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MOTHAE DIAMOND SALE RESULTS AND PROJECT UPDATE



September 17, 2012 (LUC–TSX, LUC–BSE, LUC–NASDAQ OMX First North) … Lucara Diamond Corp. is pleased to report results of the Mothae Diamond sale completed on September 14, 2012. A total of 4,657 carats of diamonds were sold for gross proceeds of $1.51 million, yielding an average price per carat of $324. The diamond sale consisted of 32 sales parcels of which 26 were sold on a sealed tender at the offices of Bonas-Couzyn in Antwerp. The highest value stone sold was a 9.74 carat Type IIA diamond which achieved a price of $272,720 or $28,000 per carat. Notwithstanding the high quality Type IIA diamond recovered, the diamonds sold today were mined from a higher grade area of the kimberlite which is generally known to producer lower quality, smaller diamonds.



This sale completes the Trial Mining program on the Mothae project and with the consent of the Government of Lesotho, the processing facility will be placed on care and maintenance as the Company works towards completing a Preliminary Economic Assessment (PEA) of the Mothae project. The PEA is well advanced and it, together with a NI43-101 compliant Independent Technical Report, is expected to be completed in the first quarter of 2013. Work on the PEA to date includes:



- completion of a 5,630 meter delineation drill program to extend the geologic and resource model to a depth of 300 meters,

- completion of an Environmental Impact Assessment report and corresponding Environmental Management Plan,

- ore dressing studies, together with systematic data collection from processing hard (unweathered) kimberlite to facilitate process plant design and diamond recovery grade modelling,

- site layout and infrastructure review, including water and power options.

Mr. William Lamb, Lucara’s President and CEO noted, “The completion of the trial mining program at Mothae marks a significant milestone in the project’s development. We have now sold in excess of 20,000 carats of Mothae diamonds, the results of which will form a solid foundation for revenue modeling in our economic evaluation of the project. This information, together with a better constrained geologic and grade model and the processing of unweathered kimberlite which makes up the bulk of the Mothae deposit, provide all of the necessary inputs for a thorough economic assessment.”



Mothae Diamonds holds a mining license for the Mothae kimberlite in Lesotho. Mothae Diamonds is jointly held by Lucara (75%) and the Government of Lesotho (25%). One half of the interest held by the Government of Lesotho is free carried, and one half is paid through the Government of Lesotho’s share of project dividends.



About Lucara



Lucara is a well positioned emerging new diamond producer. The Company has an experienced board and management team with extensive diamond development and operations expertise. The Company’s two key assets are the Karowe Mine in Botswana and the Mothae Project in Lesotho. The 100% owned Karowe Mine is in the production. The 75% owned Mothae Project is currently in the trial mining stage.



Qualified Person

Mr. Anthony George, P. Eng., a mining engineer and Lucara's V.P. Development, is the Company's Qualified Person pursuant to NI 43-101 and has reviewed the technical contents of this news release.

On Behalf of the Board,

William Lamb

President and CEO