Mr. William Lamb reports

LUCARA ANNOUNCES CLOSING OF US$350.0 MILLION BOND FINANCING AND REPAYMENT OF PROJECT DEBT

Lucara Diamond Corp. has successfully closed its previously announced private placement of $350-million (U.S.) of senior secured bonds (see March 12, 2026, news release). The bonds have a tenor of five years and will have a fixed coupon rate of 12.5 per cent per annum, with interest payable in quarterly instalments. The net proceeds from the bond issuance have been applied to fully repay the company's existing $220-million (U.S.) senior secured project finance facilities with its previous lending syndicate. The remaining proceeds will be used to finance a dedicated debt service retention account covering two years of interest on the bonds and to support the continued development of the Karowe underground project (UGP).

With the closing of the bond financing, which includes the ability to tap for a further $50-million (U.S.) and the option to add a $50-million (U.S.) revolving credit facility (RCF), Lucara now has sufficient access to capital to advance the UGP through to completion, subject to execution in line with current expectations as outlined in the company's updated feasibility study prepared in accordance with National Instrument 43-101 (see Jan. 30, 2026, news release).

William Lamb, president and chief executive officer, commented: "This financing marks a pivotal milestone for Lucara, significantly strengthening our balance sheet and providing the financial certainty required to advance the UGP through to completion. The successful placement of $350-million (U.S.) in senior secured bonds, alongside the full repayment of our existing project debt, simplifies our capital structure while enhancing our liquidity and financial flexibility. Importantly, the additional capacity through the tap option and potential RCF provides further strategic headroom as we execute on the next phase of underground development."

About Lucara Diamond Corp.

Lucara is a leading independent producer of large, exceptional-quality Type IIa 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. Karowe is transitioning from open-pit to underground mining with the development of the UGP. The UGP is designed to access the highest value portion of the Karowe orebody. Underground development ore from the UGP is scheduled to begin offsetting stockpiles in 2027, with full-scale underground production planned for the first half of 2028.

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 is certified by the Responsible Jewellery Council, complies with the Kimberley Process, and has adopted the IFC Performance Standards and the World Bank Group's Environmental, Health and Safety Guidelines for Mining. The development of the UGP 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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