The TSX Venture Exchange has accepted for filing an implementation agreement dated Oct. 2, 2010, between Lucara Diamond Corp., African Diamonds PLC (AFD) and Botswana Exploration PLC, whereby the company will acquire all of the shares of AFD by way of scheme of arrangement under the U.K. Companies Act 2006. The company will acquire the AFD shares in exchange for 0.8 of a company share for each AFD share and will result in the issuance of up to 80,425,812 common shares. In addition, the company has acquired all options to acquire AFD shares in exchange for options for company shares such that each holder of AFD options will, in respect of each AFD option, be entitled upon exercise to receive company shares in lieu of AFD shares at a ratio of 0.8 company share for each one AFD share, which will result in the issuance of up to 6.48 million stock options. As a result, AFD will become a wholly owned subsidiary of the company.

The company and AFD are joint venture partners in Boteti Mining (Pty.) Ltd., which holds the exclusive mining licence for the AK6 diamond mine project located in Botswana. The company currently indirectly holds 60 per cent of the equity interest in Boteti and AFD holds the remaining 40 per cent. By acquiring all of the shares in the capital of AFD pursuant to the transaction, the company will acquire AFD's entire interest in Boteti and thereby become the sole owner of AK6.

Postarrangement

Capitalization:  Unlimited shares with no par value, of which 262,009,018 shares are issued and outstanding

Escrow:  Nil

Transfer agent:  Computershare Investor Services Inc.

Trading symbol:  LUC (unchanged)

Cusip No.:  54928Q 10 8 (unchanged)

For further information, please refer to the company's news release dated Oct. 4, 2010.