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Drilling to test extension of higher grade “feeder structure” proves successful and exploratory drilling extends mineralization up to 500m beyond the current resource shell

TORONTO, Ontario, October 19, 2010 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced further results from resource upgrade, extension and exploratory drilling at its Amulsar gold discovery in Armenia. Amulsar is a high-sulfidation style gold project which currently hosts a CIM compliant Inferred Category Resource of 1.4 million ounces at 0.9g/t gold. 

Diamond drill holes DDA-047 and DDA-049 have confirmed the continuity of the higher grade “feeder zone”, which was intersected in drilling earlier this year (see press release August 2 2010). Surface mapping and drilling to-date suggests this higher-grade structure has a strike length of at least 400 meters (see Figure in Appendix), and remains open in all directions. DDA-047 intersected 24 meters at 7.4g/t gold and DDA-049 intersected 40 meters at 1.9g/t gold and 24 meters at 1.6g/t gold from this structure (see Table in Appendix). 

Exploration drill hole RCA-292 intersected 17 meters at 1.6g/t gold, some 500 meters to the northeast of the resource shell at Tigranes and exploration drill hole RCA-284 intersected 29 meters at 1.0g/t gold approximately 200 meters to the northwest of the resource shell at Artavasdes. In the Arshak area, exploration drill holes RCA-275 and RCA-276 have intersected 39 meters at 0.9g/t gold and 53 meters at 1.0g/t gold. These drill holes suggest that mineralization intersected in drill holes RCA-272 and RCA-273 (See press release September 28th 2010) extends to the southeast for at least a further 170 meters.  

Significant new intersections include (see Table in Appendix):    

• DDA-046 (Tigranes)  31 meters at 1.0g/t gold,  

• DDA-047 (Artavasdes)   24 meters at 7.4 g/t gold,  

• DDA-049 (Artavasdes)  37 meters at 1.4 g/t gold, 

   24 meters at 1.6 g/t gold, and

   40 meters at 1.9 g/t gold, 

• RCA-275 (Arshak)  39 meters at 0.9 g/t gold,   

• RCA-276 (Arshak)  53 meters at 1.0 g/t gold,  

• RCA-284 (Artavasdes West) 29 meters at 1.0 g/t gold,  

• RCA-292 (Tigranes North) 17 meters at 1.6 g/t gold.  

“Results from exploration drilling are highly encouraging, illustrating the potential to significantly extend the current resource envelope in at least three directions” said Tim Coughlin, Lydian’s President and CEO. “The higher grade feeder zone on Artavasdes is now being successfully tracked along its strike distance and is proving to be one of several higher grade structures that have now been identified from within the current resource shell. Identifying and connecting these higher grade structures has the potential to increase both the total contained ounces and average grade of the resource at Amulsar”.

About Lydian International

Lydian is a gold-focused mineral exploration and development company with expertise employing “first mover” strategies in emerging exploration environments. Currently Lydian is focused on Eastern Europe and on developing its flagship Amulsar gold project in Armenia. The Amulsar group of licenses is 95% owned by Lydian’s wholly owned Armenian subsidiary (Geoteam CJSC). Lydian also has a pipeline of promising early-stage gold and base metal exploration projects in the Caucasus regions. 

Lydian’s management team has a track record of success in grassroots discovery, in acquiring and developing undervalued assets, and in building companies. Lydian has a strong social agenda and a unique understanding of the complex social and political issues that characterize emerging environments. The Company’s significant shareholders are the International Finance Corporation (IFC), a member of the World Bank Group, Newmont Mineral Holdings B.V. (owned by Newmont Mining Corporation), and the European Bank for Reconstruction and Development (EBRD). More information can be found on Lydian’s web site at www.lydianinternational.co.uk

Christopher John Bargmann, FGS(C Geol), MAusIMM, Pr.Sci.Nat; is the Qualified Person overseeing Lydian's exploration programs. Mr. Bargmann has supervised the preparation of the technical information contained in this press release. 

Lydian employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. All assay work for the released results was carried out by ALS Chemex analytical laboratory in Rosia Montana, Romania. More information can be found on Lydian’s web site at www.lydianinternational.co.uk

FORWARD-LOOKING STATEMENTS 

This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors” which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.  

For further information please contact: 

Steve Smith Investor Relations Manager
+44 (0)1534 715472 
+44 (0)7829 848420  
info@lydianinternational.co.uk

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