Tuesday, December 2 2014

 The Ministry of Energy and Natural Resources has granted to Geoteam CJSC, Lydian International's 100% owned subsidiary, Mining Right for the Amulsar Gold Project. This represents the final stage of the mining permitting process and grants the Company the right to develop the Amulsar Project in line with the parameters detailed in the feasibility study. The approval covers i) all project infrastructure, including the location for crushers, the conveyor and heap leach facility, ii) a mining permit applicable to the pits, iii) definition of the area within which operating activities may take place, and iv) a mining agreement that outlines the nature and duration of mining operations, Geoteam reports. 

Granting of the Mining Right follows an extensive application, consultation, and review process. Previously, Lydian received approval of its environmental impact assessment ("EIA") from the Armenian government's Ministry of Nature Protection, acting under the Armenian Mining Code and EIA Law, based on expert reviews and public discussions. In parallel, the Ministry of Emergency Situations approved the Technical Safety Program ("TSP").

Howard Stevenson, President and CEO, said "The previous EIA and TSP approvals, and now this most recent approval of the Mining Right, were the subjects of intensive and thorough interaction with the Armenian authorities, local communities, members of civil society, and others. Thank you to all who participated in this process. We look forward to a long working relationship within Armenia as this project progresses into construction and production. Lydian intends that Amulsar will become an exemplary mining and investment project in Armenia, beneficial both for the country and for our investors.  Lydian is committed to implementing best international practices at Amulsar by complying with IFC and the EBRD environmental and social standards throughout the project's duration."

Hayk Aloyan, General Manager of Geoteam CJSC, said "Amulsar is around US$420 million investment project that represents tangible opportunities for economic benefits for the country and the adjacent communities. It will offer around 1500 jobs during the two years of construction and over 700 permanent jobs for at least 10 years of operation.  Amulsar also highlights an opportunity to develop a mining project in Armenia in line with industry best practice, with world-class environmental and social management that will benefit the country and the communities around the project. We believe that Armenia can have a modern and well managed mining industry that will contribute greatly to the well-being of its citizens.  We are looking forward for productive cooperation with the communities and all stakeholders across Armenia to be able to make this project a successful investment, beneficial for our country".

Geoteam CJSC is an Armenian mineral exploration and development company, which is a 100% owned subsidiary of Lydian International Limited. Geoteam CJSC was incorporated in 2005 and after an extensive campaign of geological exploration in Armenia discovered what is now its flagship project; the Amulsar mountain. Amulsar is a new gold discovery, the first for over 20 years in Armenia. Geoteam CJSC is carrying out geological exploration in the Amulsar area of RA Vayots Dzor Marz, under a Prospecting License, granted in 2006 by RA Ministry of Nature Protection.  The company has already invested $69 million in exploration and development to date. Majority shareholders of Lydian International Limited are IFC, EBRD, and Newmont Mining Corporation.  Lydian International Limited plans capital investments of approximately  $426 million in the Amulsar gold project in Armenia in 2015-2016.  The feasibility study of the project indicates that the contained gold reserves are 2.5 million ounces, with the plan calling for 2.1 million ounces of recovered gold. The mine life is 10.4 year with the gold production averaging over 200,000 ounces per year.   The average cash operating cost for gold production will total $642 per ounce of gold.  Gold recoveries will total 84% and the strip ratio anticipated at 2.8:1.