Karowe Diamond Mine Botswana NI 43-101 Independent Technical Report (Amended)* Prepared on Behalf of Lucara Diamond Corp. Suite 2000 885 West Georgia Street Vancouver, BC Canada V6C 3E8 Prepared By: Michael Lynn PrSciNat, FGSSA Dr Tom Nowicki P.Geo Michael Valenta P.Eng (Int) FSAIMM Beric Robinson P.Eng Mark Gallagher P.Eng Robin Bolton PrSciNat John Sexton QV Effective Date: 31 December 2013 Report Date: Revision 01 4 February 2014 *This report has been amended due to a transcription error identified in Table 14-20 in which the average values of diamonds in the 3-6 Gr and 8-10 Gr size categories were misstated. This error has been corrected. Table of Contents 1 SUMMARY ....................................................................................................................... 10 1.1 Introduction ........................................................................................................................................................... 10 1.2 Property Location and Description ............................................................................................................... 10 1.3 Geology ................................................................................................................................................................... 12 1.4 Mineral Resources ............................................................................................................................................... 14 1.5 Mineral Reserves .................................................................................................................................................. 15 1.6 Plant Upgrades ..................................................................................................................................................... 17 1.7 Conclusions and Recommendations ........................................................................................................... 18 1.7.1 Risks ............................................................................................................................................................. 18 1.7.2 Recommendations ................................................................................................................................. 20 2 INTRODUCTION .............................................................................................................. 21 2.1 Scope of Work ...................................................................................................................................................... 21 2.2 Previous Technical Reports .............................................................................................................................. 21 2.3 Qualified Persons and Site Visits ................................................................................................................... 21 2.4 Principal Sources of Information ................................................................................................................... 23 3 RELIANCE ON OTHER EXPERTS ..................................................................................... 24 4 PROPERTY DESCRIPTION AND LOCATION .................................................................. 24 4.1 Overview of Botswana ....................................................................................................................................... 24 4.1.1 Types of Mineral Licence in Botswana ........................................................................................... 24 4.1.2 Fiscal Regime in Botswana .................................................................................................................. 25 4.2 Issuer’s Title, Location and Demarcation of Mining Licence .............................................................. 25 4.3 Permitting Rights and Agreements Relating to the Karowe Mine ................................................... 28 4.3.1 Surface Rights .......................................................................................................................................... 28 4.3.2 Taxes and Royalties ............................................................................................................................... 28 4.3.3 Obligations ................................................................................................................................................ 28 4.3.4 Environmental Liabilities ...................................................................................................................... 29 4.3.5 Permits ........................................................................................................................................................ 29 4.3.6 Legal Challenge ....................................................................................................................................... 29 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................................. 30 5.1 Accessibility ............................................................................................................................................................ 30 5.2 Access ....................................................................................................................................................................... 30 5.3 Climate ..................................................................................................................................................................... 30 5.4 Infrastructure and Local Resources .............................................................................................................. 31 NI 43-101 Technical Report on the Karowe Mine (Amended) – February 4 2014 Page: II 6 HISTORY ........................................................................................................................... 32 6.1 Early Work: De Beers Prospecting Botswana (Pty) Ltd and De Beers Botswana Mining Company (Pty) Ltd. .............................................................................................................................................. 32 6.2 Debswana Diamond Company (Pty) Ltd, PL17/86 ................................................................................. 32 6.3 De Beers Prospecting Botswana (Pty) Ltd, PL1/97 ................................................................................. 33 6.4 De Beers Prospecting Botswana (Pty) Ltd, PL13/2000 .......................................................................... 33 6.5 The Boteti Joint Venture ................................................................................................................................... 33 6.6 Boteti Exploration (Pty) Ltd and Boteti Mining (Pty) Ltd ...................................................................... 33 7 GEOLOGICAL SETTING AND MINERALIZATION .......................................................... 35 7.1 Local and Regional Geology ........................................................................................................................... 35 7.2 Property Geology ................................................................................................................................................ 37 7.3 Kimberlite Geology ............................................................................................................................................. 37 7.3.1 Calcretised kimberlite (CKIMB).......................................................................................................... 40 7.3.2 Weathered kimberlite (WK) ................................................................................................................ 40 7.3.3 Basalt breccia (BBX/KBBX) ................................................................................................................... 41 7.3.4 North Lobe kimberlite units ............................................................................................................... 41 7.3.5 Centre Lobe kimberlite units .............................................................................................................. 41 7.3.6 South Lobe kimberlite units ............................................................................................................... 42 8 DEPOSIT TYPES ................................................................................................................ 44 9 EXPLORATION ................................................................................................................. 46 9.1 Exploration approach and methodology ................................................................................................... 46 9.2 Geophysical Surveys ........................................................................................................................................... 47 10 DRILLING .......................................................................................................................... 49 11 SAMPLE PREPARATION, ANALYSES AND SECURITY .................................................. 51 11.1 Reverse Circulation, 12¼" Drilling ................................................................................................................ 51 11.2 Reverse Flood, 12¼" Drilling .........................................................................................................................