INVESTOR PRESENTATION - Proactive Investors

proactiveinvestors.co.uk

INVESTOR PRESENTATION - Proactive Investors

INVESTOR PRESENTATION

April 5th, 2011

www.lydianinternational.co.uk | TSX:LYD


FORWARD LOOKING STATEMENTS

This presentation contains projections and forward looking information that involve

various risks and uncertainties regarding future events. Such forward-looking information

can include without limitation statements based on current expectations involving a

number of risks and uncertainties and are not guarantees of future performance of the

Company. These risks and uncertainties could cause actual results and the Company’s

plans and objectives to differ materially from those expressed in the forward-looking

information. Actual results and future events could differ materially from anticipated in

such information. These and all subsequent written and oral forward-looking

information are based on estimates and opinions of management on the dates they

are made and expressly qualified in their entirety by this notice.

The Company assumes no obligation to update forward-looking information should

circumstances or management’s estimates or opinions change. This presentation does

not constitute an offer to sell or a solicitation of an offer to buy any securities of the

Company within the United States or otherwise.

2


BUILDING ON FIRST MOVER SUCCESS

Flagship asset is Amulsar gold project in Armenia

• Lydian grassroots discovery

• 1.4Moz inferred gold resource

• Open in all directions, including at depth

• + 90% recoveries from metallurgical testing

• Highway access, electricity, gas and water all within license

• Test production planned for H1 2012

• Full production scheduled for H1 2013

Strong influential shareholders

• International Finance Corporation (World Bank Group) – 13.81% (fully diluted)

• European Bank For Reconstruction and Development – 4.04% (fully diluted)

3


ARMENIA

• Western Style Democracy

• First Christian country (301AD)

• Favourable and stable tax policies and

treatment

• World Trade Organisation (WTO) member

• IFC and EBRD in country investments :

• IFC - $120 -$160m between

2009/12

• EBRD - € 440m up to 2010 in 95

projects -25 transactions in 2010

• International Centre for Settlement of

Investment Disputes (ICSID) signatory

4


OTHER INTERNATIONAL MINING AND

EXPLORATION INVESTORS

• Dundee Precious Metals (TSX:DPM) – Kapan - underground Au, Cu, Zn mine

• Cronimet (German Private) – Kajaran - Cu-Mo

– Open pit 12.8 Mtpa Mine

• Global Gold (OTC BB:GBGD) - Toukhmanuk - gold production – 10/2010

• Geopromining (Russian Private) – Zod - gold and Agarak - Cu-Mo production

• Caldera Resources Inc (TSXv:CDR) - JV with Global Gold on Marjan gold project –

3/2010

• Anglo-African African Minerals plc (FSX:AMQ) - Acquired 75% interest in Azatec gold project

– 8/ 2010

5


AMULSAR PROJECT - HIGHLIGHTS

• New Gold in a New Discovery

• 1.4 M Oz gold inferred resource

• ‘Open in All directions’ with untested prospects

and potential

• Very high gold recovery from metallurgical testing

90% +

• Established Infrastructure with sealed main road,

high tension power lines, gas and water pipelines

and an airstrip

• Fully licensed including a mining license

• Preliminary scoping study to complete end March

2011

• 30000m drilling program planned for 2011season

• BFS to be competed in H1 2012

• Small scale test production planned for H1 2012

• Full scale production planned for H1 2013

6


AMULSAR PROJECT - TIMELINE

2006 - License claimed

2008 - 13,000m drilled and 1M Oz inferred resource released

2009 - 25 year Mining License granted

- 14,000m drilled and resource increased to 1.4M Oz inferred resource

2010 - 25,000m drilled to achieve resource upgrade, extension and further exploration

- Bank Feasibility Study commenced - metallurgy, environmental and geotechnical

2011 - Resource announcement due in April 2011

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AMULSAR

LICENSE AREA

8


RESOURCE

GEOLOGY AND

DRILLING

9


AMULSAR

UPSIDE POTENTIAL

10


METALLURGY

• 93% recoveries on Q1

2011 column leach tests

• + 80% Gold recovered

within in 7 days

• Optimum 19mm crush size

and 0.05% solvent

concentrate levels

identified

• Top decile recoveries

due to high oxidation levels

at Amulsar

• Further Metallurgical tests

to be completed in Q2 2011

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EXPLORATION ACTIVITIES

• Lydian maintains a continuous pipeline of promising grass–roots roots discoveries

• Focussed attention on Armenia and Georgia region

• Targets cover primarily Copper and Gold

• Identification is through regional drainage sampling and reconnaissance activities

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CAPITAL STRUCTURE

Structure

Outstanding shares 94.64m

Deferred payment shares

1.50m

Warrants and options

15.28m

Including Directors and Employee

Warrants and Options of 3.10m

Fully diluted outstanding shares

111.42m

Major Shareholders and Insiders (fully

diluted)

IFC

13.81%

Newmont 9.10%

EBRD

4.04%

Directors and management

6.17%

Market capital (@ C$ 2.18)

C$206m

Cash in Bank

C$23.6m*

Total Insider Position

33.12%

Including IFC, EBRD and Newmont

*Newmont Arrangement:

Deferred payments due to Newmont of US$10m in 2 equal instalments

due 31/12/11 and before 31/12/12.

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MANAGEMENT TEAM

Dr Tim Coughlin (Chief Executive Officer) PhD

structural geology; 20-yrs experience, with wideranging

international experience, held senior

positions with major mining

companies, conducted country entry programs in;

Caucasus, Eastern Europe, Colombia

and Russia

Mr Roderick Corrie (Chief Finance Officer) BA

Cambridge, MA

Cantab), Associate Chartered Institute of

Bankers, Member Securities Institute; Strategic

advisor and financier with a variety of companies.

Mr Nerses Karamanukyan (General Manager

Caucasus) Previous chairman of the

Management Board of Ardshininvestbank

Armenia, Head of the International Finance

Corporation’s (IFC’s) offices in Armenia for 8

years, Diplomatic Counsellor to the Armenian

Embassy in the United Kingdom and Chief of

Staff for two Armenian Prime Ministers

Dr Hayk Aloyan (Managing

Director Armenia) PhD Ore Deposit Geology; 12-

yrs experience, formerly Deputy Chief of

Geological Survey in Armenian Mining

and Metallurgical Institute, widely published on

Armenian metallogenesis, specialist in resource

estimation

Mr Chris

Bargmann (Project Manager) BSc Geology,

MSc Mineral Resources: 25 years experience

exploration and mining geologist ranging from

grass roots discovery to feasibility study

level projects. Has worked in South Africa, Saudi

Arabia and Central Asia – Kazakhstan

Dr Armen Stepanyan (Environmental Officer) ME

Environmental Engineering, PhD (geoecology),

MBA (major/finance); 9 years experience as a

researcher, water quality and radioecology expert

at the National Academy of Sciences of Armenia,

CRDF, NATO, UNDP, and Armenian Nuclear

Regulatory Authority.

14


NON-EXECUTIVE BOARD

Mr Gordon Wylie (Non-Executive

Chairman), Grad Dip Mining Engineering,

Management Diploma (UNISA); 31-yrs

experience, from 1998-2005 as AngloGold-

Ashanti’s Global Exploration Manager.

Instrumental in developing the company’s

“New Frontiers Strategy”, AngloGold-Ashanti’s

move into highly prospective but poorly

prospected higher risk regions such as

DRC, Colombia, China and Laos.

Mr Marc Henderson (Non-

Executive Director) CFA. More than 20 years

experience running junior mining companies.

CEO of Aquiline Resources until sold to Pan

American for $625 million in 2009. Currently

CEO of Laramide Resources (TSX:LAM).

Mr Peter Mullens (Non-Executive Director) BSc

Geology; 21years of extensive and varied mining

and exploration industry experience. Successfully

developed four Canadian listed exploration

companies. Critical member of team which raised

CAD $ 150 million in equity finance. Good

awareness and experience of commercial

aspects, ore reserves, financial evaluations, mine

planning, JV negotiations, and financing of junior

exploration companies.

Mr Huw Williams (Non-Executive Director) BA,

CFA, FCA, MBA. Chartered accountant and

chartered financial analyst with over 20 years of

emerging market investment experience. Works

in the corporate equity unit for

the EBRD. Previously 10 years in private equity

in Africa with Actis and CDC Group plc. Also

serves as non-executive director of several

other EBRD investments and on

the recommendations committee of the

Kazakhstan Growth Fund.

15


ADVISORY BOARD

Mr. Patrick Gorman - M.S (Mining), B.Sc. (Hons) Mining is a mining engineer with over 35 years technical

and project experience in a wide range of business, cultural and climatic environments and communities. He has worked

on more than 100 mining projects in 60 countries. He has managed development programmes, conceptual evaluations and

studies for scoping, pre-feasibility and definitive feasibility stages. He has also provided technical audits for project

financing. Key areas of focus cover the provision of technical expertise and support to all project management

activities. This includes mining engineering, mining contractors, metallurgy, scoping, feasibility studies and financial

modeling.

Ms. Liz Wall is a Rhodes Scholar with degrees in Mining Engineering, Development Studies and Environmental

Management. Ms. Wall works with mining projects in developing countries as a social development specialist. Prior to

launching Shared Resources in 2008, she was a Social and Environmental Development Specialist working with mining

projects with the International Finance Corporation (IFC) and a Regional Development Manager and Health, Safety and

Environment Policy Advisor for Rio Tinto in a number of locations. Key areas of focus cover the provision of expertise and

support on environmental management and best practices, social welfare, health, sustainability and Governmental

expectations to ensure full adherence to World Bank and Armenian National standards.

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Discovery outcrop

(heli-shot)

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Drilling Tigranes North

(heli-shot)

18


View south

Drilling-Artavasdes

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Drilling Artavasdes

(heli-shot)

20


View north

Arshak-Artavasdes

(heli-shot)

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Camp site

and bag farm

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SHARE PERFORMANCE

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CONTACT INFORMATION

Investor Relations

Steve Smith

Lydian International Limited

Capstan House, La Route Es Nouaux

St Helier Jersey JE2 4ZJ

Tel: +44 (0) 1534 747 890

Fax +44 (0) 1534 758 708

Mobile: +44 (0) 7829 848420

E-mail steve.smith@lydianinternational.co.uk

website : www.lydianinternational.co.uk

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INVESTOR PRESENTATION

April 5th, 2011

www.lydianinternational.co.uk | TSX:LYD

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