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

The most recent news (March 30, 2026) announces the closing of a US$350 million senior secured bond private placement. This financing carries a 12.5% fixed coupon with a five-year tenor. Crucially, the proceeds were used to fully repay the existing US$220 million senior secured project finance facility, which had been a source of significant covenant breaches and "going concern" warnings in late 2025. The remaining funds will support the Karowe Underground Project (UGP) and fund a two-year debt service reserve.

This is a material positive development that resolves a looming liquidity crisis. - Debt Restructuring: By replacing the restrictive project facility with bonds, Lucara has effectively removed the immediate threat of lenders demanding repayment following the covenant defaults reported in Q3 2025 and January 2026. - Liquidity Runway: The financing, combined with the C$165 million equity raise in January 2026, provides the "financial certainty" required to complete the UGP. - Cost of Capital: The 12.5% coupon is expensive, reflecting the company's recent "financial hardship" status, but it provides the flexibility to reach 2028 production without the constant risk of technical default under the previous bank-led facility. - Operational Validation: The recovery of a 36.92 carat blue diamond (March 16, 2026) and five stones over 100 carats year-to-date confirms that the stockpile material is bridging the gap to underground production effectively.

Lucara Diamond Corp. operates the 100%-owned Karowe Mine in Botswana, world-renowned for producing large, Type IIa diamonds (e.g., Lesedi La Rona). The flagship initiative is the Karowe Underground Project (UGP), a US$779.2 million investment designed to extend the mine life to at least 2040. The project is transitioning from open-pit (currently processing stockpiles) to underground mining, with full production targeted for H1 2028.