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Lucara Recovers 257 Carat Clear Diamond at Botswana Karowe Mine

Lucara Diamond Corp. is very pleased to announce the recovery of a 257 carat diamond from its Karowe Mine in Botswana. So far this year, there have been 47 diamonds recovered that were larger than 50 carats. Of these, 14 were larger than 100 carats. This new 257 carat, beautiful and clear diamond, will be sold on tender in the fourth quarter of 2013.

Mining over the past 6 months has been focused on the Centre and South lobes of the AK6 kimberlite.

William Lamb, President and CEO, commented, "The Karowe mine continues to outperform with the consistent recovery of large, high value diamonds. The recovery of this magnificent 257 carat diamond, along with the recovery of a significant parcel of larger stones over the past 6 months, strengthens our understanding of the resource at Karowe. Revenues generated from the sale of these diamonds will be used to reduce debt and strengthen Lucara's balance sheet.

In addition to the recovery of the large diamond, Lucara also closed its sixth rough diamond tender for the year where all lots were sold with very strong results. With the challenges currently facing the rough diamond market, the demand for the high quality goods produced by Karowe has remained consistently high. The results of the sale will be reported in our third quarter results which are expected to be released in early November 2013."

A picture of the 257 carat diamond is attached and also available at www.lucaradiamond.com.

To view the picture referenced above, please visit the following link: http://media3.marketwire.com/docs/900384.pdf

About Lucara

Lucara is a well-positioned new diamond producer. The Company has an experienced board and management team with extensive diamond development and operations expertise. The Company's two key assets are the Karowe Mine in Botswana and the Mothae Project in Lesotho. The 100% owned Karowe Mine is in production. The 75% owned Mothae Project has completed its trial mining program.

Qualified Person

Mr. Anthony George, P.Eng., a mining engineer and Lucara's V.P. Development, is the Company's Qualified Person pursuant to NI 43-101 and has reviewed the technical contents of this news release.

On Behalf of the Board,

William Lamb, President and CEO

Lucara's Certified Advisor on NASDAQ OMX First North is Pareto Öhman AB.

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