Lucara Appoints New Mining Contractor

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 24, 2017) - Lucara Diamond Corp. (TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX Stockholm:LUC) ("Lucara" or the "Company") is pleased to announce the appointment of Moolman Mining Botswana (Pty) Ltd ("Aveng Moolmans") as its new mining contractor at the Company's 100% owned Karowe diamond mine in Botswana. Aveng Moolmans, a company forming part of Aveng Mining has been contracted for a 6 year period to provide the full suite of mining services at the Karowe mine, including all drill, blast, load and haul functions for both ore and waste. Aveng Moolmans will commence mobilization of equipment to site during January and February 2017 and expects to begin mining activities in early March 2017.

William Lamb, President and Chief Executive Officer commented "We are very pleased to have engaged Aveng Moolmans as our new mining partner at the Karowe mine. Their extensive expertise in working in Botswana and other African countries together with their proven track record and their ability to achieve production volumes over the contract period, makes them a valuable partner as we work to maximize the future value of this incredible resource, at Karowe, for our shareholders and all our stakeholders in Botswana.

"The transition to Aveng Moolmans also provides the Company with increased mining flexibility and capacity to achieve sustainable production and continued strong operating cash flows.

"Since December 2016, we have continued to process ore from the south and centre lobe stockpiles and are in line to achieve our production and operating guidance for 2017."

Stuart White, Operating Group Managing Director, Aveng Mining commented "We are grateful for the opportunity of joining the Lucara team at the Karowe mine as its mining department and look forward to adding value to this prestigious diamond mining operation. This long-term project allows us to build on our 15 year presence in Botswana in which we will strive to make a positive contribution to all our stakeholders, including the communities in which we operate.

"Mobilization preparations are underway to ensure a timely start of mining activities, and production to plan."

On behalf of the Board,

William Lamb, President and CEO

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