AMULSAR CONSTRUCTION UPDATE

TSX: LYD

January 2018 Newsletter

CRUSHING AND SCREENING PLANT

OVERLAND CONVEYOR

The past year represents major achievements for Lydian

International and its Amulsar Gold Project. These include

significantly advancing the construction and development

of Amulsar, strengthening the Company’s financial position

leading up to production later this year, increasing gold

resources and reserves by 16% and 8% respectively, and

reinforcing the Company’s commitment to safety and

sustainability. Amulsar is expected to be one of the largest

new producing gold mines in 2018.

Throughout 2017, the major areas of construction included

the crushing and screening plant, overland conveyor,

mine operations, heap leach facility and processing plant.

Construction progressed significantly in these areas and

continues to advance.

1

Lydian Armenia

Local Jobs at Lydian’s Amulsar Gold Project 2016 -17*

Employees from Local Communities

*Monthly local employment averaged 40%.

2,000 60%

1,50050%

50020%

30%

10%

0 0%

1,000

40%

Total Jobs Total Local JobsO

ct

Oct

No

v

No

v

Dec

Dec

Jan

Feb

Mar

Ap

r

May

Jun

Jul

Au

g

Sep

248102

3931

In 2017, Lydian Armenia adopted a local employment plan,

pursuant to which the Company committed to hiring at least

30% of Amulsar employees from local communities. At year-

end 2017, there were 1,236 employees and contractors at

Amulsar, 34% from local communities:

Jermuk

Gndevaz

Saravan

Gorayk

ADR PLANT

HEAP LEACH FACILITY

2

January 2018 Newsletter

TSX: LYD

2

MINING OPERATIONS

3

Upcoming EventsFebruary 25-28, 2018 BMO Global Metals and Mining Conference

March 4-7, 2018 PDAC

Recent NewsJanuary 10, 2018 Lydian Announces Appointment of General

Manager

Lydian International Media

January 9, 2018 Lydian International will be one of the few

gold companies to go into production

this year

News article

January 9, 2018 Gold Speculator Portfolio Update

News article

Lydian Armenia Media

January 24, 2018 Amulsar gets conditional ICMC/Code

certification

News article

January 22, 2018 Acid rock drainage at Amulsar will be

controlled and will not negatively impact

water quality – international expert

News article

January 19, 2018 Community before and after Amulsar

gold project – Nara Ghazaryan, Lydian

Armenia Social and Sustainability Manager

News article

January 18, 2018 Lydian International’s Amulsar gold mine

certified under international code

News article

January 15, 2018 International expert gives clarification to

questions on Amulsar

News article

January 2018 Newsletter

TSX: LYD