Lucapa Diamond Company Limited (ASX: LOM) ('Lucapa' or 'the Company') wishes to announce its intention to undertake a share sale facility ('Facility') for shareholders that hold less than $500 in value of the Company's fully paid ordinary shares ('Shares') ('Unmarketable Parcel').

The Company currently has 5,395 Shareholders on its share register, of these, 2,688 hold parcels of Shares worth less than $500 in value based on the closing Share price of the Company's Shares on ASX on 19 June 2023 of $0.032 and on this basis deemed holders of Unmarketable Parcels are those holding 15,624 Shares or less. The Company is offering this Facility to assist holders of Unmarketable Parcels to sell Shares without having to use a broker or pay brokerage.

The Company will pay all costs of the sale for shareholders who use this Facility, excluding tax consequences from the sale which remain the shareholder's responsibility. The Company has appointed Blue Ocean Equities Pty Ltd to sell the Shares under the Facility. The sale price will be determined once all the Shares under the Facility are sold. Holders of an Unmarketable Parcel will receive a proportionate share of the sale proceeds from all Shares sold under the Facility without any deduction for brokerage or handling costs. Shareholders with an Unmarketable Parcel who wish to retain their shareholding need to return a complete Share Retention Form indicating their intention to retain their shareholder by no later than 5.00pm Perth time on 4 August 2023, otherwise their shares will be sold by the Company through the Facility.

The Company reserves the right to change any of the dates referred to in this announcement or the enclosed letter and Share Retention Form, or to vary, cancel or delay the Facility or the sale of Shares at any time before Shares are sold, by making an announcement to ASX. Attached is a copy of the letter to shareholders and Share Retention Form which will be dispatched to all shareholders holding an Unmarketable Parcel of Shares as at the Record Date. The sale of Unmarketable Parcels through the Facility will also benefit the Company, as it is expected to significantly reduce the administrative costs associated with maintaining a large number of small shareholdings on the Company's share register.

The Company does not provide any recommendation or advice as to whether shareholders holding an Unmarketable Parcel should sell or retain their Shares.

Contact:

Tel: 0400 49 22 85

ABOUT LUCAPA

Lucapa is an ASX listed diamond miner and explorer with assets in Africa and Australia. It has interests in two producing diamond mines in Angola (Lulo, in which LOM holds 40%) and Lesotho (Mothae, in which LOM holds 70%). The large, high-value diamonds produced from these two niche African diamond mines attract some of the highest prices per carat for rough diamonds globally. The Lulo mine has been in commercial production since 2015, while the Mothae mine commenced commercial production in 2019. In 2021, through its wholly owned subsidiary, Australian Natural Diamonds Pty Ltd, Lucapa completed the strategic and transformative acquisition of the Merlin Diamond Project, an historic Australian mine in the Northern Territory of Australia. A feasibility study is expected to be completed in H1 2023. Lucapa and its project partners are also exploring for potential primary source kimberlites or lamproites at the prolific Lulo concession in Angola, the Brooking and Merlin projects in Australia and the Orapa Area F project in Botswana. The Board, management and key stakeholders in Lucapa have deep global diamond industry experience and networks all through the value chain from exploration to retail.

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