HB Antwerp and Lucara sign a long-term supply agreement

• Following an initial six-month cooperation, Lucara Diamond Corp. and HB Antwerp are stepping into a long-term partnership
• Under the agreement, HB Antwerp will purchase all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana for a period of 24 months

Antwerp, 7^th of April 2021 – HB Antwerp and Lucara Diamond Corp surprised the diamond world in 2020 when they entered into a unique supply agreement. This agreement saw HB Antwerp formally commit to purchasing all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana.  Today, both parties are pleased to announce a new long-term partnership agreement.

For a minimum period of 24 months, HB Antwerp will purchase all of Lucara Diamond’s +10.8 carat rough diamonds from the Karowe mine in Botswana. These large high value diamonds from Karowe account for approximately 70 per cent of Lucara Diamond’s annual revenues.

Under the terms of this supply agreement, the purchase price paid for each 10.8 carat rough diamond is based on the estimated polished outcome, determined through state-of-the-art scanning and planning technology, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing.

Oded Mansori, CEO HB Antwerp: “More than a supply agreement, this deal structurally embeds a more transparent and sustainable way of working in the diamond value chain. For the first time, different partners of the supply chain are fully aligned, sharing complete data and information and this throughout the process from mine to consumer. We are truly proud with this innovative and straightforward collaboration that has proven itself through the volatile and uncertain reality of 2020. We are confident to achieve even better results during the term of this new contract and demonstrate the power of a true partnership.”

Eira Thomas, CEO commented: “The decision to sell our +10.8 carat rough diamonds under a committed supply agreement with HB beginning in July of 2020 has helped support prices for this critical segment of our production amidst pricing uncertainty caused by the ongoing global pandemic. Not only have rough diamond prices experienced a positive re-bound over the past two quarters, Lucara is also beginning to see the benefits of this strategy in accessing a broader marketplace. With this agreement we are creating better alignment between all participants and establish a healthier, more efficient global diamond supply chain.”

About HB Antwerp

HB Antwerp turns the diamond supply chain upside down starting with the customer. Using technology, we bring simplicity and transparency to a typically complex supply chain. Everything happens in a closed loop called HB Ecosystem in Antwerp, backed with the latest technologies and tracked with blockchain making it 100% transparent from diamond mine to market.

About Lucara Diamond Corp.

 Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Mine in Botswana and owns a 100% interest in Clara Diamond Solutions, a secure, digital sales platform positioned to modernize the existing diamond supply chain and ensure diamond provenance from mine to finger.  The Company has an experienced board and management team with extensive diamond development and operations expertise.  The Company operates transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations.