Lydian Signs US$50 Million ING Bank Equipment Financing for Amulsar

TORONTO, ONTARIO--(Marketwired - Feb. 9, 2017) - Lydian International Limited (TSX:LYD) ("Lydian" or "the Company") is pleased to announce that its wholly owned Armenian operating subsidiary has entered into a secured credit facility with ING Bank N.V. ("ING Bank") for a maximum principal amount of up to US$50 million ("ING Term Facility"). Proceeds of the ING Term Facility will be used to purchase crushing, conveying and electrical equipment for Lydian's 100%-owned Amulsar Gold Project in Armenia. Construction at Amulsar commenced in October 2016; first gold production is expected during the first quarter of 2018.

Howard Stevenson, Lydian's President and CEO, commented, "We are extremely pleased to have secured the remaining source of equipment financing needed for development of Amulsar and look forward to working with ING Bank. This $50 million facility completes our financing plan, which now totals $440 million from all sources."

The ING Term Facility is available to be drawn in multiple advances through April 2018. Each advance will be repayable over a 51-month term, beginning on the earlier of: (i) six months following final delivery of equipment to be financed using proceeds from the ING Term Facility, and (ii) October 31, 2018. The ING Term Facility bears an interest rate of Libor plus 2.95%. Principal security consists of specific equipment financed by ING Bank, and a guarantee covering 85% of principal and interest under the ING Term Facility has been issued by the Swedish Export Credits Guarantee Board ("EKN"). The cost of the EKN guarantee shall be financeable using proceeds from the ING Term Facility. In addition, Lydian has provided an unsecured guarantee in favour of ING Bank. All advances under the ING Term Facility are subject to satisfaction of certain conditions.

Endeavour Financial is acting as financial advisor to Lydian.

The Company also announced that it has amended the offtake agreement dated November 30, 2015 among the Company, its wholly owned Armenian operating subsidiary, Orion Co IV (SO) Limited, and Resource Capital Fund VI L.P. The amendment reflects a one-day reduction of Lydian's opportunity to shorten the quotational period as a result of conditions which had effectively lapsed. The offtake agreement otherwise remains unamended.