NEWS FOR IMMEDIATE RELEASE

LYDIAN INTERNATIONAL ANNOUNCES ROBUST FEASIBILITY

STUDY FOR ITS LOW-COST AMULSAR GOLD PROJECT IN
ARMENIA
NPV of $646.0m ! "# $%&'o()! *!+, IRR of -...# /! $0,-001o2 3o4$5
TORONTO, Ontario, September 5, 2012. Lydian International Ltd. (TSX: LY!
("Lydian# or "t$e %ompany#!, a &old'(o)*+ed mineral e,ploration and de-elopment
)ompany, i+ plea+ed to report t$e re+*lt+ (rom it+ re+o*r)e *pdate and (ea+ibility +t*dy at it+
.m*l+ar &old pro/e)t in .rmenia. All figures are in US Dollars unless otherwise stated.
Highlights of the Feasibility Study (base case using $1,2!o"
gold#
0ro-en and probable open pit mineral re+er-e+ o( 2.21 million o*n)e+ &old and
2.13 million o*n)e+ +il-er
.-era&e li(e'o('mine (LO4! 5a+te to ore ratio o( 2.23:1 (1.60:1 year+ 1 to 3!
12 year LO4 5it$ e,pan+ion in year (o*r (rom a nominal'ore (eed rate o( 5
million tonne+ per year to 10 million tonne+ per year
Steady +tate ann*al &old prod*)tion (or year+ 1 to 3 o( 116,371 o*n)e+ per year
and (or year+ 7 to 12 o( 161,078 o*n)e+ per year -ia $eap'lea)$ pro)e++in&
.-era&e LO4 )a+$ operatin& )o+t o( 9716.5:o;
0re'ta, net pre+ent -al*e (N0<! o( 9171 million at a 5= di+)o*nt rate &eneratin&
an internal rate o( ret*rn (IRR! o( 28.8=
>+timated +tart'*p )apital )o+t o( 9212.1 million
.t a &old pri)e o( 91,500, pre'ta, N0< at a 5= di+)o*nt rate i+ in e,)e++ o( 91.05 billion
and t$e IRR i+ 36.1=. ?*rt$er opport*nitie+ e,i+t to impro-e pro/e)t e)onomi)+ t$ro*&$
additional e,ploration drillin&, re+o*r)e )on-er+ion and en&ineerin& option+.
r. Tim %o*&$lin, 0re+ident and %>O o( Lydian International +tate+ "T$e )ompletion o(
t$i+ (ea+ibility +t*dy i+ a ma/or a))ompli+$ment (or t$e %ompany. @it$ 2.3 million
re+er-e o*n)e+ o( &old, t$e .m*l+ar depo+it i+ .rmeniaA+ lar&e+t a+ yet *nde-eloped
&ra++root+ &old depo+it and 5ill be one o( t$e )o*ntryA+ top ta, &enerator+. T$e total
5orB(or)e reC*ired d*rin& operation i+ e+timated at aro*nd 550 dire)t employee+, 5it$
abo*t 100 employee+ and )ontra)tor+ needed d*rin& t$e )on+tr*)tion period. >,ploration
drillin& )ontin*e+ 5it$ t$e aim bein& to add ne5 re+er-e o*n)e+ and 5e are )*rrently
5orBin& on t$e remainin& Bey deli-erable+, 5$i)$ in)l*de t$e >n-ironmental and So)ial
Impa)t .++e++ment and (*rt$er permit+ and li)en+e+. @e are implementin& international
be+t pra)ti+e in t$e area o( en-ironmental mana&ement, $ealt$ and +a(ety, and
)omm*nity de-elopment a+ 5ell a+
- 2
'
b*ildin& partner+$ip+ and de-elopin& lo)al b*+ine++e+. %*rrent on&oin& )on+*ltation+
5it$ lo)al )omm*nitie+ and en&a&ement 5it$ all national +taBe$older+ i+ an important
a+pe)t o( t$e +o)ial li)en+e to operate at .m*l+ar. O*r team i+ (o)*+ed on b*ildin& an
e,emplary mine o( 5$i)$ .rmenia, o*r lo)al )omm*nitie+ and t$e %ompany )an be pro*d.#
$ro%ect Assu&'tions and
$ara&eters
A&&(m6!%o)
&
Dold 0ri)e (9:o;! 1,200
?orei&n >,)$an&e Rate (.R4:ES9!
362
>le)tri)ity (9:B@$!
0.01
Ta, ed*)tible Royalty "Top Line# %$ar&e (=! 7.0
Ta, ed*)tible Royalty "Fottom Line# %$ar&e (=! 12.5
%orporation Ta, (=!
(t$*+ in broad term+ t$e bottom line )$ar&e i+ a )ombined 30=!
20.0
M%)+ P*m+!+*& /LOM5
4ine Li(e (year+! 12
.-era&e Strip Ratio (5a+te:ore! 2.23
.-era&e Dold Drade (&:t! 0.85
.-era&e Sil-er Drade (&:t! 3.28
Total %ontained Dold (4 o;! 2.21
Total %ontained Sil-er (4 o;! 2.13
>+timated Dold Re)o-ery (=! 66.1
>+timated Sil-er Re)o-ery (=! 31.2
Total Re)o-ered Dold (4 o;! 2.03
Total Re)o-ered Sil-er (4 o;! 3.16
.-era&e .nn*al Sil-er 0rod*)tion (o;! 301,801
Steady State .-era&e .nn*al Dold 0rod*)tion Yr+ 1 to 3 (o;! 116,371
Steady State .-era&e .nn*al Dold 0rod*)tion Yr+ 7 to 12 (o;! 161,078
Co&!&
Initial %apital (9 4! 212.1
S*+tainin& and 4ine %lo+*re %apital (9 4! 171.5
.-era&e Operatin& %o+t LO4 (9:o;! 716.5
F%))'%4 A)47&%&
N0< 5= i+)o*nt 0re'Ta, (9 4! 171.0
IRR 0re'Ta, (=! 28.8
0re'Ta, 0ayba)B 0eriod (year+! 7
A&ulsar (ineral )eser*es
T$e mineral re+er-e e+timate 5a+ e+tabli+$ed by tab*latin& t$e *ndil*ted tonne+ and &rade+
o( pro-en and probable material 5it$in t$e de+i&ned (inal pit t$at i+ +)$ed*led a+ ore to
t$e )r*+$er o-er t$e mine li(e. . (loatin& )one al&orit$m (independently -eri(ied by
@$ittle optimi;ation+! 5a+ *+ed to determine t$e (inal pit de+i&n and internal p$a+e
- 3
'
de+i&n+. T$e (loatin& )one optimi;ation al&orit$m i+ a )ommonly *+ed and a))epted
ind*+try tool (or
pro-idin& &*idan)e to mine de+i&n. T$e e+timated pro-en and probable re+er-e+ total
2.21 million o*n)e+.
Am(4&* M%)+*4 R+&+*8+& ! $0,-001o2 )$ 8*%94+ '(!-off 3*$+ 97 7+*
R+&+*8+
' ! + 3 o*7
To))+&
/:00 0 &5
Go4$
G *$+ / 3 1!5
S%48+*
G *$+ / 3 1!5 G o4$ o2

S% 4 8 +* o2
P*o8+) 51,173 0.601 3.38 1,318,000 5,571,000
P *o 9 9 4+ 38,101 0.862 3.73 271,000

7,022,000
T o!4 / P ; P5 66,272 0.821 3.70 2,256,000

2,133,000
T$e table belo5 +$o5+ t$e mineral re+o*r)e+ at -ario*+ )*t'o(( &rade+:
Am(4&* M%)+*4 R+&o(*'+ E&!%m!+
R+&o(*'+
C!+3o*7 C(!-off
G *$+
To))+&
/m %44%o ) &5
G*$+
/3 1! A (5

Go4$
O()'+&
/:00 0 5
G*$+
/31!
A 35
S%48+*
O()'+&
/:00 0 5
M+&(*+$ /M5
0.85 15.7 1.17 612 7.28 2,752
0.5 28.8 1.16 1,053 7.16 3,820
0.4 <6." 0.00 0,0=0 <.=- 4,4=>
0.3 50.2 0.63 1,332 3.75 5,587
0.2 80.8 0.11 1,721 3.11 8,015
I)$%'!+$ /I5
0.85 13.0 1.58
155
7.86
1,225
0.5 23.2 1.13
611
7.17
3,186
0.4 <-.- 0.>"
>=6
<.=4
<,>..
0.3 71.7 0.88
1,173
3.76
5,162
0.2 81.1 0.52
1,332
3.13
8,155
To!4 /M;I5
0.85 26.7 1.11
1,718
7.66
7,757
0.5 51.1 1.11
1,212
7.11
1,626
0.4 6=.= 0.>=
-,066
<.=<
=,466
0.3 21.1 0.6
2,785
3.78
10,813
0.2 171.2 0.12
2,635
3.12
17,220
I)f+**+$
0.85 15.0 1.75
121
7.51
2,121
0.5 21.6 1.06
228
7.32
3,882
0.4 <"." 0.>-
0,0"-
4.00
4,"=0
0.3 76.1 0.88
1,122
3.15
5,175
0.2 83.2 0.52
1,325
3.12
8,710
T$e 4ineral Re+er-e+ and 4ineral Re+o*r)e+ $a-e been prepared in a))ordan)e 5it$ %anadian Se)*ritie+ .dmini+trator+ National
In+tr*ment 73'101 Standard+ o( i+)lo+*re (or 4ineral 0ro/e)t+ (GNI 73'101G! and t$e %anadian In+tit*te o( 4inin& (G%I4G! de(inition+ (or
4ineral Re+o*r)e+.
T$e 4ineral Re+o*r)e e+timate (or t$e .m*l+ar 0ro/e)t 5a+ )al)*lated *nder t$e +*per-i+ion o( Dary .nt$ony 0atri)B, FS)
(%$emi+try:>,tra)ti-e 4etall*r&y!, 4.*+I44 %0, t$e %ompanyH+ e-elopment 4ana&er, a I*ali(ied 0er+on a+ de(ined by NI 73'101, and
5$o +*per-i+ed t$e preparation o( and -eri(ied and appro-ed t$e te)$ni)al di+)lo+*re in t$i+ ne5+ relea+e.
4ineral re+o*r)e+ t$at are not mineral re+er-e+ do not $a-e demon+trated e)onomi)
-iability. 4ineral re+o*r)e e+timate+ do not a))o*nt (or mineability, +ele)ti-ity, minin& lo++
and dil*tion. T$e+e mineral re+o*r)e e+timate+ in)l*de in(erred mineral re+o*r)e+ t$at are
normally )on+idered too +pe)*lati-e &eolo&i)ally to $a-e e)onomi) )on+ideration+ applied
to t$em t$at 5o*ld enable t$em to be )ate&ori;ed a+ mineral re+er-e+. T$ere i+ al+o no
)ertainty t$at t$e+e in(erred mineral re+o*r)e+ 5ill be )on-erted to mea+*red and indi)ated
)ate&orie+ t$ro*&$ (*rt$er drillin&, or into mineral re+er-e+, on)e e)onomi) )on+ideration+
are applied.
T$e (ea+ibility +t*dy databa+e in)l*de+ drillin& data (rom t$e 2008 to 2011 drillin& pro&ram+.
T$e mineral re+o*r)e i+ ba+ed on drillin& )ompleted t$ro*&$ t$e 2011 drill +ea+on and
in)l*de+ a total o( 115 )ore and re+er-e )ir)*lation $ole+.
T$e %ompany al+o )ontin*e+ to )arry o*t it+ planned drillin& pro&ram (or 2012 and al+o
plan+ to )arry o*t additional drillin& 5it$ t$e &oal o( in)rea+in& mineral re+er-e+.
(ining and
$roduction
4inin& o( t$e .m*l+ar depo+it i+ planned to be a))ompli+$ed 5it$ )on-entional open
pit minin& met$od+. O-er 12 year+, +e-en p$a+e+ )o-erin& t$e .rta-a+de+, Ti&rane+ and
>rato ore bodie+ are +eC*en)ed to arri-e at an *ltimate pit'&eometry )ontainin& t$e pro/e)tA+
Re+er-e. 4inerali;ation e,tend+ to t$e +*r(a)e in t$e Ti&rane+ ore body 5$ere initial minin&
be&in+J a+ a re+*lt, minimal pre'+trippin& o( 822,000 tonne+ i+ reC*ired to $a-e adeC*ate
ore (eed to t$e )r*+$er. .rta-a+de+ and Ti&rane+ area+ are mined a$ead o( t$e >rato area
5$i)$ reC*ire+ more 5a+te +trippin& to e,po+e t$e ore.
*rin& t$e initial t$ree year+ o( minin&, ore i+ +)$ed*led (rom t$e pit a+ dire)t (eed to t$e
)r*+$er at a nominal rate o( (i-e million tonne+ o( ore per year. In year t$ree, )r*+$er
)apa)ity i+ do*bled 5it$ a )r*+$er e,pan+ion and 10 million tonne+ o( ore per year 5ill be
+ent to t$e )r*+$er +tartin& in year (o*r. T$e a-era&e +trippin& ratio in t$e (ir+t t$ree year+
o( minin& i+ 1.6:1 5a+te:ore. Fe&innin& in year (o*r, t$e +trippin& ratio in)rea+e+ to 2.35:1
and )ontin*e+ at t$at ratio to year 10.
T$e pit'de+i&n $a+ re+*lted in a mine plan )ontainin& 27.2 million tonne+ at a LO4
a-era&e &rade o( 0.85 &:t &old. T$e mine plan $a+ more tonna&e at a lo5er &rade t$an t$e
mineral re+er-e be)a*+e a nominal 8= dil*tion $a+ been added to t$e plan. Total
prod*)tion o-er a 12'year mine li(e i+ e+timated to be 2.07 million o*n)e+, a-era&in&
112,100 o*n)e+ per year (pl*+ an a-era&e o( 301,800 +il-er!. T$e LO4 5a+te:ore a-era&e
ratio i+ e+timated at 2.23:1.
. +*mmary o( t$e ann*al mine prod*)tion plan i+ o*tlined in t$e table belo5:
Y + *
O*+ M%)+$
/! o ) ) + &5
Go4$
G*$+
/3 1!5
S%48+*
G* $ + /3 1!5
P*o$('!%o)
G o 4$ / o 2 5
P*o$('!%o)
S%4 8 + * /o 2 5
W&!+
/! o ) ) + &5
S!*%6
R !%o
Yr1 3 ,8 50 ,0 0 0 0 .2 1 5 2 .1 2

62 ,1 3 7 11 ,0 0 6 1 ,3 17 ,0 0 0 1 .1 6
Yr2 5 ,1 55 ,1 2 0 0 .2 1 1 3 .1 1

13 5 ,3 3 3 17 2 ,6 3 2 2 ,7 81 ,6 6 0 1 .1 8
Yr3 5 ,0 00 ,0 0 0 0 .2 5 8 5 .0 2

13 8 ,0 5 1 23 7 ,8 6 7

10 ,1 2 3 ,0 0 0 2 .0 7
Yr7 10 ,0 0 0 ,0 0 0 0 .8 3 0 7 .6 5

16 1 ,8 1 8 77 2 ,6 8 8

23 ,7 1 1 ,0 0 0 2 .3 5
Yr5 10 ,0 0 0 ,0 0 0 0 .6 1 2 3 .8 1

21 8 ,1 5 2 70 0 ,0 6 1

23 ,5 0 0 ,0 0 0 2 .3 5
Yr1 10 ,0 0 0 ,0 0 0 0 .6 8 0 3 .2 7 27 0 ,7 1 1

70 0 ,2 7 2 23 ,5 0 0 ,0 0 0

2 .3 5
Yr8 10 ,0 0 0 ,0 0 0 0 .1 3 2 3 .7 3 12 1 ,1 3 2

32 3 ,1 6 2 23 ,5 0 0 ,0 0 0

2 .3 5
Yr6 10 ,0 0 0 ,0 0 0 0 .1 5 6 3 .0 0 18 5 ,5 8 1

32 1 ,8 7 8 23 ,5 0 0 ,0 0 0

2 .3 5
Yr2 10 ,0 0 0 ,0 0 0 0 .5 7 2 2 .2 8 11 5 ,2 5 7

32 2 ,2 6 6 23 ,5 0 0 ,0 0 0

2 .3 5
Yr10 2 ,5 71 ,0 0 0 0 .5 1 2 2 .1 7 11 7 ,2 1 1

31 5 ,3 3 6 23 ,2 5 2 ,0 0 0

2 .5 1
Yr11 10 ,0 0 0 ,0 0 0 0 .6 1 5 2 .3 5 22 7 ,5 7 0

72 2 ,3 0 2 20 ,7 3 3 ,0 0 0

2 .0 7
Yr12 27 6 ,0 0 0

1 .5 0 6 3 .2 0 10 7 ,3 8 5

11 6 ,2 6 8 38 5 ,0 0 0

0 .7 0
T o ! 4 > 4 ,= >4 ,0 - 0 0 .. " < .- .

- ,0 -> ,4 4 6

< ,6 = 0 ,4 . " - 0 0 ,. 0 0 ,= = 0

- .- <
Note: In year t5o o( minin&, a +mall lo5 &rade +to)Bpile i+ &enerated 5$en t$e )r*+$er )*t'o(( &rade i+ 0.35 &:t re)o-erable &old. T$i+ i+ to
Beep a )on+i+tent minin& rate a+ 5ell a+ ma,imi+e t$e &rade o( material (ed to t$e )r*+$er in early year+. T$e )*t'o(( &rade (or t$e lo5 &rade
+to)Bpile in t$i+ period i+ 0.30 &:t re)o-erable &old. T$i+ material &oe+ to t$e )r*+$er in year+ 10 to 12. In total, 365,000 tonne+ o( ore i+
+to)Bpiled in pre'prod*)tion and re'$andled to t$e )r*+$er.
T$e drop in o*n)e prod*)tion in Year+ 8 to 10 i+ a re+*lt o( t$e )ommen)ement o( minin& in t$e early +ta&e+ at >rato. .+ t$e drill den+ity at
>rato i+ le++, a lar&er proportion o( t$e material in+ide t$e *ltimate pit +$ell i+ in t$e in(erred )ate&ory and $en)e )annot be in)l*ded in t$i+
+t*dy. It i+ e,pe)ted t$at a+ e,ploration a)ti-itie+ )ontin*e, more material 5ill be *p&raded (rom in(erred and t$i+ drop in prod*)ed o*n)e+
)an be red*)ed
T$e %ompany $a+ +ele)ted mine mobile eC*ipment to meet t$e prod*)tion reC*irement+
o( t$e .m*l+ar mine de-elopment +)$ed*le. Fla+t $ole+ 5ill be drilled 5it$ Sand-iB
01500i drill+. Loadin& and $a*lin& o( material (rom t$e pit 5ill be a))ompli+$ed 5it$ a
mi,ed (leet o( %aterpillar 1016A+ (RK20! and 1030A+ (RK120! e,)a-ator+ and %aterpillar 888
$a*l tr*)B+. .n a*,iliary (leet o( do;er+, &rader+, 5ater tr*)B+ and loader+ $a+ al+o been
+o*r)ed (rom %aterpillar to a++i+t in )on+tr*)tion and on&oin& maintenan)e 5orB+ in t$e
mine.
(etallurgy and
)eco*ery
%ol*mn te+t+ 5ere )ond*)ted at a 100= min*+ 12.5mm )r*+$ +i;e 5it$o*t a&&lomeration, at
-aryin& )ol*mn $ei&$t+ (rom t5o to (o*r meter+, and (or lea)$ )y)le+ *p to 85 day+.
Dold e,tra)tion in t$e )ol*mn+ a-era&ed 21= 5it$ a-era&e +odi*m )yanide and lime
)on+*mption+ o( 0.2 and 2 B&:t re+pe)ti-ely. Sol*tion to ore ratio 5a+ *+ed to +)ale t$e+e
re+*lt+, a+ 5ell a+ one )ol*mn te+t (rom pre-io*+ te+tin&, to predi)t t$e rate and *ltimate
le-el+ o( &old e,tra)tion (or ea)$ o( t$e .m*l+ar depo+it+. Interpretation o( t$e
metall*r&i)al te+tin& al+o dro-e t$e pro/e)t de+i&n to5ard+ tertiary )r*+$in&, permanent
lea)$ pad, and pre)io*+ metal re)o-ery by )arbon ad+orption.
R*n'o('mine ore 5ill be $a*led (rom t$e pit to t$e t$ree +ta&e )r*+$in& plant lo)ated in
pro,imity to t$e mine. Ka*la&e (rom pit to )r*+$in& i+ 1Bm or le++. T$e )ir)*it 5ill
red*)e RO4 ore (rom min*+ 800mm top +i;e to a prod*)t o( 60= pa++in& 12mm and i+
de+i&ned to pro)e++ ore at a rate o( 5 4tpa. In t$e (ir+t year o( operation 3.85 4tpa 5ill be
pro)e++ed and 5 4tpa in year t5o. In+tallation o( a d*pli)ate )ir)*it ramp+ *p prod*)tion
to 10 4tpa (or year (o*r and t$ro*&$ t$e li(e o( t$e pro/e)t.
%r*+$ed ore 5ill be tran+ported appro,imately 3.5Bm on an o-erland )on-eyor to be
di+trib*ted alon& t$e nort$ +ide o( t$e lea)$ pad. T$e $eap lea)$ (a)ility 5ill )on+i+t o( a
lea)$ pad and )olle)tion pond+. T$e lea)$ pad 5ill be )on+tr*)ted in t$ree p$a+e+ 5it$ t$e
*ltimate ore $eap amo*nt o( 25 4t +ta)Bed in t$ree +ta&e+.
T$e primary lea)$ )y)le 5ill be 30 day+ and t$e +e)ondary 60 day+. Lea)$in& o(
pre)io*+ metal (rom t$e ore 5ill )ontin*e a+ t$e lea)$ed ore i+ b*ried by )on+e)*ti-e li(t+.
.(ter 30 day+ o( b*ried li(t lea)$in&, 170 total lea)$ day+, t$e predi)ted o-erall
re)o-ery 5ill be attained 5it$ an o-erall lea)$ +ol*tion to ore ratio e,)eedin& 3 m
3
:t.
+nfrastructur
e
S*r(a)e (a)ilitie+ in)l*de a )amp, maintenan)e +$op and ot$er +*pportin& in(ra+tr*)t*re.
T$ere i+ &ood in(ra+tr*)t*re +*rro*ndin& t$e .m*l+ar pro/e)t. T$i+ in)l*de+ t$e main
+ealed
$i&$5ay bet5een Yere-an and Iran, $i&$ ten+ion po5er line+ and +*b+tation+, a &a+
pipeline (rom Iran, year ro*nd 5ater (rom t$e <orotan Ri-er and a (ibre opti) internet )able.
,'erating
-osts
Operatin& )a+$ )o+t+ o-er t$e li(e o( t$e pro/e)t are e,pe)ted to a-era&e 9716.76:o;
(t$i+ in)l*de+ a po+t'prod*)tion payment to Ne5mont 5$i)$ i+ payable in one o( t$ree
5ay+: a +in&le payment o( ES915.1 million on )ommer)ial prod*)tion, on'&oin& 3= NSR or
maBe 20 C*arterly payment+ o( ES91 million ea)$. T$e model a++*me+ t$e la+t option a+
pre(erred!.
LOM A8+*3+ F%*&! <7*&
I!+m $1To))+ O*+ L+'?+$
US$1o2 US$1o2
4inin& 5.50
258.11 271.16
4ine %o+t Lea+e 0.82
38.07 21.16
0ro)e++in& 2.22
131.55 170.52
@a+te @ater Treatment
0lant
0.13
1.05 2.73
D L . 0.78
21.66 31.38
C&? O6+*!%)3 Co&!& >.=0 4"=.6<
"0<.."
Ne5mont 0ayment 0.21
2.65 33.60
To!4 O6+*!%)3 Co&!& 00.0- 46=.4= "4..""
-a'ital -ost
.sti&ates
T$e (ea+ibility +t*dy i+ ba+ed on )apital pri)in& a+ o( t$e (ir+t $al( o( 2012. T$e le-el o(
a))*ra)y o( t$e )apital )o+t+ e+timate+ i+ 5it$in M15= (or (ea+ibility +t*die+.
T$e initial )apital )o+t+ are e+timated at 9212.1 million. S*+tainin& )apital e,pendit*re+ o-er
t$e operationA+ mine li(e are e+timated at 9171.5 million 5$i)$ in)l*de+ 938.2 million (or
mine )lo+*re. T$e total )apital )o+t i+ e+timated at 9711.1 million.
T$e minin& )o+t e+timate (or t$e tr*)B (leet and mobile eC*ipment i+ ba+ed on pri)in&
re)ei-ed (rom t$e tenderin& pro)e++.
T$e )o+t breaBdo5n (or pre'prod*)tion )apital e,pendit*re+, a++*min& an o5ner
operator +)enario, i+ +$o5n belo5:
I!+m I)%!%4 'o&! $ S(&!%)%)3 'o&! $ To!4 $
4inin& %o+t 6,821,800 18,162,600 25,261,500
0ro)e++ 0lant ire)t %o+t 226,516,013 21,682,257 255,770,316
@a+te @ater Treatment 0lant 12,086,712 12,086,712
Lea)$ 0ad+ 15,168,750 31,617,766 78,501,236
@a+te *mp 11,585,623 17,302,161 30,686,087
%lo+*re and Re)lamation 38,221,788 38,221,788
To!4 I)%!%4 )$ F(!(*+ S(&!%)%)3
P*o@+'! Co&!
-6>,6-<,006 046,4.=,60- 406,000,.0=
Note: S*+tainin& )o+t+ in)l*de t$e ma/ority o( t$e )apital )o+t+ a++o)iated 5it$ t$e 0$a+e II
e,pan+ion
Financial
Analysis
T$e (inan)ial analy+i+ (or t$e ba+e )a+e (at a &old pri)e o( 91,200:o;!, 5$i)$ a++*me+
an o5nerA+ operation, indi)ate+ a pre'ta, N0< at a 5= di+)o*nt rate o( 9171.0 million 5it$
an IRR o( 28.8= and a payba)B o( (o*r year+. T$e pro/e)t i+ e,pe)ted to &enerate 91.12
billion in pre'ta, operatin& )a+$ (lo5 (a(ter t$e (ir+t 12'year+! at 91,200:o; &old pri)e. .t
a &old pri)e o( 91,500, pre'ta, operatin& )a+$ (lo5 i+ e,pe)ted to be aro*nd 91.83 billion.
T$e table belo5 o*tline+ Bey +en+iti-itie+ (or t$e pre'ta, N0< and IRR o( t$e .m*l+ar
pro/e)t.
D%&'o()! R!+ U)$%&'o()!+$
B&+
C&+
"# 00#
N0< pre'ta, (ES94! 1,121.1 646.0 311.6
Go4$ P*%'+, $1o2 US$0,000 US$0,-00 US$0,<00 US$0,400 US$0,"00
N0< N5=, (9 4! 513 646 882 213 1,071
IRR = 23.6 -... 31.3 37.6 36.1
0ayba)B (yr+! 7.5 4.0 3.8 3.7 3.1
C6+A '?)3+ B00# -00#
N0< N 5= (94! 111
IRR (=! 25.2
646
-...
161
30.5
O6+*!%)3 Co&! '?)3+ B00# -00#
N0< N 5= (94! 562
IRR (=! 25.8
646
-...
810
22.8
Go4$ R+'o8+*7 '?)3+ B00# -00#
N0< N 5= (94! 601
IRR (=! 32.0
646
-...
761
23.0
(o*ing Forward /
,''ortunities
T$e %ompany intend+ to )arry o*t additional +t*die+ 5it$ a -ie5 to (*rt$er optimi;in&
pro/e)t e)onomi)+, in)l*din&:
0otentially *p&radin& e,i+tin& in(erred mineral re+o*r)e+ to mineral re+er-e+
>,pandin& t$e )*rrent mineral re+o*r)e+ t$ro*&$ e,ploration drillin&
>liminatin& t$e 0$a+e II ramp *p and )ommen)in& initial prod*)tion at 10 4tpa
%omparin& t$e in+tallation o( a +in&le &yratory -er+*+ t5o /a5 )r*+$er+
Re-ie5in& Bey in(ra+tr*)t*re layo*t and )on(i&*ration
T$e international >n-ironmental and So)ial Impa)t .++e++ment i+ e,pe)ted to be
p*bli)ly di+)lo+ed in No-ember 2012. StaBe$older en&a&ement 5ill )ontin*e t$ro*&$o*t
t$e pro/e)t de-elopment at e-ery Bey +ta&e.
+n
-onclusion
Lydian International Ltd.A+ Foard o( ire)tor+ $a+ a))epted t$e .m*l+ar &old pro/e)tH+
?ea+ibility St*dy and $a+ in+tr*)ted mana&ement to implement t$e St*dyA+
re)ommendation+, (*rt$er de-elop and brin& t$e .m*l+ar &old pro/e)t to )ommer)ial
prod*)tion.
0ualified $ersons for Feasibility
Study
T$e re+o*r)e *pdate and (ea+ibility +t*dy 5a+ prepared by t$e (ollo5in& independent
en&ineerin& (irm+:
O >n&ineerin&, *nder t$e dire)tion o( 4r. Po+ep$ 4. Oeane, 0.>J re+pon+ible (or
o-erall report )ontent+ and preparation and all matter+ relatin& to t$e de+i&n and
)o+t+ o( t$e pro)e++in& (a)ility.
Dolder .++o)iate+, *nder t$e dire)tion o( 4r. Ri)$ard Oiel, 0.>J re+pon+ible (or all
matter+ relatin& to t$e KL? and @?, t$e introd*)tion, t$e &eote)$ni)al and
t$e *pdate e,tra)ted (rom t$e NI'73'101 0reliminary >)onomi) .++e++ment entitled
"e-elopment o( .m*l+ar Keap Lea)$ ?a)ility# and 4r. 0ete LemBe,
0.>J
re+pon+ible (or all matter+ relatin& to t$e @a+te5ater Treatment 0lant de+i&n.
Independent 4inin& %on+*ltant+, *nder t$e dire)tion o( 4r. Kerb @el$ener, 44S.'
I04J re+pon+ible (or all matter+ relatin& to &eolo&y, drillin&, open pit and
mine de+i&n.
@ardell .rm+tron& International, *nder t$e &*idan)e o( 4r. Po$n >yre, ?RI%S
4I444 4II %>n-J re+pon+ible (or all matter+ relatin& to t$e >n-ironmental
and So)ial Impa)t .++e++ment.
.n NI 73'101 )ompliant Te)$ni)al Report 5ill be (iled on t$e %ompanyA+ 5eb+ite and
on S>.R 5it$in 75 day+.
T$i+ relea+e $a+ been re-ie5ed and appro-ed by 4r. Po+ep$ 4. Oeane, 0.> o( O
>n&ineerin&, 0ete LemBe, 0.> and 4r. Ri)$ard Oiel, 0.> o( Dolder .++o)iate+, Kerb
@el$ener, 44S.'I04 o( Independent 4inin& %on+*ltant+ and Po$n >yre, ?RI%S
4I444 4II %>n- o( @ardell .rm+tron& International, in ea)$ )a+e, a GC*ali(ied
per+onG a+ t$at term i+ de(ined in NI 73'101. T$i+ relea+e $a+ al+o been re-ie5ed and
appro-ed (or t$e %ompany by Dary .nt$ony 0atri)B, FS) (%$emi+try:>,tra)ti-e
4etall*r&y!, 4.*+I44 %0,
t$e %ompanyH+ e-elopment 4ana&er and a GC*ali(ied per+onG a+ t$at term i+ de(ined in
NI 73'101.
A9o(! L7$%) I)!+*)!%o)4
Lydian i+ a &old'(o)*+ed mineral e,ploration and de-elopment )ompany 5it$ e,perti+e
employin& "(ir+t mo-er# +trate&ie+ in emer&in& e,ploration en-ironment+. %*rrently
Lydian i+ (o)*+ed on >a+tern >*rope and, in parti)*lar, de-elopin& it+ (la&+$ip .m*l+ar &old
pro/e)t in .rmenia. Lydian al+o $a+ a pipeline o( promi+in& early'+ta&e &old and ba+e metal
e,ploration pro/e)t+ in t$e %a*)a+*+ re&ion+.
LydianA+ mana&ement team $a+ a tra)B re)ord o( +*))e++ in &ra++root+ di+)o-ery, in
a)C*irin& and de-elopin& *nder-al*ed a++et+, and in b*ildin& )ompanie+. Lydian $a+ a
+tron& +o)ial a&enda and a *niC*e *nder+tandin& o( t$e )omple, +o)ial and politi)al i++*e+
t$at )$ara)teri+e emer&in& en-ironment+. T$e %ompanyA+ +i&ni(i)ant +$are$older+ in)l*de
t$e International ?inan)e %orporation 5$i)$ i+ a member o( t$e @orld FanB Dro*p and
t$e >*ropean FanB (or Re)on+tr*)tion and e-elopment. 4ore in(ormation )an be (o*nd on
LydianA+ 5eb +ite at 5 5 5. l y d i a nint e rn a tion a l. ) o.* B .
C(!%o) *+3*$%)3 fo*C*$-4ooD%)3
%)fo*m!%o)E
T$i+ ne5+ relea+e may )ontain )ertain in(ormation t$at )on+tit*te+ (or5ard'looBin&
+tatement+. ?or5ard'looBin& +tatement+ are (reC*ently )$ara)teri+ed by 5ord+ +*)$ a+
"plan,# "e,pe)t,# "pro/e)t,# "intend,# "belie-e,# "anti)ipate# and ot$er +imilar 5ord+, or
+tatement+ t$at )ertain e-ent+ or )ondition+ "may# or "5ill# o))*r and in)l*de +tatement+
re&ardin& t$e %ompanyA+ intended planned e,ploration. ?or5ard'looBin& +tatement+ are
ba+ed on t$e opinion+ and e+timate+ o( mana&ement at t$e date t$e +tatement+ are made, and
are +*b/e)t to a -ariety o( ri+B+ and *n)ertaintie+ and ot$er (a)tor+ t$at )o*ld )a*+e a)t*al
e-ent+ or re+*lt+ to di((er materially (rom t$o+e pro/e)ted in t$e (or5ard'looBin&
+tatement+. T$e+e (a)tor+ in)l*de t$e in$erent ri+B+ in-ol-ed in t$e e,ploration and
de-elopment o( mineral propertie+, t$e *n)ertaintie+ in-ol-ed in interpretin& drillin& re+*lt+
and ot$er &eolo&i)al data, (l*)t*atin& metal pri)e+ and ot$er (a)tor+ de+)ribed abo-e and
in t$e %ompanyA+ mo+t re)ent ann*al in(ormation (orm *nder t$e $eadin& "Ri+B ?a)tor+#
5$i)$ $a+ been (iled ele)troni)ally by mean+ o( t$e %anadian Se)*ritie+ .dmini+trator+A
5eb+ite lo)ated at 5 5 5 .+ed a r . ) om. T$e %ompany di+)laim+ any obli&ation to *pdate or
re-i+e any (or5ard'looBin& +tatement+ i( )ir)*m+tan)e+ or mana&ementA+ e+timate+ or
opinion+ +$o*ld )$an&e. T$e reader i+ )a*tioned not to pla)e *nd*e relian)e on (or5ard'
looBin& +tatement+.
?or (*rt$er in(ormation plea+e
)onta)t:
L*)y ?o5ler
I)8+&!o* R+4!%o)&
M)3+*
Q77 (0!1537
815782
Q77 (0!8828
836888
in(oN l y dianinte r n a tion a l .) o.*
B