Mr. William Lamb reports

LUCARA ANNOUNCES Q3 2023 RESULTS; STRONG REVENUE SUPPORTS CONTINUED DEVELOPMENT OF THE UNDERGROUND EXPANSION

Lucara Diamond Corp. has released its results for the quarter ended Sept. 30, 2023.

Third quarter 2023 highlights:

• Revenue for the quarter ended Sept. 30, 2023, totalled $56.9-million, a 14-per-cent increase from Q3 2022.
• The Q3 2023 operating cash cost of $28.62 per tonne of ore processed was well below the expected annual operating cash cost range of $32.50 to $35.50 per tonne of ore processed.
• All key operational metrics were achieved against plan, with 900,000 tonnes of ore and 1.0 million tonnes of waste mined, 700,000 tonnes of ore processed, and 98,311 carats recovered from direct milled ore.
• Cash flow generated from operating activities was $15.9-million.
• A 1,080-carat Type 2A white gem quality diamond was recovered from Karowe in August, the fourth 1,000-plus-carat stone recovered from the Karowe mine. A 692-carat Type 2A diamond was also recovered later that month.
• An investment of $20.3-million in the Karowe underground project in Q3 2023 focused on sinking and grouting programs in the ventilation and production shafts. Grouting progressed well in both shafts during the quarter, and sinking rates were significantly higher than in previous quarters.
• Changes were made to 2023 guidance for revenue, diamond sales, ore and waste tonnes mined, and total operating cash costs per tonne processed.

William Lamb, president and chief executive officer, commented: "The third quarter results for the company were very good when considering market dynamics and the current state of the diamond sector. During this period of market weakness, the company is focusing on operational efficiency and key management positions, starting with the promotion of Jennifer Harmer to VP, finance. Jennifer's knowledge and understanding of the company's operations and projects will be invaluable as we move forward."

Mr. Lamb further added: "Lessons learned in previous quarters of underground shaft sinking and development have been successfully converted into knowledge which is delivering weekly sinking rate records. Good progress has been made with the company's lenders on the rebase amendment. A progress update will be provided before the end of the fourth quarter."

2023 outlook

Diamond revenue guidance does not include revenue related to the sale of exceptional stones (an individual rough diamond which sells for more than $10-million), or the Sethunya.

Changes were made to the company's 2023 guidance for revenue, diamond sales, ore and waste tonnes mined, and total operating cash costs per tonne processed, which were released in December, 2022.

Revisions to diamond revenue guidance reflect changes to the sales mechanism for the rough diamonds larger than 10.8 carats in size following the termination of the company's agreement with HB, combined with global rough diamond market impacts. Revenue is expected to be lower than initial guidance as the company looks at the timing of sales of its goods greater than 10.8 carats in size.

Tonnes mined have been adjusted to reflect the acceleration of mining in the open pit, which has been implemented to reach high-value ore from the south lobe earlier in the mine plan, as well as to optimize costs. Following the expected completion of processing of the ex-pit material, in first quarter 2026, the plant will transition to processing stockpiled material until the delivery of ore from the underground expansion project begins in first quarter 2028.

In 2023, capital cost expectations for the underground expansion remain at $105-million. As a result of the rebase announced in July, 2023, a review of sustaining capital and project expenditures related to the open-pit mining operations commenced. Sustaining capital and project expenditures may be up to $16-million in 2023, previously up to $20-million.

Conference call

The company will host a conference call and webcast to discuss the results on Monday, Nov. 13, 2023, at 9 a.m. Pacific Time, 12 p.m. Eastern Time, 5 p.m. United Kingdom time, 6 p.m. Central European Time. To join the conference call, please use the phone numbers listed below.

Conference ID:  42548403/Lucara Diamond

Dial-in numbers

Toll-free participant dial-in North America:  1-888-390-0605

United Kingdom toll-free:  0800-652-2435

Local Toronto:  1-416-764-8609

Webcast

A live webcast presentation will be available.

The presentation slide show will also be available in PDF format for download from the Lucara website.

Conference replay

A replay of the telephone conference will be available two hours after the completion of the call until Nov. 20, 2023. The passcode for the replay is 548403 followed by the number sign.

Replay number (toll-free North America):  1-888-390-0541

Replay number (local):  1-416-764-8677

About Lucara Diamond Corp.

Lucara is a leading independent producer of large exceptional-quality Type 2a diamonds from its 100-per-cent-owned Karowe diamond mine in Botswana. The Karowe mine has been in production since 2012, and is the focus of the company's operations and development activities. Clara Diamond Solutions Limited Partnership, a wholly owned subsidiary of Lucara, has developed a secure, digital sales platform that uses proprietary analytics together with cloud and blockchain technologies to modernize the existing diamond supply chain, driving efficiencies, unlocking value and ensuring diamond provenance from mine to finger. Lucara has an experienced board and management team with extensive diamond development and operations expertise. Lucara and its subsidiaries operate transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations. Lucara has adopted the IFC Performance Standards and World Bank Group's Environmental, Health and Safety Guidelines for Mining (2007). Accordingly, the development of the Karowe underground expansion project adheres to the Equator Principles. Lucara is committed to upholding high standards while striving to deliver long-term economic benefits to Botswana and the communities in which the company operates.

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