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Exceptionally rapid leaching reported with up to 80% of gold recovered after seven days

TORONTO, Ontario, January 17, 2011 – Lydian International Ltd. (TSX: LYD) (“Lydian” or “the Company”), a gold-focused mineral exploration and development company, today announced results of further metallurgical testing from 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.

Lydian commissioned Wardell Armstrong International to undertake a further program of laboratory bottle roll and column leach test work on drill hole samples from the Amulsar project. Composite samples (samples A and B) originally tested by SGS Minerals Services UK Ltd (see press release 17th March 2010) were re-tested using a wider range of crush sizes and solvent concentrations. A representative head-grade sample was riffled from each composite and assayed for gold. Sample A assayed 1.26g/t gold and Sample B assayed 1.14g/t gold. The program of column test work was undertaken using solvent concentrations of 0.075, 0.050 and 0.025%. The crush sizes investigated were 38, 25, 19 and 12mm. The columns were irrigated at a rate of 10 litres/m2/h and the leach period was 68 days.

The test results concluded that the cost-optimized crush size for Amulsar gold mineralization is probably 19mm and the optimum solvent concentration is 0.05%. Using these parameters composite’s A and B recovered 93.5% and 93.1% gold respectively. Initial column leaching was exceptionally rapid for both samples with up to 80% gold being recovered after seven days of leaching (see Table and Figure in Appendix).

“Good metallurgical recoveries are of course a critical ingredient in the overall economics of a profitable gold mine” said Tim Coughlin Lydian’s President and CEO “By virtue of its deep oxidation the Amulsar project has always demonstrated very good gold recoveries. Also important, but often overlooked, is the time it takes to extract the gold and as with previous results, these tests imply exceptionally rapid recoveries for Amulsar. Further metallurgical tests are currently being conducted on fit for purpose wide diameter drill core with results expected early in Q2”

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 2 Europe and on developing its flagship Amulsar gold project in Armenia. The Amulsar group of licenses are wholly owned by Lydian’s 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 atwww.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

Appendix Table

 17jan fig1 press

Appendix Figure Composite A

 17jan fig2 press