Lucara completes $350-million (U.S.) bond financing

Mr. William Lamb reports LUCARA SUCCESSFULLY PLACES US$350.0 MILLION BOND Lucara Diamond Corp. has successfully completed a private placement of $350-million (U.S.) of senior secured bonds. The bonds will 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. Settlement of the bonds is expected to occur on or around March 27, 2026, subject to the satisfaction of customary conditions precedent. Net proceeds from the bond issue will be used to repay Lucara's existing $220-million (U.S.) senior secured project finance debt package, financing of two years of interest on the bonds on a dedicated debt service retention account, and the residual costs related to the underground project at the Karowe mine (the UGP or the underground project). The company intends to make an application to list the bonds on the Oslo Alternative Bond Market. Completing the $350-million (U.S.) bond financing, along with the $165-million (Canadian) raised in its equity offering in January, 2026, (see Jan. 29, 2026, news release), provides Lucara with sufficient access to capital to incur the $779.2-million (U.S.) capital cost of the UGP, of which $469.4-million (U.S.) has been incurred as at Dec. 31, 2025, as contemplated in the company's updated feasibility study prepared in accordance with National Instrument 43-101 and filed on Jan. 30, 2026. Following closing of the bond financing, the company expects to have sufficient financing to complete the UGP without further financing, provided the project moves forward on schedule and the company is able to meet its production and revenue forecast. William Lamb, president and chief executive officer of Lucara, commented: "Following our upsized and highly successful equity private placement in January, we are very pleased to announce the completion of this bond issuance, marking the completion of the final step in securing the full financing package for the Karowe underground project. The bond issue attracted strong interest from a broad range of international investors, reflecting continued confidence in the exceptional quality of the Karowe mine and its long-term value potential. With the project now fully financed, we can focus all our efforts on executing the remaining development work and advancing Karowe toward a new phase of sustainable, high-value diamond production." Nemesia SARL, a private entity controlled by the trusts settled by the late Adolph Lundin (the Lundin Family Trust), was allocated $30-million (U.S.) in the bond financing. Clarksons Securities AS and Pareto Securities AS acted as joint bookrunners in connection with the bond placement. 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. We seek Safe Harbor.