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Lydian Announces a Successful Appeal From an Administrative Directive Preventing Mining Related Activities at the Amulsar Project

Lydian International Limited is pleased to announce that the Administrative Court of Armenia ruled on October 15th  in favor of Lydian Armenia, a subsidiary of Lydian, and upheld the Company’s appeal against a Directive of Armenia’s Environmental and Mining Inspection Body, dated August 27, 2018 preventing any mining related activities at the Amulsar Project (Directive 30-A).

Mr. Artur Grigoryan, former Head of the Inspection Body, directed the Company on August 27, 2018 to refrain from any mining-related activities until the Ministry of Nature Protection conducted a study of ‘new found ecological factors’ alleged by Mr. Grigoryan to have been identified at the Amulsar Project for the first time.

The Administrative Court of Armenia established that the existence of the alleged ecological factors had not been substantiated after independent investigation.  The Court also found that Mr. Grigoryan had been actively involved in anti-Amulsar activities prior to his appointment as the Head of the Inspection Body, which raised reasonable doubts on his objectivity.  The Court ruled that Mr. Grigoryan failed to recuse himself from considering the matter when required to do so and declared Directive 30-A invalid.

Edward Sellers, Lydian’s Interim President and CEO commented: “We were confident the Armenian Judiciary would confirm that the claims of the former Head of the Inspection Body were unsubstantiated, and the failure to recuse himself in the matter unlawful.  This ruling is yet another confirmation that unlawful attempts have been made to interfere with Lydian’s legal right to develop and operate the Amulsar Project.  It is regrettable that illegality of action against Lydian has now been found to extend to an official of the Government of Armenia.”

“On August 19, 2019, Prime Minister Nikol Pashinyan publicly acknowledged that there is no legal basis on which the Government of Armenia can prevent Lydian from advancing the Amulsar Project and it is in the national interest that the Amulsar Project proceed.  The Prime Minister also called for the illegal blockaders to open the roads and for Lydian’s access to the Amulsar Project to be restored.  The Prime Minister has made similar statements since then on numerous occasions, including while in New York attending the General Assembly of the United Nations.  Yet the illegal blockades remain.”

“The Prime Minister has said publicly on more than one occasion that ‘rival mining companies’ and others were supporting the illegal blockaders.  It now appears that at least one of those supporters was within the Government of Armenia.  The Government of Armenia has allowed continuous illegal blockades of the Amulsar Project since June 2018 and failed since then to enforce court orders upholding Lydian’s legal rights of access.  When will the Prime Minister identify who the supporters of illegality against Lydian are, and when will the Prime Minister take steps to enforce the Rule of Law?”

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