A New Diamond Producer

A New Diamond ProducerScotia Mining Conference29 November 2012

Cautionary StatementForward-looking informationThis document contains statements about expected or anticipated future events and financial results of Lucara that are forward-looking in natureand are based on Lucara’s current expectations, estimates and projections. This forward-looking information is subject to certain risks anduncertainties, such as legal and political risk, civil unrest, 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 orchanges in plans, the occurrence of unexpected events and management’s capacity to execute and implement its future plans. The actual results,activities, performance or achievements of Lucara may differ materially from those projected by management. A discussion of factors that mayaffect Lucara's actual results, performance, achievements or financial position is contained in the filings by Lucara with the Canadian provincialsecurities regulatory authorities, including Lucara's 2011 annual MD&A filed on March 22, 2012 on the system for electronic document analysis andretrieval (“SEDAR”) at www.sedar.com.Technical informationThe technical information in this document for the Mothae diamond project in Lesotho (“Mothae”) and the AK6 diamond project in Botswana(“AK6”) is based on the following technical reports, respectively:Mothae Kimberlite Project, Lesotho, Independent Technical Report Prepared by MSA Geoservices (Pty) Ltd on behalf of Motapa Diamonds Inc.,dated February 12, 2007NI 43-101 Technical Report on the Feasibility Study for the AK6 Kimberlite Project, Botswana Prepared by MSA Geoservices (Pty) Ltd on behalf ofLucara Diamond Corp., dated December 31, 2010The authors of these technical reports are independent of the Company and are qualified persons for the purposes of National Instrument 43-101 –Standards of Disclosure for Mineral Projects (“NI 43-101”). The technical reports are available for review on SEDAR at www.sedar.com.2

Achieving ObjectivesKarowe• Operations at Karowe are running well with design capacity beingachieved in August 2012• Four sales of diamonds conducted, generating revenues of morethan $42 millionMothae• Trial mining phase completed in September 2012• Preliminary Economic Assessment being completed to assess theeconomic viability and options for the full scale development ofMothae.3

Capital Structure• Listed Exchanges under Symbol “LUC”• TSX• OMX (Sweden)• BSE (Botswana)• Issued share 376M• Fully diluted shares 380M• Options• Warrants• Convertibles4.3M (C$ 0.93 WA exercise price)NilNil• Market Cap C$ 237 million (Nov, 2012)• Debt US$ 50 million4

African Focus60% of worlds rough diamondoriginate from Africa17Kimberlite Mines and Projects1. Catoca2. Letlhakane3. Orapa4. Damtshaa5. Williamson6. Murowa7. Venetia8. Cullinan9. Ghaghoo10. Jwaneng11. Finsch12. Kimberley13. Koffiefontein14. Letseng15. Liqhobong16. Kao17. KoiduKarowe Mine, Botswana100% LucaraProduction start Q2 201212349101112131415165678Mothae Project Lesotho75% LucaraPEA Complete Q4, 2012Archons: Archean areas(3,500 – 2,500 million years old)Procons : Early and middleproterozoic areas(2,500 – 1,500 million years old)Tectons: Late proterozoic areas(1,500 – 600 million years old)5

Karowe MineWhen Lucara acquired a stake in theKarowe project in Q4, 2009 it was simplytwo sample trenchesAfter completing construction of themine over an 18 month period, the minehas been ramped up to design capacity in5 months.6

Karowe – The PlantThe Karowe ProcessingplantMill and crushed orestockpileDMS, Recovery, Sorthouseand tailings Systems8

Karowe MineStatus Update• Management and operations team fullystaffed• Mine is currently running at or abovedesign capacity• Process water being effectively managed• Four diamond sales have taken place thisyear with gross revenues of >$42 million• Additional water resources currentlybeing identified• New Gaborone sales and marketing officecommissioned in September 2012HardrockProcessing9

Carats Sold$ 5.64 million$ 6.52 million$ 13.40 million$ 17.1 millionKarowe MineDiamond Sales• First two sales held with viewing inGaborone only• Third and fourth sale in Sep and Novwith viewing in Gaborone and Antwerp– increased client viewings by >150%• Larger parcel of diamonds for third andfourth sale provided greaterconsistency of qualities resulting inbetter quality sales lot assortments70,00060,00050,00040,00030,00020,000Karowe Diamond Sales and Revenue• Sales cycles will be adapted to ensureoptimal client parcel size and numberof client viewings10,0000Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-1210

Karowe MineKarowe DiamondsDiamond Sorters• Confirmed recovery of TypeIIa diamonds from Karowe• Resource performingaccording to expectations5 – 10 carat High White11

Karowe MineKarowe Diamonds9.46 carat Blue Diamond• Sold on tender for $4.5 millionor $477,272 per carat12

Karowe MineSafety, Health, Environmental and Socio-Economic• Exemplary safety record with 2.6 million man hours without alost time injury (March 2010)• Government approved EIA and EMP• Global Reporting Initiative (“GRI”) reporting commenced• Good relationships with local communities• All senior management and technical staff are Botswananationals• Lundin Foundation currently evaluating sustainable projectinitiatives13

Mothae Mine Objectives• Trial Mining complete in September 2012 – site put on care andmaintenance• Three diamond sales with gross revenues of $16.1 million• Preliminary Economic Assessment ongoing – Complete Q1, 2013– completion of a 5,630 meter delineation drill program to extend the geologic and resource modelto a depth of 300 meters,– completion of an Environmental Impact Assessment report and corresponding EnvironmentalManagement Plan,– ore dressing studies, together with systematic data collection from processing hard(unweathererd) kimberlite to facilitate process plant design and diamond recovery grademodelling,– site layout and infrastructure review, including water and power options.– capital and operating cost estimate supported by detailed flow sheets and engineering• Updated NI43-101 Technical Report will be completed in Q1, 201314

Mothae Mine UpdateMothae Diamonds84ct Type Ia recovered in two pieces 56.5ct Type IIa – Sold for $ 2.09M($ 37,019 per carat)3gr Run-of-mine13.8ct Type IIa – Sold for $ 530,400($ 43,000 per carat)28.9ct Type IIa – Sold for $ 1.65M($ 57,113 per carat)15

Shareholder Value• Joined the exclusive club of diamond producers– Karowe Mine – achieved design capacity in Q3, 2012– Production of approx. 400,000 cts per annum, ~272,000 cts in 2012– Mothae - strong diamond sales value and advanced project study• World class assets with significant upside– Occurrence of Type II and larger diamonds– Significant reserve upside• Experienced management and Board• Lundin Group Company focused on growth and shareholdervalue16

AddressPhone and FaxEmail and WebContact InformationSuite 2000885 West Georgia St.Vancouver, B.C.CanadaV6C 3E8Ph. 604-689-7842Fx. 604-689-4250lucara@namdo.comwww.lucaradiamond.com17

320m430mKarowe MineReserve and Resource(as at Jan 2011)• Reserve– 38 M tonnes– 6.1 M carats• Indicated Resource to 400m– 51 M tonnes– 8.2 M carats• Inferred Resource to 750mCurrent MiningActivityWeatheredKimberliteUnaltered Kimberlite– 21 M tonnes– 4.0 M caratsDiluted Kimberlite(Carats calculated at 1.5mm bottom cut-off size)18

Management and DirectorsWilliam Lamb – President & CEO, Director– Manager of De Beers’ Victor diamond mineprocessing facilities with over 20 years ofexperience in the diamonds and mineralprocessing industryLukas Lundin – Chairman– Internationally recognized financier andhead of the Lundin Group of CompaniesDr. Larry Ott – VP Exploration– Former CEO of Motapa Diamonds withover 30 years diamond and naturalresource exploration experienceTony George – VP Development– A professional engineer with over 30 yearsof experience in the mining industry –General Manager at Victor diamond minewhich was voted best mine worldwide in2009Glenn Kondo – CFO– A CA with 20 years experience in theresource industry and the financialservices sectorEira Thomas – Director– A respected Canadian geologistresponsible for the discovery of the DiavikDiamond project in the NWTPaul Conibear – Director– A professional engineer with over 20 yearsexperience in heavy industrial miningprojects Instrumental in the developmentof Tenke Fungurume in the DRCBrian Edgar – Director– A securities lawyer active in the publicmarkets for over 25 yearsDr. John Gurney – Director– One of the world’s leading authorities inthe field of geochemical exploration fordiamondiferous kimberlitesRichard Clark – Director– A securities lawyer from 1987 to 1993. Asenior executive with the Lundin Group ofCompanies. Previously President of RedBack Mining.19