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TSX: LYD

Amulsar Gold ProjectOctober 2017

TSX: LYD

CAUTIONARY STATEMENTSForward Looking Information & Estimates of Reserves and Resources

2

Certain information contained in this presentation, including any information relating to Amulsar's expected future performance, is "forward looking". All statements in this presentation, otherthan statements of historical fact, that address events, results, outcomes or developments that the Corporation expects to occur are "forward-looking statements". Forward-looking statementsare statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget","scheduled", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", “targets”, "believes" or variations of such words and phrases or statements that certain actions, events orresults "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation of such terms. Forward-looking statements in this presentation relateprimarily to the results of the Amulsar value engineering and optimization study entitled the ‘‘NI 43-101 Technical Report, Amulsar Updated Resources and Reserves, Armenia”, dated March 30,2017 and prepared by Samuel Engineering, Inc., and include, among others, statements with respect to: the economic and resource potential of Amulsar; the general development of Amulsar(including, but not limited to, infrastructure, mine operations, systems, facilities, plants, equipment and employment); the economic and feasibility parameters of Amulsar; the nature, cost andtiming of development of the Amulsar project; expected capital costs, sustaining capital costs, production, cash costs and all-in sustaining costs; the timing and amount of funding under theCorporation’s project finance agreements and equipment financing agreements; inferred resources; environmental and social initiatives; growth strategies; workforce strategy and challenges;the expected timing to begin repayments of debt under the project finance agreements and equipment financing agreements; the expected timing of achievement of net profit and positive cashflow results for the Amulsar project; the expected mine life, scale, mining methods and plan, processing methods and rates, grades, recovery rates, stripping ratio, production and other attributesof Amulsar; the tonnages and grades of mineral reserves and resources and the estimation of mineral reserves and resources; the realization of mineral resource estimates and the timing ofdevelopment and construction of the Amulsar project, including the expected start date of production; the expected timing of deliveries of major equipment purchases; results of futureexploration and drilling; the potential extension of the Amulsar project mine life through the evaluation of currently defined inferred resources and from open extensions at depth; thecommitment to and implementation of good international industry practices; the timing for receipt of permits and approvals; the expected pre-tax and after-tax NPV, IRR and payback periodassociated with Amulsar; the support of the Armenian government and local communities; and the expected economic impact of the Amulsar project on the Armenian economy. Statementsconcerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encounteredwhen the property is developed.Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actualresults, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and factors include, withoutlimitation: significant capital requirements and availability of capital resources to fund such requirements; failure to satisfy conditions to draw down advances under the project financeagreements and equipment financing agreements; fluctuations in international currency markets; price volatility in the spot and forward markets for commodities; tax rates or royalties beinggreater than assumed; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgicalrecoveries; changes in national and local government legislation in Armenia; changes to the Corporation’s mine plan or profitability or to the Corporation’s asset profile that might alter theallocation of tax attributes to the Amulsar project; controls, regulations and political or economic developments in Jersey, Canada or Armenia; the speculative nature of mineral exploration anddevelopment; risks associated with obtaining and maintaining the necessary licenses and permits and complying with permitting requirements; failure to extend the mine life of the Amulsarproject through the evaluation of defined inferred resources and from open extensions at depth; and uncertainties inherent to mining economic studies such as the Amulsar value engineeringand optimization study, including the risk that the assumptions underlying such study and its economic parameters will not be realized. Additional risk factors are discussed under “Risk Factors”in the Corporation’s most recently filed Annual Information Form and also see “Risk Factors” in the Corporation’s most recently filed Annual Management’s Discussion and Analysis. Although theforward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, these risks, uncertainties, assumptions and other factorscould cause actual results, performance and achievements to differ materially from the expectations, future results, performances or achievements expressed or implied by the forward-lookingstatements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.

Information concerning estimates of minerals reserves and resourcesThis presentations uses terms that comply with reporting standards in Canada and certain estimates are made in accordance with National Instrument 43-101 – Standard of Disclosure for MineralProjects, which establishes Canadian standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantlyfrom the requirements of the U.S. Securities and Exchange Commission (“SEC”), and mineral resource information contained herein may not be comparable to similar information disclosed byU.S. companies. This presentation uses the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” to comply with reporting standards in Canada.We advise U.S. investors that while such terms are recognized and required by Canadian regulations, the SEC does not recognize them. U.S. investors are cautioned not to assume that any part orall of the mineral deposits in such categories will ever be converted into mineral reserves under SEC definitions. These terms have a great amount of uncertainty as to their existence, and greatuncertainty as to their economic and legal feasibility. Therefore, U.S. investors are also cautioned not to assume that all or any part of the “measured mineral resources”, “indicated mineralresources” or “inferred mineral resources” exist. In accordance with Canadian rules, estimates of “inferred mineral resources” cannot form the basis of pre-feasibility or other economic studies. Itcannot be assumed that all or any part of the “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” will ever be upgraded to a higher category. Where wesay "we", "us", "our", the "Corporation", or "Lydian" in this presentation, we mean Lydian International Limited and/or one or more or all of its subsidiaries, as may be applicable. All dollaramount references in this presentation, unless otherwise indicated, are expressed in United States dollars.

3

YOUR SAFETY

TSX: LYD4

Health & SafetySafety Share

• Unfamiliar environmentso City – traffic and walkway hazardso Site – active construction environmento Fatigue factor

• Open for discussion

TSX: LYD5

Safety HighlightsPlease have a Safe and Informative Site Tour

• All visitors must complete the Amulsar safety induction – This will be completed prior to accessing active construction areas at Amulsar

• Always –o Stay with your guideo Follow instructionso Wear your PPE Hard hat Safety glasses Steel toed boots

o Ask questions

• Be prepared for changing weather conditions

• Emergency contact: +374 436 34047

6

INTRODUCTIONSAND OVERVIEW

TSX: LYD7

Health & SafetyTargets: Zero LTI and Continuous Improvement in Safety Culture

• Organizational priorityo International standards frameworko Board-level oversight through Sustainability Committeeo Occupational Health and Safety Policy adopted

• Comprehensive company-wide H&S plano Risk assessments made for generic and specific driving/work activitieso SOPs in place for control of Amulsar workforce and contractorso H&S training requirements identifiedo Formal training schedules underway

• Formal accident reporting and investigation system implemented

• Workforce safety reps appointed and encouragement of workforce involvement

• Drug and alcohol policy enforced

TSX: LYD8

Health & SafetySafety Statistics: Through August 2017

TSX: LYD9

Large Scale Operation Average Annual Production

225,000 Gold Ozs

Low Cost, High CashflowAll-in Sustaining Costs

$579/oz

Re-Rating Opportunityas Construction Milestones De-risk Project

100% OwnedFinanced and Permitted

Development Project

Upside PotentialFrom Current Resources &

Open Extensions

Emerging Gold ProducerOne of the Largest Emerging Gold Producers Mid-2018

Amulsar Gold ProjectCompelling Development Asset Under Construction

TSX: LYD

Capital Structure

Trading Symbols Ordinary SharesPublicly-traded WarrantsLYD

LYD.WT

Shares Outstanding

Ordinary SharesPublicly-traded WarrantsUnlisted Warrants

699,449,253 99,187,500

5,000,000

Market Capitalization C$245 Million

Share Price Recent Share Price52-week High/LowC$0.35

C$0.45/C$0.28

Cash at 6/30/17 $77 MM

ProjectFinancingIn Place

EquityTerm LoansCapped StreamCost Overrun Facility

Total

$118 Million $250 Million

$60 Million $14 Million

$442 Million

10Primary crusher apron feeder.

Lydian InternationalTrading and Capital Structure

TSX: LYD11

Key ShareholdersResource Capital Fund

Orion Mine Finance Management I Limited

European Bank for Reconstruction & Development

Franklin Resources, Inc.

Donald Smith Value Fund LP

Amber Capital UK LLP

RBC Asset Management

ASA Gold & Precious Metals Fund

Analyst Coverage

BMO Andrew Breichmanas

GMP David Stewart

National Bank Shane Nagle

Scotiabank Trevor Turnbull

Four CAT 789D haul trucks are in country and scheduled for delivery to site in September.

LendersOrion / RCF / Osisko Gold

ING / Cat Financial / Ameriabank

Lydian InternationalStrong Financial Backing and Analyst Support

TSX: LYD12

Amulsar: Site PlanConventional Open-Pit Mining & Heap Leach Processing

Truck Shop

Overland Conveyor

Truck Loadout1,850m

ADR Plant1,630m

Crushing2,600m

Access Road

Mine PitsUp to 2,975m

TSX: LYD13

Amulsar: Project ProfileQuick Reference Guide

See Appendix for details and notes to Mineral Resources and Mineral Reserves.

Initial Mine Life 10 Years

Annual Tonnes Processed 10.2 MTPA

Waste : Ore Ratio 2.2 : 1.0

Gold Grade 0.79 g/t

Gold Recovery 87%

Annual Gold ProductionYears 1 - 5 260,000 OzsAverage 225,000 Ozs

All-in Sustaining Costs ($/oz) $579

Initial CapexTechnical Report $370 million

Technical Report Highlights1

Gold Resources & Reserves

Tonnes Gold Grade Contained Gold(000s) (g/t) (000s)

Gold ResourcesMeasured and Indicated 142,200 0.76 3,470Inferred 72,200 0.55 1,280

Gold ReservesProven and Probable 102,653 0.79 2,606

1 Source: Technical Report dated March 30, 2017.

Country

Area29,743 sq km

Geographic Coordinates40 00 N, 45 00 E

Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m

Population3.0 million

Median Age34.6 years

Literacy Rate99.7%

Official LanguageArmenian

Other LanguagesEnglish

Russian

Economy

201420152016% of GDP

Services51.3%

Gross Domestic ProductUSD Billions$ 11.60$ 10.50$ 10.60Industry29.1%

Agriculture19.6%

Foreign Direct InvestmentUSD Billions$ 0.40$ 0.18$ 0.34

Foreign CurrencyUSD:AMD415.92477.92480.49

InflationPercent3.0%3.7%-1.3%

UnemploymentPercent17.6%17.0%16.8%

GDP by Sector

% of GDP

ServicesIndustryAgriculture0.513000000000000010.290999999999999980.19600000000000001

Climate

Average Temp. C°Precip. mm

Jan-820-82000-7-16Average rainfall in January: 35mm

Feb-720-72000-6-15Average rainfall in February: 40mm

Mar-150-150000-9Average rainfall in March: 63mm

Apr557557008-3Average rainfall in April: 85mm

May121061210600131Average rainfall in May: 104mm

Jun161021610200185Average rainfall in June: 81mm

Jul181051810500239Average rainfall in July: 54mm

Aug2038203800239Average rainfall in August: 42mm

Sep1356135600184Average rainfall in September: 34mm

Oct8478470010-2Average rainfall in October: 49mm

Nov-164-164003-7Average rainfall in November: 42mm

Dec-648-64800-4-12Average rainfall in December: 38mm

00

Precip. mmJanFebMarAprMayJunJulAugSepOctNovDec202050571061021053856476448Average Temp. C°JanFebMarAprMayJunJulAugSepOctNovDec-8-7-1512161820138-1-6

https://www.weather-atlas.com/en/armenia/jermuk-weather-january?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-october?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-november?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-december?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-february?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-march?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-april?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-may?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-june?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-july?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-august?aid=https://www.weather-atlas.com/en/armenia/jermuk-weather-september?aid=

Government

AuthorityPositionIncumbentSinceNext Election

Head of StatePresidentSerzh SargsyanApr-08Feb-18

Head of GovernmentPrime MinisterKaren KarapetyanSep-16N/A

Legislative PowerNational Assembly131 DeputiesMay-17May-22

Judicial PowerConstitutional Court

Court of Appeals

Review Courts

Courts of First Instance

Others

Independent AgenciesCentral Electoral Commission

Human Rights Defender

Central Bank

General Prosecutor's Office

Control Chamber

Exploration

DiamondRCTotals

Drilling

Holes4945971,091 total holes

Metres

2007593- 0

20082,68010,363

20091,09012,446

20107,88717,036

201115,02823,099

201213,8386,720

20131,7545,258

2014- 0- 0

2015- 0- 0

20163,2176,162

46,08781,084127,171 total metres

Trench sampling171 samples

Channel sampling1,337 samples

Soil sampling3,105 samples

IP lines54.6 line km

Ground magnetometer152 line km (18 km2)

Spectrometer10 line km (10 km2)

Structure

MinisterMinister

Int'l Economic Integration and Reforms (and Vice PM)Vache GabrielyanFinanceVardan Aramyan

AgricultureIgnati AraqelyanForeign AffairsEdward Nalbandian

CultureArmen AmiryanHealthcareLevon Altunyan

DefenceVigen SargsyanJusticeDavit Harutyunyan

DiasporaHranush HakobyanLabor and Social AffairsArtem Asatryan

Economic Development and InvestmentsSuren KarayanNature ProtectionArtsvik Minasyan

Education and ScienceLevon MkrtchyanSport and Youth AffairsHrachya Rostomyan

Emergency SituationsDavit TonoyanTerritorial Administration and DevelopmentDavit Lokyan

Energy Infrastructures and Natural ResourcesAshot ManukyanTransport, Communication and Information TechnologiesVahan Martirosyan

Quick Ref

Initial Mine Life10 Years

Annual Tonnes Processed10.2 MTPA

Waste : Ore Ratio2.2 : 1.0

Gold Grade0.79 g/t

Gold Recovery87%

Annual Gold Production

Years 1 - 5260,000 Ozs

Average225,000 Ozs

All-in Sustaining Costs ($/oz)$579

Initial Capex

Technical Report$370 million

TonnesGold GradeContained Gold

(000s)(g/t)(000s)

Gold Resources

Measured and Indicated142,2000.763,470

Inferred72,2000.551,280

Gold Reserves

Proven and Probable102,6530.792,606

ComponentTotals

Equity

RCF / Orion$80 Million

Public Offering$29 Million

EBRD $9 Million

$119 Million

Term Loans

Orion/RCF$160 Million

Subjected to $90 Million Cap

ING $50 Million

Caterpillar $42 Million

Ameriabank $24 Million

$250 Million

Capped Stream

Orion (now Osisko)/RCF$60 Million

$60 Million

Cost Overrun Facility


$14 Million

Total In-Place Financing$442 Million

Warrant Potential on Full Exercise$28.5 Million

International

ParticipationComments

Representative Democracy - Since 1991Adopted upon independence in 1991; a 2015 referendum modified from a presidential system to a parliamentary system.

Mining Code Revised - 2012World Bank guided revisions to modernize and reflect best international practices. Armenia continues to improve to meet align with international practicies.

Extractive Industry Transparency InitiativeEITI is a global standard to promote the open and accountable management of oil, gas and mineral resources.

Broad International Participation and Engagement:

United Nations

World Bank

World Trade Organization

International Monetary Fund

Council of Europe

Organization for Security and Co-operation in Europe

Organisation for Economic Cooperation and Development

Eurasian Economic Union

Armenia Mining

201220132014

Copper51,29559,65851,030

Molybdenum7,2007,6467,910

Zinc10,70010,5309,710

201220132014

Gold93,000112,000128,000

Silver715,000626,000622,000

289634733994

222441945819333

Base Metals

(Metric Tonnes)

Copper201220132014512955965851030Molybdenum201220132014720076467910Zinc20122013201410700105309710

Precious Metals

(Ounces)

Gold20122013201493000112000128000Silver201220132014715000626000622000

Amulsar Mining

Year -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10

Ore4207,59812,66214,95414,0899,84611,19610,6096,4408,1636,673

Waste84917,97422,10228,12921,20725,14423,49423,47931,88525,4033,930

Net Stockpile Movement420(420)2,2124,4253,589(654)69680(4,060)(2,337)(3,951)

Average Ore Mined10,50010,50010,50010,50010,50010,50010,50010,50010,50010,500

Stockpiled42002,6234,4253,589- 069680- 0- 0- 0

- 0420411- 0- 0654- 0- 04,0602,3373,951

Mine Plan

(000s Tonnes)

OreYear -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10420.265883013888877597.826689986111912662.4978402222214953.92085351851514089.2352662592589845.978169000001811196.13296449999710608.9450555000026439.99416599999958162.8889448333336673.479599166667WasteYear -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10848.6521690138886217974.37245612786522101.9366042754328129.30897999999421206.62573976851925144.00170217592723493.85175605555923478.71300405555331884.98080337500125402.6979483337453930.057233Net Stockpile MovementYear -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10420.26588301388887-420.265883013888532211.77545355021084425.15373068101513589.2352673818004-654.02183099999093696.1329645000041680.1779322123366-4060.0058339999914-2337.1110551666561-3951.3366265091627Average Ore MinedYear -1Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 1010500105001050010500105001050010500105001050010500

Fleet

InitialSustaining

Shovels: Cat 604011

Loaders: Cat 9941 1*

Haul trucks: Cat 789D127

* Rent during peak mining period

Tax

Example

Gross revenue$ 1,250

Costs

Operating costs(500)

Depreciation(100)

Other(100)

Profit before tax550

Armenian Royalties

Royalty 1(50)4% of gross revenue

Royalty 2(69)12.5% of profits before tax

Other deductions(25)Generally finance costs

Taxable income406

(81)20% of taxable income

Net income after tax$ 325

Total royalties & taxes$ 200

Profit before tax$ 550

Effective tax rate36%

Resources

Measured + IndicatedInferredTonnesGradeContained Gold Ozs

20111.101.402.50(millions)(g/t)(millions)

20122.151.073.22Mineral Resources

20132.381.734.11Measured + Indicated142.20.763.5

20143.032.015.04Inferred72.20.551.3

20173.471.284.75

Mineral Reserves (P+P)102.650.792.61

Amulsar Gold Resources

(Millions of Gold Ounces)

Measured + Indicated

201120122013201420171.10000000000000012.14699999999999982.3793.033.47Inferred

201120122013201420171.41.071.7342.00999999999999981.28

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Government






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

Exploration

DiamondRCTotals

Drilling


Metres

2007593- 0

20082,68010,363

20091,09012,446

20107,88717,036

201115,02823,099

201213,8386,720

20131,7545,258

2014- 0- 0

2015- 0- 0

20163,2176,162

46,08781,084127,171 total metres







Structure

MinisterMinister










Quick Ref


Annual Tonnes Processed10.2 Million tpa


Gold Grade0.79 g/t

Gold Recovery87.20%


Years 1 - 5260,000 Ozs

Average225,000 Ozs


Initial Capex


Trending$383 million


(000s)(g/t)(000s)

Gold Resources


Inferred72,2000.551,280

Gold Reserves


ComponentTotals

Equity

RCF / Orion$80 Million


EBRD $9 Million

$119 Million

Term Loans


Subjected to $90 Million Cap

ING $50 Million

Caterpillar $42 Million

Ameriabank $24 Million

$250 Million

Capped Stream


$60 Million



$14 Million



International






United Nations

World Bank



Council of Europe




Armenia Mining

201220132014

Copper51,29559,65851,030


Zinc10,70010,5309,710

201220132014

Gold93,000112,000128,000

Silver715,000626,000622,000

289634733994

222441945819333

Base Metals

(Metric Tonnes)


Precious Metals

(Ounces)

Gold20122013201493000112000128000Silver201220132014715000626000622000

Amulsar Mining


Ore4207,59812,66214,95414,0899,84611,19610,6096,4408,1636,673

Waste84917,97422,10228,12921,20725,14423,49423,47931,88525,4033,930



Stockpiled42002,6234,4253,589- 069680- 0- 0- 0

- 0420411- 0- 0654- 0- 04,0602,3373,951

Mine Plan

(000s Tonnes)


Fleet

InitialSustaining

Shovels: Cat 604011




Tax

Example


Costs


Depreciation(100)

Other(100)


Armenian Royalties




Taxable income406






Resources





20143.032.015.04Inferred72.20.551.3

20173.471.284.75





201120122013201420171.10000000000000012.14699999999999982.3793.033.47Inferred

201120122013201420171.41.071.7342.00999999999999981.28

TSX: LYD14

Amulsar: Financing PlanQuick Reference Guide

Project & Corporate Funding SourcesEquity

RCF/Orion $80 MillionPublic Offering $29 MillionEBRD $9 Million

$118 Million

Term LoansOrion/RCF $160 MillionEquipment Financing, from $90 Million

ING Caterpillar Ameriabank

$250 Million

Capped StreamOrion (now Osisko)/RCF $60 Million

$60 Million

Cost Overrun FacilityOrion/RCF $14 Million

$14 Million

Total In-Place Financing $442 Million

Warrant Potential on Full Exercise $28.5 Million

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Government






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

Exploration

DiamondRCTotals

Drilling


Metres

2007593- 0

20082,68010,363

20091,09012,446

20107,88717,036

201115,02823,099

201213,8386,720

20131,7545,258

2014- 0- 0

2015- 0- 0

20163,2176,162

46,08781,084127,171 total metres







Structure

MinisterMinister










Quick Ref


Annual Tonnes Processed10.2 Million tpa


Gold Grade0.79 g/t

Gold Recovery87.20%


Years 1 - 5260,000 Ozs

Average225,000 Ozs


Initial Capex


Trending$383 million


(000s)(g/t)(000s)

Gold Resources


Inferred72,2000.551,280

Gold Reserves


Equity

RCF/Orion$80 Million


EBRD $9 Million

$118 Million

Term Loans


Equipment Financing, from$90 Million

ING

Caterpillar

Ameriabank

$250 Million

Capped Stream


$60 Million



$14 Million



Crush Size

Avg Gold Extraction

Sample ID19.0 mm12.5 mm

Composite-0690.8%91.1%90.891.1

Comoosite-0786.4%87.1%86.487.1

Composite-1094.4%95.2%94.495.2

Composite-1193.5%92.9%93.592.9

Composite-1285.5%86.7%85.586.7

Composite-1397.9%98.4%97.998.4

International






United Nations

World Bank



Council of Europe




Armenia Mining

201220132014

Copper51,29559,65851,030


Zinc10,70010,5309,710

201220132014

Gold93,000112,000128,000

Silver715,000626,000622,000

289634733994

222441945819333

Base Metals

(Metric Tonnes)


Precious Metals

(Ounces)

Gold20122013201493000112000128000Silver201220132014715000626000622000

Amulsar Mining


Ore4207,59812,66214,95414,0899,84611,19610,6096,4408,1636,673

Waste84917,97422,10228,12921,20725,14423,49423,47931,88525,4033,930



Stockpiled42002,6234,4253,589- 069680- 0- 0- 0

- 0420411- 0- 0654- 0- 04,0602,3373,951

Mine Plan

(000s Tonnes)


Fleet

InitialSustaining

Shovels: Cat 604011




Tax

Example


Costs


Depreciation(100)

Other(100)


Armenian Royalties




Taxable income406






Resources





20143.032.015.04Inferred72.20.551.3

20173.471.284.75





201120122013201420171.10000000000000012.14699999999999982.3793.033.47Inferred

201120122013201420171.41.071.7342.00999999999999981.28

Ore Characteristics

Table 13.12

Crushing Work and Abrasion Index Test Results

DepthAbrasion IndexCrushing Work Index Comments

(20-12mm)(75 - 50mm)

(kW-hr/ton)(kW-hr/tonne)

21.4-26.2m0.271617.0318.78Massive silicates volcanics

44.9-50.0m0.251910.5311.61Vuggy silica volcanics

101.8-107m0.13488.229.06Massive silica volcanics

41.5-46.0mHighly weathered/fractured & non-competent sample, consisting of firm-soft clay and gravel within clay matrix.

106.0-111.8m

127.0-133.8m0.188511.3712.53Massive silica breccia

54.1-58.9m0.49088.319.16Massive silica volcanic

90.2-95.5m0.37867.58.27Faulted & FeOx volcanics

119.0-124.4m0.0083.073.39Porphyry, contact

8.3

Tigranes6.9

Artavazdes12.5

Erato13.2

TSX: LYD15

Low-Cost DriversEfficiencies from Large Scale Operations

All Oxides Produce 87% Gold Recovery

Conventional Mining & Processing

Low Waste : Ore Ratio at 2.2

Downhill Ore Route

Economics at $1,250 GoldInitial Capex 1 $370 Million

All-in Sustaining Costs 1 $579 / Gold Oz

10-year Post-debt Cashflows $850 Million

NPV Accretion Drives Re-rating

Upside Potential to Increase / Extend Valuation

1 Source: Q1 2017 Technical Report

$450,000

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

$800,000

Year -2 Year -1 First Gold Year 1 Year 2

$1,250 Gold

$1,350 Gold

Leveraged After-tax Amulsar NPV($1,250 and $1,350 Gold, 5% Discount)

Amulsar: Economic ProfilePowerful Economics from Initial 10-Year Life; Open Potential

TSX: LYD

Corporate Strategy for GrowthPotential from Existing Resources & Future Exploration

16

Tonnes(000s)

Gold Grade(g/t)

Contained Gold (Koz)

Measured and Indicated 39,549 0.68 864

Inferred 72,200 0.55 1,280

Gold Mineral Resources Outside Current 10-Year Mine Plan

Target 48 Mt at Reserve GradeAdds 1,000,000 Recoverable Gold Ounces

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15

Current Mine Plan Strategy for Growth from Existing Resources

Exploration Potential beyond Resources

17

SUSTAINABILITY

TSX: LYD18

SustainabilityPhilosophy and Framework

• International standards drive organizational performanceo EBRD performance requirementso IFC performance standards

• Volunteer initiativeso International cyanide management codeo Volunteer Principles on Security and Human Rights

• Strong leadership and independent oversighto Board-level oversight through Sustainability Committeeo Environmental & Social Policies adoptedo Independent advisory panel establishedo Independent Environmental and Social Consultant (“IESC”) reviews

• Strong Leadership in Armeniao International Standard ESIAo Sustainability Report 2016

TSX: LYD19

SustainabilityEnvironmental and Social

• Environmental studies conducted since 2008

• More than USD 6 million has been spent so far also engaging Armenian and international organizations

• For example: RA NAS Institute of Botany, RA NAS Scientific Center of Zoology and Hydro-ecology, Wardell Armstrong International, Golder Associates, TEC,

• Shared Resources, ERM , etc.

• Through supervision visits at least once a year and regular reporting on performance EBRD review compliance with environmental and social standards

TSX: LYD20

SustainabilityImpact Assessment

• Environmental and Social Impact Assessment (“ESIA”) –Internationalo Prepared by independent

international consultantso Approved and disclosed – 2016o Over 20 public discussions

• Environmental Impact Assessment (“EIA”) – Armeniao Initial approval – November

2014o Updated – May 2016o 15 public hearings

EIAEnvironmental

Impact Assessment

ESIAEnvironmental and Social

Impact Assessment

TSX: LYD

SustainabilityBiodiversity Management

21

BIODIVERSITY MANAGEMENT IS PERFORMED ON NO NET LOSS or NET GAIN BASIS

• Avoidance

• Mitigation (translocation, restoration)

• Offset

TSX: LYD22


• The Company discovered Potentilla porphyantha on Amulsar in 2012

• Listed in the Armenian Red Book, although Amulsar is not mentioned as a habitat

• Program includes translocationo One part to another region of Amulsaro The other part to Sevan Botanical Garden of RA NAS Institute of Botany

• Ultimate plan to demonstrate ability to repropagate to natural habitats

• Program conducted througho Coordination with RA NAS IoBo Sponsorship of two Cambridge PhD theses

TSX: LYD23


• Establishment of Jermuk National Park has been stipulated by the Republic of Armenia Government Strategy for Development of Specially Protected Nature Areas

• Duration of the Project – 2017-2021

• Government Decree on biodiversity strategy

• MoU signed with the Ministry of Nature Protection

TSX: LYD24

SustainabilitySecurity

• Developed a Security Management Plano Incorporate all Security Standard Operating Procedureso Include gold room and operational security risks

• Commitment to follow:o Volunteer Principles on Security and Human Rightso IFC PS4

• Extensive trainingso Covered 9 modules (introduction of Private Security, labor relations, patrol

duties and responsibilities, Fire Detection-Prevention and Safety and etc)

TSX: LYD25

SustainabilityIndependent Advisory Panel

John Harker (Chair) • Former President of Cape Breton University;

former Chair of the Cerrejon coal project review panel (Anglo American, BHP Billiton, Xstrata)

Haroutune Armenian• Professor in Residence of epidemiology at UCLA;

Professor Emeritus at Johns Hopkins University; President Emeritus American University of Armenia (AUA)

Jon Hobbs • Former Director Extractives Sector,

WWF International

Luc Zandvliet• An expert in socio-economic development, author

of Getting it Right – CSR-required reading; previous experience includes Newmont and Statoil

Hayk Akarmazian • Dean of Faculty of International Students,

State Engineering University of Armenia

Elisa Tonda • Head of the Responsible Industry and Value

Chain Unit, United Nations Environment Program; ICMC board member

Anahit Simonyan• Head of the UNIDO office in

Armenia

TSX: LYD

SustainabilityExtractive Industries Transparency Initiative

26

• In 2015, announcement was made by the Prime Minister• National Champion appointed – Minister of Justice• In 2016 Multi Stakeholder Group (“MSG”) Formed

o Government – 6 representativeso Civil Society Organizations – 5 representativeso Industry – 4 representatives - Lydian is represented in the MSG

• In 2016 respective application documentation finalized and submitted

• Armenia’s Candidacy Accepted – March 2017

• First Report to be Published in September 2018

• Validation process to become full member state is expected by end of 2019 or early 2020

TSX: LYD27

SustainabilitySocial Programs – More than 90 Community Programs

• Benefitting regional communities of Jermuk, Gndevaz, Gorayk, and Seravano Started in 2007 – focus to secure social licenseo Invested $3 million to dateo 2016 strategy going forward – switching from what’s good for community to

what’s mutually beneficial

• Notable programs in social infrastructure include:o Construction of gas pipeline in Saravano Construction of irrigation channel in Gorayk and Gndevazo Renovation of Gorayk school, library and medical posto Reconstruction of Gndevaz kindergarten and schoolo Reconstruction of a kindergarten and art school in Jermuko Reconstruction of Kechut Music Schoolo Renovation of Kechut drinking water systemo Financing of the university tuition fees for students

TSX: LYD28

SustainabilityLocal Employment Plan & Local Procurement Plan

• LEPo Local employment averages 44% from October

2016 – August 2017o Over 1,300 total employed in August 2017

• LPPo Local procurement procedures & SOP’s

developed – introduced in communitieso Community education & awareness on “how

to do business with Lydian”o Expressions of Interest released locally Camp shop Transportation Signage preparation Paper/plastic waste collection Inventory of equipment

o Local transportation service – selection in process

o Local stationary supply – in processo Monthly local procurement – about $75-80K

325 389 306 255 363457 575

728940

11191318

Monthly Job Statistics

0%

100%

200%

0 1 2 3 4 5 6 7

Contractor proportion of local employment: Feb-July 2017

Apra Sevan: ave 24%Renco: ave 50%Master Catering: ave 73%Turis: ave 100%Chanaparh: ave 1%

TSX: LYD29

SustainabilityLivelihood Restoration Plan

• Progress to dateo Land acquisition completed, with no expropriationo A 3-year commitment for LRP programs (2016-2019)o LRP will be monitored annually: budget tracked separately from social

programso M&E Report on LRP for 2016/17 compiled in April

• LRP activitieso Gndevaz irrigation canal repair: over 150 ha of land (+10M litres/day)o Orchard development support: 5,000 fruit trees prepared for next springo Cattle breeding & livestock development: 80% success rate in Year 1 & 2 o Improved livelihoods through horticulture development, income

generationo Food processing expansion through sun-drying facility : run by local

Cooperative, (with no support from Lydian)o Social enterprise development to run local businesses: new Cooperative o SME Development: 14 women-led businesses in 2016, additional 7-8 in

2017

30

ARMENIA OVERVIEW

TSX: LYD31

Armenia: Geography & PeopleSmall, Inland Nation with Well-Educated Society

Area 29,743 sq km

Geographic Coordinates 40 00 N, 45 00 E

Elevation - ArmeniaLow 400 mHigh 4,090 mMean 1,792 m

Elevation - AmulsarLow 1,630 mHigh 2,980 m

Population 3.0 million

Median Age 34.6 years

Literacy Rate 99.7%

Official Language Armenian

Other Languages EnglishRussian

Sheet1

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Climate














00



TSX: LYD32

Armenia: ClimateJermuk: Moderate Temperatures and Precipitation

0

15

30

45

60

75

90

105

120

-10

-5

0

5

10

15

20

25

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Precip. mm Poly. (Average Temp. C°)

TSX: LYD33

Armenia: EconomyStable-Trending Indicators

Services51.3%

Industry29.1%

Agriculture19.6%

GDP by Sector

Mineral Products

$474

Precious Metals $311 Foodstuffs

$309

Metals $260

Textiles $112

Other $194

Exports 2015($1.66 Billion)

2014 2015 2016

Gross Domestic Product USD Billions 11.60$ 10.50$ 10.60$

Foreign Direct Investment USD Billions 0.40$ 0.18$ 0.34$

Foreign Currency USD:AMD 415.92 477.92 480.49

Inflation Percent 3.0% 3.7% -1.3%

Unemployment Percent 17.6% 17.0% 16.8%

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



TSX: LYD34

Armenia: Government Structure2015 Referendum Revised to Parliamentary Republic

Authority Position Incumbent Since Next Election

Head of State President Serzh Sargsyan Apr-08 Feb-18

Head of Government Prime Minister Karen Karapetyan Sep-16 N/A

Legislative Power National Assembly 131 Deputies May-17 May-22

Judicial Power Constitutional CourtCourt of Appeals

Review CourtsCourts of First Instance

Others

Independent Agencies Central Electoral CommissionHuman Rights Defender

Central BankGeneral Prosecutor's Office

Control Chamber

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Sheet1






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

TSX: LYD35

Armenia: Government StructureMinistries Reflect Traditional Roles and Government Priorities

Minister Minister

Int'l Economic Integration and Reforms (and Vice PM) Vache Gabrielyan Finance Vardan Aramyan

Agriculture Ignati Araqelyan Foreign Affairs Edward Nalbandian

Culture Armen Amiryan Healthcare Levon Altunyan

Defence Vigen Sargsyan Justice Davit Harutyunyan

Diaspora Hranush Hakobyan Labor and Social Affairs Artem Asatryan

Economic Development and Investments Suren Karayan Nature Protection Artsvik Minasyan

Education and Science Levon Mkrtchyan Sport and Youth Affairs Hrachya Rostomyan

Emergency Situations Davit Tonoyan Territorial Administration and Development Davit Lokyan

Energy Infrastructures and Natural Resources Ashot Manukyan Transport, Communication and Information Technologies Vahan Martirosyan

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Government






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

Exploration

DiamondRCTotals

Drilling


Metres

2007593- 0

20082,68010,363

20091,09012,446

20107,88717,036

201115,02823,099

201213,8386,720

20131,7545,258

2014- 0- 0

2015- 0- 0

20163,2176,162

46,08781,084127,171 total metres







Structure

MinisterMinister










International






United Nations

World Bank



Council of Europe




Armenia Mining

201220132014

Copper51,29559,65851,030


Zinc10,70010,5309,710

201220132014

Gold93,000112,000128,000

Silver715,000626,000622,000

289634733994

222441945819333

Base Metals

(Metric Tonnes)


Precious Metals

(Ounces)

Gold20122013201493000112000128000Silver201220132014715000626000622000

Amulsar Mining


Ore4207,59812,66214,95414,0899,84611,19610,6096,4408,1636,673

Waste84917,97422,10228,12921,20725,14423,49423,47931,88525,4033,930



Stockpiled42002,6234,4253,589- 069680- 0- 0- 0

- 0420411- 0- 0654- 0- 04,0602,3373,951

Mine Plan

(000s Tonnes)


Fleet

InitialSustaining

Shovels: Cat 604011




Tax

Example


Costs


Depreciation(100)

Other(100)


Armenian Royalties




Taxable income406






Resources





20143.032.015.04Inferred72.20.551.3

20173.471.284.75





201120122013201420171.10000000000000012.14699999999999982.3793.033.47Inferred

201120122013201420171.41.071.7342.00999999999999981.28

TSX: LYD36

Armenia: International ParticipantInitiating Reform by Aligning with Best International Practices

Participation Comments

Representative Democracy - Since 1991 Adopted upon independence in 1991; a 2015 referendummodified from a presidential system to a parliamentarysystem.

Mining Code Revised - 2012 World Bank guided revisions to modernize and reflect bestinternational practices. Armenia continues to improve to meetalign with international practicies.

Extractive Industry Transparency Initiative EITI is a global standard to promote the open and accountablemanagement of oil, gas and mineral resources.


United Nations

World Bank



Council of Europe




Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Government






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

Structure

MinisterMinister

International Economic Integration and ReformsVache GabrielyanFinanceVardan Aramyan









International






United Nations

World Bank



Council of Europe




Mining

201220132014

Copper51,29559,65851,030


Zinc10,70010,5309,710

201220132014

Gold93,000112,000128,000

Silver715,000626,000622,000

289634733994

222441945819333

Base Metals

(Metric Tonnes)


Precious Metals

(Ounces)

Gold20122013201493000112000128000Silver201220132014715000626000622000

TSX: LYD37

Armenia: MiningMining in Armenia

- 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000

2012 2013 2014

Base Metals(Metric Tonnes)

Copper Molybdenum Zinc

- 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

2012 2013 2014

Precious Metals(Ounces)

Gold Silver

Source: USGS 2014 Minerals Yearbook, Armenia

TSX: LYD38

Armenia: MiningAmulsar & Other Mining Investment Viewed as Positive

• Job Creationo Construction – 1,300 direct jobso Operations – 700 direct jobs

• Foreign Direct Investment & Tradeo Among largest FDI since 1991o Annual exports – $280 million

• Revenue Baseo Among largest taxpayerso Annual contribution – ±$50

million

• New Approach to Miningo Amulsar to be largest gold mineo First heap leach projecto Best practices

• Teghout Copper & Moly mineo Owned by Vallex Groupo $320 million investment in 2014

• Kajaran Copper & Moly Mineo Owned by Cronimet Mining AGo Zangezur copper moly combine

• Kapano Recently Acquired by Polymetal

• Global Gold Corpo Toukhmanuk in operationso Advancing two others

• Other explorers active

Amulsar Gold Mine Other Mining Developments

TSX: LYD39

Armenia: Fiscal RegimeRoyalties and Profits Tax

• Royaltieso Two components 4% on revenue 12.5% on pre-tax profit (similar

to EBIT)

• Profits taxo 20% on taxable income, after

deductions for Royalties Finance costs

o 5-Year Loss Carryforwardo Non-resident withholding taxes

(certain treaty exclusions) Freight and insurance – 5% Interest, dividends, etc – 10% Other – 20%

Gross revenue 1,250$

CostsOperating costs (500) Depreciation (100) Other (100)

Profit before tax 550

Armenian RoyaltiesRoyalty 1 (50) 4% of gross revenueRoyalty 2 (69) 12.5% of profits before taxOther deductions (25) Generally finance costs

Taxable income 406 (81) 20% of taxable income

Net income after tax 325$

Total royalties & taxes 200$ Profit before tax 550$ Effective tax rate 36%

Example

Sheet1

Example


Costs


Depreciation(100)

Other(100)


Armenian Royalties




Taxable income406






TSX: LYD40

Armenia: Fiscal RegimeValue Added Tax

• Generally 20%, subject too Refundable upon export of doréo General VAT deferrals on imported goods 1-year: goods less than AMD 70 million 2-years: goods greater than AMD 70 million 3-years: goods greater than AMD 300 million

o Investment projects receive up to 3-year VAT deferrals on imported goods

41

GEOLOGY & EXPLORATION

TSX: LYD42

Regional GeologyTethyan Belt: Prominent Geologic Structure in Armenia

• Armenia lies along the central segment of the Tethyan Metallogenic Belt

• Major deposit characteristics of this region include:o Porphyry copper and copper-gold depositso Epithermal gold-silver type deposits

TSX: LYD43

Regional GeologyAmulsar Location

• Upper Eocene – Lower Oligocene calc-alkaline magmatic arc system extending NW through Georgia/Turkey and SE into Iran

TSX: LYD

• Host sequenceo Eocene-Oligocene volcanic and

volcano-sedimentso Basaltic and dacitic composition

• Rock unitso Upper Volcanics (“UV”) Silicified – Mineralization hosted

in hematite coated fractureso Lower Volcanics (“LV”) Argillic porphyritic Andesite

• HS epithermal gold-silver deposito Mineralization: Hydrothermal and

phreatic breccias; andesite sill trapped mineralized fluids causing ponding at/beneath contact

o Alteration: Acid leaching resulted in silicification and vuggy quartz44

Amulsar GeologyDeposit Type and Mineralization

3D view of Amulsar, looking northwest.

TSX: LYD45

Amulsar GeologySurface Geology Map

TSX: LYD46

Amulsar GeologyCross Section through Erato-Tigranes and Artavazdes-Arshak

A – A’ Cross section through Erato-Tigranes

B – B’ Cross section through Artavazdes-Arshak

TSX: LYD

• Structural formationo Central, high-complexity within a

regionally simple structureo Different sets of structures

produce final geometry – shears, folds, and faults

o Main post-mineralization structures are NE-trending faults

o High mineralization is controlled by NE and NW trending faults and fractures

o Low mineralization has fractural and lithological control

o Small plutons and subvolcanic intrusives occur around mineralized zones

47

Amulsar GeologyTypes of Structures

Lower Volcanics

Upper Volcanics

Pit Outline

TSX: LYD48

Amulsar ExplorationLydian Discovery: 127,000 Metres Drilled since 2007

Diamond RC TotalsDrilling

Holes 494 597 1,091 total holesMetres

2007 593 - 2008 2,680 10,363 2009 1,090 12,446 2010 7,887 17,036 2011 15,028 23,099 2012 13,838 6,720 2013 1,754 5,258 2014 - - 2015 - - 2016 3,217 6,162

46,087 81,084 127,171 total metres

Trench sampling 171 samples

Channel sampling 1,337 samples

Soil sampling 3,105 samples

IP lines 54.6 line km

Ground magnetometer 152 line km (18 km2)

Spectrometer 10 line km (10 km2)

Country

Area29,743 sq km


Elevation - Armenia

Low400 m

High4,090 m

Mean1,792 m

Elevation - Amulsar

Low1,630 m

High2,980 m



Literacy Rate99.7%



Russian

Economy

201420152016% of GDP

Services51.3%


Agriculture19.6%





GDP by Sector

% of GDP


Climate














00



Government






Court of Appeals

Review Courts


Others



Central Bank


Control Chamber

Exploration

DiamondRCTotals

Drilling


Metres

2007593- 0

20082,68010,363

20091,09012,446

20107,88717,036

201115,02823,099

201213,8386,720

20131,7545,258

2014- 0- 0

2015- 0- 0

20163,2176,162

46,08781,084127,171 total metres







Structure

MinisterMinister

International Economic Integration and ReformsVache GabrielyanFinanceVardan Aramyan







Emergency SituationsDavit TonoyanTerritorial Administration and Developmen

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