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LUC.TO ·

Lucara Recovers 240 Carat Top White Gem Diamond from Karowe

Production Results

January 28, 2019

PRESS RELEASE

LUCARA RECOVERS 240 CARAT TOP WHITE GEM DIAMOND FROM

KAROWE

VANCOUVER, January 28, 2019/CNW/ - (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)

Lucara Diamond Corp. (“Lucara” or the “Company”) is pleased to announce the recovery of a

240 carat, top white gem diamond ( image attached), from its 100% owned Karowe Diamond

Mine located in Botswana. This diamond will be shown alongside the 127 carat, top white gem

diamond reported earlier this year (News Release) together with other exceptional diamonds

recently recovered from Karowe, at Lucara’s upcoming diamond tender closing on March 7,

2019. Since mining began at Karowe in July 2012, a total of 54 diamonds in excess of 200

carats have been recovered, including 12 diamonds larger than 300 carats in size. In addition,

Lucara has sold 1 80 diamonds in excess of $1 million each and ten diamonds have sold for in

excess of $10 million each.

Eira Thomas CEO commented: “ This top white 240 carat gem diamond was mined from the

M/PK(S) unit within the South Lobe, providing continuing confirmation that large, high quality

gem diamonds are recovered throughout the kimberlite, in all lobes and phases on a regular

basis. As Karowe enters its 7 th full year of production, the regular recovery of Specials

(diamonds>10.8 carats) continues unabated and in line with expectations.”

Eira Thomas

President and Chief Executive Officer

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For further information, please contact:

Investor Relations & Public Relations +1 604 689-7842 [email protected]

Sweden: Ulrika Häggroth, Investor Relations +46 70 298 6001 [email protected]

ABOUT LUCARA

Lucara is a leading independent producer of large exceptional quali ty 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 transparently and in accordance with international best practices in the

areas of sustainability, health and safety, environment and community relations.

ABOUT CLARA

Clara Diamond Solutions (Clara), wholly owned by Lucara Diamond Corp, is a secure, digital

sales platform that uses proprietary analytics together with cloud and blockchain technologies

to modernize the existing diamond supply chain, driving efficiencies, unlocking value and

ensuring diamond provenance from mine to finger.

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

qualified by subsequent news releases.

The information was submitted for publication, through the agency of the contact person set

out above, at 4:30am PST on January 28, 2019.

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 t erminology such as "expects",

"anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions,

or statements that events, conditions or results "will", "may", "could" or "should" occur or be

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 which 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 accurate and such forward-

looking information included herein should not be unduly relied upon. In particular, this release

contains forward looking information pertaining to the Lucara’s intention to complete the sale

of the 127 carat and 240 carat diamonds recovered this year in March 2019 as well as

Management’s expectation about the recovery of Specials. The value of the Company’s shares,

its financial results and its mining activit ies are significantly affected by the price and

marketability of the diamonds recovered. The sales price of a diamond is determined by its

characteristics. While the Karowe Diamond Mine has produced a number of large, high -value

diamonds in excess of 100 carats, there is no assurance that the diamonds recovered which are

100 carats or larger will have the characteristics required to achieve a high sales price.

There can be no assurance that such forward looking statements will prove to be accurate, as

the Company's results and future events could differ materially from those anticipated in this

forward-looking information as a result of those factors discussed in or referred to under the

heading "Risks and Uncertainties"' 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 foreign 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), and 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 the se forward -looking

statements which speak only as of the date the statements were made, and the Company does

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not assume any obligations to update or revise them to reflect new events or circumstances,

except as required by law.