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11% INCREASE IN LULO DIAMOND RESOURCE CARATS

In-situ alluvial resource carats increase to ~151,000
at an average modelled diamond value of US$1,930/ carat

Lucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or “the Company”) and its partners in Sociedade Mineira Do Lulo (“SML”), Empresa Nacional de Diamantes E.P. and Rosas & Petalas, are pleased to provide an updated JORC Classified Inferred Alluvial Diamond Resource (“Lulo Diamond Resource”) for the Lulo diamond concession in Angola.

The updated Lulo Diamond Resource was independently estimated and reconciled on a depletion and addition basis to 31 December 2021 by external consultants, Z Star Mineral Resource Consultants (Pty) Ltd (“Z Star”) of Cape Town, South Africa (Table 1).

The updated Lulo Diamond Resource was estimated after taking into account:

• Mining depletion to 31 December 2021 by SML mining operations, during which time 24,595 carats of diamonds were recovered from 485,602 bulk cubic metres of gravel;
• The delineation of new or additional resources and improved knowledge of existing resource areas
through extensive ~7,000 hole auger drilling and ~1,500 hole pitting programs; and
• Sales of diamonds produced during 2021 totaling US$78.1m at an average diamond price of US$2,808/ carat.

After accounting for mining depletion of 24,595 carats during 2021 calendar year, the alluvial exploration activities undertaken during the year increased the Lulo Diamond Resource in-situ carats by 11% to ~151,000 carats. Notwithstanding the increase in mining capacities over the last seven years by SML, this is the 4th consecutive year in which the resource carats have increased.

Diamond valuations have been significantly affected by the steep recovery in the diamond market during 2021 and early 2022. The modelled diamond value model has been escalated using a global rough diamond price index provided by GTD Consultants, an independent diamond valuation consultancy, up to 31st December 2021. Since 2020, the modelled diamond values have increased by ~34% from US$1,440/ carat to US$1,930/ carat on average.

To date, ~137,000 carats of diamonds have been recovered on the Lulo concession and sold by SML for ~US$276 million, at an average price of ~US$2,000/ carat.

The Lulo alluvial resource blocks and those informing the Lulo Diamond Resource estimate at 31 December 2021 are outlined in Map 1 below. The total diluted volume of gravel available for mining in the updated Lulo Diamond Resource increased to 2.2Mm3 . This equates to a minimum of four years of resource at SML’s expanded mining and processing capacities.