Ms. Donna Pugsley reports

LYDIAN INTERNATIONAL PROVIDES AMULSAR PROJECT UPDATE

Lydian International Ltd. is providing an update on its Amulsar gold project in Armenia and specifically the progress toward permitting and completion of the company's revised feasibility study. The FS, which incorporates the changes in scope, layout and location first referenced in the company's news release of Nov. 20, 2012, and in a subsequent release on Dec. 17, 2012 (which disclosed the positive results of a crusher optimization study carried out by SNC Lavalin), is intended to be a bankable document in order to facilitate the financing of the Amulsar gold project. As disclosed in the company's most recent management's discussion and analysis filings, the target delivery date for the FS was third quarter 2013 and recent discussions with all of the various contractors involved in the study indicate that this report is now approximately 95 per cent complete and, except as noted below, tracking toward a delivery date which would meet this guidance.

However, during a government session on July 18, 2013, the Armenian government passed a resolution that modifies the area defined as the catchment basin to Lake Sevan, Armenia's largest freshwater resource. The resolution is yet to be promulgated and is then scheduled to come into force 10 days after its promulgation. According to the text of the resolution, the borders of the catchment basin have been expanded to include the horizontal zone 3,000 metres on each side of the axis to the Vorotan-Sevan tunnel. Based on the company's understanding of the resolution, if projected to surface, the modified catchment basin includes the company's currently proposed location for its heap-leach processing facility. Furthermore, the resolution states that this part of the catchment basin is to be classified as the immediate impact zone to Lake Sevan. This impacts the company's current mine layout plans as mineral processing activities are not permitted in this immediate impact zone.

The company has made inquiries with the Armenian government regarding the resolution and is seeking to better understand the impact the resolution will have on the currently established Amulsar mine layout, including permitting and community approval of that layout, development plans, and related activities such as the preparation and timing of any new feasibility study.

In response to the company's inquiries, the government of Armenia has invited Lydian to participate in a joint working group with it. The working group process will almost certainly result in a delay to the delivery and publication of the FS. The company understands that the working group will also concurrently review Lydian's environmental and social impact assessment. The working group is expected to begin working within a week, with a view to reaching a conclusion in an expeditious manner.

Pending further clarity on the impact of the resolution and the conclusions of the working group, Lydian is continuing to advance all of its exploration and development activities in Armenia. The company has completed 30 per cent of its planned 20,000 m drilling program at Amulsar this year and continues to achieve important community support milestones.

We seek Safe Harbor.