Lydian Receives Local Community Approval for Concept Design of Amulsar Processing Facility

TORONTO, ONTARIO--(Marketwired - July 16, 2013) - Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a gold-focused mineral exploration and development company, is pleased to announce that on the 11th of July it conducted a public hearing on the concept design and environmental impact of its proposed gold heap leach processing facility at its Amulsar gold project in Armenia. The public hearing was announced in the Armenian print-media, 30 days prior to the hearing date, on the 11th of June and was held in the village of Gndevaz, Armenia, which is the community located closest to the Company's proposed heap leach processing facility. The hearing was attended by the Governor of Vayots Dzor Region, the Head of Gndevaz Community, members of the village administration and residents of the local community and greater region, among others.

At the public hearing, the Company and its independent environmental consultants presented the detailed development proposal for the Company's Amulsar gold project, including the proposed location of the crushing, conveying and heap leach facilities. The Company and its consultants explained the process of heap leach recovery in detail and addressed the associated perceived risks. In general, the concerns expressed by attendees focused on livelihoods, ensuring continued access to grazing land, hay-fields and to a dam which contains water for livestock and irrigation. In response to these concerns, the Company explained that it plans to submit proposals for a combination of fair compensation for the land acquisition, adequate livelihood restoration if economic displacement is involved and provision of an alternative and clean-water source. The intention is to ensure that the proposed facility does not negatively affect the local and broader community.

At the end of the hearing, the Gndevaz community approved the concept and environmental impact assessment of the proposed Amulsar heap leach and processing facility.

Lydian is proceeding to the final detailed environmental impact assessment (EIA) approval stage for its Amulsar processing facility. To this end, the Company announces that today it has submitted its application to the Ministry of Nature Protection in order to obtain the required EIA approval. This detailed EIA will draw on feasibility-level engineering design and on the findings of the Company's Environmental and Social Impact Assessment (ESIA). The ESIA is being conducted to a standard that meets IFC performance requirements and those of other Equator Principle compliant financial institutions. Both the detailed EIA and the ESIA will require further community consultations.

About Lydian International

Lydian is a gold-focused mineral exploration and development company with expertise employing "first mover" strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and, in particular, developing its flagship Amulsar gold project in Armenia. Lydian also has a pipeline of promising early-stage gold and base metal exploration projects in the Caucasus regions.

Lydian's management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian has a strong social agenda and a unique understanding of the complex social and political issues that characterise emerging environments. The Company's significant shareholders include the International Finance Corporation which is a member of the World Bank Group and the European Bank for Reconstruction and Development. More information can be found on Lydian's web site at www.lydianinternational.co.uk.

Caution regarding forward-looking information:

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterised by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements with respect to the Report, the Company's operations, exploration and development plans, expansion plans, the discovery and delineation of mineral deposits/resources/reserves, geological interpretations, estimates, expectations, forecasts, objectives, predictions and projections of the future. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors", which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.