- Construction is underway at the Boteti AK6 Mine in Botswana to deliver diamond production in 2012. The mine is located near existing large diamond mines. - The resource estimate for AK6 is 51 million tonnes at 16 carats per hundred tonnes for over 8 million carats in the indicated category. - Plans are in place for a 2.5 million tonne per year open pit mine and process plant. Commissioning is scheduled for late 2011 and commercial production in 2012. Project financing is being arranged and diamond marketing agreements made with the government.

1. Boteti AK6 Mine
Construction underway to deliver
diamond production in 2012
Mining in Botswana Conference
18-20 October 2010
The Grand Palm, Gaborone
Presented by: James AH Campbell
Boteti & African Diamonds

2. Agenda
• Diamond market
• Botswana
• Management
• Timeline to a mine
• Corporate transaction
• Resource
• Development plan
• Process plant
• Manpower
• Development timeline
• Opportunities
• Diamond marketing
• Project finance

3. Diamond Market
• Sustained recovery in diamond
prices
• Significant supply shortfall
expected from 2012 which will
drive demand:
– Lack of significant new diamond
discoveries
– Current mines ageing
• Destocking of cutting centres
and return of bank finance are
stimulating cutting centre
demand for rough
• Rough prices have returned to
their all time high

4. Still the Best Address in Diamonds: Botswana
• One of the best countries to do business in
Africa:
– Consistently one of the highest
sovereign credit ratings in Africa
• Largest diamond producer by value in the
world, with 3 large operating diamond
mines, all run by Debswana:
– Produced 32M carats in 2008
– Orapa mine is the 2nd largest diamond
mine in the world
– Jwaneng is the richest mine in the
world, with a P/R ratio in excess of
80%.
– Letlhakane mine is located close to the
AK6 mine.
– Damtshaa (4 kimberlites), currently on
care and maintenance

5. AK6 Location
AK6 is proximal to some of Botswana’s largest diamond mines
5
AK6
15km

6. Strong Financial, Technical &
Diamond Specific Experience
William Lamb – President & CEO and Director, Lucara
• Manager of De Beers’ Victor diamond mine processing
facilities with over 19 years of experience in the diamonds
and mineral processing industry
Dr. Larry Ott – VP Exploration and Director, Lucara
• Former CEO of Motapa Diamonds with over 30 years
diamond and natural resource exploration experience
Tony George – VP Development, Lucara and AK6 Project Director
• A professional engineer with over 30 years of experience in
the mining industry – General Manager at Victor diamond
mine which was voted best mine Canada in 2008
James Campbell – Managing Director, African Diamonds
• Over 25-years diamond and natural resource experience
• Former General Manager at De Beers and Personal Assistant
to Nicky Oppenheimer
Alex van Zyl – Technical Director, African Diamonds
• Over 40-years diamond and natural resource experience
• Former Consulting Geologist to Anglo American and De Beers
Ribson Gabonowe – CEO, Boteti Mining
• Previously CEO of AFD’s wholly owned Botswana subsidiary
• Formerly Director of Mines for the Government of Botswana
Currently (ie. pre-transaction), the Boteti JV is owned 60% by Lucara Diamond
Corporation, listed in Toronto TSX Venture Exchange, and 40% by African Diamonds plc
which is listed on the London AIM market and the Botswana Stock Exchange.
Lucara is a Lundin Group company and is the operator.

7. AK6 – Timeline to a Mine
• 1969: Discovery
• 2004: Re-assessed by AFD & De Beers
as a result of new geophysics &
drilling technology
• 2008: Mining License approved by
Government of the Republic of
Botswana (‘GRB’)
• 2009: De Beers sold their share in
Boteti to Lucara
• 2010 (June): Updated Feasibility
Study completed, which included
updating the EIA and EMP to be
aligned with Equator Principles
• 2010 (July): EPCM awarded:
DRA Africa Pty Ltd
• 2010 (Aug): ordering of long-lead
items
• 2010 (Sept): Civils and earthworks
contractor mobilized to site
• 2010 (Q4): Lucara buy out AFD
• 2011 (Q4): Commissioning
scheduled
• 2012: Commercial production
Bulk Sampling on AK6

8. Corporate Transaction
• Lucara to acquire AFD
• Consideration of 0.8 of a Lucara share and 1 share
in Botswana Exploration plc for every 1 share in
AFD
• Lucara and Botswana Exploration will seek a listing
on the Botswana Stock Exchange.
• Post transaction, AFD shareholders will hold
26.57% of Lucara. Lucara also has a 75% stake in
the Mothae Diamond Mine in Lesotho and will own
100% of AK6.
• The enlarged company will have a market
capitalisation of c.US$240M.

9. The AK6 Resource
Classification
+1.5mm
(+1mm)
Lobe Tonnes
(million)
Grade
(cpht)
Carats
(000’s)
US$
/ct
Indicated
(0-400m)
Centre /
North
11.1 20
(26)
2,220
(2,886)
276
(223)
South 40.1 15
(20)
6,019
(8,026)
231
(183)
Total 51.2 16
(22)
8,239
(11,046)
243
(194)
3D Model of AK6 kimberlite
Classification
+1.5mm
(+1mm)
Lobe Tonnes
(million)
Grade
(cpht)
Carats
(000’s)
US$/ct
Inferred
(400-720m)
Centre /
North
0.2 15
(20)
32
(42)
276
(223)
South 20.7 14
(19)
2,960
(3,946)
231
(183)
Total 20.9 14
(19)
2,992
(3,988)
231
(183)

10. Parameters Description
Mine Life 12 yrs
Mining Method Open-pit (contract mining)
Phase I Production
Phase II Expansion
2.5 Mt/yr starting 2012 (full
production)
4.0Mt/yr starting 2016
Reserve 38Mt @ 16cpht (1.5mm BCOS)
Capex (June, 2010)
Phase I
Phase II
(incl.14% Contingency)
US$ 120 million
US$ 36 million
Operating Cost US$ 17.51/t ore - average
GRB Royalty 10% of gross revenue
AK6 Development Plan
3D Model of Open Pit
3D Model showing AK6 Life of
Mine open pit

11. Process Plant
Slimes Dam
Return
Water Dam
Waste Dump
Recovery Plant
Mill Fed
Stockpile
Tipping Bin and
Primary Crusher
Pebble Crusher
AG Mill
DMS Plant
Mine Offices
& Security
Stockpiles
Tailings

12. Manpower
• Key local
appointments:
– CEO
– GM
– HR Manager
– SHE&CR
Manager
– Office Manager
– CFO (pending)
• Offices:
– Diamond
Technology
Park, Gaborone
– Letlhakane

13. AK6 Development Timeline
2010 2011 2012
H1 H2 H1 H2 H1 H2
Feasibility Study Update & EPCM
Awarded
Civils / Earthworks Contractor
Mobilized to Site
Access Road Construction
Power Line Construction
Project Engineering
Project Construction
Commissioning
Production

14. Variable Current Opportunity
Diamond Value Modelled: US$243/ct
Expected: USD250/ct+
Increased diamond price
Confirmation of rare high value
Type II diamonds
Increased stone value
Evidence of larger stones Increased revenue
Grade 16cpht (+1.5mm) Conservative estimate & autogenous milling will
liberate more diamonds.
The grade of the South lobe could be up to 40%
higher due to diamond breakage and lock-up in
the sampling programme
Reserve Bottom of open pit is currently
336m
The Indicated Resource exists down to 400m,
with an Inferred Resource down to 750m, so
plenty of opportunity to deepen the pit
AK6 Opportunities

15. AK6 Diamond Marketing
• Marketing clauses in Mining License
agreed with GRB and diamonds will
be sold through:
– Open tender process
– Negotiated exclusivity contract
• Standard 10% royalty on diamond
sales paid on actual sales price
• Government Diamond Valuer (‘GDV’)
will value Boteti goods prior to any
sale
• Discussions advanced with
diamantaires in terms of a marketing
framework
AK6 Run-of-mine diamonds
AK6 Large & High
Quality Diamonds

16. AK6 Project Finance
• Process:
– Long list of institutions approached
– Short list produced following detailed discussions
– Detailed discussions on indicative terms
– Standard Chartered Bank (‘SCB’) awarded mandate as lead
project financier
• Opportunity to access preferential Export Credit
Insurance Corporation (‘ECIC’) rates in addition to
standard commercial terms

17. Summary
• AK6 mine on track for commissioning end
2011 and commercial production 2012
• General diamond marketing conditions
concluded with GRB
• Lead bank appointed for project financing
• Key local appointments made
• Strong demand fundamentals

18. Any Questions?