Armenian Prime Minister urges not to fear the possibility of Lydian  applying to international arbitration

ArmInfo. Armenian Prime  Minister Nikol Pashinyan, speaking in the parliament on March 28,  urged not to fear the possibility of Lydian applying to international  arbitration in connection with the problems encountered during the  operation of the Amulsar gold mine.  

Answering the relevant question  of the NA MP from the Prosperous Armenia faction Artur Grigoryan  (formerly the Minister of Energy Infrastructures and Natural  Resources of the Republic of Armenia), the Prime Minister stated that  "the company itself should be afraid of us, not we." Nikol Pashinyan  reminded that by the decision of the government from the state budget  $ 300 thousand was allocated for conducting a research by large  reputable international organization in order to identify all the  risks involved. These studies, as noted by the head of government,  are carried out in the framework of a criminal case. "And if  according to the results of the study it turns out that there are  serious risks for the Jermuk water basin and Lake Sevan, the program  will be curtailed, and if no risks are identified, it will continue",  Nikol Pashinyan said. He also pointed out the protracted nature of  the problem, which is related to the company's refusal to cooperate  with the government of the country. "In June-July of last year,  during a visit to Jermuk, I invited the parties to cooperate and  discuss the issue. Even the Minister of Nature Protection himself did  not give any guarantees about the absence of risks. Against this  background, I couldn`t just close my eyes and make a decision" .

To recalll, on March 11 Lydian International Limited announced that,  in connection with the ongoing blockades of road access to the  Amulsar Gold Project, Lydian U.K. Corporation Limited ("Lydian UK")  and Lydian Canada Ventures Corporation ("Lydian Canada"),  subsidiaries of the Company,  formally notified the Government of the  Republic of Armenia (the "Government of Armenia") of the existence of  disputes with the Government of Armenia under the Agreement between  the Government of the United Kingdom of Great Britain and Northern  Ireland and the Government of Armenia for the Promotion and  Protection of Investments, in force since July 11, 1996 (the "UK  BIT") and the Agreement between the Government of Canada and the  Government of Armenia for the Promotion and Protecton of Investments,  in force since March 29, 1999 (the "Canada BIT"), respectively.   Under the UK BIT, Lydian UK may submit the dispute to international  arbitration three months after such formal notification, and under  the Canada BIT, Lydian Canada can do so after six months. In the  meantime, the Government of Armenia has an opportunity to continue  amicable discussions with Lydian with a view to the prompt settlement  of the disputes.

Whether or not Lydian UK or Lydian Canada will initiate arbitration  proceedings will depend on the conduct of the Government of Armenia,  and there can be no assurance that Lydian UK or Lydian Canada will  initiate any arbitration claim or application to any international  arbitration court or of the outcome of any such claim or application.  The Company does not intend to make any further public comments  relating to these matters unless required by law.