Lucapa Diamond Company Limited (ASX: LOM) ('Lucapa' or 'the Company') is pleased to present its quarterly activities report for the period ended 30 September 2022 (the 'Quarter' or 'Q3')

Managing Director, Stephen Wetherall, commented 'The two mining operations performed well during the Quarter. Lulo recovered five exceptional +100 carat diamonds, including the coloured 'Lulo Rose' and at Mothae, management pushed hard to address operational constraints and cost inflation and made significant inroads to overcome critical supply shortages. Evidence of this hard work is starting to show. Significantly during the Quarter, the formal approval from the National Bank of Angola was received for Lucapa's capital investment loan and SML immediately commenced loan repayments to Lucapa on this approval.

Looking at the market, the usual seasonal softness this time of year has been amplified by the global financial backdrop, with the volatility impacting demand and pricing for diamonds. Conversely, the strengthening of the US dollar has provided a partial offset to the lower prices. In the short-term, the relaxing of China's zero-COVID policy should see market conditions improve and in the medium- to long-term, we continue to believe in the industry fundamentals in a diminishing supply environment.'

ALLUVIAL MINE

(conducted by Sociedade Mineira Do Lulo, Lda ('SML' or 'Lulo') - Lucapa 40%, Endiama 32% and Rosas & Petalas 28%) The September Quarter was another record for Lulo, where the benefit of the In-field Screening Plant ('IFSP') that was commissioned in the second quarter of this year and mining focusing on the leziria ('floodplain') areas resulted in another strong performance. Volumes processed of 133,401m3 were 10% higher than the comparative prior year quarter. This, together with an increase of 26% in diamond grades resulted in 13,022 carats being recovered during the Quarter, an increase of 38% compared to the corresponding prior year period (Table 2). Among the recoveries in Q3 were 270 carats recovered through the retreatment of tailings stockpiles through the X-ray transmissive ('XRT') technology.

SML completed four sales of Lulo diamonds during the Quarter totalling 13,747 carats generating US$20.6 million (A$30.6 million), at US$1,499/ carat (A$2,228/ carat) (Table 3). Not included in the above sales are seven exceptional diamonds recovered from the Lulo Mine during the Quarter. These diamonds were held from sale and are being included in an international diamond tender conducted by Sodiam E.P. in Luanda, Angola which closes in mid-November 2022. The seven Type IIa diamonds which include the 170 carat 'Lulo Rose',

Post the Quarter end, October elections in the Kingdom of Lesotho resulted in a change of government. The Revolution for Prosperity party, led by a prominent Lesotho businessman,will form a new coalition government. As per ASX announcement on 28 July 2022, the GoL considered and voted on a Value Added Tax Amendment Bill ('Bill') which, if enacted would disallow diamond mining companies to claim the 15 percent Value Added Tax refunds on goods, services and capital items. In its current form, the Bill would unfavourably impact the Mothae mine, which in 2021 contributed 21% to Lucapa's attributable mining EBITDA. The Lesotho election process requires the Parliament of the Kingdom of Lesotho to adjourn a number of months prior to the elections and as a consequence of the elections only recently concluding and a new government is yet to be sworn in, there is no further update on the Bill. The Company will provide an update on this matter in due course.

Prior to the KBSP commissioning, a sample from kimberlite L403 was processed through the alluvial plant during the Quarter. As reported, one stone of 0.08 carats was recovered from 2,505m3 of sample. Following the commissioning of the KBSP, sampling of kimberlite L032 commenced with 424 cubic metres completed by Quarter-end. Sampling results will be reported in the next quarter. Kimberlites L164, L056, and L029 are scheduled to be processed next through the KBSP. Results from 11 mineral chemistry samples were received, and an additional eight samples were submitted to the laboratory for analysis. The results will be used to prioritise additional kimberlites for bulk sampling. The exploration team also discovered two additional kimberlites during the Quarter

MERLIN KIMBERLITE EXPLORATION, NORTHERN TERRITORY

(conducted by AusND - Lucapa 100%) Interpretation of historic De Beers hyperspectral data identified seven new kimberlite targets at Merlin during the Quarter. Approximately 400 soil samples were collected over seven of the targets for spectral analysis with a heavy mineral sample taken around the centre of each target. Results of this sampling will be reported in the next quarter. The data is being integrated with existing airborne geophysics, ground geophysics, heavy mineral soil sampling and geochemical soil sampling to identify additional kimberlite targets for follow-up. Additional geophysical work is also planned for the large magnetic target ('Leviathan') on the exploration licence in 2023

Contact:

CANDICE SGROI

HEAD OF INVESTOR RELATIONS & CORPORATE COMMUNICATIONS

Mobile: +61 400 49 22 85

Email: csgroi@lucapa.com.au

ABOUT LUCAPA

Lucapa is an ASX listed diamond miner and explorer with assets in Africa and Australia. It has interests in two producing diamond mines in Angola (Lulo, in which LOM holds 40%) and Lesotho (Mothae, in which LOM holds 70%). The large, high-value diamonds produced from these two niche African diamond mines attract some of the highest prices per carat for rough diamonds globally. The Lulo mine has been in commercial production since 2015, while the Mothae mine commenced commercial production in 2019. In 2021, through its wholly owned subsidiary, Australian Natural Diamonds Pty Ltd, Lucapa completed the strategic and transformative acquisition of the Merlin Diamond Project, an historic Australian mine containing a 4.4 million carat JORC (2012) compliant Mineral Resource with significant exploration potential. The Company published an Updated Scoping Study re-enforcing the significant economic potential for a long-life mine at Merlin with a production target of 2.1 million carats. A feasibility study is expected to be completed in Q4 2022. Lucapa and its project partners are also exploring for potential primary source kimberlites or lamproites at the prolific Lulo concession in Angola, the Brooking project in Australia and the Orapa Area F project in Botswana. The Board, management and key stakeholders in Lucapa have deep global diamond industry experience and networks all through the value chain from exploration to retail

Competent Person's Statement

Information included in this announcement that relates to exploration results and resource estimates is based on and fairly represents information and supporting documentation prepared and compiled by Richard Price MAusIMM who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Price is an employee of Lucapa Diamond Company Limited. Mr Price has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Price consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.

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. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. 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 forwardlooking 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.

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