Lucara Diamond : Annual Information Form for Year Ended 2024
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ANNUAL INFORMATION FORM
(FOR THE YEAR ENDED DECEMBER 31, 2024)
DATED: MARCH 31, 2025
TABLE OF CONTENTS
DESCRIPTION
Page No.
DEFINITIONS ............................................................................................................................................................4
REFERENCES ............................................................................................................................................................ 6
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS ......................................................................7
ITEM 1
INTRODUCTION .................................................................................................................................. 12
1.1
DATE OF INFORMATION .......................................................................................................................... 12
1.2
CURRENCY ................................................................................................................................................ 12
1.3
ACCOUNTING POLICIES AND FINANCIAL INFORMATION ......................................................................... 12
1.4
CLASSIFICATION OF MINERAL RESERVES AND MINERAL RESROUCES ..................................................... 12
1.5
SCIENTIFIC AND TECHNICAL INFORMATION ............................................................................................ 13
ITEM 2 2.1 2.2
CORPORATE STRUCTURE .................................................................................................................... 13
INCORPORATION AND REGISTERED OFFICE ............................................................................................ 13
INTERCORPORATE RELATIONSHIPS .......................................................................................................... 14
ITEM 3 3.1 3.2 3.3 3.4
GENERAL DEVELOPMENT OF THE BUSINESS ....................................................................................... 14
GENERAL .................................................................................................................................................. 14
THREE YEAR HISTORY - MAJOR DEVELOPMENTS .................................................................................... 14
PROJECT FINANCING ................................................................................................................................ 17
SIGNIFICANT ACQUISITIONS .................................................................................................................... 18
ITEM 4 4.1 4.2
BUSINESS OF LUCARA ......................................................................................................................... 18
GENERAL .................................................................................................................................................. 18
DESCRIPTION OF DIAMOND MINING BUSINESS ...................................................................................... 19
4.2.1 Specialized Skill and Knowledge .............................................................................................................. 19
4.2.2 Diamond Market ...................................................................................................................................... 19
4.2.3 Competition ............................................................................................................................................. 20
4.2.4 Production ................................................................................................................................................ 20
4.2.5 Environmental Protection ........................................................................................................................ 20
4.2.6 Employees ................................................................................................................................................ 21
4.2.7 Rough Diamond Sales Platform Business ................................................................................................. 21
4.3
DESCRIPTION OF MINING PROPERTY - KAROWE MINE, BOTSWANA ..................................................... 21
4.3.1 General ..................................................................................................................................................... 21
4.3.2 Project Description ................................................................................................................................... 22
4.3.3 Location, Access and Ownership .............................................................................................................. 22
4.3.4 History ...................................................................................................................................................... 24
4.3.5 Exploration ............................................................................................................................................... 24
4.3.6 Drilling ...................................................................................................................................................... 24
4.3.7 Geological Setting, Mineralization and Deposit Types ............................................................................. 26
4.3.8 Sampling, Analysis and Data Verification ................................................................................................. 30
4.3.9 Mineral Resource and Reserve Estimates ................................................................................................ 33
4.3.10 Mining Operations ................................................................................................................................... 35
4.3.11 Hydrogeology and Water Management .................................................................................................. 36
4.3.12 Mineral Processing and Recovery Operations ......................................................................................... 37
4.3.13 Metallurgical Testing ................................................................................................................................ 37
4.3.14 Tailings Management ............................................................................................................................... 38
4.3.15 Infrastructure, Permitting and Compliance Activities .............................................................................. 38
4.3.16 Capital and Operating Costs ..................................................................................................................... 39
4.4
SOCIAL AND ENVIRONMENTAL POLICIES ................................................................................................. 42
ITEM 5
RISKS AND UNCERTAINTIES ................................................................................................................ 43
ITEM 6 6.1 6.2 6.3
DESCRIPTION OF SHARE CAPITAL ........................................................................................................ 54
GENERAL DESCRIPTION OF CAPITAL STRUCTURE .................................................................................... 54
DIVIDENDS ............................................................................................................................................... 54
CONTINGENT SHARE PAYMENTS ............................................................................................................. 54
ITEM 7 7.1 7.2 7.3 7.4
MARKET FOR SECURITIES .................................................................................................................... 55
EXCHANGE LISTING .................................................................................................................................. 56
TRADING PRICE AND VOLUME ................................................................................................................. 56
PRIOR SALES ............................................................................................................................................. 56
ESCROWED SECURITIES ............................................................................................................................ 57
ITEM 8
DIRECTORS AND OFFICERS .................................................................................................................. 57
8.1
NAME AND OCCUPATION OF DIRECTORS AND OFFICERS ....................................................................... 57
8.2
SHAREHOLDINGS OF DIRECTORS AND OFFICERS ..................................................................................... 59
8.3
COMMITTEES OF THE BOARD .................................................................................................................. 59
8.4
CORPORATE CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS .................................. 60
8.5
CONFLICTS OF INTEREST .......................................................................................................................... 61
ITEM 9
LEGAL PROCEEDINGS AND REGULATORY ACTIONS ............................................................................. 61
ITEM 10
AUDIT COMMITTEE ............................................................................................................................. 61
10.1
OVERVIEW ................................................................................................................................................ 61
10.2
AUDIT COMMITTEE CHARTER .................................................................................................................. 61
10.3
COMPOSITION OF THE AUDIT COMMITTEE ............................................................................................. 61
10.4
AUDIT COMMITTEE OVERSIGHT .............................................................................................................. 62
10.5
PRE-APPROVAL POLICIES AND PROCEDURES ........................................................................................... 62
10.6
EXTERNAL AUDITOR SERVICE FEES .......................................................................................................... 62
ITEM 11
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS .......................................... 63
ITEM 12
TRANSFER AGENTS AND REGISTRARS ................................................................................................. 64
ITEM 13
MATERIAL CONTRACTS ....................................................................................................................... 64
ITEM 14
INTERESTS OF EXPERTS ....................................................................................................................... 64
ITEM 15
ADDITIONAL INFORMATION ............................................................................................................... 64
SCHEDULE "A" - AUDIT COMMITTEE CHARTER ........................................................................................................ 65
SCHEDULE "B" - CORPORATE SOCIAL RESPONSIBILTY CHARTER .............................................................................. 68
SCHEDULE "C" - RESPONSIBLE MINING POLICY ....................................................................................................... 69
SCHEDULE "D" - ENVIRONMENTAL POLICY ............................................................................................................. 71
SCHEDULE "E" - HUMAN RIGHTS POLICY ................................................................................................................. 72
DEFINITIONS
In this Annual Information Form all units are expressed in metric units unless otherwise noted and references to 'we', 'our', 'us', 'Lucara' or 'the Company' mean Lucara Diamond Corp. and its subsidiaries unless the context otherwise requires.
AIF means this Annual Information Form dated March 31, 2025
AK6 Kimberlite means the Kimberlite ore body that is located at the Karowe Mine
AK6 Project is the name of the project that was developed and resulted in the Karowe Mine in Botswana BCBCA means the Business Corporations Act (British Columbia)
Board means the Company's Board of Directors
BWP means Botswana Pula
CAD or C$ means Canadian dollars
CFPO means the Corruption of Foreign Public Officials Act (Canada) CIM means the Canadian Institute of Mining, Metallurgy and Petroleum
CIM Guidelines means the "CIM Definition Standards on Mineral Resources and Mineral Reserves" adopted by the Canadian
Institute of Mining, Metallurgy and Petroleum on May 10, 2014, and as subsequently amended
Clara means Clara Diamond Solutions Limited Partnership, Clara Diamond Solutions B.V., and Clara Diamond Solutions GP collectively, previously wholly owned subsidiaries of the Company
Clara Platform means the digital platform for the sale of rough diamonds owned by Clara
CORA means a cost overrun reserve account of $61,700,000 which must be funded by June 30, 2025 and which is subject to certain restrictions, as defined in the Facilities Agreement
cpht means carats per hundred tonnes
Debenture means the unsecured debenture that was issued by the Company to Nemesia in November 2023 when the
Company drew $15,000,000 from Nemesia's liquidity support guarantee
DMS means dense media separation
EIA means environmental impact assessment study
EMA means the Environmental Assessment Act of 2011 (Botswana) EMP means environmental management plan
EM/PK(S) means the Eastern Magmatic/Pyroclastic Kimberlite (South) unit of the AK6 South Lobe ESG means environmental, social, and governance
Facilities means the Project Facility and the Working Capital Facility, collectively
Facilities Agreement means the loan documentation signed on July 12, 2021, consisting of the Facilities, as amended and restated on July 19, 2023, and as further amended on January 9, 2024
Financial Close means September 2, 2021, being the date of satisfaction of certain conditions precedent under the Facilities Agreement
FRD means fine residue deposit FS means feasibility study
GEMDL means the De Beers Group Exploration Macro-diamond Laboratory in Johannesburg, South Africa GHG means greenhouse gas
GISTM means the Global Industry Standard on Tailings Management ha means hectares
HB means HB Trading BV, as part of the HB Group out of Antwerp, Belgium HQ means drill core diameter of 63.5 mm
IASB means the International Accounting Standards Board IFC means the International Finance Corporation
IFRS means International Financial Reporting Standards IT means information technology
JDS means JDS Energy & Mining, Inc., a company duly incorporated under the laws of British Columbia, Canada
Karowe Mine means the development and mining of the Kimberlite located in the Orapa/Letlhakane district of Botswana, formerly known as the AK6 Project
Karowe Technical Report means the updated NI 43-101 technical report for the Karowe Mine, titled "Karowe Mine - Botswana 2023 Feasibility Study Technical Report", with an effective date of June 30, 2023
Kimberley Process means the international certification scheme that regulates trade in rough diamonds with the intent of removing conflict diamonds from the global supply chain
Kimberlite is a type of igneous rock known for its potential to contain diamonds
LDDH means large diameter drill hole
LGD means laboratory-grown diamonds, also colloquially known as 'synthetic' diamonds LHS means the proposed "bottom-up" Long Hole Shrinkage mining method
Lobes means the three geologically distinct Kimberlite pipes that coalesce at surface and form the Kimberlite body of AK6 and Lobe means any one of them, whether North, Centre or South
LOM means Life-of-Mine
Lucara Botswana means Lucara Botswana Proprietary Limited, an indirect, wholly-owned subsidiary of the Company and the 100% owner of the Karowe Mine
M/PK(S) means the Magmatic/Pyroclastic Kimberlite (South) unit of the AK6 South Lobe masl means meters above sea level
mbs means metres below surface / shaft collar
MD&A means Management's Discussion and Analysis
MI 61-101 means Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions adopted by the Canadian Securities Administrators
MLAs means the mandated lead arrangers, comprised of Africa Finance Corporation, African Export-Import Bank, ING Bank N.V., Natixis, and Société Générale S.A. (SocGen) London Branch
mm means millimetres
Mt/a means million metric tonnes per annum
Nemesia means Nemesia S.a.r.l. a private company controlled by trusts settled by the late Adolf H. Lundin.
NDSA means the New Diamond Sales Agreement, a 10-year diamond sales agreement with HB Antwerp concluded in February 2024, effective retroactively from December 1, 2023, for all qualifying diamonds produced by the Karowe Mine in excess of 10.8 carats in size
NI 43-101 means National Instrument 43-101 - Standards for Disclosure for Mineral Projects adopted by the Canadian Securities Administrators
NI 52-110 means National Instrument 52-110 - Audit Committees adopted by the Canadian Securities Administrators NPV means net present value
NQ means drill core diameter of 47.6 mm OKF means Orapa Kimberlite Field
Project Facility means the senior secured term loan facility in the principal amount of up to $190,000,000
PwC means PricewaterhouseCoopers LLP
QA/QC means quality assurance/quality control
Rebase Amendments means the amendments to the Facilities Agreement dated January 9, 2024 to adjust the quantum of the Facilities and the repayment profile in line with the rebase schedule on the Underground Project released July 17, 2023
RJC means the Responsible Jewellery Council, the trading name of the Council for Responsible Jewellery Practices Ltd., a global membership and standards body for responsible jewellery throughout the entire supply chain
SEDAR+ means the System for Electronic Document Analysis and Retrieval, being an electronic filing system that allows listed companies to report their securities-related information with the Canadian Securities Administrators
SFD means size frequency distribution
Shareholder Undertaking means a limited standby undertaking of up to $63,000,000 provided by Nemesia under the Facilities Agreement
SOFR means the Secured Overnight Financing Rate
Specials means any single diamond that weighs more than 10.8 carats (irrespective of colour and quality)
SRK means SRK Consulting (Canada) Inc., a company duly incorporated under the laws of British Columbia, Canada Tomra means TOMRA Sorting GmbH, a company duly incorporated under the laws of Germany
TSX means the Toronto Stock Exchange
Underground Project means the underground development project at the Karowe Mine
Underground Project Debt Financing means the Facilities, a senior secured project financing debt package of $220,000,000 comprised of the Project Facility and the Working Capital Facility
Union means the Botswana Mine Workers Union
US$ or $ means United States dollars
Working Capital Facility means the senior secured revolving credit facility in the principal amount of up to $30,000,000
XRT means the X-Ray Transmission bulk sorting
Capitalized terms used but not otherwise defined herein shall have the same meanings ascribed to them in the CIM Guidelines.
REFERENCES
Doerksen G., Arlaud T., McLeod K., Church C., Armstrong J., Copeland A., Oberholzer J., Pierce M., Reichardt M., Webb K.,
Revering C., Vivier K., van Niekerk L., Karowe Mine Underground Feasibility Study Technical Report, Botswana, Effective Date: Sep 26, 2019, Report Date: Dec 16, 2019 posted on SEDAR+ atwww.sedarplus.ca.
Hanekom, A., Stiefenhofer, J., Robey, J.v.A., 2006. Geology of the AK6 Kimberlite - current knowledge and progress update.
Unpublished internal report, De Beers Geological Survey (DGBS), Mineral Resource Management (MRM).
Lipton, I. T., 2001. Measurement of bulk density for resource estimation in mineral resources and ore reserve estimation. In:
The AusIMM Guide to Good Practice. Ed. AC Howards, p. 57 - 66.
Lynn, M., Nowicki, T., Valenta, M., Robinson, B., Gallagher, M., Robin, B. and Sexton, J., 2014. Karowe Diamond Mine,
Botswana, NI 43-101 Independent Technical Report, Effective Date 31 December 2013, posted to SEDAR+ atwww.sedarplus.ca.
McGeorge, I., Lynn, M., Ferreira, J., Croll, R., Blair, D., Morton, K., (MSA), 2010. NI 43-101 Technical Report on the Feasibility
Study for the AK6 Kimberlite Project, Botswana, Effective Date 12August 2010, unpublished technical report prepared by MSA Geoservices (Pty) Ltd for Lucara Diamond Corp., posted to SEDAR+ atwww.sedarplus.ca.
MSC18/005R, 2018. Update of the AK6 South Lobe geological model, Karowe Diamond Mine, Botswana. Unpublished consulting report prepared by Mineral Services Canada Inc. for Lucara Diamond Corp.
Scott Smith, B.H., Nowicki, T.E., Russell J.K., Webb K.J., Mitchell, R., Hetman, C.M., Harder, M., Skinner E.M.W. and Robey,
JvA., 2013. Kimberlite terminology and classification. D.G. Pearson et al. (eds), Proceedings of the 10th International Kimberlite Conference, v2, Special Issue of the Journal of the Geological Society of India, p1-17.
Scott Smith, B.H., Nowicki, T.E., Russell J.K., Webb K.J., Mitchell, R., Hetman, C.M., Robey, JvA., 2018. A Glossary of Kimberlite and Related Terms. Published by Scott-Smith Petrology Inc., North Vancouver, BC, Canada. Part 1 - 144 pp; Part 2 - 59 pp; Part 3 - 56 pp.
SRK. 2020. Review of the Karowe Open Pit Cut 2 Slope Design. Prepared for Lucara Botswana by SRK Consulting, May.
Stiefenhofer, J, Hanekom, A., 2005. Geology of the A/K6 Kimberlite - current knowledge and progress update. Unpublished internal report, De Beers Mineral Resource Management (MRM).
Tait, M.A. and Maccelari, M.G., 2008. Update to the three-dimensional geological model of the AK6 Kimberlite, Botswana: modifications following the 2008 front end engineering design (FEED) review by ATD. Unpublished internal report, De Beers Group Services (Pty) Ltd.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain of the statements made in this AIF and in documents incorporated by reference constitute "forward-looking information" and "forward-looking statements" as defined in applicable securities laws (collectively referred to as forward-looking statements). Generally, any statements that express or involve discussions with respect to plans, predictions, expectations, beliefs, projects, objectives, assumptions or future events or performance and often (but not always) using forward-looking terminology such as "anticipates", "assumes", "believes", "budgets", "estimates", "expects", "goals", "intends", "forecasts", "objectives", "plans", "possible", "potential", "projects", "predicts", "scheduled", "strategy" and similar expressions, or statements that actions, events, conditions or results "will", "may", "could", "would", "might" or "should" occur, be taken, or be achieved (or the negative of any of these terms and similar expressions) are statements that relate to future events or future performance. All statements other than statements of historical fact are forward-looking statements.
In particular, forward-looking statements may include, but are not limited to, statements concerning:
• forecast production, anticipated production grades or diamond size distribution;
• the diamond sales, projection and future outlook disclosures, and expectations regarding top-up values;
• the impact of supply and demand of rough or polished diamonds, and our expectations regarding global diamond market or price growth;
• capital costs, operating costs, unit costs, and other expenditures;
• expectations regarding the open-pit mine operation, including the cost and timing of the development of the deposit;
• the Company's ability to successfully transition from open-pit mining to underground operations;
• the Underground Project schedule and capital, construction and sustaining costs, and the ability of the Company to complete the Underground Project;
• the timing, scope and cost of additional grouting events at the Underground Project;
• production capacity, planned production levels and future production of our operations, including as envisioned
following completion of the Underground Project;
• lateral development contract for the Underground Project, and the budget, costing and scheduling estimations;
• the use of existing and new infrastructure at the Karowe Mine;
• expectations regarding equipment deliveries;
• future prices and price volatility for oil, natural gas, petroleum products and other products required for the operation of the Karowe Mine and the development of the Underground Project;
• expectations regarding sustaining capital and existing project expenditures and the related focus areas;
• that expected cash flow from operations, combined with proceeds from external financing will be sufficient to complete construction of the Underground Project;
• that the estimated timelines to achieve mine ramp-up and full production from the Underground Project can be achieved;
• the economic potential of ore stockpiles and that sufficient stockpiled ore will be available to generate revenue prior to the achievement of commercial production from the underground operations at the Karowe Mine;
• the expected mine life of our operations and our expectation of an extended mine life to be delivered through the Underground Project or otherwise;
• the continued availability and cost of our Facilities, and the Company's ability to maintain the Underground Project
Debt Financing prior to maturity;
• the Company's ability to comply with the terms of the Facilities used to partially finance construction of the
Underground Project, including meeting funding requirements to the CORA;
• requirements for and availability of additional capital and access to financing;
• our estimates of the quantity and quality of our Mineral Reserves and Mineral Resources;
• the economic potential or realization of Mineral Reserve estimates, and the conversion of Mineral Resources to Probable Mineral Reserves;
• expected submission and receipt of any future regulatory approvals and the expected timing;
• permitting timelines and our expectations regarding the Company's ability to maintain all existing licences, permits and leases;
• negotiations and agreements among the Company and the Union, the Company's ability to negotiate a new labour agreement and expectations regarding the associated costs;
• financial assurance requirements related to the Underground Project and related agreements;
• our planned capital expenditures and capital spending and timing for completion of the Underground Project and other capital projects;
• our estimates of reclamation and other costs related to environmental protection;
• proposed or expected changes in regulatory frameworks and their anticipated impact on our business;
• environmental risks and the Company's ability to comply with environmental and other regulatory requirements;
• expectations regarding the Company's ability to dispose of excess water in an environmentally-sensitive manner and any related capital requirements;
• the Company's expectations regarding the timing, regulatory and funding of the opportunities to reduce energy use and GHGs;
• limitations on insurance coverage;
• currency exchange rates;
• title matters including disputes or claims and the impact of potential disputes in foreign jurisdictions;
• the completion of transactions and timing and possible outcome of litigation;
• our environmental, community, health and safety initiatives and procedures;
• our long- and short-term sustainability goals and strategies;
• the impacts of product traceability and diamond provenance;
• expected benefits of the NDSA with HB Antwerp;
• our ability to optimize the overall sales strategy for diamonds less than 10.8 carats in size;
• the Company's strategies, objectives and goals, including our financial and operating objectives;
• information or statements with respect to the Company's ability to continue as a going concern and ensure sufficient liquidity;
• risks facing our operations, projects and business as a whole and our expectations regarding planned activities for
2025; and
• general business and economic conditions.
By their nature, forward-looking statements are based on the opinions, assumptions and estimates of management as of the date such statements are made, and they are subject to several known and unknown risks, uncertainties and other factors or assumptions 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 correct. Readers and investors are cautioned not to place undue reliance on such forward-looking information included in this AIF.
Assumptions regarding the costs and benefits of the Underground Project include assumptions that:
- the Project is constructed, commissioned and operated in accordance with current expectations;
- expectations regarding the scheduling of activities for Underground Project in 2025;
- estimations around capital costs, the timing, scope and cost of grouting events;
- that expected cash flow from operations, combined with external financing will be sufficient to complete construction of the Underground Project;
- that the estimated timelines to achieve mine ramp up and full production from the Underground Project can be achieved;
- the economic potential of mineralized areas; and
- expectations that the Underground Project will extend mine life.
Statements regarding the availability of our Facilities and Underground Project Debt Financing are based on assumptions around:
- the Company's ability to continue as a going concern;
- that we will be able to satisfy the conditions for borrowing at the time of a borrowing request;
- the Company's ability to meet its obligations under the Rebase Amendments with its Lenders;
- the Company's ability to fill the CORA; and
- that the facilities are not otherwise terminated or accelerated due to an event of default.
Statements concerning future production costs or volumes are based on numerous assumptions of management regarding operating matters, including:
- that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts or supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions; and
- that there are no material unanticipated variations in the cost of energy or supplies.
Further assumptions have also been made regarding, among other things, present and future business strategies and the environment in which we will operate in the future, including assumptions that:
- demand for diamonds recovers and stabilizes;
- anticipated costs and ability to achieve our goals;
- forecasts of additional revenues;
- future production activity;
- that depletion and amortization expense on assets will be affected by both the volume of carats recovered in any given period and the reserves that are expected to be recovered;
- that customers and other counterparties perform their contractual obligations;
- the impact of the HB and Clara sales arrangements on the Company's projected revenue and sales channels and HB's ability to meet its payment obligations to the Company;
- expectations regarding top-up values;
- the Company's ability to carry on its production and development activities;
- the Company's ability to meet its obligations under property agreements;
- the timing and results of drilling programs;
- the timely receipt of required approvals and permits, including those approvals and permits required for successful project permitting;
- construction and operation of the Company's projects, including the Company's ability to continue operating;
- the costs of operating and exploration expenditures;
- the Company's ability to operate in a safe, efficient and effective manner;
- the Company's ability to obtain and retain financing as and when required and on reasonable terms;
- dilution and mining recovery assumptions;
- assumptions regarding stockpiles;
- the success of mining, processing and development activities;
- the accuracy of geological, mining and metallurgical estimates;
- no significant unanticipated operational or technical difficulties impacting the Company's operations or the
Underground Project;
- maintaining good relations with the communities where our mine is located;
- no significant events or changes impacting the Company relating to regulatory, environmental or health and safety matters;
- certain tax matters, including the outcome of tax assessments and the likelihood of recoverability of tax payments made; and
- general economic conditions or conditions in the financial markets (including foreign exchange rates, interest rates, the fair value of derivative financial instructions, and inflation rates).
Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Certain risks and uncertainties are beyond our ability to predict or control which may cause actual results to differ materially from those expressed or implied by the forward-looking statements contained in this AIF, including, among others:
• general global geopolitical, financial and economic conditions;
• the potential impacts of economic and geopolitical risks, including potential impacts from the ongoing world conflicts, and the resulting indirect economic impacts, such as strict economic sanction, increased prices for fuel and other commodities, increased volatility in the prices achieved in the rough and polished diamond markets, supply chain challenges and disruptions, logistics and transport disruptions and heightened cybersecurity disruptions and threats, a sustained slowdown in growth or demand in some markets not offset by reduced supply or increased demand from other regions;
• our continued ability to successfully manage challenges including high inflation and the possibility of a global recession on the Company's business and operations;
• acts of the governments where Lucara's offices and operations are located;
• risks generally encountered in the permitting and development of mineral properties, ground control problems, adverse weather conditions, process disruptions, equipment malfunctions or technology failures;
• future market prices for diamonds;
• the supply and demand for rough and polished diamonds and in particular, the demand for rough diamonds greater than +10.8 carats and the polished outcome from diamonds of this size;
• ability to maintain obligations or comply with the Facility Agreement;
• ability to access capital and liquidity risk;
• risks associated with financing requirements;
• the potential increase of capital costs relating to the development of the Underground Project and changes in the project parameters or schedule as plans continue to be refined;
• the assumptions raised in the updated Karowe Technical Report related to the Underground Project, including the expected development costs, start-up timing, development plans, projected tax benefits and/or expected operational costs;
• the successful mitigation of issues inherent in the mining of diamonds, such as theft and diamond damage and breakage;
• reliance on HB to polish and sell a significant percentage of the Karowe production (by value);
• estimations of Lucara's production and sales volume for the Karowe Mine;
• inherent hazards and risks associated with mining operations, places of work, and within Lucara's supply chain;
• operational costs, including costs of power, diesel and labour;
Disclaimer
Lucara Diamond Corp. published this content on March 31, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on March 31, 2025 at 23:50 UTC.