Name and Location
Karowe diamond mine project, Botswana.

Client
Boteti Mining, a wholly owned subsidiary of Lucara Diamond Corporation.

Project Description
The Karowe mine located in north-central Botswana is part of the Orapa/Letlhakane kimberlite district – one of the world’s most prolific diamond-producing areas.

The project has an indicated resource of 51-million tons, containing an estimated 8.2-million carats of diamonds.

The mine delineates a probable reserve of 36.2-million tons of ore, containing an estimated 6.3-million carats of diamonds at a 1.5 mm bottom cutoff size, in an openpit to a depth of 324 m.

The reserves will be mined over an estimated 15-year mine life.

The process plant has been designed with a throughput rate of 2.5-million tons a year. Diamond recovery is estimated at 400 000 ct/y. Recent sales of diamonds recovered from Karowe indicate a diamond value of greater than $215/ct.

Value
The project is estimated at $120-million.

Duration
The project is ramping up to full production.

Latest Developments
Commissioning activities at Karowe were completed in April and the process facilities were handed over to operations. Ramp-up to full production is in progress.

In the third quarter ended September 30, 2013, Lucara reported that it had advanced access to deeper sections of the south lobe and had three months of exposed ore providing flexibility in terms of process plant feed.

The resource also continues to outperform management’s expectations, with the continued recovery of significant stones, including 243 special stones (greater than 10.8 ct) during the reporting period. These stones include two diamonds larger than 200 ct and three diamonds larger than 100 ct. Based on information and recoveries to date, Lucara has commissioned an update to the Karowe resource. The group expects to release a revised National Instrument 43-101 technical report during the first quarter of 2014.

Key Contracts and Suppliers
DRA (engineering, procurement and construction management contract); Kalcon (mining operations); and Minopex (process plant operations and maintenance contract).

On Budget and on Time?
Delays to the project schedule, as a result of steel industry strike action in July 2011, impacted the overall schedule and the handover to operations shifted from the end of the fourth quarter of 2011 to the end of the first quarter of 2012.

The final capital expenditure for the development of the mine has come in below the original budget of $120-million.

Contact Details for Project Information
Lucara Diamond Corporation corporate development Sophia Shane, tel +1 604 689 7842
or fax +1 604 689 4250.