Lucara Diamond Corp. — Capital/Financing Update 2021

Jun 28, 2021

Lucara Diamond Corp. Treasury Offering of Common Shares June 28, 2021

The Common Shares will be offered by way of a short form prospectus in British Columbia, Alberta, Manitoba, Ontario and Québec. A preliminary short form prospectus containing important information relating to the Common Shares has not yet been filed with the applicable Canadian securities regulatory authorities. A copy of the preliminary short form prospectus is required to be delivered to any investor that received this term sheet and expressed an interest in acquiring the Common Shares. There will not be any sale or any acceptance of an offer to buy the Common Shares until a receipt for the final short form prospectus has been issued. This term sheet does not provide full disclosure of all material facts relating to the Common Shares. Investors should read the preliminary short form prospectus, final short form prospectus and any amendment, for disclosure of those facts, especially risk factors relating to the Common Shares, before making an investment decision.

Terms and Conditions

Issuer:	Lucara Diamond Corp. (“Lucara” or the “Company”).
Offering:	Treasury offering (the “Offering”) of 29,400,000 common shares (“Common
	Shares”)
Offering Price:	C$0.75 per Common Share
Issue Amount:	Approximately C$22 million
Over-Allotment	The Company has granted the Underwriters an option, exercisable, in whole or in
Option:	part, at any time until and including 30 days following the closing of the Offering, to
	purchase up to an additional 15% of the Offering at the Offering Price to cover over-
	allotments, if any.
Concurrent Private	Concurrent with the Offering, the Company will issue, at the Offering Price,
Placement:	approximately C$16 million of Common Shares to Nemesia S.à.r.l. and certain
	other investors on a private placement basis.
Use of Proceeds:	The net proceeds of the offering will be used for working capital to support the
	development and ongoing operation of the Karowe diamond mine.
Form of Offering:	Bought deal by way of a short-form prospectus to be filed in British Columbia,
	Alberta, Manitoba, Ontario and Québec. Any Common Shares resold in the United
	States will only be made to investors that are “qualified institutional buyers,” as that
	term is defined in Rule 144A under the United States Securities Act of 1933, as
	amended, through United States duly registered broker dealer affiliate(s) of the
	Underwriters pursuant to and in reliance upon registration exemptions under Rule
	144A and applicable state securities laws, and in accordance with the terms and
	conditions set forth in the Underwriting Agreement.
Listing:	An application will be made to list the Common Shares on the Toronto Stock
	Exchange (the “TSX”) and on the Nasdaq Stockholm Exchange (the “Nasdaq
	Stockholm”). The existing common shares are listed on TSX and on the Nasdaq
	Stockholm under the symbol “LUC”.
Eligibility:	Eligible for RRSPs, RRIFs, RESPs, TFSAs, RDSPs and DPSPs.
Sole Bookrunner:	BMO Capital Markets.
Commission:	5.5%.
Closing:	On or about July 15, 2021.