Lucara draws down $10-million of standby undertaking

Mr. William Lamb reports LUCARA ANNOUNCES $10 MILLION DRAW FROM LIMITED SHAREHOLDER STANDBY UNDERTAKING AND RECENT NOTABLE DIAMOND RECOVERIES Lucara Diamond Corp. has drawn down $10.0-million of the $63.0-million limited shareholder standby undertaking provided by the company's largest shareholder, Nemesia Sarl, to address a financing shortfall of the Karowe underground project. Nemesia provided the standby undertaking in connection with the company's amended senior secured project financing debt package (previously announced on Jan. 9, 2024). The standby undertaking consists of two components: (i) $28.0-million to support liquidity shortfalls until completion of the UGP; and (ii) $35.0-million as a financing shortfall guarantee in support for the UGP completion. For each $500,000 drawn under the standby undertaking, the company will issue 7,500 common shares per month to Nemesia until the amounts borrowed are repaid, such common shares being settled on a quarterly basis. Additional information regarding the standby undertaking can be found in the company's most recent management's discussion and analysis, available on SEDAR+. Recent notable diamond recoveries Lucara is pleased to announce recent notable diamond recoveries from the company's 100-per-cent-owned Karowe mine in Botswana. In August, 2025, the company recovered a 1,019.85-carat non-gem diamond through its Mega diamond recovery unit. This is the ninth diamond over 1,000 carats from Karowe and the third recovered in 2025. Also in the month, the company recovered a 37.42-carat near-gem pink Type 2a diamond. Both stones were recovered from processing EM/PK(S) material, which is the target of the UGP and has produced most of the world's largest recorded natural diamonds. William Lamb, president and chief executive officer of Lucara, commented: "The decision to draw $10.0-million from the standby undertaking provided by our largest shareholder represents a prudent approach to maintaining our financial flexibility during the current period of ongoing UGP capital expenditures. This funding mechanism demonstrates the continued confidence and unwavering support of our major shareholders in Lucara's long-term strategy and the exceptional value potential, including the ongoing recovery of the world's most significant diamonds from our Karowe mine." Liquidity guarantee from Nemesia Nemesia is an insider of the company, and entering into the standby undertaking and the corresponding issuance of the Nemesia consideration was considered a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). All of the company's board of directors and all of the company's independent directors (as determined in accordance with Part 7 of MI 61-101) have unanimously determined that the transaction was advisable and in the best interests of the company, and that the transaction was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to the financial hardship exemptions provided, respectively, under sections 5.5(g) and 5.7(1)(e) of MI 61-101. This news release has been reviewed and approved by Dr. Lauren Freeman, PhD, PrSciNat, vice-president, mineral resources, of the company, a qualified person for the purposes of National Instrument 43-101. About Lucara Diamond Corp. Lucara is a leading independent producer of large exceptional-quality Type 2a 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 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.