LUCARA ANNOUNCES Q1 2026 RESULTS

• Lucara reported Q1 2026 revenue of $21.8 million, a decrease from $30.3 million in Q1 2025.
• Net loss from operations was ($14.6 million) compared to ($0.1 million) in the prior year period.
• Cash position strengthened significantly to $244.3 million following C$165.0 million equity financing and $350.0 million bond issuance closed earlier in 2026.
• Company reaffirmed full-year 2026 revenue guidance of $100 million to $130 million, which is lower than the $150–$160 million guidance provided in March 2026.
• Open pit mining temporarily suspended due to unseasonal rainfall; operations resumed March 26, 2026.
• Karowe Underground Project (UGP) capital cost updated to $779.2 million with $472.4 million invested to date.
• Notable diamond recoveries included a 36.92 carat blue Type IIB diamond and five stones exceeding 100 carats year-to-date.

• The financing completed in January and March 2026 was previously rated as Material - Positive, resolving the immediate going-concern risk disclosed in late 2025. This news confirms the financial stability but highlights operational headwinds.
• Revenue decline of ~28% year-over-year and an operating loss are negative indicators for near-term cash flow generation.
• The guidance revision from $150–$160 million (March) to $100–$130 million (May) represents a material downward adjustment in expectations, suggesting management is accounting for weather impacts and stockpile grade limitations more conservatively than previously anticipated.
• While the cash position ($244M) provides a buffer against debt service obligations, the reduced revenue guidance increases pressure on meeting operating cost targets of $27.50–$31.00 per tonne.
• The news is Routine - Negative because the financing was already priced in during March; the operational miss and guidance cut are incremental negatives that dampen investor enthusiasm despite solvency improvements.

• Company: Lucara Diamond Corp., focused on diamond mining in Botswana.
• Flagship Project: Karowe Mine, specifically the Karowe Underground Project (UGP).
• Project Status: Transitioning from open-pit to underground operations; shaft sinking completed, lateral development ongoing.
• Production Target: Full-scale underground production targeted for H1 2028.
• Asset Quality: Known for recovering large, high-value diamonds including Type IIb and pink stones, which command premium prices in the market.