Mr. William Lamb reports

LUCARA RECEIVES COMMITMENT LETTER FOR REVOLVING CREDIT FACILITY

Lucara Diamond Corp. has received a commitment letter from Bank of Nova Scotia for a $25-million (U.S.) revolving term credit facility. Upon closing of the facility, the company intends to use the facility to finance continuing operations primarily at the Karowe mine in Botswana.

William Lamb, president and chief executive officer of Lucara Diamond, commented: "We are very pleased to have secured this credit facility which clearly demonstrates the sound rating of the Karowe diamond mine and the excellent progress of the development and construction work to date. The facility provides the flexibility to fully commission Karowe and lead other corporate initiatives while avoiding shareholder dilution. We can now focus 100 per cent on commissioning activities at Karowe as we bring this exciting project into production."

The facility will contain financial and non-financial covenants customary for a facility of this size and nature. The applicable interest rate of any loan under the facility will be determined by the company's leverage ratio at any given time. The availability of the facility is subject to the completion of final documentation and customary conditions precedent. The two-year facility will be secured by the assets of the company and certain of its subsidiaries. Up to $15-million (U.S.) may be advanced prior to the delivery of security over the company's Karowe assets.

We seek Safe Harbor.