Ann: Resources Rising Stars Gold Coast Conference Presentation, page-15

This is a summary, which you can use in conjunction with the handout, of SW's presentation at this year's RRS conference at the Gold Coast. Don't have to time to spell check so apologies if this post contains some small errors.

Looking around at the +700 audience, his presentation was captivating and very well received. It was followed by a strong visit to our booth. He was very vocal on the disconnect between our sp and our current and future earnings.

SW's Presentation

♦ 52 week range 14.5¢ to 29¢. We're trading at the wrong end of that range considering the quality of our assets and our current and future cash flow generation.

♦ Last two sales of ~12,500 carats weighed 88oz. 88oz of gold would generate Au$160k. We sold that '88oz' of diamonds for Au$20m. Market isn't giving us credit....there is a major, major error in the market's valuation of us atm since we generate cash flows now and we'll generate superior cash flows in the future whereas a lot of gold companies do get that benefit.

♦ Share registry change tremendously over last couple of years. When SW joined the company, top 40 held under 30%. Today they hold +50%. This represents a significant change, given the die back in the junior resources sector. Our largest holders are picking up & increasing their position in the company, so that's telling you something. Our two largest holders are providing finance to the company, so we have strong backers now where we're able to access alternate means of financing.  No longer need to cap raise etc.

♦ We are a rare diamond company. We produce rare, large and high value diamonds that sell for millions of dollars. 2^nd reason why we are rare is that, unlike most of our peers, which have a single asset, we now have two producing mines - Lulo in Angola, Mothae in Lesotho - high value production assets. Single producing asset risk can never be used again for Lucapa Diamonds. 3^rd reason why we are rare is that, unlike most of our listed peers, who offer no upside protection, we offer significant potential. We have one of the most prospective kimberlite exploration programs in the diamond space today. So we are very unique - we haven't happened upon this uniqueness, or rareness, by accident - it's been a calculated strategy cultivated by the board and delivered by the management team. SW went on to say that they are very proud of what they have achieved and he looks forward to "our future".

♦ Mothae Kimberlite Mine
-  8.8ha kimberlite with 1m contained carats in an Inferred JORC resource
- rare, large high value diamonds
- current mine plan 13.5 years of mining, but resource continues at depth
- looking at extending that life of mine
- Lesotho is a diamond rich country
- 3 producing kimberlite mines within a stone throw of Mothae
- acquired 70% from the govt of Lesotho for $9m
- developed & commissioned the mine & ran bulk sampling programs on a tight budget of $38m
- can't get much for $38m in the gold sector, but certainly can in the diamond space
- 10 year lease, we built a state-of-art 1.1mt/pa, XRT recovery circuit for large diamonds
- commenced commercial production in Jan this year - within 2 years of acquiring % in the mine
- significant 5 months, grades & throughput are in excess of our plan
- currently mining lower margin areas
- regular recovery of large, Type lla stones, including fancy yellows & pinks
- 126ct stone from what they understood to be a low margin area of the pipe - need to reassess
- sold $7.3m in 2019, avg ROM $600/ct, but expecting +$700/ct as they transition through the
  weathered zones and into the more competent kimberlite material at depth
- sales prices already up to $36k/ct, looking forward to upcoming tender Jun or Jul (to incl 126ct stone)
- plant throughput is higher than nameplate capacity so to avoid running out of water in H2 they
  decided to mine lower margin areas to preserve water in South pit whilst dam wall is increased - then
  pump water from South pit to dam and access higher margin zones
- 77% or ore scheduled to come from South Center & South West zones
- 56ct stone sold for $2.1m, 3 or 4 other multi-million dollar stones sold by previous owner
- stellar first 5 months, H2 will be even better

♦ Lulo Alluvial Mine
- simply Africa's best alluvial mine - in fact it's the world's best diamond mine
- 1,500km² inferred alluvial resource - recovers the world's best, largest & high value diamonds.
- operating for 5 years & will be in operation for many years
- only touched a small area todate
- Angola is a diamond rich country but significantly under explored because of its past
- fortunate to be one of the 'freaks' in diamond resource sector - a very significant diamond concession
- Lucapa owns 40% of the concession & primary funder of exploration & development of SML
- significant cash flow generator, now self funded, partners self fund their own equity
- presently focused on 25% of the Cacuilo River, recovering magnificent diamonds - much more of Cacuilo River to get + all the tributaries + Lulo River and its tributaries, we will be here for many, many years
- 5^th year in operation, very very prolific producer, $146m came from concession so far, avg US$2,000/ct compared to world avg of US$140/ct
- consistent large stones producer, 13 x +100ct diamonds
-self funded kimberlite exploration for past 4 years & this will continue
- previous Angolan regime implemented a very, very inefficient marketing system - that marketing system with the new president a& our input now has changed significantly. We have more channels to market our diamonds & therefore we will achieve the ultimate $ back to the operation. as a result we're going to sweat it to its maximum throughput capacity in H2 by adding a 3^rd shift - this will grow our return from Lulo
- we want to start refunding & repaying our $30m investment loan that we put into Angola - we'll get that money back faster at the elevated capacity
- alluvial mine expansion is self funded by the project - set for Q3

♦ Lulo Kimberlite Exploration
- the major prize in Angola is the source to these magnificent diamonds
- if you get the opportunity, visit us - come look at these diamonds - large, irregular shapes, showing no signs of transport - this, together with other diamonds and compound diamonds recovered, tell us that we are proximal to the source(s).
- kimberlite exploration is a methodical process - the cross that we have come to bear, that we have 300 targets - most other kimberlite exploration, they've got barren ground & maybe 2 targets - we've got the complete opposite - we've got these exceptional diamonds, we've got 300 targets, we know that only a single digit percentage will likely be economically diamondferrous, but we have to develop a methodical program for us to deliver on that strategy & we are doing that - but the best thing about it is that we are not asking anyone to pay for this - we are self funding this from our very, very profitable alluvial operation - it's funding our ticket into the lottery there

♦ Wrap up
- we are operating from 2 very, very niche mines
- we have 2 of the top 3 highest price diamond projects within our portfolio
- we have 2 operating mines as opposed to 1, so you can no longer apply a single asset risk to us
- the main prize for us in Angola is to find the source - we believe that we have the management, we have the program that surely that prize is within our grasp
- market is perhaps not valuing us fairly atm, given our cash flow generating capacity
- we are covered by 2 analysts in the resource sector - Panmure Gordon in London and Euroz Australia valuing Lucapa at 45¢ and 61¢, yet we're trading at 15.5¢