• Newsroom

News Releases

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 26, 2008) - Lucara Diamond Corp. (TSX VENTURE:LUC) and partner Motapa Diamonds Inc. (TSX VENTURE:MTP) are pleased to announce completion of an audit of diamond recovery tailings from the Phase 1 bulk sampling program at the Mothae project in Lesotho. Reprocessing of diamond recovery tailings resulted in recovery of an additional 620.92 carats of diamonds in 1,851 stones. This brings the total diamond recovery from the Phase 1 program to 1,204.45 carats in 3,160 stones. Based on revised survey and weightometer data, total kimberlite tonnage processed in Phase 1 was 24,655.46 dry tonnes, resulting in a revised overall grade estimate of 4.89 carats per hundred tonnes (cpht) for the sample. A total of 58 stones greater than 2 carats, and 13 stones greater than 5 carats have been recovered with the largest three diamonds being 10.24, 8.65 and 8.51 carats.

Samples from various kimberlite domains within the Mothae pipe produced considerable variation in diamond grades. The general distribution of these kimberlite domains at the surface can be viewed on Motapa's website at www.motapadiamonds.com. One sample from each of the F and G domains, located in the southeast part of the pipe produced sample grades of 6.85 cpht and 6.58 cpht respectively. Two separate samples from the C2 domain which occupies the central portion of the pipe produced grades of 4.66 cpht and 2.81 cpht. A sample from the A1 domain located on the southeast margin of the pipe produced 2.84 cpht, and one sample from the C1 domain located on the western margin of the pipe produced 2.38 cpht. Within the Mothae pipe, the relative volumes of each of the kimberlite domains are not well understood at this stage and so the indicated grade of 4.89 cpht represents an average grade of the Phase 1 bulk sample and not necessarily an average grade for the entire pipe.

The tailings audit process consisted of multiple passes of diamond recovery tailings through the process plant's continuous grease belt followed by re-processing the tailings through a Debex EVE x-ray recovery unit, that was mobilized to the site for this audit. Operating parameters for the grease belt were modified based on diamond recovery characteristics observed during the initial processing and this has resulted in substantially increased diamond recovery efficiency. These improvements in recovery efficiency are being carried through for processing in Phase 2 of the bulk sampling operation. Phase 2 of the bulk sampling program, in which up to an additional 70,000 tonnes of kimberlite will be processed, has commenced. Mining and stockpiling of kimberlite is in progress. Certain modifications to the process plant are also underway and it is expected that kimberlite processing and diamond recovery will commence in the first half of September.

Dr. Larry Ott, CEO of Motapa, commented that "we consider the results of this audit to be outstanding, with the indicated diamond grade for this sample greatly exceeding our expectations. The improved diamond grade, together with the coarse stone size distribution of Mothae diamonds substantially increases our confidence in Mothae's economic potential."

The sampling program is being carried out under the supervision of Dr. Tom Nowicki of Mineral Services Canada, a Qualified Person in terms of NI43-101.

Lukas H. Lundin, President and CEO

Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.