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Shareholder Q&A

1. Why is TSX delisting Lydian? 

If an issuer commences CCAA proceedings the TSX always suspends trading and commences an expedited delisting review.


2. Will the company be able to apply for re-listing?

Only if the Company successfully emerges from CCAA proceedings and can satisfy all the conditions usually required by the TSX for listing.  That is unlikely at this time.


3. What was the reason for Lydian not being able to meet TSX listing requirements?

The illegal blockades and government inaction have resulted in Lydian being unable to raise additional financing to meet the resulting unanticipated costs. As a result, the Company had to seek CCAA protection that lead to delisting.


4. How does this impact Lydian shareholders?

The Company’s shares are not able to be traded on the TSX. However, shareholders who are otherwise able to trade may do so outside of the TSX. Shareholders who are insiders or who have material non-public information relating to Lydian, are not able to trade.


5. Are Lydian shares still worth anything? 

The shares are worth what a willing buyer would pay for them.   


6. Will the shareholders be entitled to seek their share of compensation if Lydian starts and wins arbitration? 

If Lydian is awarded damages in arbitration and recovers significant damages from the Government of Armenia, Lydian could make distributions to its shareholders after it pays all of its debts and costs.  However, any arbitration award may take years to be paid and may not be sufficient to pay all debts and costs.


7. What will shareholders get if Lydian sells the Amulsar project?

It depends on what the purchase price is on any sale and how the sale is structured. Any sale price will be significantly impacted by the blockades and shareholders are likely to be negatively affected if a sale occurs while the project is blockaded.  Further, any sale may not result in any value remaining for payments to shareholders.


8. What happens to shareholders if Lydian continues the project?

For Lydian to continue the project it will have to raise significant additional capital. That capital should be expected to require repayment prior to current shareholders.  Also, the current equity may be restructured under the CCAA proceedings which may result in the equity being significantly diluted or eliminated.