Lucara arranges financing to raise at least $70M

Mr. William Lamb reports LUCARA ANNOUNCES NON-BROKERED PRIVATE PLACEMENT BACKED BY THE LUNDIN FAMILY TRUSTS, TO ADVANCE UNDERGROUND PROJECT Lucara Diamond Corp. has arranged a non-brokered private placement of common shares in the capital of Lucara for minimum aggregate gross proceeds of $70.0-million. The private placement will consist of the issuance of a minimum of 437.5 million common shares at a price of 16 cents per offered security. The company expects that the net proceeds of the private placement will be used to advance the Karowe underground project (UGP), including for shaft equipping, conveyance commissioning and lateral development, extraction and drill horizon development, as well as for general working capital and corporate purposes. The offered securities will be issued on a private placement basis pursuant to exemptions from prospectus requirements under applicable securities laws, and will be subject to a Canadian statutory hold period of four months and one day from the date of issuance. The company may pay a finder's fee of 5 per cent in connection with a portion of the private placement. Completion of the private placement will be subject to regulatory approval, including the approval of the Toronto Stock Exchange and other customary regulatory approvals and closing conditions for a transaction of this nature, including, but not limited to, execution of subscription agreements between the company and the subscribers to the private placement. The private placement is also conditional upon the company not being required to obtain any shareholder approvals in respect of the private placement (whether by way of exemption by the TSX or otherwise). The company anticipates closing of the private placement to occur in late January, subject to receipt of all necessary regulatory approvals. Trusts settled by the late Adolf H. Lundin have indicated their intention to participate in the private placement in order to maintain, and potentially increase, their interest in the company by subscribing for up to $70.0-million of the private placement. Nemesia S.a.r.l, a private entity controlled by the Lundin family trusts, is currently the company's largest shareholder and, as such, any participation in the private placement by the Lundin family trusts would be considered a related party transaction as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company intends to rely on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 and the Toronto Stock Exchange rules related to the company's financial hardship. The company expects that full financing for the UGP will be achieved through a combination of operating cash flows, the private placement, additional debt financing and continuing collaboration with the company's existing lenders to address any remaining financing requirements. The company is considering different alternatives for such additional debt financing, including a potential bond issue whereby the company has mandated Clarksons Securities and Pareto Securities as advisers. William Lamb, president and chief executive officer of Lucara, commented: "We are pleased to advance this equity raise with the support of the Lundin family trusts, whose participation underscores the strategic significance of the Karowe UGP. This financing will enhance our ability to accelerate key developments planned for 2026." 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. 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 (2007). 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.