Geoteam has contributed around AMD 720 million (USD 1.6 million) to communities adjacent to Amulsar in land rental fees.

As
part of company disclosure policy Geoteam, a fully owned subsidiary of Lydian
International informs all stakeholders about the payments to local governments
at the end of each year. The communities of Saravan, Gorayk and Gndevaz have
received overall about AMD 720 million from Geoteam in land rental payments in
2008- 2014. 

Land rental payments in 2014:

Saravan about AMD 205.6 million

Gorayk about AMD 171.5 million

Gndevaz about AMD 63.1 million

Amulsar gold project mine construction hasn't started
yet, but the company has been renting the community lands for exploration
activities, as well as various other needs, including tree nurseries, road
constructions, etc.  During the last 4-5
years the local budgets of Amulsar adjacent communities have increased
significantly from AMD 2-3 million in 2006- 2008 to AMD 60 up to 205 million in
2013-2014.  Some of the money is
reinvested by the communities into several infrastructure repair projects as
well as joint social development projects in the communities in partnership
with Geoteam.  In 2014 Geoteam has also
allocated over AMD 900 million on environmental and social studies, research
and other activities, including exploration rehabilitation, social development
projects and more. 

In 2014 around AMD 135 million was allocated for
social development projects in the communities including agricultural
development through 10 greenhouses, animal husbandry project in Gorayk, fruit
drier in Gndevaz. Infrastructure and facilities such as: school sanitation and
canteen in Saravan, health post and dentistry in Gorayk, playground in Gndevaz.
In all three communities Geoteam has implemented educational and sports
projects such as scholarship support to 12 students studying mining engineering
and geology, dance groups and choirs for kids, sports and educational projects
for schools and kindergartens. School sanitation and canteen were renovated and
two playgrounds were built in Jermuk.  "Geoteam's
contribution to local budgets of the communities has been significant in the
recent years.  We have also invested
into various development and capacity building projects in the communities. We
believe that active partnership with our communities will bring success to
Amulsar project and build prosperous and strong communities around the project.
The most tangible benefits, however, are yet to come, with the construction of
the mine due to start next year, with around 1500 jobs during construction and
700 jobs throughout the life of the mine. 
Amulsar is not just an investment project of 420 million dollars but
also an opportunity to build a modern, environmentally and socially well
managed world-class mining operation in Armenia that will benefit the
communities and the country", says Hayk Aloyan, Managing Director of
Geoteam CJSC.

Geoteam CJSC is an Armenian mineral exploration and
development company. Geoteam CJSC is a 100% owned subsidiary of Lydian
International Limited. Geoteam CJSC, was incorporated in 2005 and after an
extensive campaign of geological exploration in Armenia discovered what is now
its flagship project; the Amulsar mountain. 
Amulsar is a new gold discovery, the first for over 20 years in Armenia.

Geoteam CJSC is carrying out geological exploration in
the Amulsar area of RA Vayots Dzor Marz, under a Prospecting License, granted
in 2006 by RA Ministry of Nature Protection. Located along a high ridge top on
the border of RA Vayots Dzor and Syunik Marzes, the Amulsar deposit is 170 km
south of Yerevan.

Exploration activities undertaken in 2008 identified
16.4 t of gold reserves. In 2009 the company obtained a special Mining License
from RA Ministry of Energy and Natural Resources, and in December 2009, after
meeting all legal requirements, signed a Mining License Agreement.

In March 2010 the company was awarded a land
allocation for mining.  Geoteam CJSC
continues to explore in the Amulsar exploration licence area, with further
mineralisation being identified. On April 5th 2011CSA Global - independent
consultants announced that the resource comprises of 2.5 million ounces of
gold.

Since incorporation in 2005, Geoteam CJSC has invested
more than USD 15 million into its activities in Armenia.

Lydian International Limited is a publically quoted
company listed on the Toronto (Canada) Stock Exchange (TSX:LYD). Lydian is a
mineral exploration and development company with expertise and a proven track
record in discovering and developing new gold deposits. Lydian's largest
shareholders are the International Finance Corporation, (part of the World Bank
Group) and the European Bank for Reconstruction and Development.