƚŽƌƐ ŚĂǀĞƌĞǀŝĞǁĞĚ ƚŚĞ ƉƌŽƉŽƐĞĚ ƉƌŽŐƌĂŵŵĞ ĨŽƌ ĞdžƉůŽƌĂƚŝŽŶ ĂŶĚ ĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐĂŶĚ͕ŽŶƚŚĞďĂƐŝƐŽĨƚŚĞĞƋƵŝƚLJƌĂŝƐĞĚĂĨƚĞƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͕ƚŚĞƌĞƐƵůƚƐĨƌŽŵƚŚĞĞdžƉůŽƌĂƚŝŽŶ ƉƌŽŐƌĂŵŵĞ ĂŶĚ ƚŚĞ ƉƌŽƐƉĞĐƚƐ ĨŽƌ ƌĂŝƐŝŶŐ ĂĚĚŝƚŝŽŶĂů ĨƵŶĚƐ ĂƐ ƌĞƋƵŝƌĞĚ͕ ĐŽŶƐŝĚĞƌ ŝƚ ĂƉƉƌŽƉƌŝĂƚĞ ƚŽ ƉƌĞƉĂƌĞ ƚŚĞ ĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐŽŶƚŚĞŐŽŝŶŐĐŽŶĐĞƌŶďĂƐŝƐ͘ZĞĨĞƌƚŽƉĂŐĞϯϭĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ ĞĨĞƌƌĞĚƚĂdž EŽĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚŚĂƐďĞĞŶƌĞĐŽŐŶŝƐĞĚŝŶƌĞƐƉĞĐƚŽĨƚĂdžůŽƐƐĞƐĂƐŝƚŝƐŶŽƚĐŽŶƐŝĚĞƌĞĚƉƌŽďĂďůĞƚŚĂƚĨƵƚƵƌĞƚĂdžĂďůĞ ƉƌŽĨŝƚǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚƚŚĞƌĞůĂƚĞĚƚĞŵƉŽƌĂƌLJĚŝĨĨĞƌĞŶĐĞƐĐĂŶďĞƵƚŝůŝƐĞĚ͘ <ĞLJƐŽƵƌĐĞƐŽĨĞƐƚŝŵĂƚŝŽŶƵŶĐĞƌƚĂŝŶƚLJ dŚĞŬĞLJƐŽƵƌĐĞƐŽĨĞƐƚŝŵĂƚŝŽŶƵŶĐĞƌƚĂŝŶƚLJƚŚĂƚŚĂǀĞĂƐŝŐŶŝĨŝĐĂŶƚƌŝƐŬŽĨĐĂƵƐŝŶŐŵĂƚĞƌŝĂůĂĚũƵƐƚŵĞŶƚƚŽƚŚĞĐĂƌƌLJŝŶŐ ĂŵŽƵŶƚƐŽĨĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐǁŝƚŚŝŶƚŚĞŶĞdžƚĨŝŶĂŶĐŝĂůLJĞĂƌĂƌĞĚŝƐĐƵƐƐĞĚďĞůŽǁ͘ džƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ The carrying value of exploration and evaluation assets was €ϭϭ͕ϲϵϬ͕ϭϵϰ;ϯϭDĂLJϮϬϮϯ͗€ϭϭ͕Ϯϲϱ͕ϴϵϰͿĂƚϯϭDĂLJ ϮϬϮϰ͘dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĐĂƌƌŝĞĚŽƵƚĂŶĂƐƐĞƐƐŵĞŶƚ͕ŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ/&Z^ϲ͗ džƉůŽƌĂƚŝŽŶĨŽƌĂŶĚ ǀĂůƵĂƚŝŽŶ ŽĨDŝŶĞƌĂůZĞƐŽƵƌĐĞƐƌĞůĂƚŝŶŐƚŽƚŚĞƌĞŵĂŝŶŝŶŐůŝĐĞŶĐĞŽƌĐůĂŝŵƚĞƌŵƐ͕ůŝŬĞůŝŚŽŽĚŽĨƌĞŶĞǁĂů͕ůŝŬĞůŝŚŽŽĚŽĨĨƵƌƚŚĞƌ ĞdžƉĞŶĚŝƚƵƌĞ͕ƉŽƐƐŝďůĞĚŝƐĐŽŶƚŝŶƵĂƚŝŽŶŽĨĂĐƚŝǀŝƚŝĞƐŽǀĞƌƐƉĞĐŝĨŝĐĐůĂŝŵƐĂŶĚĂǀĂŝůĂďůĞĚĂƚĂǁŚŝĐŚŵĂLJƐƵŐŐĞƐƚƚŚĂƚƚŚĞ ƌĞĐŽǀĞƌĂďůĞǀĂůƵĞŽĨĂŶĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚŝƐůĞƐƐƚŚĂŶŝƚƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚ͘ĂƐĞĚŽŶƚŚŝƐĂƐƐĞƐƐŵĞŶƚ͕ ƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŝƐƐĂƚŝƐĨŝĞĚĂƐƚŽƚŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨƚŚĞƐĞĂƐƐĞƚƐĂŶĚŝƐƐĂƚŝƐĨŝĞĚƚŚĂƚƚŚĞƐĞĂƌĞƌĞĐŽǀĞƌĂďůĞ͕ ĂĐŬŶŽǁůĞĚŐŝŶŐ ŚŽǁĞǀĞƌ ƚŚĂƚ ƚŚĞŝƌ ƌĞĐŽǀĞƌĂďŝůŝƚLJ ŝƐ ĚĞƉĞŶĚĞŶƚ ŽŶ ĨƵƚƵƌĞ ƐƵĐĐĞƐƐĨƵů ĞdžƉůŽƌĂƚŝŽŶ ĞĨĨŽƌƚƐ͘ tŚŝůĞ ƵŶĐĞƌƚĂŝŶƚLJĞdžŝƐƚƐ͕ƉƌŝŵĂƌŝůLJĚƵĞƚŽƚŚĞŶĂƚƵƌĞŽĨƚŚĞŵŝŶŝŶŐĂŶĚĞdžƉůŽƌĂƚŝŽŶďƵƐŝŶĞƐƐ͕ƚŚĞŝƌĞĐƚŽƌƐǁŝůůĐŽŶƚŝŶƵĞƚŽ ĂƐƐĞƐƐƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐŽĨƚŚĞĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ͘dŚŝƐĂƐƐĞƐƐŵĞŶƚŝŶĐůƵĚĞƐĂŶĂƐƐĞƐƐŵĞŶƚŽĨ ƚŚĞƉŽƐƐŝďůĞŽƵƚĐŽŵĞƐƚŚĂƚĐĂŶďĞƌĞĂƐŽŶĂďůLJĞdžƉĞĐƚĞĚŝŶƚŚĞĨŽƌƚŚĐŽŵŝŶŐĨŝŶĂŶĐŝĂůƉĞƌŝŽĚ͘ ŵƉůŽLJĞĞďĞŶĞĨŝƚƐ–^ŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƚƌĂŶƐĂĐƚŝŽŶƐ dŚĞŽŵƉĂŶLJŽƉĞƌĂƚĞƐĞƋƵŝƚLJͲƐĞƚƚůĞĚƐŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚĂƌƌĂŶŐĞŵĞŶƚƐǁŝƚŚŶŽŶͲŵĂƌŬĞƚƉĞƌĨŽƌŵĂŶĐĞĐŽŶĚŝƚŝŽŶƐ ǁŚŝĐŚ ĨĂůů ǁŝƚŚŝŶ ƚŚĞ ƐĐŽƉĞ ŽĨ ĂŶĚ ĂƌĞ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ƵŶĚĞƌ ƚŚĞ ƉƌŽǀŝƐŝŽŶƐ ŽĨ /&Z^ Ϯ͗ ^ŚĂƌĞͲďĂƐĞĚ WĂLJŵĞŶƚ͘ ĐĐŽƌĚŝŶŐůLJ͕ƚŚĞŐƌĂŶƚĚĂƚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞŽƉƚŝŽŶƐƵŶĚĞƌƚŚĞƐĞƐĐŚĞŵĞƐŝƐƌĞĐŽŐŶŝƐĞĚĂƐĂŶŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞǁŝƚŚ a corresponding increase in the “ShareͲbased payment reserve”, within equity,ǁŚĞƌĞƚŚĞĞdžĞƌĐŝƐĞƉƌŝĐĞŝƐŐƌĂŶƚĞĚ ŝŶ hZŽƌƌĞĐŽŐŶŝƐĞĚĂƐĂůŝĂďŝůŝƚLJǁŚĞƌĞĂĚŝĨĨĞƌĞŶƚĐƵƌƌĞŶĐLJŝƐƋƵŽƚĞĚĂƐƚŚĞĞdžĞƌĐŝƐĞƉƌŝĐĞŽǀĞƌƚŚĞǀĞƐƚŝŶŐƉĞƌŝŽĚ͘ dŚĞ ĞƐƚŝŵĂƚŝŽŶ ŽĨ ƐŚĂƌĞͲďĂƐĞĚ ƉĂLJŵĞŶƚ ĐŽƐƚƐ ƌĞƋƵŝƌĞƐ ƚŚĞ ƐĞůĞĐƚŝŽŶ ŽĨ ĂŶ ĂƉƉƌŽƉƌŝĂƚĞ ǀĂůƵĂƚŝŽŶ ŵŽĚĞů ĂŶĚ ĐŽŶƐŝĚĞƌĂƚŝŽŶĂƐƚŽƚŚĞŝŶƉƵƚƐŶĞĐĞƐƐĂƌLJĨŽƌƚŚĞǀĂůƵĂƚŝŽŶŵŽĚĞůĐŚŽƐĞŶ͘dŚĞŽŵƉĂŶLJŚĂƐŵĂĚĞĞƐƚŝŵĂƚĞƐĂƐƚŽ ƚŚĞǀŽůĂƚŝůŝƚLJŽĨŝƚƐŽǁŶƐŚĂƌĞƐ͕ƚŚĞƉƌŽďĂďůĞůŝĨĞŽĨŽƉƚŝŽŶƐŐƌĂŶƚĞĚĂŶĚƚŚĞƚŝŵĞŽĨĞdžĞƌĐŝƐĞŽĨƚŚŽƐĞŽƉƚŝŽŶƐ͘dŚĞ ŵŽĚĞů ƵƐĞĚ ďLJ ƚŚĞ ŽŵƉĂŶLJ ŝƐ ƚŚĞůĂĐŬ ^ĐŚŽůĞƐ DŽĚĞů͘dŚĞ ĨĂŝƌ ǀĂůƵĞ ŽĨ ƚŚĞƐĞ ŽƉƚŝŽŶƐŝƐŵĞĂƐƵƌĞĚ ƵƐŝŶŐ ĂŶ ĂƉƉƌŽƉƌŝĂƚĞ ŽƉƚŝŽŶ ƉƌŝĐŝŶŐ ŵŽĚĞů͕ ƚĂŬŝŶŐ ŝŶƚŽ ĂĐĐŽƵŶƚ ƚŚĞ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƚŝŽŶƐ ƵƉŽŶ ǁŚŝĐŚ ƚŚĞ ŽƉƚŝŽŶƐ ǁĞƌĞ ŐƌĂŶƚĞĚ͘dŚĞĂŵŽƵŶƚƌĞĐŽŐŶŝƐĞĚĂƐĂŶĞdžƉĞŶƐĞŝƐĂĚũƵƐƚĞĚƚŽƌĞĨůĞĐƚƚŚĞĂĐƚƵĂůŶƵŵďĞƌŽĨƐŚĂƌĞŽƉƚŝŽŶƐƚŚĂƚǀĞƐƚ͕ ĞdžĐĞƉƚǁŚĞƌĞĨŽƌĨĞŝƚƵƌĞŝƐŽŶůLJĚƵĞƚŽƐŚĂƌĞƉƌŝĐĞƐŶŽƚĂĐŚŝĞǀŝŶŐƚŚĞƚŚƌĞƐŚŽůĚĨŽƌǀĞƐƚŝŶŐ͘ 40 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ Ϯ KƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ϮϬϮϰ ϮϬϮϯ ŶĂůLJƐŝƐŽĨŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ € € KƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ϱϳϬ͕ϯϬϵ ϯϴϯ͕Ϭϯϱ dƌĂŶƐĨĞƌƚŽŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ ;ϭϱϭ͕ϵϵϳͿ ;ϴϱ͕ϲϰϵͿ ϰϭϴ͕ϯϭϮ Ϯϵϳ͕ϯϴϲ KƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐĂƌĞĂŶĂůLJƐĞĚĂƐĨŽůůŽǁƐ͗ WƌŽĨĞƐƐŝŽŶĂůĨĞĞƐ Ϯϭϰ͕Ϯϴϱ ϭϭϯ͕ϰϬϴ tĂŐĞƐĂŶĚƐĂůĂƌŝĞƐ ϭϴϱ͕ϳϬϱ ϭϰϬ͕ϱϱϴ WĞƌƐŽŶŶĞůĐŽƐƚƐ ϳϰ͕ϲϲϮ ϳϵ͕Ϯϰϰ KƚŚĞƌŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ϱϱ͕ϲϱϳ ϵ͕ϴϮϱ Auditor’s remuneration ϰϬ͕ϬϬϬ ϰϬ͕ϬϬϬ ϱϳϬ͕ϯϬϵ ϯϴϯ͕Ϭϯϱ KƚŚĞƌŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐĐŽŶƐŝƐƚĞĚŵĂŝŶůLJŽĨĨƌĞŝŐŚƚĂŶĚĐŽƵƌŝĞƌ͕ƌĞŶƚĂŶĚƉƌŝŶƚŝŶŐ͕ƐƚĂƚŝŽŶĞƌLJĂŶĚƉŽƐƚĂŐĞ͘ KĨƚŚĞabove costs, a total of €ϭϱϭ͕ϵϵϳ;ϯϭDĂLJϮϬϮϯ͗€ϴϱ͕ϲϰϵͿŝƐĐĂƉŝƚĂůŝƐĞĚƚŽŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐďĂƐĞĚŽŶĂƌĞǀŝĞǁ ŽĨƚŚĞŶĂƚƵƌĞĂŶĚƋƵĂŶƚƵŵŽĨƚŚĞƵŶĚĞƌůLJŝŶŐĐŽƐƚƐ͘ZĞĨĞƌƚŽEŽƚĞϭ;ĂͿ;ŝͿĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘dŚĞĐŽƐƚƐĐĂƉŝƚĂůŝƐĞĚƚŽ ŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐŵĂŝŶůLJƌĞůĂƚĞƚŽƚŚĞĐŽƐƚƐŽĨŐĞŽůŽŐŝĐĂůĂŶĚŽŶͲƐŝƚĞƉĞƌƐŽŶŶĞůƚŽŐĞƚŚĞƌǁŝƚŚĂŶĂƉƉƌŽƉƌŝĂƚĞƉŽƌƚŝŽŶ ŽĨĞdžĞĐƵƚŝǀĞŵĂŶĂŐĞŵĞŶƚƐĂůĂƌŝĞƐ. €ϱϳ͕ϱϬϬ;ϯϭDĂLJϮϬϮϯ: €ϱϳ͕ϱϬϬͿŝƐĐŚĂƌŐĞĚƚŽƚŚĞ^ƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐŝŶ relation to Directors’ salaries. dŚĞĂŵŽƵŶƚŽĨǁĂŐĞƐ͕ƐĂůĂƌŝĞƐĂŶĚƌĞůĂƚĞĚĐŽƐƚƐŝŶĐƵƌƌĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌǁĂƐƌĞĐŽƌĚĞĚĂƐĨŽůůŽǁƐ͗ ϮϬϮϰ ϮϬϮϯ € € ĂƉŝƚĂůŝƐĞĚƚŽŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐ ϭϮϳ͕ϰϬϱ ϴϯ͕Ϭϱϴ ŚĂƌŐĞĚƚŽƚŚĞƉƌŽĨŝƚŽƌůŽƐƐ ϭϯϮ͕ϵϲϮ ϭϯϲ͕ϳϰϰ ϮϲϬ͕ϯϲϳ Ϯϭϵ͕ϴϬϮ dŚĞĂǀĞƌĂŐĞŶƵŵďĞƌŽĨƉĞƌƐŽŶƐĞŵƉůŽLJĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌ;ŝŶĐůƵĚŝŶŐĞdžĞĐƵƚŝǀĞŝƌĞĐƚŽƌƐͿďLJĂĐƚŝǀŝƚLJǁĂƐĂƐĨŽůůŽǁƐ͗ ϮϬϮϰ ϮϬϮϯ ŽƌƉŽƌĂƚĞŵĂŶĂŐĞŵĞŶƚĂŶĚĂĚŵŝŶŝƐƚƌĂƚŝŽŶ Ϯ Ϯ džƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶ ϭ Ͳ ϯ Ϯ ϮϬϮϰ ϮϬϮϯ € € tĂŐĞƐ͕ƐĂůĂƌŝĞƐĂŶĚƉĞƌƐŽŶŶĞůĐŽƐƚƐĂƐĚŝƐĐůŽƐĞĚĂďŽǀĞŝƐĂŶĂůLJƐĞĚĂƐĨŽůůŽǁƐ͗ tĂŐĞƐĂŶĚƐĂůĂƌŝĞƐĂŶĚƉĞƌƐŽŶŶĞůĐŽƐƚƐ Ϯϰϲ͕ϮϴϬ Ϯϭϲ͕ϵϳϴ ^ŽĐŝĂůŝŶƐƵƌĂŶĐĞĐŽƐƚƐ ϭϰ͕Ϭϴϳ Ϯ͕ϴϮϰ ϮϲϬ͕ϯϲϳ Ϯϭϵ͕ϴϬϮ 41 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϮKƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ;ĐŽŶƚŝŶƵĞĚͿ Ŷ ĂŶĂůLJƐŝƐ ŽĨ ƌĞŵƵŶĞƌĂƚŝŽŶĨŽƌ ĞĂĐŚ ŝƌĞĐƚŽƌ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ŝŶ ƚŚĞ ĐƵƌƌĞŶƚ ĨŝŶĂŶĐŝĂů LJĞĂƌ;ƉƌŝŽƌ ƚŽ ĂŵŽƵŶƚƐ ƚƌĂŶƐĨĞƌƌĞĚƚŽŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐͿŝƐĂƐĨŽůůŽǁƐ͗ &ĞĞƐ € ^ĂůĂƌLJ € ^ŚĂƌĞͲďĂƐĞĚ payment € WĞŶƐŝŽŶ contributions € dŽƚĂů € WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ϮϬ͕ϬϬϬ ϲϱ͕ϬϬϬ Ͳ Ͳ ϴϱ͕ϬϬϬ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ϭϬ͕ϬϬϬ ϱϬ͕ϬϬϬ Ͳ Ͳ ϲϬ͕ϬϬϬ ƌĞŶĚĂŶDĐDŽƌƌŽǁ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ Dr. Sorċa Conroy ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ,ŽǁĂƌĚŝƌĚ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ϳϬ͕ϬϬϬ ϭϭϱ͕ϬϬϬ Ͳ Ͳ ϭϴϱ͕ϬϬϬ Ŷ ĂŶĂůLJƐŝƐ ŽĨ ƌĞŵƵŶĞƌĂƚŝŽŶ ĨŽƌ ĞĂĐŚ ŝƌĞĐƚŽƌ ŽĨ ƚŚĞ ŽŵƉĂŶLJ ŝŶ ƚŚĞ ƉƌŝŽƌ ĨŝŶĂŶĐŝĂů LJĞĂƌ ;ƉƌŝŽƌ ƚŽ ĂŵŽƵŶƚƐ ƚƌĂŶƐĨĞƌƌĞĚƚŽŝŶƚĂŶŐŝďůĞĂƐƐĞƚƐͿŝƐĂƐĨŽůůŽǁƐ͗ &ĞĞƐ € ^ĂůĂƌLJ € ^ŚĂƌĞͲďĂƐĞĚ payment € WĞŶƐŝŽŶ contributions € dŽƚĂů € WƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ ϮϬ͕ϬϬϬ ϲϱ͕ϬϬϬ Ͳ Ͳ ϴϱ͕ϬϬϬ DĂƵƌĞĞŶd͘͘:ŽŶĞƐ ϭϬ͕ϬϬϬ ϱϬ͕ϬϬϬ Ͳ Ͳ ϲϬ͕ϬϬϬ ƌĞŶĚĂŶDĐDŽƌƌŽǁ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ^ĠĂŵƵƐW͘&ŝƚnjWĂƚƌŝĐŬ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ Dr. Sorċa Conroy ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ,ŽǁĂƌĚŝƌĚ ϭϬ͕ϬϬϬ Ͳ Ͳ Ͳ ϭϬ͕ϬϬϬ ϳϬ͕ϬϬϬ ϭϭϱ͕ϬϬϬ Ͳ Ͳ ϭϴϱ͕ϬϬϬ ϯ>ŽƐƐďĞĨŽƌĞƚĂdžĂƚŝŽŶ dŚĞůŽƐƐďĞĨŽƌĞƚĂdžĂƚŝŽŶŝƐĂƌƌŝǀĞĚĂƚĂĨƚĞƌĐŚĂƌŐŝŶŐƚŚĞĨŽůůŽǁŝŶŐŝƚĞŵƐ͗ ϮϬϮϰ ϮϬϮϯ € € Auditor’s remuneration The analysis of the auditor’s remuneration is as follows: • ƵĚŝƚŽĨĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ ϰϬ͕ϬϬϬ ϰϬ͕ϬϬϬ EŽĨĞĞƐǁĞƌĞŝŶĐƵƌƌĞĚĨŽƌŽƚŚĞƌĂƐƐƵƌĂŶĐĞ͕ƚĂdžĂĚǀŝƐŽƌLJŽƌŽƚŚĞƌŶŽŶͲĂƵĚŝƚƐĞƌǀŝĐĞƐŝŶƌĞƐƉĞĐƚŽĨƚŚĞĐƵƌƌĞŶƚŽƌƉƌŝŽƌ ĨŝŶĂŶĐŝĂůLJĞĂƌƐ͘ 42 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϰ Directors’ remuneration ϮϬϮϰ ϮϬϮϯ € € ŐŐƌĞŐĂƚĞĞŵŽůƵŵĞŶƚƐƉĂŝĚƚŽŽƌƌĞĐĞŝǀĂďůĞďLJŝƌĞĐƚŽƌƐŝŶƌĞƐƉĞĐƚŽĨ ƋƵĂůŝĨLJŝŶŐƐĞƌǀŝĐĞƐ ϭϴϱ͕ϬϬϬ ϭϴϱ͕ϬϬϬ ƵƌŝŶŐƚŚĞLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰĂŶĚϯϭDĂLJϮϬϮϯ͕ŽŶĞŝƌĞĐƚŽƌǁĂƐĂŵĞŵďĞƌŽĨĂĚĞĨŝŶĞĚĐŽŶƚƌŝďƵƚŝŽŶƐĐŚĞŵĞ ďƵƚŶŽĐŽŶƚƌŝďƵƚŝŽŶƐǁĞƌĞĚƵĞŽƌƉĂŝĚĂŶĚĂĐĐŽƌĚŝŶŐůLJŶŽŶĞǁĞƌĞŵĂĚĞ͕ŶŽŽƚŚĞƌĚŝƐĐůŽƐƵƌĞƐĂƌĞƌĞƋƵŝƌĞĚďLJ^ĞĐƚŝŽŶ ϯϬϱŽĨƚŚĞŽŵƉĂŶŝĞƐĐƚϮϬϭϰ͘ EŽĐŽŵƉĞŶƐĂƚŝŽŶŚĂƐďĞĞŶƉĂŝĚŽƌŝƐƉĂLJĂďůĞĨŽƌƚŚĞůŽƐƐŽĨŽĨĨŝĐĞŽƌŽƚŚĞƌƚĞƌŵŝŶĂƚŝŽŶďĞŶĞĨŝƚŝŶƌĞƐƉĞĐƚŽĨƚŚĞůŽƐƐ ŽĨŽĨĨŝĐĞŽĨŝƌĞĐƚŽƌŽƌŽƚŚĞƌŽĨĨŝĐĞƐ;ϯϭDĂLJϮϬϮϯ: €EŝůͿ͘ ϱ /ŶĐŽŵĞƚĂdžĞdžƉĞŶƐĞ EŽƚĂdžĂƚŝŽŶĐŚĂƌŐĞĂƌŽƐĞŝŶƚŚĞĐƵƌƌĞŶƚŽƌƉƌŝŽƌĨŝŶĂŶĐŝĂůLJĞĂƌĚƵĞƚŽůŽƐƐĞƐŝŶĐƵƌƌĞĚŝŶƉƌŝŽƌLJĞĂƌƐĂŶĚƚŚŝƐLJĞĂƌ͘ &ĂĐƚŽƌƐĂĨĨĞĐƚŝŶŐƚŚĞƚĂdžĐŚĂƌŐĞĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͗ dŚĞƚŽƚĂůƚĂdžĐŚĂƌŐĞĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝƐĚŝĨĨĞƌĞŶƚƚŽƚŚĞƐƚĂŶĚĂƌĚƌĂƚĞŽĨ/ƌŝƐŚĐŽƌƉŽƌĂƚŝŽŶƚĂdž͘dŚŝƐŝƐĚƵĞƚŽƚŚĞ ĨŽůůŽǁŝŶŐ͗ ϮϬϮϰ ϮϬϮϯ € € >ŽƐƐŽŶŽƌĚŝŶĂƌLJĂĐƚŝǀŝƚŝĞƐďĞĨŽƌĞƚĂdžĂƚŝŽŶ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ /ƌŝƐŚƐƚĂŶĚĂƌĚƚĂdžƌĂƚĞ ϭϮ͘ϱϬй ϭϮ͘ϱϬй dĂdžĐƌĞĚŝƚĂƚƚŚĞ/ƌŝƐŚƐƚĂŶĚĂƌĚƌĂƚĞ ;Ϯϵ͕ϲϰϱͿ ;ϯϲ͕ϰϯϯͿ ĨĨĞĐƚƐŽĨ͗ >ŽƐƐĞƐĐĂƌƌŝĞĚĨŽƌǁĂƌĚƵƚŝůŝƐĞĚ Ͳ Ͳ >ŽƐƐĞƐĐĂƌƌŝĞĚĨŽƌǁĂƌĚĨŽƌĨƵƚƵƌĞƵƚŝůŝƐĂƚŝŽŶ Ϯϵ͕ϲϰϱ ϯϲ͕ϰϯϯ dĂdžĐŚĂƌŐĞĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ Ͳ Ͳ EŽĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚŚĂƐďĞĞŶƌĞĐŽŐŶŝƐĞĚŽŶĂĐĐƵŵƵůĂƚĞĚƚĂdžůŽƐƐĞƐĂƐŝƚĐĂŶŶŽƚďĞĐŽŶƐŝĚĞƌĞĚƉƌŽďĂďůĞƚŚĂƚĨƵƚƵƌĞ ƚĂdžĂďůĞƉƌŽĨŝƚǁŝůůďĞĂǀĂŝůĂďůĞĂŐĂŝŶƐƚǁŚŝĐŚƚŚĞĚĞĨĞƌƌĞĚƚĂdžĂƐƐĞƚĐĂŶďĞƵƚŝůŝƐĞĚ͘ hŶƵƚŝůŝƐĞĚůŽƐƐĞƐŵĂLJďĞĐĂƌƌŝĞĚĨŽƌǁĂƌĚĨƌŽŵƚŚĞĚĂƚĞŽĨƚŚĞŽƌŝŐŝŶĂƚŝŽŶŽĨƚŚĞůŽƐƐĞƐďƵƚŵĂLJŽŶůLJďĞŽĨĨƐĞƚĂŐĂŝŶƐƚ ƚĂdžĂďůĞƉƌŽĨŝƚƐĞĂƌŶĞĚĨƌŽŵƚŚĞƐĂŵĞƚƌĂĚĞ͘hŶƵƚŝůŝƐĞĚůŽƐƐĞƐĐĂƌƌŝĞĚĨŽƌǁĂƌĚĂŵŽƵŶƚĞĚƚŽ€ϭϮ͕ϴϬϰ͕ϴϯϲĂƚϯϭDĂLJ ϮϬϮϰĂŶĚ€ϭϮ͕ϱϲϳ͕ϲϳϲĂƚϯϭDĂLJϮϬϮϯ͘ 43 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϲ >ŽƐƐƉĞƌƐŚĂƌĞ ĂƐŝĐůŽƐƐƉĞƌƐŚĂƌĞ ϮϬϮϰ ϮϬϮϯ € € >ŽƐƐĨŽƌƚŚĞLJĞĂƌĂƚƚƌŝďƵƚĂďůĞƚŽĞƋƵŝƚLJŚŽůĚĞƌƐŽĨƚŚĞŽŵƉĂŶLJ ;Ϯϯϳ͕ϭϲϬͿ ;Ϯϵϭ͕ϰϲϳͿ EƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚƐƚĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ϵϰ͕ϰϵϮ͕ϳϰϵ ϲϴ͕ϱϰϮ͕ϳϰϵ EƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝƐƐƵĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ϭϬ͕ϲϬϬ͕ϬϬϬ Ϯϱ͕ϵϱϬ͕ϬϬϬ EƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚĞŶĚŽĨƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ϭϬϱ͕ϬϵϮ͕ϳϰϵ ϵϰ͕ϰϵϮ͕ϳϰϵ tĞŝŐŚƚĞĚĂǀĞƌĂŐĞŶƵŵďĞƌŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐĨŽƌƚŚĞƉƵƌƉŽƐĞƐŽĨ ďĂƐŝĐĂŶĚĚŝůƵƚĞĚůŽƐƐƉĞƌƐŚĂƌĞ ϭϬϭ͕ϬϰϬ͕ϭϰϲ ϳϲ͕ϰϲϬ͕ϭϰϲ ĂƐŝĐĂŶĚĚŝůƵƚĞĚůŽƐƐƉĞƌŽƌĚŝŶĂƌLJƐŚĂƌĞ ;Ϭ͘ϬϬϮϯͿ ;Ϭ͘ϬϬϯϴͿ ŝůƵƚĞĚůŽƐƐƉĞƌƐŚĂƌĞ dŚĞĞĨĨĞĐƚŽĨƐŚĂƌĞŽƉƚŝŽŶƐĂŶĚǁĂƌƌĂŶƚƐŝƐĂŶƚŝͲĚŝůƵƚŝǀĞ͘ ϳ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ džƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶĂƐƐĞƚƐ ϯϭDĂLJ ϯϭDĂLJ ŽƐƚ ϮϬϮϰ ϮϬϮϯ € € ƚϭ:ƵŶĞ ϭϭ͕Ϯϲϱ͕ϴϵϰ ϭϬ͕ϵϭϬ͕ϵϯϭ džƉĞŶĚŝƚƵƌĞĐĂƉŝƚĂůŝƐĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͗ • >ŝĐĞŶĐĞĂŶĚĂƉƉƌĂŝƐĂůĐŽƐƚƐ Ϯϰϲ͕ϱϴϲ Ϯϲϵ͕ϯϭϰϯ • KƚŚĞƌŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ϭϳϳ͕ϳϭϰ ϴϱ͕ϲϰϵ ƚϯϭDĂLJ ϭϭ͕ϲϵϬ͕ϭϵϰ ϭϭ͕Ϯϲϱ͕ϴϵϰ džƉůŽƌĂƚŝŽŶ ĂŶĚ ĞǀĂůƵĂƚŝŽŶ ĂƐƐĞƚƐ ƌĞůĂƚĞ ƚŽ ĞdžƉĞŶĚŝƚƵƌĞ ŝŶĐƵƌƌĞĚ ŝŶ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ŵŝŶĞƌĂů ĞdžƉůŽƌĂƚŝŽŶ ŽƉƉŽƌƚƵŶŝƚŝĞƐ͘dŚĞƐĞĂƐƐĞƚƐĂƌĞĐĂƌƌŝĞĚĂƚŚŝƐƚŽƌŝĐĂůĐŽƐƚĂŶĚŚĂǀĞďĞĞŶĂƐƐĞƐƐĞĚĨŽƌŝŵƉĂŝƌŵĞŶƚŝŶƉĂƌƚŝĐƵůĂƌǁŝƚŚ ƌĞŐĂƌĚƚŽƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨ/&Z^ϲ͗ džƉůŽƌĂƚŝŽŶĨŽƌĂŶĚ ǀĂůƵĂƚŝŽŶŽĨDŝŶĞƌĂůZĞƐŽƵƌĐĞƐƌĞůĂƚŝŶŐƚŽƌĞŵĂŝŶŝŶŐ ůŝĐĞŶĐĞŽƌĐůĂŝŵƚĞƌŵƐ͕ůŝŬĞůŝŚŽŽĚŽĨƌĞŶĞǁĂů͕ůŝŬĞůŝŚŽŽĚŽĨĨƵƌƚŚĞƌĞdžƉĞŶĚŝƚƵƌĞ͕ƉŽƐƐŝďůĞĚŝƐĐŽŶƚŝŶƵĂƚŝŽŶŽĨĂĐƚŝǀŝƚŝĞƐ ĂƐĂƌĞƐƵůƚŽĨƐƉĞĐŝĨŝĐĐůĂŝŵƐĂŶĚĂǀĂŝůĂďůĞĚĂƚĂǁŚŝĐŚŵĂLJƐƵŐŐĞƐƚƚŚĂƚƚŚĞƌĞĐŽǀĞƌĂďůĞǀĂůƵĞŽĨĂŶĞdžƉůŽƌĂƚŝŽŶĂŶĚ ĞǀĂůƵĂƚŝŽŶĂƐƐĞƚŝƐůĞƐƐƚŚĂŶŝƚƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚ͘ dŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŚĂǀĞĐŽŶƐŝĚĞƌĞĚƚŚĞƉƌŽƉŽƐĞĚǁŽƌŬƉƌŽŐƌĂŵŵĞƐĨŽƌƚŚĞƵŶĚĞƌůLJŝŶŐŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐ͘dŚĞLJ ĂƌĞƐĂƚŝƐĨŝĞĚƚŚĂƚƚŚĞƌĞĂƌĞŶŽŝŶĚŝĐĂƚŝŽŶƐŽĨŝŵƉĂŝƌŵĞŶƚ͘ dŚĞ ŽĂƌĚ ŽĨ ŝƌĞĐƚŽƌƐ ŶŽƚĞ ƚŚĂƚ ƚŚĞ ƌĞĂůŝƐĂƚŝŽŶ ŽĨ ƚŚĞ ŝŶƚĂŶŐŝďůĞ ĂƐƐĞƚƐ ŝƐ ĚĞƉĞŶĚĞŶƚ ŽŶ ĨƵƌƚŚĞƌ ƐƵĐĐĞƐƐĨƵů ĚĞǀĞůŽƉŵĞŶƚĂŶĚƵůƚŝŵĂƚĞƉƌŽĚƵĐƚŝŽŶŽĨƚŚĞŵŝŶĞƌĂůƌĞƐŽƵƌĐĞƐĂŶĚƚŚĞĂǀĂŝůĂďŝůŝƚLJŽĨƐƵĨĨŝĐŝĞŶƚĨŝŶĂŶĐĞƚŽďƌŝŶŐƚŚĞ ƌĞƐŽƵƌĐĞƐƚŽĞĐŽŶŽŵŝĐŵĂƚƵƌŝƚLJĂŶĚƉƌŽĨŝƚĂďŝůŝƚLJ͘ 44 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϳ /ŶƚĂŶŐŝďůĞĂƐƐĞƚƐ;ĐŽŶƚŝŶƵĞĚͿ DŝŶĞƌĂůŝŶƚĞƌĞƐƚƐĂƌĞĐĂƚĞŐŽƌŝƐĞĚĂƐĨŽůůŽǁƐ͗ &ŝŶůĂŶĚ ϯϭDĂLJ ϯϭDĂLJ ŽƐƚ ϮϬϮϰ ϮϬϮϯ € € ƚϭ:ƵŶĞ ϭϭ͕ϮϮϯ͕ϰϬϭ ϭϬ͕ϵϭϬ͕ϵϯϭ džƉĞŶĚŝƚƵƌĞĐĂƉŝƚĂůŝƐĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͗ • >ŝĐĞŶĐĞĂŶĚĂƉƉƌĂŝƐĂůĐŽƐƚƐ ϭϱϳ͕Ϯϵϵ Ϯϲϯ͕ϰϮϭ • KƚŚĞƌŽƉĞƌĂƚŝŶŐĐŽƐƚƐ ϭϮϭ͕Ϭϯϴ ϰϵ͕Ϭϰϵ ƚϯϭDĂLJ ϭϭ͕ϱϬϭ͕ϳϯϴ ϭϭ͕ϮϮϯ͕ϰϬϭ EŽƌƚŚĞƌŶ/ƌĞůĂŶĚ ϯϭDĂLJ ϯϭDĂLJ ŽƐƚ ϮϬϮϰ ϮϬϮϯ € € ƚϭ:ƵŶĞ ϰϮ͕ϰϵϯ Ͳ džƉĞŶĚŝƚƵƌĞĐĂƉŝƚĂůŝƐĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ͗ • >ŝĐĞŶĐĞĂŶĚĂƉƉƌĂŝƐĂůĐŽƐƚƐ ϴϵ͕Ϯϴϳ ϱ͕ϴϵϯ • KƚŚĞƌŽƉĞƌĂƚŝŶŐĐŽƐƚƐ ϱϲ͕ϲϳϲ ϯϲ͕ϲϬϬ ƚϯϭDĂLJ ϭϴϴ͕ϰϱϲ ϰϮ͕ϰϵϯ ϴ ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € ĂƐŚŚĞůĚŝŶďĂŶŬĂĐĐŽƵŶƚƐ ϯϵ͕ϱϵϳ ϭϭϲ͕Ϭϯϴ ϯϵ͕ϱϵϳ ϭϭϲ͕Ϭϯϴ ĞƌƚĂŝŶŽĨƚŚĞĂďŽǀĞďĂŶŬĂĐĐŽƵŶƚƐĂƌĞŚĞůĚĨŽƌƚŚĞƉƵƌƉŽƐĞŽĨŚŽůĚŝŶŐĐŽůůĂƚĞƌĂůĚĞƉŽƐŝƚƐƌĞůĂƚĞĚƚŽƚŚĞ&ŝŶŶŝƐŚ ůŝĐĞŶƐĞƐ͘ƐĂƚϯϭDĂLJϮϬϮϰ͕ĂƚŽƚĂůamount of €Ϯϰ͕ϱϬϬ;ϯϭDĂLJϮϬϮϯ: €Ϯϰ͕ϱϬϬͿƌĞůĂƚĞƐƚŽƚŚĞƐĞĐŽůůĂƚĞƌĂůĚĞƉŽƐŝƚƐ ĂŶĚĂƌĞƚƌĞĂƚĞĚĂƐƌĞƐƚƌŝĐƚĞĚĐĂƐŚďĂůĂŶĐĞƐ͘ ϵ KƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € sdƌĞĐĞŝǀĂďůĞ ϱϭ͕ϰϲϵ ϯϱ͕ϯϰϭ WƌĞƉĂLJŵĞŶƚƐ Ϯϴ͕ϬϴϮ ϯϰ͕ϰϯϮ KƚŚĞƌƌĞĐĞŝǀĂďůĞƐ Ϯ͕ϬϬϬ ϵ͕ϮϯϬ ϴϭ͕ϱϱϭ ϳϵ͕ϬϬϯ 45 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϬ EŽŶͲĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ ŽŶǀĞƌƚŝďůĞůŽĂŶ KŶϮϲDĂLJϮϬϮϯ, the Company entered into a convertible loan note agreement for a total amount of €ϭϮϵ͕ϱϱϬ ;άϭϭϮ͕ϱϬϬͿǁŝƚŚŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ǁŚŝĐŚŝƐďŽƚŚĂƐŚĂƌĞŚŽůĚĞƌŝŶƚŚĞĐŽŵƉĂŶLJĂŶĚŚĂƐĂ ŶƵŵďĞƌŽĨŽƚŚĞƌĐŽŶŶĞĐƚŝŽŶƐĂƐŶŽƚĞĚŝŶEŽƚĞϭϰ͘dŚĞĐŽŶǀĞƌƚŝďůĞůŽĂŶŶŽƚĞŝƐƵŶƐĞĐƵƌĞĚ͕ŚĂƐĂƚĞƌŵŽĨϭϴŵŽŶƚŚƐ ĂŶĚĂƚƚƌĂĐƚƐŝŶƚĞƌĞƐƚĂƚĂƌĂƚĞŽĨϱйƉĞƌĂŶŶƵŵǁŚŝĐŚŝƐƉĂLJĂďůĞŽŶƚŚĞŵĂƚƵƌŝƚLJŽƌĐŽŶǀĞƌƐŝŽŶŽĨƚŚĞĐŽŶǀĞƌƚŝďůĞ ůŽĂŶ͘ dŚĞ ĐŽŶǀĞƌƐŝŽŶ ƉƌŝĐĞ ŝƐ Ăƚ Ă ƉƌŝĐĞ ŽĨ ϱ ƉĞŶĐĞ ƉĞƌ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞ͘ dŚĞ ƐŚĂƌĞŚŽůĚĞƌ ŚĂƐ ƚŚĞ ƌŝŐŚƚ ƚŽ ƐĞĞŬ ĐŽŶǀĞƌƐŝŽŶŽĨƚŚĞƉƌŝŶĐŝƉĂůĂŵŽƵŶƚŽƵƚƐƚĂŶĚŝŶŐŽŶƚŚĞĐŽŶǀĞƌƚŝďůĞůŽĂŶŶŽƚĞĂŶĚĂůůŝŶƚĞƌĞƐƚĂĐĐƌƵĞĚĂƚĂŶLJƚŝŵĞ ĚƵƌŝŶŐƚŚĞƚĞƌŵ͘The amount of €10,304 relates to ƚŚĞĚĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJĂƚƚĂĐŚĞĚƚŽƚŚĞƚŽƚĂůĐŽŶǀĞƌƚŝďůĞůŽĂŶ note above and the net amount of €119,246 is recorded as the value of the convertible loan at 31DĂLJϮϬϮϯ͘dŚĞ loan incurred interest of €6,476 in the current year. No interest was accrued in prior year due to it being immaterial. dŚĞŽŵƉĂŶLJŝƐŝŶĚŝƐĐƵƐƐŝŽŶƐƚŽĞdžƚĞŶĚƚŚĞƚĞƌŵŽĨƚŚŝƐůŽĂŶŚŽǁĞǀĞƌĂƐĂƚƚŚĞĚĂƚĞŽĨƐŝŐŶŝŶŐŽĨƚŚĞĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐ͕ŶŽĨŽƌŵĂůĂŐƌĞĞŵĞŶƚŚĂƐďĞĞŶƌĞĂĐŚĞĚĂƐLJĞƚ͘ dŚĞĐŽŶǀĞƌƚŝďůĞůŽĂŶĂŵŽƵŶƚĞĚƚŽ€ϭϯϲ͕ϬϮϲ(2023: €129,550)ĂƚϯϭDĂLJϮϬϮϰĂŶĚŝƐĐůĂƐƐŝĨŝĞĚĂƐĂĐƵƌƌĞŶƚůŝĂďŝůŝƚLJ ĂƐĂƚLJĞĂƌĞŶĚϯϭDĂLJϮϬϮϰ;ƐĞĞEŽƚĞϭϭͿ͘ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € KƉĞŶŝŶŐďĂůĂŶĐĞ Ͳ Ͳ /ŶƚĞƌĞƐƚƉĂLJĂďůĞ Ͳ Ͳ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ Ͳ ϭϬ͕ϯϬϰ ŽŶǀĞƌƚŝďůĞůŽĂŶ Ͳ ϭϭϵ͕Ϯϰϲ Ͳ ϭϮϵ͕ϱϱϬ ϭϭ ƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ dƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € Accrued Directors’ remuneration &ĞĞƐĂŶĚŽƚŚĞƌĞŵŽůƵŵĞŶƚƐ ϭ͕Ϯϭϯ͕ϳϮϬ ϭ͕ϬϮϴ͕ϳϭϴ WĞŶƐŝŽŶĐŽŶƚƌŝďƵƚŝŽŶƐ Ϯϲϯ͕ϮϱϬ Ϯϲϯ͕ϮϱϬ ŵŽƵŶƚĚƵĞƚŽƌĞůĂƚĞĚƉĂƌƚLJ;ƐĞĞŶŽƚĞϭϰ;ďͿͿ ϭϰϰ͕ϱϱϭ ϱ͕ϬϮϯ tĂƌƌĂŶƚůŝĂďŝůŝƚŝĞƐ ϯϬ͕ϭϬϲ Ͳ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ϭϬ͕ϯϬϰ Ͳ ŽŶǀĞƌƚŝďůĞ>ŽĂŶ KƚŚĞƌĐƌĞĚŝƚŽƌƐĂŶĚĂĐĐƌƵĂůƐ ϭϮϱ͕ϳϮϮ ϮϴϮ͕ϬϴϬ Ͳ ϭϯϵ͕Ϭϵϲ Ϯ͕Ϭϲϵ͕ϳϯϯ ϭ͕ϰϯϲ͕Ϭϴϳ ƐĂƚϯϭDĂLJϮϬϮϰ͕ĚŝƌĞĐƚŽƌĨĞĞƐĂmounting to €ϱϰ͕ϭϲϳ;ϯϭDĂLJϮϬϮϯ: €ϰϰ͕ϭϲϳͿĚƵĞƚŽƌĞŶĚĂŶDĐDŽƌƌŽǁĂƌĞ ŝŶĐůƵĚĞĚŝŶ&ĞĞƐĂŶĚŽƚŚĞƌĞŵŽůƵŵĞŶƚƐ͘ It is the Company’s practice to agree terms of transactions, including payment terms with suppliers. It is the Company’s policy that payment is made according to the agreed terms. The carrying value of the trade and other ƉĂLJĂďůĞƐĂƉƉƌŽdžŝŵĂƚĞƐƚŽƚŚĞŝƌĨĂŝƌǀĂůƵĞ͘ 46 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϭ ƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ;ĐŽŶƚŝŶƵĞĚͿ tĂƌƌĂŶƚůŝĂďŝůŝƚŝĞƐ ƵƌŝŶŐƚŚĞLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͕ϭϬ͕ϬϬϬ͕ϬϬϬǁĂƌƌĂŶƚƐǁĞƌĞŝƐƐƵĞĚǁŝƚŚĂƐƚĞƌůŝŶŐĞdžĞƌĐŝƐĞƉƌŝĐĞĂŶĚĞdžƉŝƌLJŽĨϭϮ ŵŽŶƚŚƐ͘ϭϴ͕ϱϬϬ͕ϬϬϬǁĂƌƌĂŶƚƐǁŝƚŚĂƐƚĞƌůŝŶŐĞdžĞƌĐŝƐĞƉƌŝĐĞĂŶĚĞdžƉŝƌLJďĞƚǁĞĞŶϭϴĂŶĚϮϰŵŽŶƚŚƐǁĞƌĞŝƐƐƵĞĚŝŶƚŚĞ ƉƌŝŽƌLJĞĂƌ͘dŚĞĨĂŝƌǀĂůƵĞĂŵŽƵŶƚĂƚŐƌĂŶƚĚĂƚĞǁĂƐǀĂůƵĞĚƵƐŝŶŐƚŚĞůĂĐŬ^ĐŚŽůĞƐDŽĚĞůĂŶĚƌĞĐŽƌĚĞĚĂƐǁĂƌƌĂŶƚ ůŝĂďŝůŝƚŝĞƐ͘ ƚϯϭDĂLJϮϬϮϰ͕ƚŚĞǁĂƌƌĂŶƚƐŝŶŝƐƐƵĞǁĞƌĞĨĂŝƌǀĂůƵĞĚǁŝƚŚƚŚĞŵŽǀĞŵĞŶƚŝŶfair value of €187,628 (2023: €9,565) being recorded in the statement of profit or loss and a fair value of €30,106 (2023: €109,224) recorded in the ƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͘tĂƌƌĂŶƚƐĂƚϯϭDĂLJϮϬϮϰŚĂǀĞĂϭϮŵŽŶƚŚĞdžƉŝƌLJ͕ŚĞŶĐĞŝƚŚĂƐďĞĞŶƌĞĐůĂƐƐŝĨŝĞĚƚŽ ĐƵƌƌĞŶƚůŝĂďŝůŝƚŝĞƐ͘^ĞĞEŽƚĞϭϱĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ ŽŶǀĞƌƚŝďůĞůŽĂŶ On 10 December 2019, the Company entered into a convertible loan note agreement for a total amount of €145,829 ;άϭϮϬ͕ϬϬϬͿǁŝƚŚŽŶĞŽĨŝƚƐƐŚĂƌĞŚŽůĚĞƌƐ͘dŚĞƚŽƚĂůĂŵŽƵŶƚŽƵƚƐƚĂŶĚŝŶŐĂƐĂƚϯϭDĂLJϮϬϮϮŝŶĐůƵĚŝŶŐĂĐĐƌƵĞĚŝŶƚĞƌĞƐƚ was €166,790. This agreement wĂƐǀĂƌŝĞĚŝŶĞĐĞŵďĞƌϮϬϮϮĂŶĚƚŚĞůŽĂŶŶŽƚĞŚŽůĚĞƌĞdžĞƌĐŝƐĞĚƚŚĞŝƌĐŽŶǀĞƌƐŝŽŶ ƌŝŐŚƚƐƚŽĐŽŶǀĞƌƚƚŚĞůŽĂŶĂŶĚĂůůĂĐĐƌƵĞĚŝŶƚĞƌĞƐƚ;ƚŽƚĂůůŝŶŐάϭϯϴ͕ϬϬϬͿŝŶƚŽϯ͕ϰϱϬ͕ϬϬϬŶĞǁŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝŶƚŚĞ ĐŽŵƉĂŶLJŝŶƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚŝŶŐϯϭDĂLJϮϬϮϯ͘ KŶϮϲDĂLJϮϬϮϯ͕ƚŚĞŽŵƉĂŶLJĞŶƚĞƌĞĚŝŶƚŽĂĐŽŶǀĞƌƚŝďůĞůŽĂŶŶŽƚĞĂŐƌĞĞŵĞŶƚǁŝƚŚĂŶϭϴŵŽŶƚŚƚĞƌŵĂƐƐĞƚŽƵƚŝŶ EŽƚĞϭϬ͘dŚĞĐŽŶǀĞƌƚŝďůĞŝƐĐůĂƐƐŝĨŝĞĚĂƐĂĐƵƌƌĞŶƚůŝĂďŝůŝƚLJĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͘ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € KƉĞŶŝŶŐďĂůĂŶĐĞ ϭϮϵ͕ϱϱϬ ϭϲϲ͕ϳϵϬ /ŶƚĞƌĞƐƚƉĂLJĂďůĞ ϲ͕ϰϳϲ ϯ͕ϲϰϲ ŽŶǀĞƌƐŝŽŶƚŽŽƌĚŝŶĂƌLJĞƋƵŝƚLJ Ͳ ;ϭϳϬ͕ϰϯϲͿ ϮϲDĂLJϮϬϮϯĐŽŶǀĞƌƚŝďůĞůŽĂŶ Ͳ ϭϮϵ͕ϱϱϬ ůŽƐŝŶŐďĂůĂŶĐĞ ϭϯϲ͕ϬϮϲ ϭϮϵ͕ϱϱϬ ϭϮ ĂůůĞĚƵƉƐŚĂƌĞĐĂƉŝƚĂůĂŶĚƐŚĂƌĞƉƌĞŵŝƵŵ ƵƚŚŽƌŝƐĞĚ͗ ϯϭDĂLJ ϮϬϮϰ ϯϭDĂLJ ϮϬϮϯ € € 7,301,310,041 consolidated ordinary shares of €0.00025 each ϭ͕ϴϮϱ͕ϯϮϴ ϭ͕ϴϮϱ͕ϯϮϴ ϯϭϳ͕ϳϴϱ͕ϬϯϰĚĞĨĞƌƌĞĚƐŚĂƌĞƐŽĨ€0.00999 each ϯ͕ϭϳϰ͕ϲϳϮ ϯ͕ϭϳϰ͕ϲϳϮ ϱ͕ϬϬϬ͕ϬϬϬ ϱ͕ϬϬϬ͕ϬϬϬ dŚĞĚĞĨĞƌƌĞĚƐŚĂƌĞƐĚŽŶŽƚĞŶƚŝƚůĞƚŚĞŚŽůĚĞƌƚŽƌĞĐĞŝǀĞĂĚŝǀŝĚĞŶĚŽƌŽƚŚĞƌĚŝƐƚƌŝďƵƚŝŽŶ͘&ƵƌƚŚĞƌŵŽƌĞ͕ƚŚĞĚĞĨĞƌƌĞĚ ƐŚĂƌĞƐĚŽŶŽƚĞŶƚŝƚůĞƚŚĞƐŚĂƌĞŚŽůĚĞƌƚŽƌĞĐĞŝǀĞŶŽƚŝĐĞŽĨŽƌǀŽƚĞĂƚĂŶLJŐĞŶĞƌĂůŵĞĞƚŝŶŐŽĨƚŚĞŽŵƉĂŶLJ͕ĂŶĚĚŽ ŶŽƚĞŶƚŝƚůĞƚŚĞƐŚĂƌĞŚŽůĚĞƌƚŽĂŶLJƉƌŽĐĞĞĚƐŽŶĂƌĞƚƵƌŶŽĨĐĂƉŝƚĂůŽƌǁŝŶĚŝŶŐƵƉŽĨƚŚĞŽŵƉĂŶLJ͘ 47 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϮ ĂůůĞĚƵƉƐŚĂƌĞĐĂƉŝƚĂůĂŶĚƐŚĂƌĞƉƌĞŵŝƵŵ;ĐŽŶƚŝŶƵĞĚͿ /ƐƐƵĞĚĂŶĚĨƵůůLJƉĂŝĚ–ƵƌƌĞŶƚĨŝŶĂŶĐŝĂůLJĞĂƌ EƵŵďĞƌŽĨ ŽƌĚŝŶĂƌLJƐŚĂƌĞƐ ĂůůĞĚƵƉ ƐŚĂƌĞĐĂƉŝƚĂů € ĂůůĞĚƵƉĚĞĨĞƌƌĞĚ ƐŚĂƌĞĐĂƉŝƚĂů € ^ŚĂƌĞ ƉƌĞŵŝƵŵ € ^ƚĂƌƚ ŽĨ ĨŝŶĂŶĐŝĂů LJĞĂƌ – ĐŽŶƐŽůŝĚĂƚĞĚŽƌĚŝŶĂƌLJƐŚĂƌĞƐŽĨ €0.00025 each ϵϰ͕ϰϵϮ͕ϳϰϵ Ϯϲ͕ϮϭϬ ϯ͕ϭϳϰ͕ϲϳϮ ϭϬ͕ϱϰϲ͕ϴϰϰ ^ŚĂƌĞŝƐƐƵĞ;ĂͿ ϭϬ͕ϲϬϬ͕ϬϬϬ Ϯ͕ϲϱϬ Ͳ Ϯϵϴ͕ϱϱϱ tĂƌƌĂŶƚƐŝƐƐƵĞĚ;ƐĞĞŶŽƚĞϭϱͿ Ͳ Ͳ Ͳ ;ϭϬϴ͕ϱϭϬͿ ŶĚŽĨĨŝŶĂŶĐŝĂůLJĞĂƌ ϭϬϱ͕ϬϵϮ͕ϳϰϵ Ϯϴ͕ϴϲϬ ϯ͕ϭϳϰ͕ϲϳϮ ϭϬ͕ϳϯϲ͕ϴϴϵ /ƐƐƵĞĚĂŶĚĨƵůůLJƉĂŝĚ–WƌŝŽƌĨŝŶĂŶĐŝĂůLJĞĂƌ EƵŵďĞƌŽĨ ŽƌĚŝŶĂƌLJƐŚĂƌĞƐ ĂůůĞĚƵƉ ƐŚĂƌĞĐĂƉŝƚĂů € ĂůůĞĚƵƉĚĞĨĞƌƌĞĚ ƐŚĂƌĞĐĂƉŝƚĂů € ^ŚĂƌĞ ƉƌĞŵŝƵŵ € ^ƚĂƌƚŽĨĨŝŶĂŶĐŝĂůLJĞĂƌ–ƐŚĂƌĞƐŽĨ €0.00025 each ϲϴ͕ϱϰϮ͕ϳϰϵ ϭϳ͕ϭϯϱ ϯ͕ϭϳϰ͕ϲϳϮ ϵ͕ϵϱϵ͕ϭϴϭ ^ŚĂƌĞŝƐƐƵĞ;ďͿ ϭϮ͕ϱϬϬ͕ϬϬϬ ϯ͕ϭϮϱ Ͳ Ϯϲϵ͕Ϯϱϰ ^ŚĂƌĞŝƐƐƵĞ;ĐͿ ϭϬ͕ϬϬϬ͕ϬϬϬ Ϯ͕ϱϬϬ Ͳ ϮϴϬ͕ϭϴϮ tĂƌƌĂŶƚƐŝƐƐƵĞĚ;ƐĞĞŶŽƚĞϭϱͿ Ͳ Ͳ Ͳ ;ϭϭϴ͕ϳϴϵͿ >ŽĂŶĐŽŶǀĞƌƐŝŽŶŝŶƚŽƐŚĂƌĞƐ;ĚͿ ϯ͕ϰϱϬ͕ϬϬϬ ϯ͕ϰϱϬ Ͳ ϭϱϳ͕Ϭϭϲ ŶĚŽĨĨŝŶĂŶĐŝĂůLJĞĂƌ ϵϰ͕ϰϵϮ͕ϳϰϵ Ϯϲ͕ϮϭϬ ϯ͕ϭϳϰ͕ϲϳϮ ϭϬ͕ϱϰϲ͕ϴϰϰ ;ĂͿ On 11 October 2023, warrants were exercised to acquire 600,000 consolidated ordinary shares of €0.00025 in ƚŚĞĐĂƉŝƚĂůŽĨƚŚĞŽŵƉĂŶLJĂƚƉƌŝĐĞŽĨάϬ͘ϬϮϱƉĞƌ^ƵďƐĐƌŝƉƚŝŽŶ^ŚĂƌĞ͘KŶϭϵKĐƚŽďĞƌϮϬϮϯ͕ƚŚĞŽŵƉĂŶLJƌĂŝƐĞĚ €ϯϬϭ͕ϮϬϱ ;άϮϱϬ͕ϬϬϬͿ ďĞĨŽƌĞ ƐŚĂƌĞ ŝƐƐƵĞ ĐŽƐƚƐ ƚŚƌŽƵŐŚ ƚŚĞ ŝƐƐƵĞ ŽĨ ϭϬ͕ϬϬϬ͕ϬϬϬ ĐŽŶƐŽůŝĚĂƚĞĚ ŽƌĚŝŶĂƌLJ ƐŚĂƌĞƐ ŽĨ €0.00025 in the capital ofƚŚĞŽŵƉĂŶLJĂƚĂƉƌŝĐĞŽĨάϬ͘ϬϮϱƉĞƌ^ƵďƐĐƌŝƉƚŝŽŶ^ŚĂƌĞ͘dŚĞĐŽŵƉĂŶLJŝŶĐƵƌƌĞĚƐŚĂƌĞ issue costs of €108,510 being the fair value as at date of grant of warrĂŶƚƐŝƐƐƵĞĚĂƐƉĂƌƚŽĨƚŚĞƚĞƌŵƐĂƚƚĂĐŚŝŶŐƚŽ ƚŚĞƐŚĂƌĞŝƐƐƵĞ;ƐĞĞEŽƚĞϭϱͿ͘ ;ďͿ On 29 November 2022, the Company raised €286,639 (£250,000) before share issue costs of €17,385 through ƚŚĞŝƐƐƵĞŽĨϭϮ͕ϱϬϬ͕ϬϬϬĐŽŶƐŽůŝĚĂƚĞĚordinary shares of €0.00025 in the capital of the Company at a price of £0.02 ƉĞƌ^ƵďƐĐƌŝƉƚŝŽŶ^ŚĂƌĞ͘ On 19 May 2023, the Company raised €285,958 (£250,000), before share issue costs of €5,776 through the issue of ϭϬ͕ϬϬϬ͕ϬϬϬ ĐŽŶƐŽůŝĚĂƚĞĚ ordinary shares of €0.00025 in the capital of the Company at a price of £0.25 per ^ƵďƐĐƌŝƉƚŝŽŶ^ŚĂƌĞ͘ ;ĐͿ ƐƐĞƚŽƵƚŝŶŵŽƌĞĚĞƚĂŝůŝŶEŽƚĞϭϬ͕ŽŶϮϬĞĐĞŵďĞƌϮϬϮϮ͕ĂůŽĂŶŚŽůĚĞƌĞdžĞƌĐŝƐĞĚƚŚĞŝƌĐŽŶǀĞƌƐŝŽŶƌŝŐŚƚƐƚŽ ĐŽŶǀĞƌƚƚŚĞŝƌůŽĂŶĂŶĚĂůůĂĐĐƌƵĞĚŝŶƚĞƌĞƐƚ;ƚŽƚĂůůŝŶŐάϭϯϴ͕ϬϬϬͿŝŶƚŽϯ͕ϰϱϬ͕ϬϬϬŶĞǁĐŽŶƐŽůŝĚĂƚĞĚŽƌĚŝŶĂƌLJƐŚĂƌĞƐŝŶ ƚŚĞĐŽŵƉĂŶLJ͘ 48 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϮ ĂůůĞĚƵƉƐŚĂƌĞĐĂƉŝƚĂůĂŶĚƐŚĂƌĞƉƌĞŵŝƵŵ;ĐŽŶƚŝŶƵĞĚͿ tĂƌƌĂŶƚƐ͗ƚϯϭDĂLJϮϬϮϰ͕ǁĂƌƌĂŶƚƐŽǀĞƌϮϳ͕ϵϬϬ͕ϬϬϬƐŚĂƌĞƐĞdžĞƌĐŝƐĂďůĞĂƚƉƌŝĐĞƐǀĂƌLJŝŶŐĨƌŽŵάϬ͘ϬϮϱƚŽάϬ͘ϬϱĂƚ ĂŶLJƚŝŵĞƵƉƚŽϱĞĐĞŵďĞƌϮϬϮϰǁĞƌĞŽƵƚƐƚĂŶĚŝŶŐ͘ϭϬ͕ϬϬϬ͕ϬϬϬŶĞǁǁĂƌƌĂŶƚƐǁĞƌĞŝƐƐƵĞĚĚƵƌŝŶŐƚŚĞLJĞĂƌĞŶĚĞĚϯϭ DĂLJϮϬϮϰ;ϯϭDĂLJϮϬϮϯ͗ϭϴ͕ϱϬϬ͕ϬϬϬǁĂƌƌĂŶƚƐǁĞƌĞŝƐƐƵĞĚͿ͘ ^ŚĂƌĞƉƌŝĐĞ͗dŚĞƐŚĂƌĞƉƌŝĐĞĂƚϯϭDĂLJϮϬϮϰǁĂƐάϬ͘ϬϮϳ;ϯϭDĂLJϮϬϮϯ͗άϬ͘ϬϮϳͿ͘dŚĞƐŚĂƌĞƉƌŝĐĞƌĂŶŐĞĚĨƌŽŵάϬ͘ϬϮϬϱ ƚŽάϬ͘Ϭϱϭϱ;ϯϭDĂLJϮϬϮϯ͗άϬ͘ϬϮϯϱƚŽάϬ͘ϬϮϴϱͿĚƵƌŝŶŐƚŚĞLJĞĂƌƵŶĚĞƌƌĞǀŝĞǁ͘ ϭϯ ŽŵŵŝƚŵĞŶƚƐĂŶĚĐŽŶƚŝŶŐĞŶĐŝĞƐ ƚϯϭDĂLJϮϬϮϰ͕ƚŚĞƌĞǁĞƌĞŶŽĐĂƉŝƚĂůĐŽŵŵŝƚŵĞŶƚƐŽƌĐŽŶƚŝŶŐĞŶƚůŝĂďŝůŝƚŝĞƐ;ϯϭDĂLJϮϬϮϯ: €EŝůͿƌĞĐŽŐŶŝƐĞĚĂƚƚŚĞ ďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞ͘Should the Company decide to further develop the Lahtojoki project, an amount of €ϰϬ͕ϬϬϬŝƐ ƉĂLJĂďůĞďLJƚŚĞŽŵƉĂŶLJƚŽƚŚĞǀĞŶĚŽƌƐŽĨƚŚĞ>ĂŚƚŽũŽŬŝŵŝŶŝŶŐĐŽŶĐĞƐƐŝŽŶ͘ ϭϰ ZĞůĂƚĞĚƉĂƌƚLJƚƌĂŶƐĂĐƚŝŽŶƐ ;ĂͿ dŚĞŽŵƉĂŶLJƐŚĂƌĞƐŽĨĨŝĐĞĂĐĐŽŵŵŽĚĂƚŝŽŶǁŝƚŚŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ǁŚŝĐŚŚĂƐĐĞƌƚĂŝŶ ĐŽŵŵŽŶŝƌĞĐƚŽƌƐĂŶĚƐŚĂƌĞŚŽůĚĞƌƐ͘&ŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͕ŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐ P.L.C. incurred costs totalling €ϭϭϱ͕Ϭϰϴ ;ϯϭ DĂLJ ϮϬϮϯ͗ €ϰϲ͕ϭϳϴͿ ŽŶ ďĞŚĂůĨ ŽĨ ƚŚĞ ŽŵƉĂŶLJ͘ dŚĞƐĞ ĐŽƐƚƐ ǁĞƌĞ ƌĞĐŚĂƌŐĞĚƚŽƚŚĞŽŵƉĂŶLJďLJŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ dŚĞƐĞĐŽƐƚƐĂƌĞĂŶĂůLJƐĞĚĂƐĨŽůůŽǁƐ͗ ϮϬϮϰ ϮϬϮϯ € € ^ĂůĂƌŝĞƐ ϳϭ͕ϳϯϴ Ϯϱ͕ϱϱϴ ZĞŶƚĂŶĚƌĂƚĞƐ ϭϯ͕ϯϭϬ ϭϬ͕ϭϰϱ KƚŚĞƌŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ϯϬ͕ϬϬϬ ϭϬ͕ϰϳϱ ϭϭϱ͕Ϭϰϴ ϰϲ͕ϭϳϴ ;ďͿƚϯϭDĂLJϮϬϮϰ, the Company owed €ϭϰϰ͕ϱϱϭƚŽŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘;ϯϭDĂLJϮϬϮϯ: €ϱ͕ϬϮϯ ŽǁĞĚƚŽͿ͘ŵŽƵŶƚƐŽǁĞĚƚŽŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ǁĞƌĞŝŶĐůƵĚĞĚǁŝƚŚŝŶƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂͲ ďůĞƐĚƵƌŝŶŐƚŚĞĐƵƌƌĞŶƚLJĞĂƌ͘ƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͕ƚŚĞŽŵƉĂŶLJƌĞĐĞŝǀĞĚ€Ϯϯ͕ϬϬϳĨƌŽŵ;ϯϭ DĂLJϮϬϮϯ: €ϯϮ͕ϱϬϬǁĂƐƉĂŝĚƚŽͿŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ĂƐƉĂƌƚŽĨƚŚĞĐŽƐƚƐŚĂƌŝŶŐĂƌƌĂŶŐĞŵĞŶƚ͘ ƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ͕ƚŚĞŽŵƉĂŶLJǁĂƐcharged €ϭϭϱ͕Ϭϰϴ;ϯϭDĂLJϮϬϮϯ: €ϰϲ͕ϭϳϴͿďLJ ŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͘͘ŝŶƌĞƐƉĞĐƚŽĨƚŚĞĂůůŽĐĂƚŝŽŶŽĨĐĞƌƚĂŝŶĐŽƐƚƐĂƐĚĞƚĂŝůĞĚŝŶEŽƚĞϭϰ;ĂͿ͘/Ŷ May 2023, Conroy Gold and Natural Resources P.L.C. converted amounts owing to it equivalent to €143,943 ;άϭϮϱ͕ϬϬϬͿŝŶto ordinary equity as detailed as part of the “share issue (Đ)” detailed in Note 12and a further €129,550 ;άϭϭϮ͕ϱϬϬͿŝŶƚŽĂĐŽŶǀĞƌƚŝďůĞůŽĂŶŝŶƐƚƌƵŵĞŶƚĂƐĚĞƚĂŝůĞĚŝŶEŽƚĞϭϬ͘dŚĞŽŵƉĂŶLJŝƐŝŶĚŝƐĐƵƐƐŝŽŶƐƚŽĞdžƚĞŶĚƚŚĞ ƚĞƌŵŽĨƚŚŝƐůŽĂŶ͘ ;ĐͿAt 31 May 2024, Brendan McMorrow was owed €54,167 (31 May 2023: €44,167) in respect of his services as a director. He invoiced the company an amount of €Eŝů(31 May 2023: €9,000) during the year for other services rendered of which €Nil (31 May 2023: €Nil) was outstanding at 31 May 2024. These amounts are included in the ƚƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐďĂůĂŶĐĞŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨĨŝŶĂŶĐŝĂůƉŽƐŝƚŝŽŶ͘ ;ĚͿ<ĞLJŵĂŶĂŐĞŵĞŶƚƉĞƌƐŽŶŶĞůĂƌĞĐŽŶƐŝĚĞƌĞĚƚŽďĞƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚŽƚŚĞƌŬĞLJŵĂŶĂŐĞŵĞŶƚ͘dŚĞ ĐŽŵƉĞŶƐĂƚŝŽŶ ŽĨ Ăůů ŬĞLJ management personnel during the year was €ϭϰϴ͕ϮϱϬ ;ϮϬϮϯ: €ϭϯϵ͕ϴϮϰͿ ŝŶĐůƵĚŝŶŐ ĂŶ ĂŵŽƵŶƚŽĨ€ϯϯ͕ϮϱϬ(31 May 2023 €14,824) ƉĂLJĂďůĞƚŽƚŚĞŽŵƉĂŶLJ^ĞĐƌĞƚĂƌLJĂƚŚĂů:ŽŶĞƐŝŶƌĞƐƉĞĐƚŽĨƐĞƌǀŝĐĞƐ ƉƌŽǀŝĚĞĚ͘&ƵƌƚŚĞƌĂŶĂůLJƐŝƐŽĨƌĞŵƵŶĞƌĂƚŝŽŶĨŽƌĞĂĐŚŝƌĞĐƚŽƌŽĨƚŚĞŽŵƉĂŶLJŝƐƐĞƚŽƵƚŝŶŶŽƚĞϮ͘ ;ĞͿDetails of share capital transactions with the Directors are disclosed in the Directors’ Report. 49 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϰ ZĞůĂƚĞĚƉĂƌƚLJƚƌĂŶƐĂĐƚŝŽŶƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĨͿApart from Directors’ remuneration (detailed in Note 2 and Note 4), ĂĐŽŶǀĞƌƚŝďůĞůŽĂŶĨƌŽŵĂƐŚĂƌĞŚŽůĚĞƌ;ǁŚŝĐŚ is detailed in Note 11) and share capital transactions (which are detailed within the Directors’ Report), there have ďĞĞŶŶŽĐŽŶƚƌĂĐƚƐŽƌĂƌƌĂŶŐĞŵĞŶƚƐĞŶƚĞƌĞĚŝŶƚŽĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌŝŶǁŚŝĐŚĂŝƌĞĐƚŽƌŽĨƚŚĞŽŵƉĂŶLJŚĂĚĂ ŵĂƚĞƌŝĂůŝŶƚĞƌĞƐƚ͘ ϭϱ ^ŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚƐ tĂƌƌĂŶƚƐŐƌĂŶƚĞĚďLJƚŚĞĐŽŵƉĂŶLJŐĞŶĞƌĂůůLJŚĂǀĞĂǀĞƐƚŝŶŐƉĞƌŝŽĚƌĂŶŐŝŶŐĨƌŽŵŽŶĞƚŽƚǁŽLJĞĂƌƐ͘ĞƚĂŝůƐŽĨƚŚĞ ǁĂƌƌĂŶƚƐŽƵƚƐƚĂŶĚŝŶŐĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĂƌĞĂƐĨŽůůŽǁƐ͗ ϮϬϮϰ ϮϬϮϰ ϮϬϮϯ ϮϬϮϯ EŽ͘ŽĨ^ŚĂƌĞ tĂƌƌĂŶƚƐ tĞŝŐŚƚĞĚ ǀĞƌĂŐĞ džĞƌĐŝƐĞWƌŝĐĞ € EŽ͘ŽĨ^ŚĂƌĞ tĂƌƌĂŶƚƐ tĞŝŐŚƚĞĚ ǀĞƌĂŐĞ džĞƌĐŝƐĞWƌŝĐĞ € ƚϭ:ƵŶĞ ϯϰ͕ϳϱϬ͕ϬϬϬ Ϭ͘Ϭϱϵϲϯ ϭϳ͕Ϯϴϲ͕ϮϱϬ Ϭ͘Ϭϵϭϴ 'ƌĂŶƚĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ϭϬ͕ϬϬϬ͕ϬϬϬ Ϭ͘ϬϱϴϴϮ ϭϴ͕ϱϬϬ͕ϬϬϬ Ϭ͘Ϭϰϭϳϯ >ĂƉƐĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;ϭϲ͕ϮϱϬ͕ϬϬϬͿ Ϭ͘ϬϵϰϭϮ ;ϭ͕Ϭϯϲ͕ϮϱϬͿ ϭ͘ϭϬϱϳ džĞƌĐŝƐĞĚĚƵƌŝŶŐƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌ ;ϲϬϬ͕ϬϬϬͿ Ϭ͘ϬϮϯϱϯ Ͳ Ͳ ƚϯϭDĂLJ Ϯϳ͕ϵϬϬ͕ϬϬϬ Ϭ͘Ϭϰϴϳϭ ϯϰ͕ϳϱϬ͕ϬϬϬ Ϭ͘Ϭϱϵϲϯ dŚĞĐŽŵƉĂŶLJŝƐƐƵĞĚϭϬ͕ϬϬϬ͕ϬϬϬƐƚĞƌůŝŶŐďĂƐĞĚǁĂƌƌĂŶƚƐŽŶϭϴKĐƚŽďĞƌϮϬϮϯ͕ǁŝƚŚĂŶĞƐƚŝŵĂƚĞĚĨĂŝƌǀĂůƵĞĂƚĚĂƚĞ of grant of €ϭϬϴ͕ϱϭϬ͘dŚŝƐǁĂƐŝŶĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞŝƐƐƵĞŽĨŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƐƉĂƌƚŽĨĂĨŝŶĂŶĐŝŶŐ͘dŚĞĨĂŝƌǀĂůƵĞ ŽĨƚŚĞǁĂƌƌĂŶƚƐĂƚƚŚĞĚĂƚĞŽĨŐƌĂŶƚǁĂƐĚĞĚƵĐƚĞĚĨƌŽŵƐŚĂƌĞƉƌĞŵŝƵŵĂƐĂĚŝƌĞĐƚƐŚĂƌĞŝƐƐƵĞĐŽƐƚ͘ƐĂƌĞƐƵůƚŽĨ ƚŚĞǀĂůƵĂƚŝŽŶƉĞƌĨŽƌŵĞĚĂƚLJĞĂƌĞŶĚ͕ƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞƐƚĞƌůŝŶŐďĂƐĞĚǁĂƌƌĂŶƚƐǁĂƐ€ϯϬ͕ϭϬϲĂƚϯϭDĂLJϮϬϮϰ;ϯϭ DĂLJϮϬϮϯ: €ϭϬϵ͕ϮϮϰͿĂŶĚĂĐĐŽƌĚŝŶgly €ϭϴϳ͕ϲϮϴĐƌĞĚŝƚĞĚƚŽƚŚĞ^ƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐĂƐĂŵŽǀĞŵĞŶƚŝŶƚŚĞĨĂŝƌ ǀĂůƵĞŽĨǁĂƌƌĂŶƚƐ͘ dŚĞŽŵƉĂŶLJĞƐƚŝŵĂƚĞĚƚŚĞĨĂŝƌǀĂůƵĞŽĨǁĂƌƌĂŶƚƐĂǁĂƌĚƐƵƐŝŶŐƚŚĞůĂĐŬ^ĐŚŽůĞƐDŽĚĞů͘dŚĞĚĞƚĞƌŵŝŶĂƚŝŽŶŽĨƚŚĞ ĨĂŝƌǀĂůƵĞŽĨƐŚĂƌĞͲďĂƐĞĚƉĂLJŵĞŶƚĂǁĂƌĚƐŽŶƚŚĞĚĂƚĞŽĨŐƌĂŶƚĂŶĚŽŶƌĞǀĂůƵĂƚŝŽŶĂƚĞĂĐŚLJĞĂƌĞŶĚƵƐŝŶŐƚŚĞůĂĐŬ ^ĐŚŽůĞƐ DŽĚĞů ŝƐ ĂĨĨĞĐƚĞĚ ďLJ <ĂƌĞůŝĂŶ ŝĂŵŽŶĚ ZĞƐŽƵƌĐĞƐ W͘>͘͘ ƐƚŽĐŬ ƉƌŝĐĞ͕ ƐŚĂƌĞ ƉƌŝĐĞ ǀŽůĂƚŝůŝƚLJ ĂƐ ǁĞůů ĂƐ ĂƐƐƵŵƉƚŝŽŶƐƌĞŐĂƌĚŝŶŐĂŶƵŵďĞƌŽĨƐƵďũĞĐƚŝǀĞǀĂƌŝĂďůĞƐ͘dŚĞƐĞǀĂƌŝĂďůĞƐŝŶĐůƵĚĞƚŚĞĞdžƉĞĐƚĞĚƚĞƌŵŽĨƚŚĞĂǁĂƌĚƐ͕ ƚŚĞƐƚŽĐŬƉƌŝĐĞǀŽůĂƚŝůŝƚLJ͕ƚŚĞƌŝƐŬͲĨƌĞĞŝŶƚĞƌĞƐƚƌĂƚĞĂŶĚƚŚĞĞdžƉĞĐƚĞĚĚŝǀŝĚĞŶĚƐ͘ dŚĞĨŽůůŽǁŝŶŐŬĞLJŝŶƉƵƚĂƐƐƵŵƉƚŝŽŶƐǁĞƌĞƵƐĞĚƚŽĐĂůĐƵůĂƚĞƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞƐƚĞƌůŝŶŐďĂƐĞĚǁĂƌƌĂŶƚƐĂƚƚŚĞ ďĂůĂŶĐĞƐŚĞĞƚĚĂƚĞƐĂŶĚĚĂƚĞŽĨŝƐƐƵĞĚƵƌŝŶŐƚŚĞLJĞĂƌ͗ ϯϭDĂLJϮϬϮϰ ĂƚĞŽĨŝƐƐƵĞ ϯϭDĂLJϮϬϮϯ tĂƌƌĂŶƚƐ tĂƌƌĂŶƚƐ tĂƌƌĂŶƚƐ ŝǀŝĚĞŶĚLJŝĞůĚ Ϭй Ϭй Ϭй ^ŚĂƌĞƉƌŝĐĞǀŽůĂƚŝůŝƚLJ ϲϱ͘ϵϱϲй ϲϲ͘ϯϵϱй ϲϲ͘ϯϵϱй ZŝƐŬĨƌĞĞŝŶƚĞƌĞƐƚƌĂƚĞ ϱ͘ϭϱϴϮй ϰ͘ϭϴϯй ϰ͘ϭϴϯй džƉĞĐƚĞĚůŝĨĞ;ŝŶLJĞĂƌƐͿ Ϭ͘ϱ ϭ͘Ϭ ϭ͘ϱ During the prior year, the company issued 18,500,000 sterling based warrants and an amount of €118,789 was ƌĞĐŽŐŶŝƐĞĚŝŶƚŚĞƐƚĂƚĞŵĞŶƚŽĨƉƌŽĨŝƚŽƌůŽƐƐďĂƐĞĚŽŶƚŚĞĨĂŝƌǀĂůƵĞŽĨƚŚĞƐĞǁĂƌƌĂŶƚƐĂƚĚĂƚĞŽĨŐƌĂŶƚ͘ 50 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϲ &ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ &ŝŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŽďũĞĐƚŝǀĞƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞƐƐĞƐ dŚĞŽŵƉĂŶLJŚĂƐĞdžƉŽƐƵƌĞƚŽƚŚĞĨŽůůŽǁŝŶŐƌŝƐŬƐĨƌŽŵŝƚƐƵƐĞŽĨĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ͗ ;ĂͿ /ŶĨůĂƚŝŽŶ͖ ;ďͿ /ŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬ͖ ;ĐͿ &ŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬ͖ ;ĚͿ >ŝƋƵŝĚŝƚLJƌŝƐŬ͖ĂŶĚ ;ĞͿ ƌĞĚŝƚƌŝƐŬ͘ The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk ŵĂŶĂŐĞŵĞŶƚĨƌĂŵĞǁŽƌŬ͘ The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to ƐĞƚĂƉƉƌŽƉƌŝĂƚĞƌŝƐŬůŝŵŝƚƐĂŶĚĐŽŶƚƌŽůƐ͕ĂŶĚƚŽŵŽŶŝƚŽƌƌŝƐŬƐĂŶĚĂĚŚĞƌĞŶĐĞƚŽůŝŵŝƚƐ͘ ZŝƐŬŵĂŶĂŐĞŵĞŶƚ ƉŽůŝĐŝĞƐ ĂŶĚ ƐLJƐƚĞŵƐ ĂƌĞƌĞǀŝĞǁĞĚ ƌĞŐƵůĂƌůLJ ƚŽƌĞĨůĞĐƚ ĐŚĂŶŐĞƐ ŝŶ ŵĂƌŬĞƚ ĐŽŶĚŝƚŝŽŶƐ ĂŶĚ ƚŚĞ Company’s activities. The Company’s Audit Committee oversees how management monitors compliance with the Company’s risk ŵĂŶĂŐĞŵĞŶƚƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞĚƵƌĞƐĂŶĚĨƌĂŵĞǁŽƌŬŝŶƌĞůĂƚŝŽŶƚŽƚŚĞƌŝƐŬƐĨĂĐĞĚ͘ ;ĂͿ /ŶĨůĂƚŝŽŶ dŚĞŽŵƉĂŶLJŝƐĞdžƉŽƐĞĚƚŽƚŚĞƌŝƐŬĂƐƐŽĐŝĂƚĞĚǁŝƚŚŝŶĨůĂƚŝŽŶƐƵĐŚĂƐƚŚĞŝŵƉĂĐƚŽĨŝŶĐƌĞĂƐĞĚŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐ ŝŶĐůƵĚŝŶŐƌĞŶƚ͕ůŝŐŚƚΘŚĞĂƚĂŶĚǁĂŐĞƐĂŶĚƐĂůĂƌŝĞƐ͘dŚĞŚĂŝƌŵĂŶĂŶĚDĂŶĂŐŝŶŐŝƌĞĐƚŽƌŵŽŶŝƚŽƌĐŽƐƚƐŽŶĂŶ ŽŶŐŽŝŶŐďĂƐŝƐ͘ ;ďͿ /ŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬ The Company currently finances its operations through shareholders’ fundsĂŶĚůŽĂŶĨŝŶĂŶĐĞ͘dŚĞůŽĂŶĨŝŶĂŶĐĞĂƚϯϭ DĂLJϮϬϮϰƌĞůĂƚĞƐƚŽĂĐŽŶǀĞƌƚŝďůĞůŽĂŶƚŚĞƌĞĨŽƌĞĂŶLJĨůƵĐƚƵĂƚŝŽŶƐŝŶŝŶƚĞƌĞƐƚƌĂƚĞƐǁŝůůŶŽƚŚĂǀĞĂŶŝŵƉĂĐƚŽŶƚŚĞ ƌĞƐƵůƚƐŽĨƚŚĞŽŵƉĂŶLJĂŶĚŶŽƐĞŶƐŝƚŝǀŝƚLJĂŶĂůLJƐŝƐŚĂƐďĞĞŶƉĞƌĨŽƌŵĞĚ͘dŚĞŽŵƉĂŶLJĚŝĚŶŽƚĞŶƚĞƌŝŶƚŽĂŶLJŚĞĚŐŝŶŐ ƚƌĂŶƐĂĐƚŝŽŶƐǁŝƚŚƌĞƐƉĞĐƚƚŽŝŶƚĞƌĞƐƚƌĂƚĞƌŝƐŬ͘ ;ĐͿ&ŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬ dŚĞŽŵƉĂŶLJŝƐĞdžƉŽƐĞĚƚŽĐƵƌƌĞŶĐLJƌŝƐŬŽŶƉƵƌĐŚĂƐĞƐ͕ůŽĂŶƐĂŶĚďĂŶŬĚĞƉŽƐŝƚƐƚŚĂƚĂƌĞĚĞŶŽŵŝŶĂƚĞĚŝŶĂĐƵƌƌĞŶĐLJ ŽƚŚĞƌƚŚĂŶƚŚĞĨƵŶĐƚŝŽŶĂůĐƵƌƌĞŶĐLJŽĨƚŚĞŽŵƉĂŶLJ͘dŚĞŽŵƉĂŶLJŝƐĨƵƌƚŚĞƌĞdžƉŽƐĞĚƚŽĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬƚŚƌŽƵŐŚ the warrants denominated in sterling which is not the Company’s functional currency. /ƚŝƐƚŚĞŽŵƉĂŶLJ’sƉŽůŝĐLJƚŽĞŶƐƵƌĞƚŚĂƚĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬŝƐŵĂŶĂŐĞĚǁŚĞƌĞǀĞƌƉŽƐƐŝďůĞďLJŵĂƚĐŚŝŶŐĨŽƌĞŝŐŶ ĐƵƌƌĞŶĐLJŝŶĐŽŵĞĂŶĚĞdžƉĞŶĚŝƚƵƌĞ͘ƵƌŝŶŐƚŚĞLJĞĂƌƐĞŶĚĞĚϯϭDĂLJϮϬϮϰĂŶĚϯϭDĂLJϮϬϮϯ͕ƚŚĞŽŵƉĂŶLJĚŝĚŶŽƚ ƵƚŝůŝƐĞĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJĨŽƌǁĂƌĚĐŽŶƚƌĂĐƚƐŽƌŽƚŚĞƌĚĞƌŝǀĂƚŝǀĞƐƚŽŵĂŶĂŐĞĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬ͘ 51 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϲ &ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ;ĐŽŶƚŝŶƵĞĚͿ &ŝŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŽďũĞĐƚŝǀĞƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞƐƐĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĐͿ &ŽƌĞŝŐŶĐƵƌƌĞŶĐLJƌŝƐŬ;ĐŽŶƚŝŶƵĞĚͿ The Company’s foreign currency risk exposure in ƌĞƐƉĞĐƚŽĨƚŚĞƉƌŝŶĐŝƉĂůĨŽƌĞŝŐŶĐƵƌƌĞŶĐŝĞƐŝŶǁŚŝĐŚƚŚĞŽŵƉĂŶLJ ŽƉĞƌĂƚĞƐǁĂƐĂƐĨŽůůŽǁƐĂƚϯϭDĂLJϮϬϮϰ͗ ^ƚĞƌůŝŶŐĞdžƉŽƐƵƌĞ ƵƌŽĞdžƉŽƐƵƌĞ dŽƚĂů denominated in € € € ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ϱϮϱ ϯϵ͕Ϭϭϳ ϯϵ͕ϱϰϮ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ;ϭϬ͕ϯϬϰͿ Ͳ ;ϭϬ͕ϯϬϰͿ ŽŶǀĞƌƚŝďůĞ>ŽĂŶ ;ϭϮϱ͕ϳϮϮͿ Ͳ ;ϭϮϱ͕ϳϮϮͿ dƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ Ͳ ;ϭ͕ϳϱϵ͕ϬϱϬͿ ;ϭ͕ϳϱϵ͕ϬϱϬͿ KƚŚĞƌƉƌĞƉĂLJŵĞŶƚƐ Ͳ ϯϬ͕ϬϴϮ ϯϬ͕ϬϴϮ sdͬWz ƌĞĐĞŝǀĂďůĞ Ͳ ϱϭ͕ϰϲϵ ϱϭ͕ϰϲϵ ŵŽƵŶƚĚƵĞƚŽŽŶƌŽLJ'ŽůĚĂŶĚ EĂƚƵƌĂůZĞƐŽƵƌĐĞƐƉůĐ Ͳ ;ϭϰϰ͕ϱϱϭͿ ;ϭϰϰ͕ϱϱϭͿ dŽƚĂůĞdžƉŽƐƵƌĞ ;ϭϯϱ͕ϱϬϭͿ ;ϭ͕ϳϴϯ͕ϬϯϯͿ ;ϭ͕ϵϭϴ͕ϱϯϰͿ The Company’s foreign currency risk exposure in respect of the principal foreign currencies in which the Company ŽƉĞƌĂƚĞƐǁĂƐĂƐĨŽůůŽǁƐĂƚϯϭDĂLJϮϬϮϯ͗ ^ƚĞƌůŝŶŐĞdžƉŽƐƵƌĞ ƵƌŽĞdžƉŽƐƵƌĞ dŽƚĂů denominated in € € € ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ϴϵ͕ϵϯϲ Ϯϲ͕Ϭϱϯ ϭϭϱ͕ϵϴϵ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ;ϭϬ͕ϯϬϰͿ Ͳ ;ϭϬ͕ϯϬϰͿ ŽŶǀĞƌƚŝďůĞůŽĂŶ ;ϭϭϵ͕ϮϰϲͿ Ͳ ;ϭϭϵ͕ϮϰϲͿ dƌĂĚĞĂŶĚŽƚŚĞƌƉĂLJĂďůĞƐ Ͳ ;ϭ͕ϰϯϭ͕ϬϲϰͿ ;ϭ͕ϰϯϭ͕ϬϲϰͿ KƚŚĞƌƉƌĞƉĂLJŵĞŶƚƐ Ͳ ϰϯ͕ϲϲϮ ϰϯ͕ϲϲϮ sdͬWz ƌĞĐĞŝǀĂďůĞ Ͳ ϯϱ͕ϯϰϭ ϯϱ͕ϯϰϭ ŵŽƵŶƚĚƵĞƚŽŽŶƌŽLJ'ŽůĚĂŶĚ EĂƚƵƌĂůZĞƐŽƵƌĐĞƐƉůĐ Ͳ ;ϱ͕ϬϮϯͿ ;ϱ͕ϬϮϯͿ dŽƚĂůĞdžƉŽƐƵƌĞ ;ϯϵ͕ϲϭϰͿ ;ϭ͕ϯϯϭ͕ϬϯϭͿ ;ϭ͕ϯϳϬ͕ϲϰϱͿ dŚĞĨŽůůŽǁŝŶŐĂƌĞƚŚĞsignificant exchange rates that applied against €1 during the financial year: ǀĞƌĂŐĞZĂƚĞ ϮϬϮϰ ǀĞƌĂŐĞZĂƚĞ ϮϬϮϯ ^ƉŽƚZĂƚĞ ϯϭDĂLJ ϮϬϮϰ ^ƉŽƚZĂƚĞ ϯϭDĂLJ ϮϬϮϯ 'W Ϭ͘ϴϱϵϵ Ϭ͘ϴϲϵϱ Ϭ͘ϴϱϬϲϵ Ϭ͘ϴϲϱϬϳ ^ĞŶƐŝƚŝǀŝƚLJĂŶĂůLJƐŝƐ ϭϬйƐƚƌĞŶŐƚŚĞŶŝŶŐŽĨƚŚĞ ƵƌŽĂŐĂŝŶƐƚ^ƚĞƌůŝŶŐ͕ďĂƐĞĚŽŶŽƵƚƐƚĂŶĚŝŶŐĨŝŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐĂƚϯϭDĂLJϮϬϮϰ ǁŽƵůĚŚĂǀĞĚĞĐƌĞĂƐĞĚƚŚĞƌĞƉŽƌƚĞĚůŽƐƐďLJ€ϭϯ͕ϱϱϬ;ϯϭDĂLJϮϬϮϯ͗€ϯ͕ϵϲϭͿĂƐĂĐŽŶƐĞƋƵĞŶĐĞŽĨƚŚĞƌĞƚƌĂŶƐůĂƚŝŽŶ ŽĨĨŽƌĞŝŐŶĐƵƌƌĞŶĐLJĚĞŶŽŵŝŶĂƚĞĚĨŝŶĂŶĐŝĂůĂƐƐĞƚƐĂƚƚŚŽƐĞĚĂƚĞƐ͘ǁĞĂŬĞŶŝŶŐŽĨϭϬйŽĨƚŚĞ ƵƌŽĂŐĂŝŶƐƚ^ƚĞƌůŝŶŐ ǁŽƵůĚŚĂǀĞŚĂĚĂŶĞƋƵĂůĂŶĚŽƉƉŽƐŝƚĞĞĨĨĞĐƚ͘/ƚŝƐĂƐƐƵŵĞĚƚŚĂƚĂůůŽƚŚĞƌǀĂƌŝĂďůĞƐ͕ĞƐƉĞĐŝĂůůLJŝŶƚĞƌĞƐƚƌĂƚĞƐ͕ƌĞŵĂŝŶ ĐŽŶƐƚĂŶƚŝŶƚŚĞĂŶĂůLJƐŝƐ͘ 52 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϲ &ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ;ĐŽŶƚŝŶƵĞĚͿ &ŝŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŽďũĞĐƚŝǀĞƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞƐƐĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĚͿ>ŝƋƵŝĚŝƚLJƌŝƐŬ >ŝƋƵŝĚŝƚLJƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚƚŚĞŽŵƉĂŶLJǁŝůůŶŽƚďĞĂďůĞƚŽŵĞĞƚŝƚƐĨŝŶĂŶĐŝĂůŽďůŝŐĂƚŝŽŶƐĂƐƚŚĞLJĨĂůůĚƵĞ͘dŚĞ Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity ƚŽŵĞĞƚŝƚƐůŝĂďŝůŝƚŝĞƐǁŚĞŶĚƵĞ͕ƵŶĚĞƌďŽƚŚŶŽƌŵĂůĂŶĚĂĚǀĞƌƐĞĐŽŶĚŝƚŝŽŶƐ͕ǁŝƚŚŽƵƚŝŶĐƵƌƌŝŶŐƵŶĂĐĐĞƉƚĂďůĞůŽƐƐĞƐ or risking damage to the Company’s reputation.dŚĞŽŵƉĂŶLJŵĂŶĂŐĞƐůŝƋƵŝĚŝƚLJƌŝƐŬďLJƌĞŐƵůĂƌůLJŵŽŶŝƚŽƌŝŶŐĐĂƐŚ flow projections. The nature of the Company’s exploration and appraisal activities can result in significant ĚŝĨĨĞƌĞŶĐĞƐďĞƚǁĞĞŶĞdžƉĞĐƚĞĚĂŶĚĂĐƚƵĂůĐĂƐŚĨůŽǁƐ͘ŽŶƚƌĂĐƚƵĂůŵĂƚƵƌŝƚŝĞƐŽĨĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐĂƐĂƚϯϭDĂLJϮϬϮϰ ǁĞƌĞĂƐĨŽůůŽǁƐ͗ ĂƌƌLJŝŶŐ amount € ŽŶƚƌĂĐƚƵĂů cash flows € ϲŵŽŶƚŚƐŽƌ less € ϲͲϭϮŵŽŶƚŚƐ € ϭͲϮLJĞĂƌƐ € ϮͲϱLJĞĂƌƐ € dƌĂĚĞĂŶĚŽƚŚĞƌ ƉĂLJĂďůĞƐ;ŝŶĐůƵĚŝŶŐ ĂŵŽƵŶƚƐŽǁĞĚƚŽ ƌĞůĂƚĞĚƉĂƌƚLJͿ ϭ͕ϵϬϯ͕ϲϬϭ ϭ͕ϵϬϯ͕ϲϬϭ ϰϮϲ͕ϲϯϭΎ ϭ͕ϰϳϲ͕ϵϳϬΎΎ Ͳ Ͳ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ϭϬ͕ϯϬϰ ϭϬ͕ϯϬϰ ϭϬ͕ϯϬϰΎΎΎ Ͳ Ͳ Ͳ ŽŶǀĞƌƚŝďůĞůŽĂŶ ϭϮϱ͕ϳϮϮ ϭϯϮ͕ϮϲϮ ϭϯϮ͕ϮϲϮΎΎΎ Ͳ Ͳ Ͳ Ϯ͕Ϭϯϵ͕ϲϮϳ Ϯ͕Ϭϰϲ͕ϭϲϳ ϱϲϵ͕ϭϵϳ ϭ͕ϰϳϲ͕ϵϳϬΎΎ Ͳ Ͳ ŽŶƚƌĂĐƚƵĂůŵĂƚƵƌŝƚŝĞƐŽĨĨŝŶĂŶĐŝĂůůŝĂďŝůŝƚŝĞƐĂƐĂƚϯϭDĂLJϮϬϮϯǁĞƌĞĂƐĨŽůůŽǁƐ͗ ĂƌƌLJŝŶŐ amount € ŽŶƚƌĂĐƚƵĂů cash flows € ϲŵŽŶƚŚƐŽƌ less € ϲͲϭϮŵŽŶƚŚƐ € ϭͲϮLJĞĂƌƐ € ϮͲϱLJĞĂƌƐ € dƌĂĚĞĂŶĚŽƚŚĞƌ ƉĂLJĂďůĞƐ;ŝŶĐůƵĚŝŶŐ ĂŵŽƵŶƚƐŽǁĞĚƚŽ ƌĞůĂƚĞĚƉĂƌƚLJͿ ϭ͕ϰϮϲ͕Ϭϴϳ ϭ͕ϰϮϲ͕Ϭϴϳ ϭϯϰ͕ϭϭϴΎ ϭ͕Ϯϵϭ͕ϵϲϴΎΎ Ͳ Ͳ ĞƌŝǀĂƚŝǀĞůŝĂďŝůŝƚLJ ϭϬ͕ϯϬϰ ϭϬ͕ϯϬϰ Ͳ Ͳ ϭϬ͕ϯϬϰΎΎΎ Ͳ ŽŶǀĞƌƚŝďůĞůŽĂŶ ϭϭϵ͕Ϯϰϲ ϭϯϮ͕ϮϲϮ Ͳ Ͳ ϭϯϮ͕ϮϲϮΎΎΎ Ͳ ϭ͕ϱϱϱ͕ϲϯϳ ϭ͕ϱϲϴ͕ϲϱϯ ϭϯϰ͕ϭϭϴΎ ϭ͕Ϯϵϭ͕ϵϲϴΎΎ ϭϰϮ͕ϱϲϲΎΎΎ Ͳ ΎThe amount of €ϰϮϲ͕ϲϯϭ;ϯϭDĂLJϮϬϮϯ͗€ϭϯϰ͕ϭϭϴͿƌĞůĂƚĞƐƚŽŽƚŚĞƌĐƌĞĚŝƚŽƌƐĂŶĚĂĐĐƌƵĂůƐ;ŝŶĐůƵĚŝŶŐĂŵŽƵŶƚƐŽǁĞĚ ƚŽŽŶƌŽLJ'ŽůĚĂŶĚEĂƚƵƌĂůZĞƐŽƵƌĐĞƐW͘>͕͘͘ǁŚŝĐŚŚĂƐĐŽŶĨŝƌŵĞĚŝƚǁŝůůŶŽƚƐĞĞŬƌĞƉĂLJŵĞŶƚŽĨĂŵŽƵŶƚƐŽǁŝŶŐ ǁŝƚŚŝŶϭϮŵŽŶƚŚƐŽĨƚŚĞĚĂƚĞŽĨĂƉƉƌŽǀĂůŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƵŶůĞƐƐƚŚĞĐŽŵƉĂŶLJŝƐŝŶĂƉŽƐŝƚŝŽŶƚŽƌĞƉĂLJͿ͘ ΎΎThe Directors, Séamus P. FitzPatrick, Maureen T.A. Jones, Dr. Sorċa ConroLJ͕,ŽǁĂƌĚŝƌĚĂŶĚƌĞŶĚĂŶDĐDŽƌƌŽǁ͕ ĂŶĚĨŽƌŵĞƌŝƌĞĐƚŽƌƐ͕:ĂŵĞƐW͘:ŽŶĞƐĂŶĚWƌŽĨĞƐƐŽƌZŝĐŚĂƌĚŽŶƌŽLJ;ĂŶĚŚŝƐďĞŶĞĨŝĐŝĂƌŝĞƐͿ͕ĚŽŶŽƚƉƌŽƉŽƐĞƚŽƐĞĞŬ repayment of amounts owed to them by the Company of €ϭ͕ϰϳϲ͕ϵϳϬ;ϯϭDĂLJϮϬϮϯ͗€ϭ͕Ϯϵϭ͕ϵϲϴͿǁŝƚŚŝŶϭϮŵŽŶƚŚƐ ŽĨƚŚĞĚĂƚĞŽĨĂƉƉƌŽǀĂůŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ƵŶůĞƐƐƚŚĞŽŵƉĂŶLJŚĂƐƐƵĨĨŝĐŝĞŶƚĨƵŶĚƐƚŽƌĞƉĂLJ͘dŚĞƌĞǁĞƌĞ ŶŽƌĞůĂƚĞĚƉĂƌƚLJůŽĂŶƐŝŶĞdžŝƐƚĞŶĐĞĂƚϯϭDĂLJϮϬϮϰĂŶĚϯϭDĂLJϮϬϮϯƌĞůĂƚŝŶŐƚŽŵŽŶŝĞƐŽǁĞĚƚŽĂŶLJŽĨƚŚĞŝƌĞĐƚŽƌƐ͘ ΎΎΎKŶ ϮϲDĂLJ ϮϬϮϯ͕ ƚŚĞ ŽŵƉĂŶLJ ŚĂƐĞŶƚĞƌĞĚ ŝŶƚŽ ĂĐŽŶǀĞƌƚŝďůĞ ůŽĂŶ ŶŽƚĞ ĂŐƌĞĞŵĞŶƚ ĨŽƌ Ă ƚŽƚĂů ĂŵŽƵŶƚŽĨ €ϭϮϵ͕ϱϱϬ;άϭϭϮ͕ϱϬϬͿǁŝƚŚŽŶĞŽĨŝƚƐƐŚĂƌĞŚŽůĚĞƌƐ͘WůĞĂƐĞƌĞĨĞƌƚŽEŽƚĞƐϭϬĂŶĚϭϭĨŽƌĨƵƌƚŚĞƌĚĞƚĂŝůƐ͘ dŚĞŽŵƉĂŶLJŚĂĚcash and cash equivalents of €ϯϵ͕ϱϵϳĂƚϯϭDĂLJϮϬϮϰ;ϯϭDĂLJϮϬϮϯ͗€ϭϭϲ͕ϬϯϴͿ͘ 53 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϲ &ŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚƐ;ĐŽŶƚŝŶƵĞĚͿ &ŝŶĂŶĐŝĂůƌŝƐŬŵĂŶĂŐĞŵĞŶƚŽďũĞĐƚŝǀĞƐ͕ƉŽůŝĐŝĞƐĂŶĚƉƌŽĐĞƐƐĞƐ;ĐŽŶƚŝŶƵĞĚͿ ;ĞͿƌĞĚŝƚƌŝƐŬ ƌĞĚŝƚƌŝƐŬŝƐƚŚĞƌŝƐŬƚŚĂƚŽŶĞƉĂƌƚLJƚŽĂĨŝŶĂŶĐŝĂůŝŶƐƚƌƵŵĞŶƚǁŝůůĐĂƵƐĞĂĨŝŶĂŶĐŝĂůůŽƐƐĨŽƌƚŚĞŽƚŚĞƌƉĂƌƚLJďLJĨĂŝůŝŶŐ ƚŽĚŝƐĐŚĂƌŐĞŝƚƐŽďůŝŐĂƚŝŽŶ͘ ƌĞĚŝƚƌŝƐŬŝƐƚŚĞƌŝƐŬŽĨĨŝŶĂŶĐŝĂůůŽƐƐƚŽƚŚĞŽŵƉĂŶLJŝĨĂĐĂƐŚĚĞƉŽƐŝƚŝƐŶŽƚƌĞĐŽǀĞƌĞĚ͘ŽŵƉĂŶLJĚĞƉŽƐŝƚƐĂƌĞƉůĂĐĞĚ ŽŶůLJǁŝƚŚďĂŶŬƐǁŝƚŚĂƉƉƌŽƉƌŝĂƚĞĐƌĞĚŝƚƌĂƚŝŶŐƐ͘dŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŽĨĨŝŶĂŶĐŝĂůĂƐƐĞƚƐƌĞƉƌĞƐĞŶƚƐƚŚĞŵĂdžŝŵƵŵ ĐƌĞĚŝƚĞdžƉŽƐƵƌĞ͘dŚĞŵĂdžŝŵƵŵĞdžƉŽƐƵƌĞƚŽĐƌĞĚŝƚƌŝƐŬǁĂƐĂƐĨŽůůŽǁƐ͗ ϮϬϮϰ ϮϬϮϯ € € ĂƐŚĂŶĚĐĂƐŚĞƋƵŝǀĂůĞŶƚƐ ϯϵ͕ϱϵϳ ϭϭϲ͕Ϭϯϴ KƚŚĞƌƌĞĐĞŝǀĂďůĞƐ ϯϬ͕ϬϴϮ ϰϯ͕ϲϲϮ ϲϵ͕ϲϳϵ ϭϱϵ͕ϳϬϬ The Company’s cash and cash equivalents are held at AIB Bank which has a credit rating of “BBB” ;ϯϭDĂLJϮϬϮϯ͗ ‘’BBB’’) ĂƐĚĞƚĞƌŵŝŶĞĚďLJStandard & Poor’s Credit Rating. džƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐ dŚĞŽŵƉĂŶLJŵĞĂƐƵƌĞƐĐƌĞĚŝƚƌŝƐŬĂŶĚĞdžƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐĞƐŽŶĨŝŶĂŶĐŝĂůĂƐƐĞƚƐŵĞĂƐƵƌĞĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚƵƐŝŶŐ ƉƌŽďĂďŝůŝƚLJŽĨĚĞĨĂƵůƚ͕ĞdžƉŽƐƵƌĞĂƚĚĞĨĂƵůƚĂŶĚůŽƐƐŐŝǀĞŶĚĞĨĂƵůƚ͘DĂŶĂŐĞŵĞŶƚĐŽŶƐŝĚĞƌďŽƚŚŚŝƐƚŽƌŝĐĂůĂŶĂůLJƐŝƐĂŶĚ ĨŽƌǁĂƌĚͲůŽŽŬŝŶŐŝŶĨŽƌŵĂƚŝŽŶŝŶĚĞƚĞƌŵŝŶŝŶŐĂŶLJĞdžƉĞĐƚĞĚĐƌĞĚŝƚůŽƐƐ͘ƚϯϭDĂLJϮϬϮϰĂŶĚϯϭDĂLJϮϬϮϯ͕ĂůůĐĂƐŚŝƐ ĂĐĐĞƐƐŝďůĞŽŶĚĞŵĂŶĚĂŶĚŚĞůĚǁŝƚŚĐŽƵŶƚĞƌƉĂƌƚŝĞƐǁŝƚŚĂĐƌĞĚŝƚƌĂƚŝŶŐŽĨŽƌŚŝŐŚĞƌ͘,ĂǀŝŶŐĐŽŶƐŝĚĞƌĞĚƚŚĞ ĐƌĞĚŝƚƌĂƚŝŶŐ ŽĨ ƚŚĞ ĐŽƵŶƚĞƌƉĂƌƚŝĞƐ ĂŶĚ ƚŚĞ ŽƵƚƐƚĂŶĚŝŶŐ ďĂůĂŶĐĞƐ͕ŵĂŶĂŐĞŵĞŶƚ ŚĂǀĞĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚ ĨŽƌ ďŽƚŚ ĨŝŶĂŶĐŝĂůLJĞĂƌƐƉƌĞƐĞŶƚĞĚ͕ƚŚĞĂŵŽƵŶƚŽĨ >ŝƐŝŵŵĂƚĞƌŝĂů͘ ;ĨͿ&ĂŝƌǀĂůƵĞƐǀĞƌƐƵƐĐĂƌƌLJŝŶŐĂŵŽƵŶƚƐ ƵĞƚŽƚŚĞƐŚŽƌƚͲƚĞƌŵŶĂƚƵƌĞŽĨƚŚĞŵĂũŽƌŝƚLJof the Company’s financial assets and liabilities ŚĞůĚĂƚĂŵŽƌƚŝƐĞĚĐŽƐƚ ĂƚϯϭDĂLJϮϬϮϰĂŶĚϯϭDĂLJϮϬϮϯ͕ƚŚĞĨĂŝƌǀĂůƵĞĞƋƵĂůƐƚŚĞĐĂƌƌLJŝŶŐĂŵŽƵŶƚŝŶĞĂĐŚĐĂƐĞ͘ dŚĞĐĂƌƌLJŝŶŐǀĂůƵĞŽĨŶŽŶͲ ĐƵƌƌĞŶƚĨŝŶĂŶĐŝĂůĂƐƐĞƚƐĂŶĚůŝĂďŝůŝƚŝĞƐŝƐĂƌĞĂƐŽŶĂďůĞĂƉƉƌŽdžŝŵĂƚŝŽŶŽĨĨĂŝƌǀĂůƵĞ͘ ;ŐͿĂƉŝƚĂůŵĂŶĂŐĞŵĞŶƚ dŚĞƉƌŝŶĐŝƉĂůĂĐƚŝǀŝƚŝĞƐŽĨƚŚĞŽŵƉĂŶLJĂƌĞĐŽŶĐĞŶƚƌĂƚŝŶŐƉĂƌƚŝĐƵůĂƌůLJŽŶĚŝĂŵŽŶĚĞdžƉůŽƌĂƚŝŽŶĂŶĚĞǀĂůƵĂƚŝŽŶ͘ dŚĞŽŵƉĂŶLJŚĂƐŚŝƐƚŽƌŝĐĂůůLJĨƵŶĚĞĚŝƚƐĂĐƚŝǀŝƚŝĞƐƚŚƌŽƵŐŚƐŚĂƌĞŝƐƐƵĞƐĂŶĚƉůĂĐŝŶŐƐĂŶĚůŽĂŶƐ. The Company’s capital ƐƚƌƵĐƚƵƌĞŝƐŬĞƉƚƵŶĚĞƌƌĞǀŝĞǁďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐĂŶĚŝƚŝƐĐŽŵŵŝƚƚĞĚƚŽĐĂƉŝƚĂůĚŝƐĐŝƉůŝŶĞĂŶĚĐŽŶƚŝŶƵĞƐƚŽ ŵĂŝŶƚĂŝŶĨůĞdžŝďŝůŝƚLJĨŽƌĨƵƚƵƌĞŐƌŽǁƚŚ͘ dŚĞĐĂƉŝƚĂůƐƚƌƵĐƚƵƌĞŽĨƚŚĞŽŵƉĂŶLJĐŽŶƐŝƐƚƐŽĨĞƋƵŝƚLJŽĨƚŚĞŽŵƉĂŶLJ;ƌĞĨĞƌƚŽƚŚĞƐƚĂƚĞŵĞŶƚŽĨĐŚĂŶŐĞƐŝŶĞƋƵŝƚLJ ĂŶĚEŽƚĞϭϮͿ͘dŚĞŽŵƉĂŶLJŝƐŶŽƚƐƵďũĞĐƚƚŽĂŶLJĞdžƚĞƌŶĂůůLJŝŵƉŽƐĞĚĐĂƉŝƚĂůƌĞƋƵŝƌĞŵĞŶƚƐ͘ 54 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc <ĂƌĞůŝĂŶŝĂŵŽŶĚZĞƐŽƵƌĐĞƐW͘>͘͘ EŽƚĞƐ ƚŽĂŶĚĨŽƌŵŝŶŐƉĂƌƚŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ;ĐŽŶƚŝŶƵĞĚͿ ϭϳ WŽƐƚďĂůĂŶĐĞƐŚĞĞƚĞǀĞŶƚƐ WŽƐƚLJĞĂƌĞŶĚƚŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚƚŚĂƚĂŶĂƐƐĞƐƐŵĞŶƚƉƌĞƉĂƌĞĚďLJŝŶĚĞƉĞŶĚĞŶƚŐĞŽůŽŐŝĐĂůĐŽŶƐƵůƚĂŶƚ͕ƌ>ĂƌƌLJ ,ƵůďĞƌƚ͕ĐŽŶĨŝƌŵƐƚŚĞƉŽƚĞŶƚŝĂůĨŽƌEŝĐŬĞů͕ŽƉƉĞƌĂŶĚWůĂƚŝŶƵŵͲGroup Elements, in the Company’s licence areas in EŽƌƚŚĞƌŶ/ƌĞůĂŶĚ͘A series of targets within the Company’s licence area in Northern Ireland were identified by Dr ,ƵůďĞƌƚĚƵƌŝŶŐƚŚĞĐŽƵƌƐĞŽĨŚŝƐƌĞǀŝĞǁĂŶĚƌĞĐŽŵŵĞŶĚĞĚĨŽƌĨŽůůŽǁƵƉ͘ dŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚŽŶϭϯƚŚƵŐƵƐƚϮϬϮϰƚŚĂƚŝƚŚĂĚƌĞĐĞŝǀĞĚƚŚĞĚĞĐŝƐŝŽŶŽĨƚŚĞ&ŝŶŶŝƐŚ>ĂŶĚŽƵƌƚǁŚŝĐŚ ďƌŽƵŐŚƚĨŝŶĂůŝƐĂƚŝŽŶƚŽƚŚĞĞƐƚĂďůŝƐŚŵĞŶƚŽĨƚŚĞŵŝŶĞďŽƵŶĚĂƌŝĞƐ͕ǁŝƚŚŶŽĐŚĂŶŐĞĞŶƐƵŝŶŐ͘/ƚĨƵƌƚŚĞƌĂŶŶŽƵŶĐĞĚ ƚŚĂƚŝŶƌĞŐĂƌĚƐƚŽƚŚĞĂŵŽƵŶƚŽĨĐŽŵƉĞŶƐĂƚŝŽŶƉĂLJĂďůĞƚŽƚŚĞƚǁŽĂƉƉĞůůĂŶƚůĂŶĚŽǁŶĞƌƐ͕ƚŚĞŵĂũŽƌŝƚLJŽĨƚŚĞŝƚĞŵƐ ƵƉŽŶǁŚŝĐŚƚŚĞLJďĂƐĞĚƚŚĞŝƌĐůĂŝŵƐǁĞƌĞƌĞũĞĐƚĞĚďLJƚŚĞ&ŝŶŶŝƐŚ>ĂŶĚŽƵƌƚĞdžĐĞƉƚĨŽƌƚŚƌĞĞŝƚĞŵƐǁŚŝĐŚǁĞƌĞ ƌĞĨĞƌƌĞĚ ďĂĐŬ ƚŽ ƚŚĞ EĂƚŝŽŶĂů >ĂŶĚ ^ƵƌǀĞLJ ƚŽ ƌĞǀŝĞǁ͘ dŚĞ ĂƉƉĞůůĂŶƚƐ ǁĞƌĞ ĂůƐŽ ƌĞƋƵŝƌĞĚ ƚŽ ĐŽŶƚƌŝďƵƚĞ ƚŽ ƚŚĞ Company’s legal costs.KŶϭϴƚŚKĐƚŽďĞƌϮϬϮϰ͕ƚŚĞŽŵƉĂŶLJĂŶŶŽƵŶĐĞĚƚŚĂƚƚŚĞƐŝdžƚLJĚĂLJĂƉƉĞĂůƉĞƌŝŽĚƚŽƚŚŝƐ ĚĞĐŝƐŝŽŶŚĂĚŶŽǁƉĂƐƐĞĚĂŶĚƚŚĂƚĂƐƐƵĐŚ͕ƚŚĞĚĞĐŝƐŝŽŶŶŽǁŚĂĚŐĂŝŶĞĚůĞŐĂůĨŽƌĐĞ͘ On 1 July 2024, the Company raised €ϯϴϲ͕ϳϲϭ;άϯϮϴ͕ϳϰϳͿďĞĨŽƌĞĞdžƉĞŶƐĞƐƚŚƌŽƵŐŚƚŚĞŝƐƐƵĞŽĨϮϭ͕ϵϭϲ͕ϰϳϵŶĞǁ ŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚĂƉƌŝĐĞŽĨάϬ͘ϬϭϱƉĞƌŽƌĚŝŶĂƌLJƐŚĂƌĞŝŶŽƌĚĞƌƚŽĨƵŶĚŝƚƐĞdžƉůŽƌĂƚŝŽŶĂĐƚŝǀŝƚŝĞƐĂŶĚĨŽƌǁŽƌŬŝŶŐ ĐĂƉŝƚĂůƉƵƌƉŽƐĞƐ͘/ŶĂĚĚŝƚŝŽŶĂŶĚĂƚƚŚĞƐĂŵĞƚŝŵĞĂƐƚŚĞĨƵŶĚƌĂŝƐŝŶŐ͕ƚŚĞŽŵƉĂŶLJĐŽŶǀĞƌƚĞĚĂŵŽƵŶƚƐŽǁŝŶŐƚŽ ĐĞƌƚĂŝŶƉĂƌƚŝĞƐƚŽƚĂůůŝŶŐ€29,709 (άϮϱ͕ϮϱϯͿŝŶƚŽĞƋƵŝƚLJďLJƚŚĞŝƐƐƵŝŶŐŽĨϭ͕ϲϴϯ͕ϱϭϲŶĞǁŽƌĚŝŶĂƌLJƐŚĂƌĞƐĂƚƚŚĞƐĂŵĞ ƉƌŝĐĞ͘ ĂĐŚŽĨƚŚĞŶĞǁƐŚĂƌĞƐŶŽƚĞĚĂďŽǀĞĐĂƌƌLJĂŚĂůĨǁĂƌƌĂŶƚƐƵĐŚƚŚĂƚƚŚĞŚŽůĚĞƌŽĨŽŶĞǁŚŽůĞǁĂƌƌĂŶƚĐĂŶ ƐƵďƐĐƌŝďĞĨŽƌŽŶĞŶĞǁŽƌĚŝŶĂƌLJƐŚĂƌĞĂƚĂƉƌŝĐĞŽĨάϬ͘ϬϯƉĞƌƐŚĂƌĞĨŽƌĂƉĞƌŝŽĚŽĨϭϮŵŽŶƚŚƐĨƌŽŵƚŚĞĂĚŵŝƐƐŝŽŶƚŽ ƚƌĂĚŝŶŐŽĨƚŚĞŶĞǁƐŚĂƌĞƐŝƐƐƵĞĚŽŶϭ:ƵůLJϮϬϮϰ͘ dŚĞƌĞǁĞƌĞŶŽĨƵƌƚŚĞƌŝŵƉŽƌƚĂŶƚĞǀĞŶƚƐƚŽŶŽƚĞƉŽƐƚLJĞĂƌĞŶĚ͘ ϭϴƉƉƌŽǀĂůŽĨƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐĨŽƌƚŚĞĨŝŶĂŶĐŝĂůLJĞĂƌĞŶĚĞĚϯϭDĂLJϮϬϮϰ dŚĞĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐǁĞƌĞĂƉƉƌŽǀĞĚďLJƚŚĞŽĂƌĚŽĨŝƌĞĐƚŽƌƐŽŶϮϮEŽǀĞŵďĞƌϮϬϮϰĂŶĚĂƵƚŚŽƌŝƐĞĚĨŽƌŝƐƐƵĞ ŽŶ Ϯ6 EŽǀĞŵďĞƌ ϮϬϮϰ͘ ĐŽƉLJ of the audited financial statements will be available on the Company’s website ǁǁǁ͘ŬĂƌĞůŝĂŶĚŝĂŵŽŶĚƌĞƐŽƵƌĐĞƐ͘ĐŽŵand will be available from the Company’s registered office Ăƚ^ŚĂŶŶŽŶŝƌƉŽƌƚ ,ŽƵƐĞ͕^ŚĂŶŶŽŶ&ƌĞĞŽŶĞ͕^ŚĂŶŶŽŶ͕Ž͘ůĂƌĞ͕sϭϰ ϯϳϬ/ƌĞůĂŶĚ͘ 55 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc 56 Annual Report and Financial Statements 2024 Karelian Diamond Resources Plc