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Lucara Announces Sale of 1,109 carat Lesedi La Rona

Mergers & Acquisitions

NEWS RELEASE

Lucara Announces Sale of 1,109 carat Lesedi La Rona

SEPTEMBER 25, 2017 (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm) … Lucara Diamond

Corp. ("Lucara" or the "Company") is pleased to a nnounce that the historic 1,109 carat Lesedi La Rona

recovered from the Karowe mine in Botswana in November 2015 (see news release dated November 19,

2015) has been sold for US$53 million (US$47,777 per carat) to Graff Diamonds.

Laurence Graff comments, “We are thrilled and honoured to become the new custodians of this incredible

diamond. The stone will tell us its story, it will dictate how it wants to be cut, and we will take the utmost

care to respect its exceptional properties. This is a momentous day in my career, and I am privileged to

be given the opportunity to honour the magnificent natural beauty of the Lesedi La Rona”.

William Lamb, President and CEO, comments, “The discovery of the Lesedi La Rona was a company

defining event for Lucara . It solidified the amazing potential and rareness of the diamonds recovered at

the Karowe mine. We took our time to find a buyer who would take the diamond through its next stage

of evolution. The price paid is also an improvement on the highest bid received at the Sotheby’s auction

in June 2016. Graff Diamonds is now the owner of the Lesedi La Rona a s well as the 373 carat diamond,

purchased earlier this year, which formed part of the original stone. We are excited to follow these

diamonds through the next stage of their journey.”

On behalf of the Board,

William Lamb

President and CEO

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For further information, please contact:

Lucara Investor and Public Relations +1 (604) 689-7842, [email protected]

Sweden: Robert Eriksson, Investor Relations +46 701-112615, [email protected]

UK: Louise Mason-Rutherford, Citigate Dewe Rogerson +44 (0)20 7282 2932

[email protected]

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About Lucara

Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100%

owned Karowe Mine in Botswana. The Company has an experienced board and management team with

extensive diamond development and operations expertise. The Company operates transparen tly and in

accordance with international best practices in the areas of sustainability, health and safety, environment

and community relations.

The information in this release is accurate at the time of distribution but may be superseded or qualified

by subsequent news releases.

The information in this release is subject to the disclosure requirements of Lucara Diamond Corp. under

the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was publicly

communicated on September 25, 2017 at 2:30 p.m. Pacific Time.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made and contained herein and elsewhere constitute forward -looking

statements as defined in applicable securities laws. Generally, these forward -looking statements can

be identified by the use of forward -looking terminology such as “expects”, “anticipates”, “believes”,

“intends”, “estimates”, “potential”, “possible” and similar expressions, or statements that events,

conditions or results “will”, “may”, “c ould” or “should” occur or achieved.

Forward looking statements are based on the opinions and estimates of management as of the date

such statements are made, and they are subject to a number of known and unknown risks,

uncertainties and other factors wh ich may cause the actual results, performance or achievements of

the Company to be materially different from any future results, performance or achievement

expressed or implied by such forward -looking statements. The Company believes that expectations

reflected in this forward -looking information are reasonable but no assurance can be given that these

expectations will prove to be correct and such forward -looking information included herein should not

be unduly relied upon. Refer to the risks and uncertaint ies describe d under Risks and Uncertainties

disclosed in the Company’s Annual Information Form.

There can b e no assurance that forward looking statements will prove to be accurate, as the

Company’s results and future events could differ materially from t hose anticipated in forward-looking

information as a result of those factors discussed in or referred to under the heading “Risk Factors’ in

the Company’s most recent Annual Information Form available at http://www.sedar .com, as well as

changes in general business and economic conditions, changes in interest and foreign currency rates,

the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds,

costs of power and diesel, acts of for eign governments and the outcome of legal proceedings,

inaccurate geological and recoverability assumptions (including with respect to the size, grade and

recoverability of mineral reserves and resources), unanticipated operational difficulties (including

failure of plant, equipment or processes to operate in accordance with specifications or expectations,

cost escalations, unavailability of materials and equipment, government action or delays in the receipt

of government approvals, industrial disturbances or other job actions, adverse weather conditions,

and unanticipated events relating to health safety and environmental matters)

Accordingly, readers are cautioned not to place undue reliance on these forward -looking statements

which speak only as of the d ate the statements were made, and the Company does not assume any

obligations to update or revise them to reflect new events or circumstances, except as required by

law.