Company Information for Lydian International

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www.lydianinternational.co.uk

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Company Statement

Lydian International Ltd. is a diversified UK mineral exploration and development company, with expertise employing and managing “first mover” strategies in international emerging environments.

Currently the Company is focused on Eastern Europe, in the Western Balkans and the Caucasus regions, advancing a pipeline of highly prospective precious and base metal projects. In the Caucasus region Lydian is operating an exploration joint venture with Newmont.

The Company's two flagship projects are a newly discovered high-sulphidation epithermal gold project at Amulsar in Armenia, and an advanced zinc, lead, silver and gold project at Drazhnje in Kosovo.

Lydian's two largest share holders are Newmont and the International Finance Corporation (part of the World Bank Group).

The Lydian Management Team has a proven discovery record and is highly experienced in emerging and transitional environments with expertise in finance, operational logistics and community relations.

Company Diagram

Lydian Projects in Kosovo

Current Operations

Lydian’s expertise is in employing and managing “first mover” strategies in emerging environments. Currently, the company has a pipeline of exploration and advanced exploration stage projects in Eastern Europe, including Armenia and Kosovo.

Kosovo Overview
Kosovo declared its independence in February of 2008. A new 2000 person strong EU mission has been installed in the country with a $125 million Euro budget for 2008 and a mandate to oversee the new country's accession to the European Union.

Although relatively small, it possesses a significant share of the region's mineral resources including, most notably its lignite deposits (the fifth largest in the world), the Trepça Pb-Zn-Ag deposits and significant under-explored occurrences of zinc, lead, silver and nickel. It has a long history of mining and a skilled workforce. Kosovo’s mining law is of international and EU-standard.

Lydian, through its subsidiary company Kosovo Resource Company, is the only publicly listed mineral exploration company to establish an exploration presence in Kosovo.

Drazhnje Project, Kosovo
The Drazhnje project is a historic exploration project located in central eastern Kosovo and with former Yugoslav resources of 4.7Mt at 4.9%Zn, 2.4%Pb and 45g/t Ag in A, B and C1 categories and a further 2Mt at 5.76%Zn, 3.23%Pb and 45g/t Ag in C2 category (not JORC compliant).

In 2006 Lydian completed an initial combined confirmatory and exploratory drilling programme of some 2500m in 20 diamond drill holes and is currently drilling a further 6000m on extensions the historic resource. The Company is also preparing to open underground access for sampling and underground drilling to convert the historic resource into JORC compliant reserves.

Recently preliminary drill results at Trpeza and St. Barbara Areas, located outside the existing historical resource, have highlighted a potential underground base-metal target below a potentially open-pittable gold zone. Recently a fan of 3 drill holes has intersected greater than 10m intervals of more than 10% zinc at the St. Barbara area. Lydian believes there is potential to increase the resource at Drazhnje to in excess of 10Mt.

Crepulje Project, Kosovo
Lydian is currently re-testing and extending historical trenches at the Crepulje Zn-Pb oxide project in Northern Kosovo. In recent results the company intersected unexpectedly high and continuous zinc grades in trenches (up to 32m @25.89% zinc and 3.86% lead). Rock chip samples have returned up to 49% zinc and 9.2% lead and some 90% of grab samples returned greater than 30% zinc over an area of some 200 by 400 meters near the historical workings. Lydian’s Crepulje project demonstrates some features consistent with zinc deposits of direct replacement-type (such as Accha, Peru; Angouran, Mehdiabad, Iran) and wallrock replacement-type systems (such as Scorpion, Namibia and Long Keng, Myanmar). The project was originally worked during the 1960’s and 1970’s when the technology to treat non-sulphide zinc-lead oxide projects did not exist. Channel sampling, geophysics and further soil sampling are being conducted leading to drill testing later this summer.

Rahovec Discovery, Kosovo
This project is in Eastern Kosovo and is a new gold discovery in an area previously known for its Ni-Co-Cu- (PGE) potential. It recently returned trench results of 73m at .87 g/t gold (highest 7.97 g/t gold). Scout diamond drilling and further soil sampling and trenching are taking place.

Armenia Overview
Armenia is well known for its mineral resources and long mining history, according to the Heritage Foundation / Wall Street Journal, the country is perceived as having the most liberal investment and trade regime in the CIS. Armenia's Index of Economic Freedom for 2007 was above the European average.

Armenia is a member of the World Trade Organisation, is a signatory to the International Convention on Investment Disputes and is a member of the International Centre for the Settlement of Investment Disputes (ICSID). There is an independent judiciary and laws protecting foreign investors. It is privatised, democratic and undergoing rapid growth.

Lydian was one of the first companies post Soviet era to conduct regional exploration in Armenia. Other exploration companies currently investing in the country include Dundee Precious Metals, Freeport-Macmorran, Global Gold and Tamaya Resources.

Armenia forms part of Lydian's Caucasus exploration joint venture with Newmont covering what are believed to be highly prospective gold belts in Armenia and Georgia. The joint venture is a 50%-50% contribution. Newmont has two options to increase its interest. The first is an option to earn a further 20% by funding the project through to feasibility; the second option allows Newmont to earn a further 10% by funding through to commercial production. Interests for non-contributing results in dilution by a standard formula. There are no claw-back agreements and interests can be freely transferred with a first right offered to the other party.

Amulsar Project, Armenia
This is a completely new gold discovery which management believes has a plus-million ounce gold potential. The project is located in central Armenia and is being explored as part of a joint venture with Newmont. It is an oxidised- high sulphidation epithermal gold system with similarities to the well-known producers in the Andes. Highly encouraging results have been obtained from scout drilling, surface geochemistry and geophysical targeting. Rock chip sampling and soil geochemical analyses reveal that the mineralized system extends over a strike length of some 3.5km and is at least 500m wide. Recent drill tests have revealed higher grade gold (greater than approximately 3 g/t) is hosted in shallowly dipping oxidised breccia bodies and lower grade gold (greater than approximately 0.5 g/t gold) is hosted in shallowly dipping broadly bedding paralleled oxidised structures that surround the higher grade breccia bodies. An initial 20,000m drilling program has started and resource definition is planned for 2008.

Lydian Operations Objectives for 2008

• NI-43101 compliant resource at Armulsar Project in Armenia.
• NI-43101 compliant resource and pre-feasibility at Drazhnje Project in Kosovo.
• Drill test Crepulje and Rahovec Projects, Kosovo.
• Advance other licenses to drilling stage.
• Advance and secure assets in new environments.

Geographical Spread

Eastern Europe, including Armenia, Kosovo

Board of Directors and Key Management

Gordon Wylie	Non-Executive Director and Chairman of the Board
Dr. Timothy Coughlin	President and Chief Executive Officer
Hugh Devlin	Director of Operations and Executive Director
Roderick Corrie	Chief Financial Officer and Executive Director
Marc C Henderson	Non-Executive Director
Peter Mullens	Non-Executive Director

Company Address

Exchange Tower, Suite 3680
130 King St.
Toronto,, Ontario, Canada M5X-1B1


Telephone:	+1 416 599-7363
Facsimile:	+44 (0) 1534 609 333
Email:	linda.montgomery[at]lydianinternational.co.uk
Website:	http://www.lydianinternational.co.uk

Annual General Meeting

May 29th, 9:00am, Toronto, Canada

Year End

Dec. 31st

Major Shareholders

Newmont, 13 %

International Finance Corporation (IFC), part of

World Bank Group, 13%

Most Recent Statement

26/11/08 - Drilling Returns Best Intersections yet of 135m at 2.3g/t Gold (Including 17m at 9.6g/t) and 71m at 3.1g/t Gold at Lydian's Amulsar Discovery in Armenia
13/11/08 - Lydian Corporate Update
11/11/08 - New Gold Zones Defined in Exploratory Step-Out Drilling at Lydian's Amulsar Discovery in Armenia
03/11/08 - Drilling returns 106 metres at 2.3g/t Gold (including 21 metres at 9.7g/t Gold) at Lydian’s Armulsar discovery in Armenia
02/10/08 - 2008 Full Year Accounts and 2008 Concise Accounts
01/10/08 - Lydian intersects 125 metres at 1.6g/t Gold in best intersection yet from Armulsar

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