LUCAPA DIAMOND : INTERIM FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2021

Published: 2021-09-13 11:17:00 ET LOM.AX

Lucapa Diamond Company Limited (ASX: LOM) ('Lucapa' or 'the Company') is pleased to publish its interim financial report for the six months ended 30 June 2021.

Managing Director, Stephen Wetherall commented 'Our cost control and preservation strategy initiated in response to the COVID pandemic last year, set Lucapa up well to capture the resurgence in the diamond market and achieve record financial results in the first half of this year. Our strong first half performance is a credit to our operational teams and partners who have worked hard to position the operations to achieve these results. We will continue to build on this into the second half of the year as we strive to achieve the upper-end of our cash operating market guidance of A$17-21 million for the full year.'

ABOUT LUCAPA

Lucapa is a unique growing diamond producer with high-value producing mines in Angola (Lulo) and Lesotho (Mothae). The 0.5 million bulk cubic metre per annum Lulo alluvial mine and 1.6 million tonnes per annum ('Mtpa') Mothae kimberlite mine both produce large and high-value diamonds, with >75% of revenues generated from the recovery of +4.8 carat stones.

Lucapa has also recently signed a binding agreement to acquire the Merlin tenements and assets in the Northern Territory of Australia. Merlin is well known for being Australia's large stone producer with significant exploration potential. It consists of two tenements - a 24km2 tenement with a mining lease and a 283km2 exploration tenement encompassing the Mining Lease, approximately 720km south-east of Darwin, NT. The Mining Lease contains 11 previously discovered kimberlite pipes in three kimberlite clusters with an existing 4.4m carat JORC 2012 resource. The acquisition is subject to the fulfilment of transaction specific and usual conditions precedent. Lucapa's Board, management team and strategic investors have decades of diamond industry experience across the globe and right through the diamond pipeline, particularly in extracting value from large and high quality diamonds.

Forward-Looking Statements

This announcement has been prepared by the Company. This document contains background information about the Company and its related entities current at the date of this announcement. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement. This announcement is for information purposes only. This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate.

All securities transactions involve risks, which include (among others) risks associated with mining, exploration, operations, resource, environment, funding and adverse or unanticipated market, financial, currency or political developments. No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted. This document does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of the Company. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing Rules, the Company does not undertake any obligation to update or revise any information.

Contact:

Tel: +61 8 9381 5995

Fax: +61 8 9380 9314