ACCESS ROAD

OFFICE

BULK SAMPLE PLANT

OPEN PIT BOUNDARY

PROCESS WATER DAMS

PROCESSING FACILITIES

ORE STOCKPILES

WASTE ROCK DUMPS

SLIMES DAM

Lucara Exploration Licenses

Mines and Advanced Projects

Other Kimberlites

Town

Roads

Letlhakane

Letlhakane Mine

BK11 (Firestone Diamonds)

Orapa Mine

Mmatshumo

10 km

BOTSWANA

SOUTH AFRICA

ZIMBABWE

Karowe Mine

Gaborone BOTSWANA

Block E (AK11,12,13,14)

Block A(BK02)

Karowe Mine

Karowe Mine VisitThe mine is called “Karowe” which means precious stone in the local language. The mine was completed in 2012 on time and within a budget of US$120 million. It is a state-of-the-art operation comprising an open pit mine, crushers, AG mill and a XRT, DMS and XRF recovery plant. The mine has an annual production of approximately 380,000 carats of gem quality (including Type IIa) diamonds which are sold through regularly scheduled tenders throughout the year. Of importance, in addition to its regular diamond production, the Karowe mine has been producing some very large, exceptionally high quality diamonds (including some coloured stones). These exceptional stones are sold by special tender as recovery dictates.

Capital: Gaborone

Formerly the British protectorate of Bechuanaland, Botswana adopted its new name upon independence in 1966.

Time difference: UTC+2

Area: 581,730 km2

Climate: semi-arid; warm winters and hot summers

Terrain: predominantly flat to gently rolling tableland; Kalahari Desert in southwest

Population: 2,182,719

Natural resources: diamonds, copper, nickel, salt, soda ash, potash, coal, iron ore, silver

Botswana Diamonds: Botswana estimated diamond production for 2015 is 20-22 million carats making Botswana the second largest diamond producer in the world.

Ethnic groups: Tswana (or Setswana) 79%, Kalanga 11%, Basarwa 3%, other, including Kgalagadi and European 7%

Religions: Christian 71.6%, Badimo 6%, other 1.4%, unspecified 0.4%, none 20.6% (2001 census)

Languages: Setswana 78.2%, Kalanga 7.9%, Sekgalagadi 2.8%, English (official) 2.1%, Sesarwa 1.9%, Sempukushu 1.7%, other 5.1%, unspecified 0.2% (2001 est.)

Government type: Parliamentary republic

Chief of state: President Lieutenant General Seretse Khama Ian Khama (since April 1, 2008)

Head of government: President Lieutenant General Seretse Khama Ian Khama (since April 1, 2008); Vice President Mokgweetsi Eric Keabetswe Masisi (since November 12, 2014)

Elections: president indirectly elected for a five-year term (eligible for a second term); vice president appointed by the president

Currency: Pula

Republic of Botswana

Since independence in 1966, five decades of uninterrupted civilian leadership, progressive social policies, and significant capital investment have created one of the most dynamic economies in Africa. Mineral extraction, principally diamond mining, dominates economic activity, though tourism is a growing sector due to the country’s conservation practices and extensive nature reserves. Botswana

Africa

Karowe Mine Kimberlite Processing Vibrating

Grizzley

XRT Bulk Sorting

Sub Middle Course LargeX-Ray Recovery

Magnetic Separation

Recover Rejects

Mega Diamond Recovery XRT CQ3 2017

Autogenous Mill

Dense Media Separator

Ore from Mine

Hand Sorting

Pebble Crusher

Pebble Crusher Bleed Screen

Coarse Sizing Screen

Process Water

Tertiary Crusher

Secondary Gyratory CrusherBy

pass

De-Grit Cyclone

Thickener

CoarseTailings Disposal

Fine Tailings Disposal

Stockpile

Concentrate

Sizing Screen

Screening Plant

Primary Crusher

Karowe Mine Quick StatsLocation Botswana

Ownership 100% – Boteti Mining (Pty) Ltd.

Royalty 10%

Type Hard rock. Open pit. Mine plan to depth of 324 m

Status Mine development and production

Resources & Mine plan based on Probable reserve from surface to a depth of 324 m of 36.2 mt containing 6.3 million carats

Indicated resource from surface to a depth of 400 m of 51 mt containing 8.2 million carats

Inferred resource from 400 m to 750 m of 21 mt containing 4 million carats

Reserves

Mine Life Open pit operations to 2026 with further underground potential

Throughput 2.2-2.4 mtpa

2016/2017 $50 million approx. +Capital Program $7 million exploration budget

Operating Costs $29-$31 per tonne including waste minedContract mining and process plant operations

Production 350,000-380,000 carats per year

2016 Revenue $200-$220 million, excluding the sale of the two very large diamonds (Constellation and Lesedi La Rona)

Diamonds Large high value diamonds including exceptional stones

Diamond Sales Regular tenders throughout a year Exceptional stone tenders as recovery dictates Nine large and exceptional stone tenders to date, 131 diamonds sold with sales in excess of $350 million

(Estimate)