Mr. William Lamb reports

LUCARA ANNOUNCES A NEW MULTI-YEAR DIAMOND SALES AGREEMENT WITH HB ANTWERP

Lucara Diamond Corp. has entered into a new diamond sales agreement with HB Group out of Antwerp, Belgium, in respect of all qualifying diamonds produced in excess of 10.8 carats in size from its 100-per-cent-owned Karowe diamond mine in Botswana.

Under the terms of the 10-year NDSA with HB, the purchase price paid for Lucara's 10.8-plus-carat rough diamonds shall be based on the mutual agreement of the estimated polished outcome, determined through state-of-the-art scanning and planning technology, together with external benchmarks and more than a decade of Lucara's special stone sales data. A further sales value uplift (top-up) will be paid to Lucara based on actual achieved polished sales thereafter, less a fixed margin payable to HB. This pricing mechanism is expected to deliver regular cash flow for this important segment of the company's production profile at better-than-conventional diamond industry tender prices.

The anticipated benefits of the NDSA to Lucara include:

• Regular cash flow to Lucara in support of the continuing development of the Karowe underground project;
• Significant potential revenue upside, especially for large complex rough diamonds, based on historical performance, providing a premium on diamond sales benefiting all Karowe mine stakeholders;
• Continuing alignment with the government of Botswana's strategy to diversify downstream and participate in the upside of polished diamond revenue;
• Streamlined diamond evaluation, sales reporting and payment mechanisms;
• The creation of an efficient and restructured, large, and high-quality diamond supply chain, which has the potential of meeting the demands of high-value brands.

The NDSA is subject to the approval of the company's project lenders. Upon such approval, the agreement terms will be effective retroactively from Dec. 1, 2023. Since that time, Lucara has continued to supply qualifying rough diamonds to HB to finance its operations and the Karowe underground project.

William Lamb, president and chief executive officer, commented: "As we navigate through the ever-evolving landscape of the diamond industry, I'm pleased to announce Lucara's strategic decision to re-enter into a long-term supply agreement with HB Antwerp. This partnership reflects our commitment to ensuring stability and sustainability in our operations. Our collaboration with HB Antwerp presents an opportunity to further enhance our position in the market, building on the knowledge of the past and the understanding of the quality of the polished diamonds produced from our Karowe diamonds. We remain steadfast in our dedication to delivering exceptional quality and premium value from our diamonds to all stakeholders, even amidst external pressures. Together, we will continue to uphold the legacy of excellence that defines Lucara's journey in the world of diamonds."

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 which ensures 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 the World Bank Group's Environmental, Health and Safety Guidelines for Mining (2007). Accordingly, the development of the Karowe underground 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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