Lydian International Ltd.
TSX : LYD

Lydian International Ltd.

September 14, 2010 07:30 ET

Lydian Drills 69m at 1.7g/t & 89m at 1.0g/t Gold in Resource Upgrade Drilling at Amulsar & Extends Known Gold at Erato by 350m to the Southeast

Logging of New Drill Holes Suggests High-Grade "Feeder Zone" at Artavasdes Extends Over 400m in Strike Length

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2010) - Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a gold-focused mineral exploration and development company, today announced further results from resource upgrade, extension and exploratory drilling at its Amulsar gold discovery in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Inferred Category Resource of 1.4 million ounces at 0.9g/t gold.

Results from the first-pass of exploratory drilling at the Erato prospect (900 meters to the north of the resource envelope at Amulsar) have extended known gold mineralization there for approximately 350 meters towards the southeast. Reverse circulation drill-hole RCA-235 intersected 37 meters at 0.9g/t gold and RCA-239 intersected 55 meters at 0.9 g/t gold and 35 meters at 1.0 g/t gold (see Figure and Table in Appendix). Second-pass drill holes at Erato have been repositioned to test a newly identified northwest-southeast trend and to explore for a high-grade feeder zone under the silica cap.

Results from resource extension drill holes RCA 245 (25m at 1.0 g/t gold) and RCA 255 (20m at 1.3 g/t gold) have extended gold mineralization to the southeast of the resource envelope at Tigranes and infill drilling continues to produce consistent results with highlights including RCA 240 (89m at 1.0 g/t gold), RCA 254 (37m at 1.0 g/t), RCA 258 (69m at 1.7 g/t) and RCA 262 (6m at 12.3 g/t, EOH).

Logging of new drill core suggests that the high-grade "feeder-zone" which returned 84m at 4.9g/t gold (see release August 10 2010) may now be connected and traced in an east-west direction for over 400m (see Figure in Appendix). Results from these drill holes are yet to be returned. 

Significant new intersections include (see Table in Appendix):  
   
• RCA-235 (Erato) 37 meters at 0.9 g/t gold,
• RCA-239 (Erato) 55 meters at 0.9 g/t gold, and
  35 meters at 1.0 g/t gold
• RCA-240 (Tigranes) 89 meters at 1.0 g/t gold,
• RCA-245 (SE Tigranes) 25 meters at 1.0 g/t gold,
• RCA-254 (Tigranes) 37 meters at 1.0 g/t gold,
• RCA-255 (SE Tigranes) 20 meters at 1.3 g/t gold,
• RCA-258 (Tigranes) 69 meters at 1.7 g/t gold,
• RCA-262 (Tigranes) 6 meters at 12.3 g/t gold (EOH),
• RCA-264 (Tigranes) 25 meters at 1.0 g/t gold.

"First-pass drilling at Erato, although early stage, has been highly positive and there is enough information now to guide future drilling below the silica cap and along strike towards the southeast" said Tim Coughlin, Lydian's President and CEO "The mapping of what appears to be the high-grade "feeder-zone" over about 400m strike length in new drill core is also very exciting and once results from this drilling are in, will hopefully lead to a significant increase in resource and overall resource grade. Drill rigs are now positioned across the ridge top to test new exploration targets which include an approximately 3km long breccia-zone located along the eastern flank of Amulsar and other untested targets with supporting rock-chip geochemical results on the western flank".

About Lydian International

Lydian is a diversified mineral exploration and development company with expertise employing "first mover" strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and on developing its flagship Amulsar gold project in Armenia. The Amulsar group of licenses is 95% owned by Lydian's wholly owned Armenian subsidiary (Geoteam CJSC). 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 characterize emerging environments. The Company's significant shareholders are the International Finance Corporation (IFC), a member of the World Bank Group, Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian's web site at www.lydianinternational.co.uk.

Christopher John Bargmann, FGS(C Geol), MAusIMM, Pr.Sci.Nat; is the Qualified Person overseeing Lydian's exploration programs. Mr. Bargmann has supervised the preparation of the technical information contained in this press release.

Lydian employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. All assay work for the released results was carried out by ALS Chemex analytical laboratory in Rosia Montana, Romania. More information can be found on Lydian's web site at www.lydianinternational.co.uk.

FORWARD-LOOKING STATEMENTS

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized 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. 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 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.

APPENDICES RESULTS TABLE
TABLE 1. INTERIM DRILL RESULTS FROM AMULSAR PROJECT (~1g/t GOLD)
Drill Hole Dip Azimuth Total Depth (m) From (m) To (m) Intersection (m) Gold (g/t)
DDA-041 -60 300 151.4 62 77 15 1.0
        132 141 9 2.3
RCA-235 -60 110 227 105 142 37 0.9
RCA-236 -60 300 53   NO SIGNIFICANT INTERSECTIONS >1G/T
        19 29 10 1.0
RCA-237 -60 120 151 86 87 2 1.3
        93 99 6 1.0
        135 151 (EOH) 16 1.3
RCA-238 -60 110 59   NO SIGNIFICANT INTERSECTIONS >1G/T
        36 91 55 0.9
RCA-239 -60 110 221 106 115 9 0.9
        184 219 35 1.0
  -60 120 149 12 101 89 1.0
RCA-240       129 131 2 1.2
    Including   27 388 11 4.5
RCA-241 -60 110 107 27 38 11 0.9
RCA-242 -60 110 83   BOGGED AND LOST BEFORE OBJECTIVE
        67 83 (EOH) 16 1.1
RCA-243 -60 30 161 102 104 2 1.0
        154 157 3 1.4
RCA-244 -60 110 65   NO SIGNIFICANT INTERSECTIONS >1G/T
RCA-245 -60 30 162 54 60 6 0.9
        91 116 25 1.0
RCA-246 -60 110 179 78 86 8 1.0
RCA-247 -60 30 35   BOGGED AND LOST BEFORE OBJECTIVE
RCA-248 -60 250 47   NO SIGNIFICANT INTERSECTIONS >1G/T
        41 43 2 1.1
        58 60 2 1.1
RCA-249 -60 120 158 70 76 6 1.0
        117 119 2 1.0
        133 135 2 1.0
RCA-250 -60 250 137   NO SIGNIFICANT INTERSECTIONS >1G/T
RCA-251 -60 120 68   NO SIGNIFICANT INTERSECTIONS >1G/T
RCA-252 -60 250 23   BOGGED AND LOST BEFORE OBJECTIVE
RCA-253 -60 300 161 21 23 2 1.1
        35 70 35 1.6
        12 49 37 1.0
RCA-254 -60 30 110 55 59 4 1.1
        92 95 3 1.9
RCA-255 -60 210 101 23 43 20 1.3
        61 63 2 1.0
RCA-256 -60 210 100   NO SIGNIFICANT INTERSECTIONS >1G/T
RCA-257 -60 210 125 65 83 18 1.3
        98 104 6 1.1
RCA-258 -60 210 90 0 69 69 1.7
RCA-259 -60 210 110   NO SIGNIFICANT INTERSECTIONS >1G/T
RCA-260 -60 210 160 126 129 3 1.0
RCA-261 -60 30 100 60 65 5 1.4
          BOGGED AND LOST BEFORE OBJECTIVE
        37 56 19 1.0
RCA-262 -60 30 149 72 74 2 1.3
        116 123 7 1.0
        143 149 (EOH) 6 12.3
RCA-263 -60 120 150 120 134 14 1.0
RCA-264 -60 210 83   BOGGED AND LOST BEFORE OBJECTIVE
        33 58 25 1.0
Cut-off 0.2g/t gold, maximum down-hole internal dilution 10m
All intersections are oxide gold, not true widths

To view the "APPENDICES TIGRANES-ARTAVASDES MAP", please visit the following link - http://media3.marketwire.com/docs/lyd10914.pdf

To view the "APPENDICES ERATO MAP", please visit the following link - http://media3.marketwire.com/docs/lyd20914.pdf

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