Construction activities at Lydian’s Amulsar Gold Project are accelerating and are expected to peak during Q2 and Q3 2017. At the height of construction during 2017, Lydian expects approximately 1,300 contractors and employees working at site.

During March, earthwork continued to advance at Site 28, location of the future processing plant and heap leach facility. Construction commenced on the ADR platform and was completed on the main access road. Recent earthwork has been focused at lower elevations, and with the advent of spring and warmer weather, project activities will progress to higher elevations, including the crushing plant site. Suppliers for the major equipment packages that were awarded in February have begun fabrication of first components, which are expected to arrive at site during the Q2 2017.

MEDIALos Angeles Times Special Report – Armenia (March 2017)

The Country’s New Shift Towards Transparency

In March 2017, the Los Angeles Times issued a

Special Report on the revitalization of Armenia,

including its Natural Resources and Energy Sector.

Included in the report was an interview with Hayk

Aloyan, Managing Director of Lydian Armenia.

Click here to read the complete article

Territory 29,800 km2

Population 3.0 million (2011 Armenian census)

Form of Parliamentary- Government Presidential

Capital Yerevan 1.1 million

Currency Armenian Dram

Language Armenian

www.lydianinternational.co.uk

AMULSAR CONSTRUCTION UPDATE

view video of blast

TSX: LYD

MINING IN ARMENIA

Modern mining code

Mining industry a priority for the Armenian government

Currently 10 operating mines

Main commodities include copper, molybdenum, and gold

More than 120 exploration permits of metallic minerals in place

Mining and downstream processing contribute over 50% of exports

March 2017 Newsletter

ABOUT ARMENIA

AMULSAR PROJECT

Yerevan

ARMENIA

UPCOMING EVENTSApril 4 – 6 European Gold Forum, Zurich

July 25 – 28 Sprott Natural Resources Symposium, Vancouver

RECENT NEWSMarch 16, 2017 Lydian to Present at the 2017 European Gold Forum

March 30, 2017 Lydian Reports Fourth Quarter and 2016 Financial Results

RESOURCES AND RESERVES GROWTH – Updated NI 43-101

Lydian recently announced a positive update to the Company’s mineral resource and

mineral reserve estimates resulting from the Company’s 2016 drilling program at Amulsar.

The program successfully converted a portion of the inferred gold resource within the

currently designed pit boundaries. Measured and indicated gold resources increased 16%, while contain gold reserves increased 8%. As a second objective, tightly spaced drilling in

certain areas of the mine plan provided positive confirmation of the block model.

INTERESTING FACTS ABOUT ARMENIA

Literacy rate nearly 100%, with all Armenian’s required to graduate middle school (9 years)

Chess is a compulsory subject in school

Armenia was the first country to adopt Christianity as its state religion in 301 A.D.

Mount Ararat is one of the most important national symbols of Armenia

EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (“EITI”)

Lydian has been an active supporter in promoting the EITI initiative in Armenia. Lydian

serves as the mining industry representative for Armenia’s Multi Stakeholder Group and

was instrumental in the rigorous approval process of Armenia’s candidature application.

On March 9, 2017, the EITI Board approved the application and Armenia became the 52nd country to commit to EITI.

Click here for more information

www.lydianinternational.co.uk 2

PDAC 2017

Lydian attended PDAC March 5-6. Vardan

Gevorgyan, Deputy Minister from the

Ministry of Energy, Infrastructure and

Natural Resources of the Republic of

Armenia, and Hayk Aloyan, Managing

Director of Lydian Armenia, joined the

Lydian delegation and presented at the

Metals of the Rich Western Tethyan Belt

session during PDAC. This was the first time the Armenian Government was represented at PDAC.