VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Lucara Diamond Corp.("Lucara" or the "Company") (TSX VENTURE:LUC) is pleased to announce that, further to the press release of December 16, 2009 announcing the closing of the $110 million private placement of subscription receipts, it has satisfied the escrow release conditions in accordance with the terms of the subscription receipt agreement. Accordingly, the net proceeds of the offering have been released to the Company and the subscription receipts shall be converted in common shares on a one-for-one basis. The Company intends to use the net proceeds of the offering to fund commitments related to the AK6 diamond project acquisition, for ongoing exploration and development activity and for general corporate purposes.

The 110 million common shares issuable on conversion of the subscription receipts will be subject to a hold period in accordance with applicable Canadian securities laws expiring on April 17, 2010.

The private placement was led by GMP Securities L.P. and included Canaccord Capital Corporation, BMO Nesbitt Burns Inc., Cormark Securities Inc., Haywood Securities Inc. and PI Financial Corp.

On Behalf of the Board,

William Lamb
President and COO

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-looking statements: This press release contains statements about expected or anticipated future events, including the completion of the transactions contemplated by the acquisition, satisfaction of the escrow release conditions, use of proceeds, and development and production activities on the AK6 project, 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 in Botswana and the other locations in which the Company operates; the availability of financing on commercially reasonable terms; technical issues; new legislation in Botswana and the other locations in which the Company operates; competitive factors and conditions; the uncertainties resulting from potential delays in development or changes in plans; the occurrence of unexpected events and management's capacity to finance, execute and implement its future plans. Actual results may differ materially from those projected by management.