Ms. Eira Thomas reports

LUCARA ENTERS INTO COLLABORATION WITH LOUIS VUITTON TO POLISH THE HISTORIC 1758 CARAT SEWELO, BOTSWANA'S LARGEST DIAMOND

Lucara Diamond Corp. has entered into a collaboration with Louis Vuitton (LV), the famous luxury house, and the HB Company, a diamond manufacturer from Antwerp, to manufacture its historic, record-setting, 1,758-carat Sewelo diamond recovered from its 100-per-cent-owned Karowe diamond mine in Botswana in April, 2019 (see Lucara press releases dated April 25, 2019, and July 18, 2019).

Sewelo, which means "rare find" in Setswana, is the second, plus-1,000-carat diamond recovered from Karowe in four years and the largest ever recovered in Botswana. The diamond has been characterized as near gem of variable quality, with recent analysis confirming that it also includes domains of higher-quality white gem. Lucara believes that the full potential of this special stone will only be revealed once polished. The purpose of this unprecedented collaboration between a miner, a cutting-edge manufacturer and a large luxury brand will be the planning, cutting and polishing of a collection of diamonds from Sewelo. Lucara will receive an upfront non-material payment for the Sewelo and retain a 50-per-cent interest in the individual polished diamonds that result.

Further, 5 per cent of all of the retail sales proceeds generated from this historic collection will be invested directly back into Botswana on community-based initiatives undertaken by Lucara.

Eira Thomas, chief executive officer, commented: "We are delighted to be partnering with Louis Vuitton, the famous luxury house, to transform the historic, 1,758-carat Sewelo, Botswana's largest diamond, into a collection of fine jewellery that will commemorate this extraordinary discovery and contribute direct benefits to our local communities of interest in Botswana."

About Lucara Diamond Corp.

Lucara is a leading independent producer of large exceptional-quality Type IIa diamonds from its 100-per-cent-owned Karowe mine in Botswana and owns a 100-per-cent interest in Clara Diamond Solutions, a secure, digital sales platform positioned to modernize the existing diamond supply chain and ensure diamond provenance from mine to finger.

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