Lucapa Diamond Company Limited and its partners Empresa Nacional de Diamantes E.P. (Endiama) and Rosas & Petalas provided an update on exploration activities at the Lulo Diamond Project in Angola. These exploration activities include both kimberlite exploration and alluvial resource expansion work programs, which are being conducted in parallel with the ongoing alluvial diamond mining operations at Lulo. The kimberlite exploration program aims to locate the source, or sources, of the large premium-value alluvial diamonds being mined at Lulo. The Lulo kimberlite drilling program has focused on the priority targets in the area near the high-value Mining Block 8, which has been a regular source of large valuable alluvial diamonds of up to 404 carats. Drill targeting remains results driven and the list of priority drilling targets may be revised once the results of the helicopter-borne Time-Domain Electromagnetic ("TDEM") survey are received and analysed by the Lulo geological team. This TDEM survey will be flown over the Cacuilo River and valley area at Lulo to help identify any additional non-magnetic kimberlite targets and to improve the definition of known targets. Due to permitting delays, this survey is now scheduled to be flown in the March 2017 Quarter, weather permitting. The drilling program will be expedited further with the arrival on site of the new track-mounted Hanjin D&B35 rig. The sequencing of target drilling during the Angolan wet season will continue to remain conditional on access and ground conditions. In addition to the kimberlite exploration, alluvial pitting, trenching and auger drilling programs have been conducted at Lulo to open up new mining blocks to expand and update the JORC alluvial resource. A total of 488 exploration pits and 130 auger drill holes were completed in the September and December 2016 Quarters. These programs focused on proving up extensions to Mining Blocks 6 and 8 and establishing a new area of alluvial gravels at Mining Block 28, located ~ 4km south (upstream) of Mining Block 8. Preliminary bulk sampling of alluvial gravels from the new Mining Block 28 area produced two +20 carat diamonds, including a 24 carat Type IIa D-colour gem. Gravels from the E41 and E57 alluvial terraces near E46 were also pitted, auger-drilled and bulk sampled. This drilling and sampling information has been provided to ZStar Mineral Resource Consultants of Cape Town, South Africa, for the purposes of updating the Lulo JORC alluvial diamond resource. The updated resource is expected to be released in the March 2017 Quarter. Alluvial resource exploration and expansion programs will continue as planned at Lulo in parallel with the ongoing alluvial mining operations. This will allow Lucapa and its partners to update the JORC alluvial resource annually.