Mr. William Lamb reports

LUCARA CLOSES UPSIZED $165.0 MILLION PRIVATE PLACEMENT

Lucara Diamond Corp. has closed its previously announced non-brokered private placement, which was originally announced on Jan. 9, 2026 (see Jan. 9, 2026, news release), and was subsequently upsized to total gross proceeds of $165.0-million on Jan. 14, 2026 (see Jan. 14, 2026, news release), due to strong investor demand.

William Lamb, president and chief executive officer of Lucara, commented: "We are very pleased with the outcome of the recent oversubscribed private placement, which included participation of a number of institutional investors from around the world as well as the Lundin family trusts. This financing will enhance our ability to accelerate key developments on the Karowe underground project planned for 2026."

Equity private placement

The company issued an aggregate of 1,031,250,000 common shares in the capital of the company at a price of 16 cents per common share for aggregate gross proceeds of $165.0-million. In connection with the private placement, the company paid a $2.5-million finder's fee in connection with a portion of the private placement to select finders including BMO Nesbitt Burns Inc., Haywood Securities Inc., Leede Financial Inc., Canaccord Genuity Corp. and Pareto Securities AB, excluding the participation of the Lundin family trusts (see Jan. 19, 2026, news release). All common shares issued pursuant to the private placement are subject to a four-month statutory hold period under applicable Canadian securities laws.

The company expects that the net proceeds of the private placement will be used to address the company's liquidity shortfall to enable it to continue advancing the Karowe underground project while pursuing longer-term project financing, including for shaft equipping, conveyance commissioning and lateral development, and extraction and drill horizon development, as well as for general working capital and corporate purposes.

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 AS and Pareto Securities AB as advisers.

Toronto Stock Exchange exemption from shareholder approval requirement

The company relied on the financial hardship exemption under Section 604(e) of the Toronto Stock Exchange company manual in connection with the private placement (see Jan. 19, 2026, news release), which has been accepted by the TSX.

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 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.