Mr. Ken Johnson reports

LIPARI MINING REPORTS FINANCIAL YEAR 2025 DIAMOND SALES, SUSPENSION OF OPERATIONS AT THE BRAUNA MINE AND CFO TRANSITION

Lipari Mining Ltd. has released the production and sales results for the financial year ended Dec. 31, 2025 (FY (fiscal year) 2025), from the company's wholly owned Brauna diamond mine in Brazil, has suspended operations at the mine due to the weak global market for natural diamonds, and is planning a transition in its chief financial officer role. All dollar amounts are in Canadian dollars, except as otherwise noted.

FY 2025 production summary:

• Ore mined: 574,466 tonnes (FY 2024: 286,033 tonnes);
• Ore processed: 571,665 tonnes (FY 2024: 384,561 tonnes);
• Diamonds recovered: 83,350 carats (FY 2024: 46,026 carats);
• Diamonds sold: 104,508 carats (FY 2024: 29,135 carats);
• Revenue of $21,821,275 (FY 2024: $5,919,820);
• Average diamond price achieved: $209 per carat (ct) (FY 2024: $203);
• Average recovered diamond grade: 14.6 carats per hundred tonnes (cpht) (FY 2024: 12.0 cpht);
• Underground development: 1,542 metres (m) (FY 2024: 1,810 m).

FY 2025 sales results

During the FY 2025, 104,508 carats of natural diamonds were sold for revenues of $21,821,275 ($16,405,929 (U.S.)), averaging $209 per carat ($157 (U.S.) per carat). This compares with 29,135 carats sold in FY 2024 for $5,919,820 ($4,652,368 (U.S.)) at an average of $203 per carat ($160 (U.S.) per carat). The company experienced a significant decline in sales revenue during Q4 (fourth quarter) 2025 due to the weakening global diamond market, as well as reduced diamond production due to lower recovered diamond grades as a result of higher dilution by waste rock. The final year-end sale conducted in December, 2025, only achieved an average value of $179 per carat ($136 (U.S.) per carat), representing a significant decline from the previous sale in September, 2025, which resulted in an average unit sales value of $212 per carat ($161 (U.S.) per carat), and well below the mine's historic average unit sales value of $183 (U.S.) per carat. Ken Johnson, president and chief executive officer of Lipari commented that: "The decline in sales revenue experienced during the last three financial quarters of 2025 reflects the global impact that the United States tariffs has had on the natural diamond industry. India manufactures over 90 per cent of the world's natural diamonds and the United States accounts for approximately 55 per cent of the global diamond jewellery consumption. The 50-per-cent tariff on Indian diamond manufacturers has produced a systemic impact across the natural diamond value chain, including mining companies, forcing reduced production, increased inventories and the suspension of operations. Our revenues were also impacted by lower diamond recoveries as a result of dilution of the ore by waste rock. We are evaluating changes to our mine plan to address this problem, which is caused by waste rock from the lower levels of the open pit flowing into the underground draw points."

Suspension of operations at the Brauna mine

Due to the weak global market for natural diamonds and lower diamond recoveries, operations at the Brauna mine have been suspended and the mine has been put on care and maintenance until such time as the global diamond market improves and a new mine plan is developed to effectively address the issue of dilution of the ore. Senior management is working with its employees, its stakeholders and the local community to ensure that the suspension of operations is conducted in a manner that minimizes the impact on our employees, their families and the local community and will be full compliance with all applicable regulations. Ken Johnson said that: "We remain committed to our mine, our employees and the local community in which we operate. We will closely monitor the global diamond market and work on optimization measures that may allow us to restart operations in the future."

Focus on the Tchitengo project in Angola

Lipari will concentrate its capital and technical resources to advance its flagship Tchitengo diamond project in northeastern Angola, where the company holds a 75-per-cent interest. On May 1, 2025, Lipari announced a National Instrument 43-101-compliant mineral resource estimate for the Tchiuzo kimberlite pipe, comprising an indicated mineral resource of 28.8 million tonnes containing 13.6 million ct at a grade of 47.2 cpht and an inferred mineral resource containing 6.5 million tonnes containing 2.0 million ct at a grade of 30.7 cpht.

On Dec. 18, 2025, the company announced the shipment of a five-tonne-per-hour kimberlite processing plant from Canada to Angola to process approximately 10,000 tonnes of kimberlite from the Tchiuzo pipe. The objective of the program is to recover a diamond parcel for valuation purposes to determine the current market value of the Tchiuzo diamonds. Together with results from last year's phase I confirmatory drilling program (see news release dated Oct. 31, 2025), this valuation will enable an update of the historical feasibility study originally completed on the Tchiuzo kimberlite by Sociedade Mineira de Catoca (SM Catoca) in 2013.

Chief financial officer transition

Geovani Mariz departed as CFO and corporate secretary effective Jan. 31, 2026. The company thanks Mr. Mariz for more than 12 years of service and his contribution to Lipari's financial and governance framework. To ensure an orderly and effective transition, Mr. Mariz will continue to support the handover of responsibilities and assist management as appropriate during the transition period.

Effective Feb. 1, 2026, Diego Nascimento has been appointed interim chief financial officer and corporate secretary. Mr. Nascimento brings over 16 years of experience in financial reporting, internal controls, risk management and capital markets across Brazil, North America and international jurisdictions. He previously served as a financial consultant to Lipari and led consolidation and audit oversight functions.

The technical information in this news release has been reviewed by Wes Roberts, PEng, and Martin Doyle, PGeo, both qualified persons within the meaning of Canadian National Instrument 43-101.

The company expects to release its Q4 (fourth quarter) 2025 financial statements and management discussion and analysis on or before March 31, 2026. This information will be available on the company's website and on SEDAR+.

About Lipari Mining Ltd.

Lipari Mining is South America's leading diamond producer, with a strong record of operations at the Brauna diamond mine in Brazil, which has produced over 1.27 million ct to date. Lipari is now applying its expertise to advance the highly prospective Tchitengo diamond project in Angola, marking the next phase of growth for the company.

The company is committed to environmentally responsible mining practices. Lipari's Brauna mine is the only diamond mine in the world that recycles nearly 100 per cent of the water used in ore processing, producing a dry tailings product, which has potential as a soil remineralizer for the agricultural industry. Lipari's shares are listed for trading on Cboe Canada and trade under the symbol LML, and on the Frankfurt Stock Exchange under the symbol 0Y90.

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