LUCARA ANNOUNCES OPERATING GUIDANCE FOR 2025

William Lamb, Lucara's President and CEO, commented on the 2024 progress noting that, "To date in 2024, Lucara achieved remarkable milestones at its Karowe Mine in Botswana, successfully meeting and exceeding all production targets. The Company's strategic focus on the underground mining project showed significant advancement, with shaft depths reaching new records. Further, our innovative extraction technologies are once again proving the quality of the resource through the recovery of two exceptional diamonds larger than 1,000 carats, including the epic 2,488-carat diamond and the 1,094-carat diamond. We have also demonstrated substantial progress in reducing operational costs and improving sustainable mining practices."

2025 OUTLOOK

This section provides management's production and cost estimates for 2025. These are "forward-looking statements" and subject to the cautionary note regarding the risks associated with forward-looking statements.

REVENUE AND SALES CHANNELS

For 2025, the Company's revenue forecast assumes that 79% of the carats recovered will come from the higher value M/PK(S) and EM/PK(S) units within the South Lobe, the sale of its diamond inventory, and the remaining carats recovered come from the Centre Lobe in accordance with the mine plan, generating revenue between $195 and $225 million. South Lobe material, while lower grade than the Centre and North Lobes, has a higher weight percentage of stones greater than 10.8 carats in size ("Specials").

MINING AND PROCESSING ASSUMPTIONS

In 2025, the Company expects to mine between 1.8 and 2.2 million tonnes of combined ore and water, which will be processed in combination with stockpiled materials in 2025. The assumptions for carats recovered and sold as well as the number of ore tonnes processed are consistent with achieved plant performance in recent years. Stockpiled material (North, Centre, South Lobe) from working stockpiles and life-of-mine stockpiles should provide uninterrupted mill feed until 2027 when Karowe underground project ("UGP") development ore is scheduled to start offsetting stockpiles with high-grade ore from the underground development. Full scale underground production is planned for H1, 2028.

UNDERGROUND AND SUSTAINING CAPITAL EXPENDITURES

The underground development is expected to extend Karowe's mine life to beyond 2040. In 2024, significant progress was made in shaft sinking and lateral development connecting the production and ventilation shafts, with the critical path ventilation shaft being ahead of the July 2023 rebase schedule. In 2025, capital costs for the UGP are expected to be up to $115 million and will focus predominantly on shaft sinking activities to final depth, equipping of the production shaft and station development. Surface works will focus on permanent winders being installed and cold commissioned. Tendering the underground lateral development contract along with underground equipment purchases will also be completed in 2025.

Sustaining capital are expected to be up to $13 million with a focus on the replacement and refurbishment of key asset components, in addition to expansion of the tailings storage facility and pit steepening activities which will extend the mine's ability to extract South lobe material from the pit in 2025.

On behalf of the Board,

William Lamb
President and Chief Executive Officer

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ABOUT LUCARA

Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% 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). Accordingly, the development of the Karowe underground expansion project ("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.

The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation. This information was submitted for publication, through the agency of the contact person set out above, on December 3, 2024, at 2 p.m. Pacific Time.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain statements made and contained herein and elsewhere constitute forward-looking statements as defined in applicable securities laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements.

Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to a number of known and unknown risks, uncertainties and other factors, many of which are difficult to predict, and which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The Company believes that expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be accurate. Forward-looking information should not be unduly relied upon. This information speaks only as of the date of this press release, and the Company will not necessarily update this information, unless required to do so by securities laws.

In particular, forward-looking information and forward-looking statements in this news release may include, but are not limited to, the Company's revenues, sales, diamond recoveries, mine life, expectations regarding the updated schedule and budget for the Karowe underground expansion project (the "Karowe UGP"), ore and waste mined, ore processed, cash costs and expenses, anticipated total capital expenditures for the Karowe UGP and the schedule to develop and complete the Karowe UGP, and the Company's ability to continue as a going concern, the ability to meet its obligations under the Rebase Amendments with its Lenders, the Company's ability to fill the COF, the size distribution model, including expectations regarding +10.8ct and specials production, forecast cost at completion, expectations regarding construction and production, expectations regarding the project economics and recovery, expectations regarding the first years of the Karowe UGP recovery and production, including by source, estimated capital to reach project completion, expectations regarding the sufficiency of surface stockpiles, estimates regarding after-tax cash flow, economic risks, expectations regarding longer-term market fundamentals and price growth, the impact of supply and demand of rough or polished diamonds, expectations regarding top-up values and processing, the benefits to the Company of the diamond supply agreement with HB Antwerp and the ability to generate better prices from the sale of the Company's +10.8 carat production as polished stones, projected capital costs associated with the Karowe UGP, estimated capital costs, expectations regarding the sales changes and margin capture, the timing, scope and cost of additional grouting events, whether expected cash flow from operations, combined with external financing will be sufficient to complete construction of the Karowe UGP, sufficient stockpiled ore will be available to generate revenue prior to the achievement of commercial production of the Karowe underground mine, that the estimated timelines to achieve mine ramp up and full production from the Karowe UGP can be achieved, the economic potential of a mineralized area, the size and tonnage of a mineralized area, anticipated sample grades or bulk sample diamond content, expectations that the Karowe UGP will extend mine life, forecasts of additional revenues, future production activity, the future price and demand for, and supply of, diamonds, expectations regarding the scheduling of activities for the Karowe UGP, future forecasts of revenue, estimation of mineral resources, exploration and development plans, cost and timing of the development of deposits and estimated future production, interest rates, currency exchange rates, rates of inflation, requirements for and availability of additional capital, operating costs, timing of drill programs, timing of completion of technical reports and studies, tax rates, government regulation of operations, environmental risks and ability to comply with all environmental regulations and internationally recognized standards, and macro-economic and geopolitical risks.

There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under the heading "Risks and Uncertainties" in the Company's most recent MD&A and Annual Information Form, both available on the Company's website and under its profile on SEDAR+ at www.sedarplus.ca, as well as changes in general business and economic conditions, the ability to continue as a going concern, changes in interest and foreign currency rates, changes in inflation, the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds, costs of power and diesel, impacts of potential disruptions to supply chains, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and recoverability assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), and unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job actions, adverse weather conditions, and unanticipated events relating to health safety and environmental matters).

For further information, please contact: Vancouver: Hannah Reynish, Investor Relations & Communications, +1 604 674 0272, [email protected]; Sweden: Robert Eriksson, Investor Relations & Public Relations, +46 701 112615, [email protected]; UK Public Relations: Charles Vivian / Jos Simson, Tavistock, +44 79 772 97903, [email protected]

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