PPM Pacific Imperial Mines Inc

Lucara Diamond Corp. (TSX VENTURE:LUC) ("Lucara" or the "Company") is pleased to
provide the following update on its Mothae diamond project in Lesotho and the
AK6 diamond project in Botswana.


Mothae Project, Lesotho

The Mothae kimberlite is an 8 hectare pipe located in the highlands of Lesotho.
Lucara completed a 100,000 tonne bulk sample and preliminary delineation
drilling at Mothae in 2009. Sample material was processed through a dense media
separation plant designed to recover diamonds in various size fractions from 2
mm to 18 mm. This work resulted in an overall dry sample grade of 4.7 carats per
hundred tonnes (cpht), confirmed the presence of high value Type IIa diamonds at
Mothae, and demonstrated that Mothae diamonds have a very coarse size
distribution. Diamonds recovered in the bulk sample included 13 stones greater
than 10 carats and 5 stones greater than 20 carats. A total of 3,867 carats of
diamonds were recovered from the bulk sample. These diamonds were valued by Mr.
Shlomo Tihdar of Galaxy Diamond Expertise SA in June 2009, resulting in a parcel
value of US$437 per carat and a modeled diamond value of US$549 per carat.


A fifteen hole, 2,452 meter drilling program provided geologic and density
information to develop a global tonnage estimate of 35 to 40 million tonnes to a
depth of 200 meters below the surface. At this stage of the evaluation, this
tonnage figure indicates the geologic potential of the Mothae kimberlite and is
not intended to imply a resource tonnage as that term is defined by NI 43-101.


Based on these results, Lucara is pursuing a test mining program at Mothae to
sample and process up to 720,000 tonnes over the next 18 to 24 months. Upgrades
to the process plant commenced in early 2010 and are scheduled for completion in
mid May. Process upgrades include installation of a new x-ray diamond recovery
circuit, including a separate large diamond recovery system, improvements to
process water handling, addition of new power generation capacity together with
an upgrade of all plant electrics and modifications to the plant headfeed
layout. Images of the upgrade to the process plant can be found on the Lucara
website (www.lucaradiamond.com). Paradigm Project Management (Pty) Ltd. ("PPM"),
a Johannesburg based project management and EPCM company, is managing both the
plant upgrade project and the trial mining program on behalf of Lucara.


Following a competitive bidding process for mining and process plant operation,
a mining contract has been awarded to Lesotho based Thoytanyana Mining and Civil
works and a plant operation contract has been awarded to South African based
Minerals Operations Executive (Pty) Ltd. The mining fleet will mobilize to site
in early May to begin pre-stripping of overburden and stockpiling kimberlite for
plant commissioning. Commissioning of the plant is expected to continue through
May, subsequent to which trial mining will commence at a targeted production
rate of 30,000 tonnes per month.


Based on average grade estimates from the 100,000 tonne bulk sample completed in
2009, the trial mining program is expected to produce approximately 1,000 carats
of diamonds per month and Lucara anticipates holding Mothae diamond sales
quarterly, with the first sale expected in September.


Lucara holds a 75% interest in the Mothae project, in partnership with the
Government of Lesotho, which holds a 25% interest. Lucara is the project
operator.


AK6 Project, Botswana

The AK6 kimberlite is an advanced diamond development project located in the
Orapa/Letlhakane kimberlite district of Botswana. Lucara has a 60% interest in
AK6 and is the project operator. The remaining 40% is held by African Diamonds.


AK6 is on schedule for construction to commence in Q4 this year, and to be in
production in late 2011, ramping up to full production in Q1 2012. The project
holds all the necessary Government of the Republic of Botswana approvals to
proceed to development - a Mining License and an approved Environmental Impact
Assessment ("EIA").


AK6 is a trilobate kimberlite consisting of a North, Centre and South Lobe. The
North and Centre lobes have similar geology, diamond content and diamond value
and contain an indicated resource of 11 million tonnes at a grade of 26 cpht and
a modeled diamond value of US$223 per carat. The South Lobe contains an
indicated resource of 40 million tonnes at a grade of 20 cpht and a modeled
diamond value of US$183 per carat. Reported resource grades and values are at a
1 mm bottom cutoff size. As previously reported by Lucara, the resource
estimated is NI 43-101 compliant and has been independently verified by MSA
Geoservices of Johannesburg. MSA's independent report was filed on SEDAR on
March 29, 2010.


PPM has been retained to complete the feasibility study to upgrade previous work
(also by PPM) to a confidence level to support project approval. The project
scope includes a revised mine plan, confirmation of process plant flowsheet and
design, confirmation of site and support infrastructure, engineering and cost
estimating to support capital and operating cost estimates, and the preparation
of the execution schedule.


In order to achieve the project schedule, key tasks will be initiated ahead of
full capital approval. An Early Works budget has been approved by Lucara's board
to bridge the gap between completion of the feasibility study and full capital
approval. This budget is focused on weather sensitive project tasks such as the
upgrading of the mine access road and completion of plant terracing before the
rainy season. Ongoing environmental and socio-economic activities which are
essential to project success will also be funded by this budget.


The first of key personnel have been hired, including the General Manager,
required to guide the project through detailed engineering, construction and
commissioning. In line with the EIA, an Environmental and Community Liaison
Officer has also been hired which will enable consistency and continuity in
environmental and socio-economic programs throughout the mine life cycle.


The Feasibility Study considers a phased development. Phase 1 mining will
commence in 2011 at a production rate of 2.5 million tonnes per annum; Phase II
will commence in 2015 with production increasing to 4.0 million tonnes per annum
by the addition of a second mill circuit. The process design contemplates a
1.5mm bottom cutoff so as to optimize plant throughput and enhance project
economics. Open pit optimisation work has been conducted by Johannesburg based
ASG Consulting to determine open pit mine reserve, waste to ore stripping ratio,
pit depth and provisional mine life. Work on the feasibility study is well
advanced and is scheduled to be complete by the end of May. Details will be
released at that time.


In addition, Lucara announces that, effective immediately, Mr. William Lamb has
been appointed Chief Executive Officer of the Company replacing Mr. Lukas Lundin
who will remain Chairman of the Board.


The technical contents of this release have been reviewed and verified by Dr.
Larry Ott a professional geologist and Lucara's V.P. Exploration, and by Mr.
Anthony George, P. Eng., a mining engineer and Lucara's V.P. Development, both
of whom are Qualified Persons pursuant to NI 43-101.


On Behalf of the Board,

William Lamb, President and CEO

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