Lydian International Announces Partnership With Oxfam Armenia

TORONTO, ONTARIO--(Marketwire - June 7, 2012) - Lydian International Ltd. (TSX:LYD) ("Lydian" or "the Company"), a gold-focused mineral exploration and development company, is pleased to announce that it's Armenian subsidiary, Geoteam CJSC, has signed a partnership agreement with Oxfam Armenia and it's local partner "Support to Communities" (STC) to implement a health care program aimed at enhancing the health services available in the communities of Saravan, Gndevaz and Gorayk which surround the Company's Amulsar gold project.

This health care initiative will help socially vulnerable people including children, women and the elderly and follows a Drug Revolving Fund model, widely used by Oxfam in rural communities throughout Armenia. Under this model households invest modest amounts annually which when supplemented with support from Oxfam, STC and Geoteam, provides free medication, health screening for the entire community, health consultations, diagnosis and treatment. Health awareness campaigns will also be conducted and will focus particularly on lifestyle related issues.

Other partnership initiatives that Lydian has established to benefit rural communities in the vicinity of Amulsar include the 'New Technologies for Improved Livelihood' program in partnership with the HPD Foundation aimed at increasing the economic wellbeing of the Gorayk community; the 'Schools for Sport and Peace' program, operated in partnership with the Football Federation of Armenia and a chess development program operated in partnership with the Chess Academy and Chess Federation of Armenia.

Other notable community development programs recently completed, underway or planned for the coming year around Amulsar include the provision of a natural gas supply to Saravan, the planting of 5,000 trees as part of a 5km Tree Alley near the village of Gndevaz and renovation of a library, post office and community centre. "We are very proud of our joint community initiative with Oxfam Armenia and of the enormous health benefits it will provide for Amulsar's surrounding villages" said Tim Coughlin, Lydian's President and CEO "This is one of four partnership programs we currently have underway in our local communities. These programs are designed to encourage active community and third-party participation, to be sustainable and to complement the ongoing social improvement programs the Company is conducting throughout the region".

About Lydian International

Lydian is a gold-focused mineral exploration and development company with expertise employing "first mover" strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and, in particular, developing its flagship Amulsar gold project in Armenia. 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 characterise emerging environments. The Company's significant shareholders include the International Finance Corporation which is a member of the World Bank Group and the European Bank for Reconstruction and Development. More information can be found on Lydian's web site at www.lydianinternational.co.uk.

Caution regarding forward-looking information:

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterised 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 and include statements regarding the Company's intended planned exploration. 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.