Ms. Eira Thomas reports

LUCARA RECOVERS 998 CARAT DIAMOND FOM THE KAROWE MINE IN BOTSWANA

Lucara Diamond Corp. has recovered an unbroken 998-carat high white clivage diamond from its 100-per-cent-owned Karowe diamond mine located in Botswana. The diamond, measuring 67 by 49 by 45 millimetres (mm), was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe, and follows a notable series of diamond recoveries during this recent production run, including a number of top-quality clivage and gem quality stones of 273, 105, 83, 73 and 69 carats in weight. The EM/PK(S) forms an important economic driver for the proposed underground mine at Karowe and continues to produce large gem quality diamonds in line with expectations, a further testament to the strong resource performance at Karowe.

The 998-carat diamond was recovered in the MDR (mega diamond recovery) XRT circuit that allows for diamond recovery postprimary crushing and prior to milling. This recovery represents the second 500-plus-carat diamond recovered from this circuit in 2020. Year to date, Karowe has produced 31 diamonds greater than 100 carats including 10 diamonds greater than 200 carats, comprising the 549-carat Sethunya and the 998-carat diamond. In accordance with the partnership between Lucara and HB Antwerp regarding all diamonds greater than 10.8 carats produced from Karowe, both companies are evaluating the next steps in order to maximize the value of this rare large diamond.

Eira Thomas, chief executive officer, commented: "Lucara is extremely pleased with the continued recovery of large high-quality diamonds from the South Lobe of the Karowe mine. To recover two 500-plus-carat diamonds in 10 months along with the many other high-quality diamonds across all the size ranges is a testament to the unique aspect of the resource at Karowe and the mine's ability to recover these large and rare diamonds. Operations at Karowe have continued through 2020 and operational challenges, due to COVID-19 restrictions, have been met with professionalism by the team. We look forward to a safe finish to 2020 and continued success at Karowe as we remain focused on strong operations to ensure maximum resource performance."

This press release has been reviewed and approved by Dr. John Armstrong, PhD, PGeol, vice-president, technical services, of the company and a qualified person for the purposes of National Instrument 43-101.

About Lucara Diamond Corp.

Lucara is a leading independent producer of large exceptional-quality Type Ila 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. The company has an experienced board and management team with extensive diamond development and operations expertise. The company operates transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations.

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