HIGHLIGHTS

Corporate

• Completed a US$50 million Debenture financing in early July 2011.
  
  
• Lucara commenced trading on the Toronto Stock Exchange in August 2011 and the Botswana Stock Exchange in July 2011.
  
  

AK6 Diamond Project - Botswana

• Construction advanced from 55% complete at the end of Q2 to 84% complete at the end of Q3. This is as per the August re-baselined schedule, which reflects the impact of the steel industry strike in July.
  
  
• The project is trending within the initial capital budget, and expenditure to the end of Q3 is 46%of budget with a total of 83% of the approved capital budget being committed.
  
• During the quarter, engineering, procurement and fabrication were essentially completed in support of construction activities and the focus of the EPCM contractors and Boteti is fully on the AK6 project site activities.
  
  
• The overhead power line from the Orapa sub-station to site has been completed. The AK6 substation is expected to be commissioned before the end of November, and the permanent tie into the Botswana electricity grid completed during Q4.
  
  
• In Gaborone the diamond sorting, sales and marketing offices have been completed and senior diamond sorting personnel have been recruited. The stock control software platform has been selected and operational procedures are being developed.

Mothae Diamond Project - Lesotho

• Sample F2A yielded 2 stones larger than 20 carats, 10 stones between 10 and 20 carats, 19 stones between 5 and 10 carats, and 95 stones between 2 and 5 carats. The three largest diamonds recovered were 29.94, 22.86, and 19.21 carats.
  
  
• Sample G2B yielded 2 stones larger than 20 carats, 2 stones between 10 and 20 carats, 9 stones between 5 and 10 carats, and 48 stones between 2 and five carats. The largest 3 diamonds were 28.91, 25.09 and 12.00 carats.
  
  
• A primary crushing unit was delivered to site in early September and has been fully commissioned. A larger capacity secondary crusher will be installed in Q4. Both units are required to efficiently process harder kimberlite and basalt xenoliths. A drilling contract was awarded to Remote Drilling Services to conduct a 5,400m delineation drilling program.
  
  
• During October, a contract was awarded to ADP Project, to conduct a pre-feasibility level study in support of preliminary economic assessment on Mothae. The objective of this study will be to gain an increased understanding of the economic potential of the Mothae project through greater definition of the capital and operating costs required for the development of a mine at Mothae.

HIGHLIGHTS

Corporate

• Secured a US$50 million Debenture in early July 2011

AK6 Diamond Project - Botswana

• As at the end of the second quarter 2011, overall project progress was 75% complete (Engineering 99%, procurement 87%, construction 55% and Fabrication 76% completed);
  
  
• Construction of the bulk power line continued and full power is scheduled to be available during September 2011;
  
  
• 3 year mining contract signed and final negotiations with process contractor underway; and
  
  
• Construction contract awarded for the building of 12 senior staff houses in Letlhakane.
  
  

Mothae Diamond Project - Lesotho

• Sample G2A was completed in early May 2011, producing 1,903 carats of diamonds with an average stone size of 0.45 carats/stone from 33,691 dry tonnes of kimberlite for a sample grade of 5.65 carats per hundred tonnes ("cpht");
  
  
• Mining and processing of sample F2A commenced and approximately 1,412 carats had been recovered during the current quarter from a provisional estimation of 35,247 dry tonnes;
  
  
• Alternative diamond recovery technologies, including a grease table recovery unit and a high power x-ray machine, are being installed to complement current equipment and for ongoing audit purposes; and
  
  
• Commenced an environmental impact assessment for mine development, which is expected to be completed by the end of the third quarter of 2011.

HIGHLIGHTS

Corporate

• Closed a CDN$60 million private placement in February 2011

AK6 Diamond Project - Botswana

• As at the end of the first quarter 2011 engineering was 82% complete and the project was overall 42% completed. As at the end of May 2011, the project execution overall was 64% complete;
  
  
• Botswana Power Corporation commenced construction of the of the bulk power line which is due to be complete in July;
  
  
• Senior operating team members have been recruited and are in place;
  
  
• Mining and process contractor have been selected; and
  
  
• All permits and licenses to operate are in place.

Mothae Diamond Project - Lesotho

• First sale of diamonds from the Mothae Diamond Project took place in March 2011 -- 9,379ct sold for $8.18 million (Average of $871/ carat); and
  
  
• Commenced an environmental impact assessment for mine development, which is expected to be completed by the end of the third quarter of 2011.

HIGHLIGHTS - OUTSTANDING

AK6 Diamond Project - Botswana

• An agreement was signed with African Diamonds plc to acquire all of the outstanding common shares and share purchase options of African Diamonds plc. The transaction was completed in December 2010 upon which date Lucara indirectly owns 100% of the AK6 Diamond Project.
  
  
• The Engineering, Procurement and Construction Management ("EPCM") contract for the construction of a mine and associated facilities was awarded to Dowding Reynard and Associates ("DRA") on July 16, 2010.
  
  
• By year end engineering was 40% complete and all major equipment orders had been placed and procurement was 55% complete. As at end first quarter 2011 engineering was 82% complete and the project was overall 40% complete.
  
  
• Botswana Power Corporation has awarded the construction contracts for the bulk power line construction which is due to be complete in July.
  
  
• The Government of the Republic of Botswana approved an amendment to the mining license to allow the sale of the entire AK6 production of diamonds either through open tender sales or exclusive contract.

Mothae Diamond Project - Lesotho

• Test mining commenced in May 2010 and a total of 138,798 dry tonnes of kimberlite was processed to the end of December 2010. This includes 137,741 dry tonnes of C domain kimberlite, which is the initial focus of the current test mining program, and 1,592 dry tonnes of F domain kimberlite stockpiled during the prior bulk sampling work.
  
  
• Plant upgrades and commissioning were completed, design capacity throughput achieved and sustained.
  
  
• Additional 3,671 carats ("cts") of diamond recovered in 2010, including 20 stones greater than 5 cts, 8 stones greater than 10 cts and 3 stones greater than 20 cts.
  
  
• The three largest stones recovered in 2010 were 53.53 cts, 37.24 cts and 20.26 cts.
  
  
• As of March 23, 2011, a total of 175,000 dry tonnes had been processed from the C domain, producing 5,484 cts at an average grade of 3.13 carats per hundred tonnes ("cpht"). Ongoing audit work will confirm the grades and diamond recovery efficiency.
  
  
• In March 2011, the first tender of Mothae diamonds was held in Antwerp. A total of 9,381.35cts were sold at an average of $871.70ct for total gross proceeds of $8.18M.
  
  
• The three highest per carat value diamonds sold were a 13.87ct stone, which sold for $43,000 per carat, a 24.57ct stone, which sold for $32,351 per carat and a 20.13ct stone, which sold for $27,995 per carat.

HIGHLIGHTS

AK6 Diamond Project - Botswana

• An agreement was signed with African Diamonds plc to acquire all of the outstanding share and options of African Diamonds plc. Upon completion of the acquisition, Lucara will own indirectly 100% of the AK6 Diamond Project.

• On completion of the feasibility study, the Company commenced detailed engineering and procurement of critical path long-lead items for the development of a mine at AK6.

• Agreement reached with Botswana Power Corporation for the supply of bulk power.

• The Government of the Republic of Botswana approved an amendment to the mining license to remove the production start date provisions.

• All permits and licenses are in place and all relocation and compensation claims have been settled.

Mothae Diamond Project - Lesotho

• Test mining commenced in May 2010 and a total of 70,333 dry tonnes of kimberlite processed to the end of September 2010. This includes 68,741 dry tonnes of C domain kimberlite, which is the initial focus of the current test mining program, and 1,592 dry tonnes of F domain kimberlite remaining on stockpile from prior bulk sampling work.

• Plant upgrades and commissioning completed, design capacity throughput achieved and sustained

• Additional 1,760 carats ("crts") of diamond recovered to the end of September 2010, including 20 stones greater than 5 crts, 8 stones greater than 10 crts and 3 stones greater than 20 crts.

• Three largest stones recovered to date are 53.53 crts, 37.24 crts and 20.26 crts.

HIGHLIGHTS

AK6 Diamond Project - Botswana

• A bankable feasibility study was completed in June 2010.

• Phase I will require an estimated capital investment of US$120 million, including contingency, for the design and construction of a production facility with an initial throughput of 2.5 million tonnes per annum. Average operating costs over the life of mine are estimated to be US$17.51 per tonne treated.

• Project engineering was awarded to DRA African (Pty) Ltd.

• Amendments to diamond sales provisions of the mining licenses were formally approved by the Government of the Republic of Botswana.

Mothae Diamond Project - Lesotho

• Planned upgrades to the bulk sample plant were completed.

• Test trial mining operations commenced in late May.

• A 53.3 carat, Type lla diamond was recovered in the first week of processing.

• Plant commissioning is underway with the process feed expected to ramp up to design capacity of 30,000 per tonnes per month.

HIGHLIGHTS

Mothae Diamond Project -- Lesotho

• Required upgrades to the process plant for the upcoming test mining program to sample and process up to 720,000 tonnes commenced in early 2010 and will be completed by the end of the second quarter of 2010.. Upgrades to the process plant included 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 the plant electrical system and modifications to the plant headfeed layout.
• 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 Lesotho based Minerals Operations Executive (Pty) Ltd.
• The mining fleet mobilized 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.

Boteti AK6 Diamond Project -- Botswana

• An independent Johannesburg based project management and Engineering, Procurement, Construction Management company ("EPCM"), has been retained to complete the feasibility study 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. The feasibility study is scheduled to be complete by mid-year 2010.
• In March 2009, a new resource update was completed on the Boteti AK6 diamond project estimating an indicated resource of just over 51 million tonnes at an average grade of 22 carats per hundred tonnes ("cpht") and an average modeled diamond value of US$194 per carat, plus an inferred resource of approximately 20 million tonnes at an average grade of 19 cpht and average modeled diamond value of US$183 per carat.
• In April 2010, African Diamonds exercised its option to increase its interest in the Boteti AK6 diamond project to 40% in consideration of a cash payment of $7.3 million to the Company.

To our shareholders:

In December 2009, the Company changed its financial year end from July 31 to December 31. As a result of the change, the Company had a five month transitional financial period ending December 31, 2009. This change was made to align the Company's reporting period with its subsidiaries.

During the ensuing five months much progress was made towards the development of its Mothae diamond project in Lesotho and the AK6 diamond project in Botswana. Mothae is expected to achieve first diamond sales in 2010 with AK6 following the year after.

Highlights of the five month period and subsequent events include:

HIGHLIGHTS

• In September 2009, the Company was granted a diamond mining license for the Mothae diamond project in Lesotho. The mining license is valid for 10 years and renewable for an additional 10 years. Concurrent with the issuance of the mining lease, a mining agreement was entered into with the Government of Lesotho which establishes a 25% interest in the project held by the Government and Lucara holding a 75% interest and operatorship.
• In November 2009, the Company initiated planning and design work in preparation for a plant upgrade and a preproduction test mining phase that includes processing of up to 720,000 tonnes at rate of 30,000 tonnes per month to confirm the potential for Mothae to yield large high value diamonds.
• In December 2009, the Company acquired a 70.268% interest in the Boteti Exploration (Pty) Ltd (Boteti), which holds the mining license for the AK6 kimberlite, from De Beers Prospecting Botswana (Pty) Limited in consideration of $49 million. The remaining interest in Boteti is held as to 28.381% by African Diamonds PLC ("African Diamonds") and indirectly by Wati Ventures (Pty) Ltd. as to 1.351%. The AK6 kimberlite pipe is an advanced diamond development project located in the Orapa district of Botswana, the largest diamond producing region in the world.
• In December 2009, the Company completed a private placement of 110,000,000 common shares of the Company at a price of CDN$1.00 per common share for gross proceeds of CDN$110,000,000.
• In March 2010 a new resource update was completed on the AK6 project estimating an indicated resource of just over 51 million tonnes at an average grade of 22 carats per hundred tonnes (cpht) and an average modeled diamond value of US$194 per carat, plus an inferred resource of approximately 20 million tonnes at an average grade of 19 cpht and average modeled diamond value of US$183 per carat.
• In April 2010, African Diamonds exercised its option to increase its interest in the AK6 project by a further 10.268% in consideration of a cash payment of $7.3 million to the Company and acquired the interest of Wati Ventures. As a result of these transactions, the Company holds a 60% interest in the project and is project operator. African Diamonds holds a 40% interest.

DIAMOND MARKET

Recent sales from all major producers highlight the continued strength in the rough diamond market. In the longer term, supply is expected to remain highly constrained. This coupled with the demand for quality stones underpins the strong diamond sector fundamentals.


LOOKING FORWARD

What sets Lucara apart from its competitors is our business strategy of seeking only quality, financially robust, hard-rock diamond mining and advanced exploration opportunities. Our focus will be on favourable jurisdictions in Africa.

The other major aspect that sets us apart is the quality of our diamonds -- both of our diamond resources include Type IIa stones -- with less than 1% of all diamonds produced worldwide being of this exceptional quality.

In Lucara's short history, we have acquired two large diamond projects which are now under development. The Mothae mine in Lesotho is undergoing pre-production testing and first commercial diamond sales are expected this year. Construction of the AK6 mine in Botswana is scheduled to commence in the fourth quarter of this year with diamond sales to begin in late 2011.

Existing funds are expected to be sufficient to complete all currently planned expenditures on the Mothae Project and the AK6 Project for at least the next twelve months. Additional funding either through equity or debt will be required in the future to fund further development and construction of the projects.


The board and management of Lucara would like to take this opportunity to thank its shareholders for their continued support. We look forward to an exciting year ahead.

On behalf of the Board,



William Lamb
President and CEO

April 27, 2010

Dear Shareholders

The first quarter of 2010 has been an eventful period for Lucara. The overall management objective to create a mid-tier diamond company took a major step forward as we began development activities at Mothae and completed the acquisition of an interest in the very prospective AK6 Diamond Project from De Beers.

The following operations update provides a summary of recent activities which have taken place in bringing the Company to its current position.

AK6 Diamond Project - Botswana

• In December 2009, the Company acquired a 70.268% interest in Boteti Exploration (Pty) Ltd., which holds a 100% interest in the AK6 project, from De Beers Prospecting Botswana (Pty) Limited in consideration for US$49.0 million. The AK6 project is an advanced diamond development project located in the Orapa district of Botswana, the largest diamond producing region in the world.
  
  
• The Company entered into a Share Holder Agreement with its development partner on the AK6 property, African Diamonds Plc., The Agreement includes a Call Option whereby African Diamonds can earn an additional 10.268% interest in the AK6 property through a cash payment of approximately US$7.0 million. African Diamonds have 120 days from December 17, 2009 to exercise this option. Under the African Diamonds agreement, the Company is currently the operator of the joint venture.
  
  
• The Company initiated a feasibility study update for AK6 which is scheduled for completion in the second quarter 2010. This study will confirm the capital costs and detailed schedule which currently is contemplated to have detailed design, development and construction activities taking place during the latter half of 2010 and through 2011.

Mothae Diamond Project -- Lesotho

• • In September 2009, the Company was granted a diamond mining lease for the Mothae project in Lesotho by the Lesotho Department of Natural Resources. The diamond mining lease, which has an initial term of 10 years and is renewable for an additional 10 years, was granted concurrently with the finalization of a mining agreement between Lucara and the Government of Lesotho.
  
  
• • Under the Mothae mining agreement, the Company holds a 75% interest in the project and the Government of Lesotho holds a 25% interest. One half of the project interest held by the Government (i.e. 12.5% of the project interest) is a free carried interest and one half is funded by the Government through its share of project dividends. During the initial pre-production test mining stage, a royalty of 4% of the sales value of diamonds produced from Mothae will be payable to the Government. At full production the royalty will increase to 8% of diamond sales value.
  
  
• The Company has initiated a plant and infrastructure upgrade to the existing site facilities to enable the processing of a minimum of 30,000 tonnes per month. The existing process facility once upgraded will include a recovery system for larger diamonds (greater than approximately 30 carat), enhanced water treatment and management systems along with a new recovery plant and sorthouse. The upgrade to the process plant is scheduled to be complete by mid- 2010, whereupon, pre-production mining is planned to commence.
  
  
• During pre-production mining, the Company is planning to mine up to 720,000 tonnes of kimberlite from the upper weathered zone of the Mothae kimberlite over a 24 month period to validate current diamond grade and value estimates. The Company anticipates that the data generated during pre production test mining, together with additional delineation drilling will provide additional confidence in the tonnage and diamond content of the Mothae kimberlite prior to full scale production.
  
  
• Assuming positive results from the pre-production mining phase, the April 2009 conceptual study to develop the Mothae kimberlite at a rate of 2.5 million tonne per annum will be updated to detailed feasibility level as a basis for expanding facility operations to maximize Mothae's full potential.

Management

• We are pleased to report that Mr. Anthony (Tony) George, P.Eng will join Lucara as VP Development effective as of January 4, 2010. Mr. George is a mining engineer with over 27 years of experience in operations, design and construction including significant African experience and more than 15 years in the diamond industry.

Corporate

• The Company raised CAD$110 million by way of a brokered private placement of 110,000,000 common shares. A fee of 5% was paid on the brokered portion of the private placement
  
  
• The Company intends to use the net proceeds of the private placement to fund commitments related to the AK6 diamond project acquisition and pre-production mining advancement at Mothae, for ongoing exploration and development activity, and for general corporate purposes.

Lucara Diamond Corp.'s mission is to build a leading African-focused mid-tier diamond production and development company.

Values:

• A healthy and safe work environment
• Entrepreneurial spirit
• Creation of shareholder value
• Create positive economic and social impact on local communities where we operate
• Focus on larger-scale advanced diamond projects
• Seek value opportunities
• Contribute to the Lundin Group's history of success and excellence in wealth creation for all stakeholders

With our growing portfolio of advanced projects and substantial cash position, Lucara is in a very strong position to achieve this mission. We will continue to use our best efforts to deliver positive results that will justify investor support and create shareholder value.

Sincerely,


William Lamb
President and Chief Operating Officer

To our shareholders,

On April 30, 2009, the Company signed an Arrangement Agreement with Motapa Diamonds Inc. ("Motapa") for the Company to acquire all of the outstanding shares of Motapa under the Business Corporations Act (BC).

The transaction will bring significant benefits to each of the Company and Motapa and their respective shareholders. In particular, the transaction will provide the combined company with:

• A platform to become a leading diamond exploration and development company in Africa via organic growth and acquisition opportunities.
• Ownership consolidation of the highly prospective Mothae diamond development project located in Lesotho.
• Strengthened management team with extensive specialized diamond experience both inside and outside of Africa.

Each Motapa share will be exchanged for 0.9055 shares of the Company representing a 32.5% premium to Motapa's trailing 20 day volume weighted average price, as calculated on June 5, 2009, on the TSX Venture Exchange.

Project Update

Lesotho -- Mothae Project

The processing of the Phase II kimberlite material was completed in May 2009. This brought the total amount of material processed during Phases I & II to 100,000 tonnes. The Company has contributed a total of US$8.0M to the conceptual evaluation of the Mothae kimberlite and has earned a 65% interest in the property.

Results from the processing of the Mothae material show the recovery of 8,886 diamonds, totaling 3,867.04 carats from 82,328 dry tonnes of material, at a calculated average sample grade of 4.70 carats per hundred tonnes. A total of 217 stones greater than 2 carats, 63 stones greater than 5 carats, 13 stones greater than 10 carats and 5 stones greater than 20 carats were recovered with the three largest diamonds being 24.6, 23.4 and 22.7 carats.

A diamond valuation of the recovered stones is planned for June 2009. This valuation will be conducted by Galaxy Diamond Expertise out of Israel. The results of this valuation are expected to be available in August 2009.

The following table summarizes the reported diamond results for all samples processed during the conceptual evaluation:

Mothae Sample Processing Data
Kimberlite Domain	Sample	Wet Tonnes	Dry Tonnes	# of Stones	Total Carats	Carats/ Stone	Dry Grade
A	A1A	5,341	4,565	372	129.83	0.35	2.84
	Subtotal	5,341	4,565	372	129.83	0.35	2.84
C	C1A	2,035	1,837	90	27.86	0.31	1.52
	C2A	5,023	4,164	310	117.11	0.38	2.81
	C2B	1,936	1,617	211	75.47	0.36	4.67
	C2C	9,965	8,192	681	380.85	0.56	4.67
	C3A	9,569	7,781	750	301.22	0.40	3.87
	Subtotal	28,529	23,592	2,042	902.51	0.44	3.83
E	E1A	5,363	4,338	255	99.61	0.39	2.30
	Subtotal	5,363	4,338	255	99.61	0.39	2.30
F	F1	7,470	6,274	1,162	444.26	0.38	7.08
	F1C	18,753	15,390	1,519	715.79	0.47	4.65
	Subtotal	26,223	21,664	2,681	1,160.05	0.43	5.35
G	G1	7,341	6,199	1,007	408.07	0.41	6.58
	G1C	27,162	21,970	2,529	1,166.97	0.46	5.31
	Subtotal	34,503	28,169	3,536	1,575.04	0.45	5.59
All Samples		99,959	82,328	8,886	3,876.04	0.44	4.70

A drilling program has also been completed on site. The drilling program was designed to support an initial estimate of global tonnes of kimberlite present to a depth of 200m and to provide geologic information needed to design a more detailed subsequent drilling program. In total, fifteen NQ core holes were drilled, accounting for 2452 meters of core. All core has been logged and the results provided to Mineral Service Canada, who are currently modeling the Mothae kimberlite pipe.

In April 2009, the Company completed a conceptual study for the Mothae project. The objective of this study was to determine the mining, processing and infrastructure requirements in order to construct a mine at Mothae. Mineral Services Canada, a consulting group with over 30 years of experience, was retained to develop a resource model and JDS Mining and Energy was retained to develop reserve estimates and the mine design. ADP Projects (Pty) Ltd, a leading provider of modular processing facilities to the Southern African mining industry, managed the conceptual study and developed the proposed overall mine site layout, infrastructure requirements and process and recovery plant flowsheets. The information contained within the conceptual study report will be used to support the application for a mining license for Mothae.

As of May 12, 2009, the Company officially took over as operator on the Mothae project site. The site, which is currently on care and maintenance pending the receipt of a mining license, is being managed by Paradigm Project Management.

In June 2009, the Company along with its partner Motapa, will submit an application for a mining license at Mothae, as per the Lesotho Mining Act. It is expected that the mining license will be granted by year end 2009.

On successful application for a mining license for Mothae, Management intends to continue to develop this highly prospective project and will continue to evaluate other opportunities in the diamond sector for possible acquisition.

On behalf of the board,
Lukas H. Lundin
President and CEO
June 24, 2009

To our shareholders,

In March 2009, the Company signed a Letter of Intent with Motapa Diamonds Inc. (Motapa), whereby the Company will acquire all of the outstanding shares of Motapa. The transaction contemplates the Motapa shareholders holding 35% of the final company translating to an exchange ratio of 0.9055 Company shares for each Motapa share, based on the current number of shares outstanding. The Company and Motapa will complete, due-diligence and a definitive agreement on or before April 23, 2009 at which time regulatory approval and Motapa shareholder approval will be sought.

The proposed transaction will bring significant benefits to each of the Company and Motapa and their respective shareholders. In particular, the transaction will provide the combined company with:

• A platform for the combined company to become a leading diamond exploration and development company in Africa via organic growth and acquisition opportunities.
• Ownership consolidation of the highly prospective Mothae diamond development project located in Lesotho.
• Strengthened management team with extensive specialized diamond experience both inside and outside of Africa.

Under the option agreement with Motapa, the Company, through the current owner/operator Motapa initiated the Phase I processing of 30,000 tonnes of Mothae kimberlite material. During the 4th quarter of 2008, the processing of the Phase I material was completed. The results show that a total of 24,655 dry tonnes were processed from five distinct kimberlite phases of the Mothae ore body. This material yielded 3,160 stones weighing 1,204.45 carats resulting in an average grade of 4.89 carats per hundred tonnes (cpht). A total of 58 stones greater than 2 carats, and 13 stones greater than 5 carats were recovered with the 3 largest diamonds being 10.24, 8.65 and 8.51 carats. At the conclusion of Phase I, the Company had earned a 51% interest in the Mothae project through its commitment of US$3.8M

Based on the diamond recovery information from Phase I, the Company exercised its option to earn an additional 14% interest by contributing US$4.2 million to Phase II of the sampling program. By the end of January, 2009, the Company had contributed US$4.2M to the costs of Phase II and has earned a 65% interest in the Mothae project. Budget overruns for Phase II will be funded solely by Motapa with the Company becoming liable for its 65% interest in the project on completion of Phase II
processing.

The Company has completed processing four of the Phase II samples. Recovered grades continue to exceed original expectations. The following table summarizes the reported diamond results for three of the samples which have been completed:

Phase II Sample Processing Data

Sample	Dry Tonnes	# of Stones	Carats Recovered	Calculated Grade	Average Stone Size
C2C	8192	568	355.74	4.34	0.63
C3A	7781	642	277.13	3.56	0.43
G1C	21977	2297	1108.70	5.04	0.48

From the above mentioned samples, a total of 102 stones larger than 2 carats, 33 stones larger than 5 carats and 4 stones larger than 20 carats have been recovered. Included in the plus 20 carat stones recovered was a broken Type IIa diamond from the C2C kimberlite phase. The largest fragments of this stone have been reassembled and demonstrate that the original stone exceeded 45 carats. The 3 largest stones recovered from Phase II processing have been 23.39, 22.71 and 22.63 carats.

The Company's original identification of Mothae as a large, low-grade kimberlite suitable to bulk sample was premised on the potential for Mothae to produce Type IIa diamonds. The identification of a population of Type IIa stones in diamonds recovered from Mothae, and the recovery of the large, broken white Type IIa diamond is a major step forward for the project. The 23.4 carat type IIa diamond was recovered from the C kimberlite domain of the Mothae pipe. Based on current information, domain C appears to be the largest kimberlite domain within the Mothae pipe, making up approximately one third of the surface area.

In February 2009, the Company commissioned an EVE X-ray and drier system for the audit processing of the grease belt tailings material. The processing of the audits is ongoing. Any diamonds recovered will result in an increase in the sample recovered grade. Phase II sample processing is scheduled for completion in the second quarter of calendar year 2009.

During the last fiscal quarter, a drilling program was completed on site. The drilling program was designed to support an initial estimate of global tonnes of kimberlite present to a depth of 200m and to provide geologic information needed to design a more detailed subsequent drilling program. In total, 15 NQ core holes were drilled, accounting for 2,452 meters of core. All core has been logged and the results provided to Mineral Services Canada, who is currently modeling the Mothae kimberlite pipe.

In November 2008, the Company initiated a conceptual study to determine the mining, processing and infrastructure requirements in order to build a mine at Mothae. Mineral Services Canada has been retained to develop a resource model and JDS Mining and Energy has been retained to develop reserve estimates and a mine design. ADP Projects (Pty) Ltd has been retained as manager of the conceptual study and will develop a proposed overall mine site layout, infrastructure requirements and process and recovery plant flowsheets.

Good progress continues to be made on the conceptual study. To date a preliminary mine plan has been compiled based on assumed tonnages. These figures will be updated when the results of the drilling program have been incorporated into the resource model. Preliminary designs for the process plant and site facilities have been reviewed and are being sited on the overall project layout. The cost breakdown structure is currently being populated with capital and operating costs. The conceptual study is scheduled to be completed in the second quarter of calendar year 2009.

Management intends to continue to develop the highly prospective Mothae Diamond Project under the existing option agreement or definitive agreement with Motapa Diamonds Inc. and will continue to evaluate other opportunities in the diamond sector for possible acquisition.

On behalf of the board,
Lukas H. Lundin
President and CEO

March 25, 2009

To our shareholders,

Lucara has an option to acquire up to a 70% interest in the Mothae Diamond Project located in Lesotho, one of the most prolific diamond producing regions in the world. The Mothae project comprises a large, 24.7 square kilometre concession area located adjacent to and directly on trend with the world-famous Letseng diamond mine. Letseng is a high-value, large tonnage, lowgrade diamond mine operated by Gem Diamond Mining Company. Letseng has a reputation for producing very large, high quality Type IIA diamonds. The Mothae project hosts a large diamondiferous kimberlite pipe with an estimated surface extent of 8.8 hectares. Mothae's target model is similar to that of Letseng.


Under the option agreement, the Company, through the current owner/operator Motapa, initiated the phase I processing of 30,000 tonnes of Mothae kimberlite material. During the 4th quarter of last year, the processing of the Phase I material was completed. The results show a total of 24,655 dry tonnes were processed from five distinct kimberlite phases of the Mothae ore body. This material yielded 3,160 stones weighing 1,204.45 carats resulting in an average grade of 4.89 carats per hundred tonnes (cpht). A total of 58 stones greater than 2 carats, and 13 stones greater than 5 carats were recovered with the three largest diamonds being 10.24, 8.65 and 8.51 carats. At the conclusion of Phase I, the company had earned a 51% interest in the Mothae project through it commitment of US$3.8M.

Based on the diamond recovery information from Phase I, the Company exercised its option to earn an additional 14% interest by contributing US$4.2 million to Phase II of the sampling program. On completion of Phase II, the Company will hold a 65% interest in the Mothae project.

Processing of the Phase II material commenced on the 22nd of August 2008 following the installation of a fines processing circuit in the bulk sample plant. In early October the Company recovered a 23.4 carat Type IIa diamond from the Phase 2 sampling program. The diamond is a white anhedral stone that has been confirmed as a Type IIa diamond using a frequency specific ultra-violet light Type IIa tester developed by the Swiss Gemological Institute. Type IIa diamonds typically have a coarse size distribution and can be present as very large stones. The presence of a population of Type IIa diamonds in any kimberlite greatly enhances its economic potential.

The Company's original identification of Mothae as a large, low-grade kimberlite suitable to bulk sample was premised on the potential for Mothae to produce Type IIa diamonds. The identification of a population of Type IIa stones in diamonds recovered from Mothae, and the recovery of the 23.4 carat, white Type IIa diamond is a major step forward for the project. The 23.4 carat type IIa diamond was recovered from the C kimberlite domain of the Mothae pipe. Based on current information, domain C appears to be the largest kimberlite domain within the Mothae pipe, making up approximately one third of the surface area.

As of the end of October, 2008, approximately 11,400 tonnes of phase II material had been processed and 340.81 carats in 545 stones recovered. Completion of phase II sample processing is anticipated in the second quarter of 2009.

In November, 2008 the Company initiated a conceptual study to determine the mining, processing and infrastructure requirements in order to build a mine at Mothae. Mineral Services Canada of North Vancouver has been retained to develop a resource model and JDS Mining and Energy of Kelowna, British Columbia has been retained to develop reserve estimates and a mine design. ADP Projects (Pty) Ltd of Cape Town has been retained as manager of the conceptual study and will develop a proposed overall mine site layout, infrastructure requirements and process and recovery plant flowsheets.

Management intends to continue to develop the highly prospective Mothae Diamond Project under the existing option agreement with Motapa Diamonds Inc. and will continue to evaluate other opportunities in the diamond sector for possible acquisition.

On behalf of the board,

Lukas H. Lundin
President and CEO

December 17, 2008

To our shareholders,

Lucara has an option to acquire up to a 70% interest in the Mothae Diamond Project located in Lesotho, one of the most prolific diamond producing regions in the world. The Mothae project comprises a large, 24.7 square kilometre concession area located adjacent to and directly on trend with the world-famous Letseng diamond mine. Letseng is a high-value, large tonnage, lowgrade diamond mine operated by Gem Diamond Mining Company. Letseng has a reputation for producing very large, high quality type IIA diamonds. The Mothae project hosts a large diamondiferous kimberlite pipe with an estimated surface extent of 8.8 hectares. Mothae's target model is similar to that of Letseng.

During the first half of the year, site establishment was completed including the construction of a bulk sample plant, accommodations, site offices and environmental protection facilities. Following the commissioning of the process plant in February 2008, a total of 24,655 dry tonnes were processed from five distinct kimberlite phases of the Mothae ore body. This material yielded 3,160 stones weighing 1,204.45 carats resulting in an overall grade of 4.98 carats per hundred tonnes (cpht). A total of 58 stones greater than 2 carats, and 13 stones greater than 5 carats were recovered with the three largest diamonds being 10.24, 8.65 and 8.51 carats. At the conclusion of Phase I, the company had earned a 51% interest in the Mothae project through it commitment of US$3.8M.

Based on the diamond recovery information from Phase I, the Company exercised its option to earn an additional 14% interest by contributing US$4.2 million to Phase II of the sampling program. On completion of Phase II, the Company will hold a 65% interest in the Mothae project.

Processing of the Phase II material commenced on the 22nd of August 2008 following the installation of a fines processing circuit to the bulk sample plant. In early October the Company recovered a 23.4 carat type IIa diamond from the Phase 2 sampling program. The diamond is a white anhedral stone that has been confirmed as a type IIa diamond using a frequency specific ultra-violet light type IIa tester developed by the Swiss Gemological Institute. Type IIa diamonds provide a high proportion of the world's highest value stones on account of their exceptional colour clarity, which is ascribed to having no detectable nitrogen within the diamond crystal structure. Type IIa diamonds also typically have a coarse size distribution and can be present as very large stones. The presence of a population of type IIa diamonds in any kimberlite greatly enhances its economic potential.

Additional type IIa diamonds have been identified among the diamonds recovered during the audit of recovery tailings from Phase 1 of the Mothae bulk sample. The Company's original identification of Mothae as a large, low-grade kimberlite suitable to bulk sample was premised on the potential for Mothae to produce such diamonds. The identification of a population of type IIa stones in diamonds recovered from Mothae, and the recovery of the 23.4 carat, white type IIa diamond is a major step forward for the project.

Phase 2 of the Mothae bulk sample program, in which up to 70,000 tonnes of kimberlite will be processed, commenced in mid-August. As of the end of October, 2008, approximately 11,400 tonnes of kimberlite have been processed and 340.81 carats in 545 stones have been recovered. The 23.4 carat type IIa diamond was recovered from the C kimberlite domain of the Mothae pipe. The volumetric extent of domain C is not well constrained. Based on current information, domain C appears to be the largest kimberlite domain within the Mothae pipe, making up approximately one third of the surface area.

Planned maintenance and repair work on the process plant crushing circuit was completed in mid-October. A preliminary valuation of recovered diamonds is planned for December, 2008, and completion of Phase 2 sample processing is anticipated in March, 2009.

In November, 2008 the Company initiated a conceptual study to determine the mining, processing and infrastructure requirements in order to build a mine at Mothae. Mineral Services Canada of North Vancouver has been retained to develop a resource model and JDS Mining and Energy of Kelowna, British Columbia has been retained to develop reserve estimates and a mine design. ADP Projects (Pty) Ltd of Cape Town has been retained as manager of the conceptual study and will develop a proposed overall mine site layout, infrastructure requirements and process and recovery plant flowsheets. Concurrently, an environmental assessment is being completed to support the application for a mining license.

In April, 2008 the Company was pleased to appoint William Lamb as General Manager of the Company. Mr. Lamb has a Masters of Business Administration and brings to the Company over two decades of experience in the mining and mineral processing industry with particular expertise in the diamond sector. Before joining Lucara, Mr. Lamb was the Process Plant Manager for De Beers Canada where he held senior level responsibilities, including the management of process plant operation of the Victor Diamond Mine in Northern Ontario.

In July, 2008 the Company's shares were listed on the TSX Venture Exchange and concurrently delisted from the CNQ Exchange.

Lucara recently completed a Cdn $5 million private placement for ongoing Option agreement commitments on the Mothae project and general working capital purposes.

Management intends to aggressively explore and develop the highly prospective Mothae Diamond Project and continue to evaluate other opportunities in the diamond sector for possible acquisition.

On behalf of the board,


Lukas H. Lundin President and CEO

November 3, 2008

To our shareholders, Lucara Diamond Corp. is pleased to present this report to shareholders on the activities of the Company during the third quarter period ended April 30, 2008.

Mothae Diamond Project, Lesotho

Lucara has an option to acquire up to a 70% interest in the Mothae Diamond Project located in Lesotho, one of the most prolific diamond producing regions in the world. The Mothae project comprises a large, 24.7 square kilometre concession area located adjacent to and directly on trend with the world-famous Letseng diamond mine. Letseng is a high-value, large tonnage, lowgrade diamond mine operated by Gem Diamond Mining Company. Letseng has a reputation for producing very large, high quality type IIA diamonds. The Mothae project hosts a large diamondiferous kimberlite pipe with an estimated surface extent of 8.8 hectares.

Sample processing and diamond recovery at the Mothae project commenced during the quarter. First phase samples totaling 30,000 tonnes are being processed to provide an initial assessment of diamond size distribution and the potential for the Mothae kimberlite to demonstrate a similar model to that of the nearby Letseng diamond mine. Continued sample processing at Mothae of up to an additional 70,000 tonnes will be processed to more accurately assess diamond value if warranted by results of the first phase sampling program.

By the end of the quarter, the Company had processed six samples totaling approximately 16,300 tonnes. Encouraging results have been received from the program with 480 diamonds recovered to date. Total weight of the diamonds is 234.7 carats with seventeen diamonds weighing greater than two carats. The three largest stones are 10.24 cts, 8.65 cts, and 7.60 cts. A detailed evaluation of the diamonds will be commence upon completion of the first phase sample processing program.

Kimberlite from the F and G phases of the Mothae pipe have shown the best diamond potential to date and work is in progress to extract the remainder of the planned 30,000 tonne sample from these two phases.

The diamond recovery process at Mothae involves separating heavy mineral concentrate into various size fractions and then passing this material over a continuous grease belt recovery system. All tailings from the grease belt are retained on site in a secure area. Hand sorting of a limited number of audit samples of grease belt tailings has demonstrated that a number of diamonds are not being recovered in this process. As a result, all grease belt tailings will be reprocessed using an alternative technique in order to complete the recovery process and more reliably establish diamond grades.

In addition, during the quarter, the Lesotho Ministry of Natural Resources approved a one year extension, to June 2009, for the Mothae Prospecting License.

Corporate

The Company has received conditional approval from the TSX-Venture exchange and it is anticipated that conditions for listing will be satisfied in the third calendar quarter of 2008.

Late in the quarter, the Company was pleased to announce the appointment of William Lamb as General Manager of the Company.

Mr. Lamb has a Masters of Business Administration and brings to the Company over two decades of experience in the mining and mineral processing industry with particular expertise in the diamond sector. Before joining Lucara, Mr. Lamb was the Process Plant Manager for De Beers Canada where he held senior level responsibilities at the Victor Diamond Mine in Northern Ontario.

Management intends to aggressively explore and develop the highly prospective Mothae Diamond Project and continues to evaluate other opportunities in the diamond sector for possible acquisition.

On behalf of the board,


Lukas H. Lundin President and CEO

June 5, 2008

To our shareholders,

Lucara Diamond Corp. is pleased to present this report to shareholders on the activities of the Company during the second quarter period ended January 31, 2008.

Mothae Diamond Project, Lesotho

Lucara has an option to acquire up to a 70% interest in the Mothae Diamond Project located in Lesotho, one of the most prolific diamond producing regions in the world. The Mothae project comprises a large, 24.7 square kilometre concession area located adjacent to and directly on trend with the world-famous Letseng diamond mine. Letseng is a high-value, large tonnage, low-grade diamond mine operated by Gem Diamond Mining Company. Letseng has a reputation for producing very large, high quality type IIA diamonds. The Mothae project hosts a large diamondiferous kimberlite pipe with an estimated surface extent of 8.8 hectares.

Sample processing and diamond recovery has commenced at the Mothae project. A first phase 30,000 tonne sample will be processed to provide an initial assessment of diamond size distribution and the potential for the Mothae kimberlite to demonstrate a similar model to that of the nearby Letseng diamond mine. Full commissioning of the kimberlite processing and diamond recovery plant was completed during the week of February 22, 2008 and sample processing commenced on February 25, 2008. The initial 30,000 tonnes of kimberlite is being processed in a series of 5,000 to 10,000 tonne samples taken from various kimberlite phases within the Mothae pipe. The material is being processed through a dense media separation (DMS) plant which operates at a nominal 30 tonnes per hour. The process plant is designed to recover diamonds in various size fractions ranging from +2 mm to -18 mm. Heavy mineral concentrate produced by the DMS plant is passed through a continuous grease belt for diamond recovery, with the exception of the very coarse fraction (+12mm) which will be hand sorted. The current operating schedule plans for the initial 30,000 tonne sample to be completed by September, 2008. Lucara expects to earn its 51 interest prior to mid-calendar year.

Continued sample processing at Mothae of up to an additional 70,000 tonnes will be processed to more accurately assess diamond value if warranted by results of the first phase sampling program.

Management intends to aggressively explore and develop the highly prospective Mothae Diamond Project and continue to evaluate other opportunities in the diamond sector for possible acquisition.

Corporate

To more fully reflect the new direction and growth of the Company, an application has been made for listing on the TSX Venture Exchange.

On Behalf of the Board

Lukas H. Lundin
President and CEO

March 6, 2008