Lucara Recovers 378 Carat Top White Gem Diamond from the Karowe MINE IN Botswana

January 26, 2021

PRESS RELEASE

LUCARA RECOVERS 378 CARAT TOP WHITE GEM DIAMOND FROM THE KAROWE MINE IN

BOTSWANA

VANCOUVER, January 26, 2021 /CNW/ - (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)

Lucara Diamond Corp. (“Lucara” or the “Company”) is pleased to announce another recovery of significance from its

100% owned Karowe Mine. A magnificent unbroken Type IIa 378 carat gem quality top white diamond was recently

recovered from milling of ore sourced from the M/PK(S) unit of the South Lobe (image attached). This recovery is

the 2nd +300 carat gem quality diamond to be recovered this year from direct milling of the M/PK(S) unit, a further

testament to the strong resource and process circuit performance at Karowe. The 378 carat and the 341 carat

diamonds were recovered from the Coarse XRT circuit.

Eira Thomas, Lucara's CEO commented: “This superb 378 carat diamond is our second +300 carat recovery so far this

year, marking a strong early start to 2021. The 378 carat joins a rare and special lineage of exceptional, high value

diamonds recovered at Karowe and continues to highlight the wonderful diamond potential of Botswana. Continued

and consistent recovery of large diamonds, such as the 378 carat and 341 carat stones, comes at a critical time and

provides continued strength and additional foundation to the opportunity to finance and build the underground

expansion at Karowe that will see mining continue for at least another 13 years after the open pit ceases operations

in 2026. We look forward to a safe, productive and busy 2021.”

This press release has been reviewed and approved by Dr. John Armstrong, Ph.D. P.Geol., Vice-President, Technical

Services of the Company and a "Qualified Person" for the purposes of National Instrument 43-101.

Eira Thomas

President and Chief Executive Officer

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For further information, please contact:

Investor Relations & Communications

+1 604 674 0272| [email protected]

Sweden Robert Eriksson, Investor Relations & Public Relations

+46 701 112615 | [email protected]

UK Public Relations Emily Moss / Jos Simson, Tavistock

+44 778 8554035 | [email protected]

ABOUT LUCARA

Lucara is a leading independe nt 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 ensur e 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 accurate at the time of distribution but may be superseded or qualified by

subsequent news releases.

This information is information that the Company is obliged to make public pursuant to the EU Market Abuse

Regulation. The information was submitted for publication, through the agency of the contact persons set out above,

at 2:00pm Pacific Time on January 26, 2021.

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 identi fied 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

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. The value of the Company's shares, its financial resul ts and its mining activities are

significantly affected by the price and marketability of the diamonds recovered. The sales price of a diamond is

determined by its characteristics. While the Karowe Diamond Mine has produced a number of large, high -value

diamonds in excess of 100 carats, there is no assurance that the diamonds recovered which are 100 carats or larger

will have the characteristics required to achieve a high sales price.

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

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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, deliveries of and the level

and volatility of prices of rough diamonds, costs of power and diesel, acts of foreign governments and the outcome

of legal proceedings, inaccurate geological and recoverability assumptions (including with respect to the size, grade

and recoverability of mineral reserves and resources), and unanticipated operational difficulties (including failure of

plant, equipment or processes to operate in accordance with specifications or expectations, cost escalations,

unavailability of materials and equipment, government acti on or delays in the receipt of government approvals,

industrial disturbances or other job actions, adverse weather conditions, and unanticipated events relating to health

safety and environmental matters).

Accordingly, readers are cautioned not to place u ndue 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.