News

News

Information posted is accurate at the time of posting, but may be superseded or qualified by subsequent press releases.

Mar 28, 2011 - 09:49 AM ET

Lucara's First Diamond Tender Yields Gross Proceeds of $8.18 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) -Lucara Diamond Corp. ("Lucara" or the "Company") (TSX VENTURE:LUC) is very pleased to report outstanding results from its first tender of rough diamonds recovered from the Mothae mine in Lesotho. A total of 42 sales lots, totaling 9,381.35 carats were sold on tender in Antwerp for an average of US$871.70/ carat. Gross proceeds from the sale, which closed today, March 28, 2011, totaled $8,177,714 million.

The three stones with the highest per carat value were a 13.87 carat diamond which sold for $43,000/ct, a 24.57 carat diamond which sold for $32,351/ct, and a 20.13 carat diamond which sold for $27,995/ct.

Commenting on the results of the sale, Managing Director for Mothae Diamonds, Ms. Nyakallo Mpatuoa noted, "We are very pleased with the market response to Mothae production and confirmation of the exceptional value of our diamonds. We look forward to our next sale of Mothae diamonds later this year to provide further price discovery information for this exciting project."

Lucara, through its subsidiary, Mothae Diamonds (PTY) Ltd, is conducting a trial mining program of up to 720,000 tonnes on the Mothae kimberlite in Lesotho. Mothae Diamonds is jointly held indirectly by Lucara as to 75% and the Government of Lesotho as to 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 dividend.

Lucara is a well positioned emerging new diamond producer. The Company has an experienced board and management team with years of diamond development expertise. The Company's two key assets are the AK6 diamond mine in Botswana and the Mothae diamond mine in Lesotho. The 100% owned AK6 project is in the construction stage with mine commissioning scheduled to commence in the fourth quarter of 2011. The 75% owned Mothae mine is currently in the trial mining stage. Both Mothae and AK6 are world class assets with tonnage and throughput upside; diamond values from both could significantly increase with the continued recovery of Type IIA and large stones.

On Behalf of the Board,

William Lamb, President and CEO

Forward Looking Statements: This document contains statements about expected or anticipated future events and financial results of Lucara that are forward-looking in nature and are based on Lucara's current expectations, estimates and projections. This forward-looking information is subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. The actual results, activities, performance or achievements of Lucara may differ materially from those projected by management. A discussion of factors that may affect Lucara's actual results, performance, achievements or financial position is contained in the filings by Lucara with the Canadian provincial securities regulatory authorities on the system for electronic document analysis and retrieval ("SEDAR") at www.sedar.com.

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




Sophia Shane
Lucara Diamond Corp.
Corporate Development
(604) 689-7842
(604) 689-4250
lucara@namdo.com
www.lucaradiamond.com