LUCARA’S 2021 ANNUAL REVENUE OF $230.1 MILLION INCREASES 84% FROM PREVIOUS YEAR EXCEEDING GUIDANCE AMIDST STRONG AND BALANCED DIAMOND MARKET FUNDAMENTALS

Lucara Diamond Corp. (“Lucara” or the “Company”) today reports its results for the year and quarter ended December 31, 2021.

YEAR END 2021 HIGHLIGHTS:

• Revenue of $230.1 million increased 84% over the previous year.
• Average price per carat sold increased to $603/carat, an 80% increase over the previous year.
• Adjusted EBITDA(1) of $102.5 million increased more than five-fold over the adjusted EBITDA* of $18.4 million for the same period in 2020, attributed primarily to higher revenues.
• Net income for the year increased to $23.8 million, or $0.06 earnings per share.
• A total of 841 Specials (single diamonds in excess of 10.8 carats) recovered, representing 7.8% weight percent Specials, the highest annual volume of Specials recovered since Karowe commenced production in 2012.
• The third +1,000 carat diamond recovered since 2015.
• A record 2.8 million tonnes of ore processed, representing a new annual record since the start of production at the Karowe Mine.
• Equity and debt financings totalling $250 million concluded mid-2021 will support a $534 million underground expansion project at the Karowe Mine in Botswana.
• The Karowe underground expansion project was formally approved by the Board of Directors and a total project investment of $86.3 million during 2021 focused on detailed design and engineering, establishing surface infrastructure and shaft pre-sinking.
• Total sales volume of $28.7 million transacted on the Clara platform, a 168% increase from the $10.7 million transacted in 2020.

*Adjusted EBITDA is a non-IFRS measures (See “Non-IFRS Financial Performance Measures”).

Eira Thomas, President & CEO commented:

“2021 was a pivotal year for Lucara, having de-risked our future growth strategy with the sanction of the fully financed, Karowe underground expansion project, conservatively estimated to add $4 billion to future revenues and extend mine life to at least 2040. As important, the diamond market continued to gain momentum throughout the year, supported by improving fundamentals that reflect declining global rough diamond supply combined with rising demand and record diamond jewelry sales. Higher diamond prices combined with solid operational performance at the mine and Lucara’s novel, diversified approach to diamond sales through HB, Clara and traditional tenders has delivered strong revenues for the Company in 2021, demonstrating a full recovery from the challenges of the pandemic, and reflecting a much better outlook for 2022 and beyond as we continue to benefit from one of the strongest diamond markets we have seen in the better part of a decade.”

News in full

In the TV clip below, Lucara’s CEO Eira Thomas explains the business, including the deal with Louis Vuitton and tells us more about Clara, Lucara’s wholly owned digital sales platform