ALLUVIAL DIAMOND MINING

Lucapa and its partners commenced alluvial diamond mining operations at Lulo in January 2015, with mining company Sociedade Mineira Do Lulo (SML) (Lucapa 40% owner and operator) formally incorporated in May 2016.

To date, Lulo has achieved gross revenues of US$116 million from the sale of ~58,000 carats of diamonds, representing an exceptional average price per carat of US$2,000. This has established Lulo as the highest US$ per carat alluvial mine in the world.

Lulo is a prolific producer of large and premium value diamonds, including more than 760 Specials (large diamonds weighing more than 10.8 carats).

These large diamonds include 11 +100 carat stones, including Angola’s two largest recorded diamonds weighing 404 carats (named the 4th February Stone) and 227 carats.

Lulo is also a source of high-value coloured diamonds, with production including a 46 carat pink and a 43 carat yellow.

The 1.1 million tonne per annum Lulo diamond plant includes XRT large-diamond recovery technology capable of recovering individual diamonds of up to 1,100 carats.

Alluvial mining and exploration activities at Lulo are focused on a ~50km stretch of the Cacuilo River which runs through the ~3,000km2 Lulo concession.