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LUC.TO ·

Lucara Enters into Collaboration with Louis Vuitton to Polish the Historic 1758 Carat Sewelô, Botswana’S Largest Diamond Van

Partnerships & JV

January 15, 2020

PRESS RELEASE

LUCARA ENTERS INTO COLLABORATION WITH LOUIS VUITTON TO POLISH THE HISTORIC 1758

CARAT SEWELÔ, BOTSWANA’S LARGEST DIAMOND

VAN

COUVER, January 15, 2020/CNW/ - (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)

L

ucara Diamond Corp. (“Lucara” or the “Company”) is pleased to announce that it has entered into a collaboration

with Louis Vuitton (“LV”) , the famous luxury House, and the HB Company (“HB”), a diam ond manufacturer from

Antwerp, to manufacture its historic, record setting, 1758 carat Sewelô diamond recovered from its 100% owned

Karowe Diamond Mine in Botswana in April 2019 (see Lucara Press Releases April 25, 2019, and July 18, 2019).

Se

welô, which means “rare find” in Setswana, is the second, +1000 carat diamond recovered from Karo we in four

years and the largest ever recovered in Botswana. The diamond has been characterized as near gem of variable

quality, with recent analysis confirming that it also includ es domains of higher-quality white gem. Lucara believes

that the full potential of this special stone will only be revealed once polished. The purpose of this unprecedented

collaboration between a miner, a cutting edge manufacturer and a large luxury brand will be the planning, cutting

and polishing of a collection of diamonds fr om Sewelô . Lucara will receive an up front non -material payment for

the Sewelô and retain a 50% interest in the individual polished diamonds that result.

Fur

ther, 5% of all of the retail sales proceeds generated from this historic collection will be invested directly back

into Botswana on community-based initiatives undertaken by Lucara.

E

ira Thomas CEO commented: “We are delighted to be partnering with Louis Vuitton, the famous luxury House, to

transform the historic, 1,758 carat Sewelô, Botswana’s largest diamond, into a collection of fine jewellery that will

commemorate this extraordinary discovery and contribute direct benefits to our local communities of interest in

Botswana.”

E

ira Thomas

President and Chief Executive Officer

F

ollow Lucara Diamond on: Facebook, Twitter, Instagram and LinkedIn

F

or further information, please contact:

North America

Sweden

UK Public Relations

Christine Warner, Investor Relations & Communications

+1 604 689-7842 | [email protected]

Robert Eriksson, Investor Relations & Public Relations

+46 701 112615 | [email protected]

Emily Moss / Jos Simson, Tavistock

+447788554035 | [email protected]

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Photo Credit: Louis Vuitton

ABOUT LUCARA

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.

The information in this release is subject to the disclosure requirements of the Company under the EU Market

Abuse Regulation. This information was publicly communicated on January 15, 2020, at 2:30 pm

Pacific Time.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made and contained herein and elsewhere constitute forward-looking statements

as defined in applicable securities laws. Generally, these forward-looking statements can be identified by the

use of forward-looking terminology such as "expects", "anticipates", "believes", "intends", "estimates",

"potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may",

"could" or "should" occur or be achieved.

Forward-looking statements are based on the opinions and estimates of management as of the date such

statements are made and they are subject to a number of known and unknown risks, uncertainties and other

factors which may

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cause the actual results, performance or achievements of the Company to be materially different from any future

results, performance or achievement expressed or implied by such forward -looking statements. The Company

believes that expectations reflected in this forward -looking information are reasonable, but no assurance can be

given that these expectations will prove to be accurate and such forward-looking information included herein should

not be unduly relied upon.

There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results

and future events could differ materially from those anticipated in this forward-looking information as a result of

those factors discussed in or referred to under the heading "Risks and Uncertainties"' in the Company's most recent

Annual Information Form available at http://www.sedar.com, as well as changes in general business and economic

conditions, changes in interest and foreign currency rates, the supply and demand for, and the level and volatility of

prices of rough and polished diamonds, the actual results of interpreting, cutti ng, planning and polishing rough

diamonds, and the inherent risks in diamond manufacturing and fluctuations in the luxury goods market.

Accordingly, readers are cautioned not to place undue reliance on these forward- looking statements which speak

only as of the date the statements were made, and the Company does not assume any obligations to update or

revise them to reflect new events or circumstances, except as required by law.