Lucara Diamond: Q1 2026 Results (2026 q1 results)

Q1 2026

Q1 2026 HIGHLIGHTS

All amounts are in U.S. dollars unless otherwise noted.

References to "C$" are to Canadian dollars.

Strengthened capital structure and liquidity

• Closed C$165.0 million equity financing

• Successfully issued $350.0 million of senior secured bonds

• Fully repaid $220.0 million of project debt

  *Specials are defined as stones above 10.8 carats.

  UGP advancement

• Updated feasibility study confirms total capital cost of

  $779.2 million, with $472.4 million already invested.

  Strong safety record

• The UGP achieved 2,249 lost-time injury free days during the quarter

  High-value recoveries

• 100 Specials* recovered in Q1, including five diamonds greater than 100 carats and one exceeding 300 carats.

  Financial performance

• Q1 2026 revenue of $21.8 million, reflecting a higher proportion of stockpile material.

  
  
  

  BOND FINANCING

• Issued $350.0 million bond with a fixed coupon of 12.50% per annum, payable quarterly.

  • Includes a tap option which allows for an additional

    $50.0 million to be issued on the same terms, bringing maximum issuable amount to $400.0 million

  • Option to establish a Revolving Credit Facility (RCF) of up to $50.0 million

  • Neither the tap option nor the RCF have been exercised or established as at March 31, 2026.

• Net proceeds from the bond issuance have been applied to fully repay the Company's previous $220.0 million senior secured project finance facilities.

• Remaining proceeds will be used to fund a dedicated debt service retention account covering two years of interest on the Bonds and to support the continued development of the UGP.

  Fancy purple-pink internally flawless 20.31 carat cushion cut from Karowe

  
  
  

  OPERATIONS UPDATE

  • Open pit mining activities at Karowe were temporarily suspended during the first quarter due to high and unseasonal rainfall, resulting in elevated water levels within the pit.

  • Operations resumed in the open pit in March.

  • Un-interrupted processing operations were maintained by utilizing run-of-mine stockpiled material.

  • The increased reliance on run-of-mine stockpiles, which are generally lower in grade and diamond quality, contributed to a softer revenue performance in Q1 2026, contributing to a higher proportion of smaller, lower-value stones recovered and sold during the quarter.

FINANCIAL & OPERATIONAL RESULTS

$21.8 $30.3

Q1 2026 Q1 2025

$21.6 $14.0

Q1 2026 Q1 2025

$24.72 $23.41

Q1 2026 Q1 2025

390,539

718,804 676,626

79,744 72,871

6,231

Q1 2026 Q1 2025

Q1 2026 Q1 2025

Q1 2026 Q1 2025

HIGH-VALUE RECOVERIES

• Recovered 100 Specials* in Q1 2026, including five diamonds greater than 100 carats and one exceeding 300 carats.

• Specials equated to 4.3% (Q1 2025: 5.6%) of the weight percentage of total recovered carats from ore processed during Q1 2026.

• A total of 72,061 carats (Q1 2025: 90,500 carats) recovered in the quarter.

• Notable recovery of a 36.92 carat blue Type IIB diamond through the X-ray Transmission machines at Karowe from ore sourced from unprocessed run-of-mine stockpile material, reinforcing Karowe's reputation for rare, high-value stones.

  *Specials are defined as stones above 10.8 carats.

  36.92 carat blue Type IIB diamond, recovered in March 2026.

  
  
  

  SAFETY LEADERSHIP

• Continued strong safety record, with the UGP achieving 2,249 lost-time injury free days and a project-to-date TRIFR of 0.54. Rolling 12-month Total Recordable Injury Frequency Rate (TRIFR) of 0.32.

• No lost time injuries at Karowe in Q1 2026.

• Lucara has been recognized by the Botswana Chamber of Mines, winning three awards for safety performance

• Awarded the AfriSAFE Mining Company of the Year for two years in a row

• Recognized with the Mining Company of the Year - Safety, Health, Environment, Risk, and Quality (SHERQ) Excellence Award, awarded by S.H.E. On Standby in Botswana.

  
  
  

  KAROWE UGP UPDATE

  • Updated feasibility study confirms total cost at completion of $779.2 million, including contingency.

    • As at March 31, 2026, $472.4 million had been incurred, with a further $117.7 million committed but not yet incurred.

    • From H1 2026 to H1 2028, processing will continue using a combination of open pit ore and run-of-mine stockpiles.

  • Significant de-risking following the completion of

    shaft sinking activities in 2025.

  • UGP capital expenditures of $19.0 million in Q1 2026, primarily related to shaft equipping, lateral development, and surface infrastructure.

    
    
    

    UGP PROGRESS

• Advancement of lateral development, with a total of 1,245 metres completed from the ventilation shaft, ahead of the planned handover stage to the lateral development contractor.

  • Water intersections encountered were effectively managed through targeted grouting.

• Shaft equipping was completed to surface at the production shaft, including installation of guides and buntons, followed by decommissioning of sinking infrastructure and commencement of headgear internal steel changeover works.

• Lateral development contract awarded in Q4 2025 and onboarding of key personnel and mobilization activities commenced in Q1 2026.

• Surface infrastructure works continued, including civil construction and procurement of long-lead ventilation fan components.

UGP PROGRESS

UGP PROGRESS

UGP PROGRESS

LOOKING AHEAD

• Strengthened capital structure and liquidity with closing of equity financing and successful bond issuance in Q1 2026.

• Maintaining full year outlook, with revenue guidance remaining unchanged at $100.0 million to $130.0 million, supported by the return to open pit mining, with all other guidance parameters also reaffirmed.

• Ongoing and consistent recovery of large, high-value diamonds from Karowe, including many of the world's largest.

• Despite geopolitical uncertainty and evolving global tariff dynamics, demand for large, rare, high-quality diamonds remains comparatively resilient due to their scarcity, provenance, collectability, and appeal as hard luxury assets.

The Lesedi La Rona, recovered at Karowe, and cut and polished by Graff

2026 ANNUAL GUIDANCE

Diamond revenue (millions) $100 to $130

Diamond sales (thousands of carats) 340 to 360

Diamonds recovered (thousands of carats) 340 to 360

Ore tonnes mined (millions) Up to 0.6

Waste tonnes mined (millions) Up to 0.2

Ore tonnes processed (millions) 2.6 to 2.9

Total operating cast costs (per tonnes processed) $27.50 to $31.00 UGP capital expenditure Up to $110 million

Sustaining capital expenditure Up to $11.5 million Average exchange rate - Botswana Pula per USD 14.0

Suite 2800, Four Bentall Centre 1055 Dunsmuir Street

PO Box 49225

Vancouver, BC V7X 1L2

Tel: +1 604 674 0272

Email: [email protected]

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