Lucapa Diamond Company Limited (ASX: LOM) ('Lucapa' or 'the Company') is pleased to announce the successful outcome of the Company's first cutting & polishing partnership, marking a milestone for Lucapa's move along the diamond value chain.

The 36 carat rough diamond from the Mothae kimberlite mine in Lesotho (Lucapa 70%; Government of the Kingdom of Lesotho 30%) was manufactured into six polished D-colour diamonds under a cutting & polishing partnership with a leading international diamantaire.

The two largest polished diamonds produced from the 36 carat Mothae stone were both graded as D-colour and Flawless by the Gemological Institute of America ('GIA'), including the exceptional 8.88 carat Pear diamond pictured below. The market value of the polished diamonds represents a significant increase over the rough stone.

Under the partnership agreements, net profits from the sale of the polished diamonds are shared equally with the diamantaire. Lucapa's share of the profits will be recorded in the Company's annual accounts in accordance with IFRS.

Lucapa Managing Director Stephen Wetherall said he was delighted that the first diamond placed into the cutting & polishing strategy had produced such spectacular results.

'The exceptional diamonds manufactured under our first profit-sharing cutting & polishing partnership represent another milestone for Lucapa's growth as a global diamond group as we progress along the diamond value chain. This strategy was implemented to maximise the rough value of our diamond production from our Mothae and Lulo mines and to access additional revenues streams for Lucapa and our mining partners into the future.'

Lucapa and its Lulo partners also look forward to soon announcing the first results from the cutting & polishing of Lulo production - made possible following the significant diamond sector reforms enacted by the Angolan Government in 2019.

ABOUT LUCAPA

Lucapa is a growing diamond company with high-value mines in Angola (Lulo) and Lesotho (Mothae).

The Lulo alluvial mine and Mothae kimberlite mine both produce large and high-value diamonds, with >75% of revenues generated from the recovery of +4.8 carat stones.

Lulo has produced 14 +100 carat diamonds to date and is one of the highest average US$ per carat alluvial diamond producers in the world. Lucapa and its Lulo partners continue to advance their search for the primary kimberlite sources of these exceptional alluvial gems through a systematic exploration program.

The new 1.1 Mtpa Mothae kimberlite mine in diamond-rich Lesotho commenced commercial diamond mining operations in January 2019. It produced > 30,000 carats - including 10 +50 carat diamonds - in its first year of production.

Lucapa's Board and management team have decades of diamond industry experience across the globe with companies including De Beers and Gem 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) the risk of adverse or unanticipated market, financial 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.

Contact:

Tel: +61-8 9381 5995

Fax: +61-8 9380 9314

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