LUCARA INCREASES NON-BROKERED PRIVATE PLACEMENT TO $165.0 MILLION

Executive Summary

• Lucara Diamond Corp. upsized its previously announced non‑brokered private placement to 1,031,250,000 common shares at $0.16 per share, targeting gross proceeds of $165 million CAD.
• Proceeds are earmarked to advance the Karowe Underground Project (shaft equipping, conveyance commissioning, lateral development, extraction and drill‑horizon work) and for general working capital and corporate purposes.
• The Lundin Family Trusts intend to subscribe for up to $70 million of the placement, reinforcing their support; the transaction is structured as a private placement exempt from prospectus requirements and subject to a four‑month‑plus statutory hold period.

Key Details

• Placement Size: 1,031,250,000 common shares
• Price per Share: $0.16 CAD
• Gross Proceeds Target: $165.0 million CAD (all amounts in CAD unless noted)
• Use of Proceeds:
• Shaft equipping for the Karowe Underground Project (UGP)
• Conveyance commissioning and lateral development
• Extraction and drill‑horizon development
• General working capital and corporate purposes
• Closing Timeline: Anticipated late January 2026, subject to regulatory approvals (TSX and other customary conditions).
• Related Party Participation: Lundin Family Trusts plan to invest up to $70 million; Nemesia S.a.r.l. (controlled by the trusts) is the company’s largest shareholder. The transaction will rely on exemptions from formal valuation and minority‑shareholder approval under MI 61‑101 and TSX rules.
• Finder’s Fee: Company may pay a 5% finder’s fee on a portion of the placement.
• Statutory Hold Period: Shares subject to a four‑month‑plus hold period from issuance.

Notable Quotes

“The decision to upsize this equity financing reflects strong investor demand, led by the continued support of the Lundin Family Trusts. The upsized proceeds meaningfully strengthen the Company's capacity to advance the Karowe UGP and execute key development milestones targeted for 2026.” – William Lamb, President & CEO

Materiality Assessment: Material – Positive (significant equity financing that materially supports a major underground development project).