LYDIAN DRILLS 69m at 1.7g/t & 89m at 1.0g/t GOLD IN RESOURCE UPGRADE DRILLING AT AMULSAR & EXTENDS KNOWN GOLD AT ERATO BY 350m TO THE SOUTHEAST   

Logging of new drill holes suggests high-grade “feeder zone” at Artavasdes extends over 400m in strike length   

TORONTO, Ontario, September 14, 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. 

Results from the first-pass of exploratory drilling at the Erato prospect (900 meters to the north of the resource envelope at Amulsar) have extended known gold mineralization there for approximately 350 meters towards the southeast. Reverse circulation drill-hole RCA-235 intersected 37 meters at 0.9g/t gold and RCA-239 intersected 55 meters at 0.9 g/t gold and 35 meters at 1.0 g/t gold (see Figure and Table in Appendix). Second-pass drill holes at Erato have been repositioned to test a newly identified northwest-southeast trend and to explore for a high-grade feeder zone under the silica cap.

Results from resource extension drill holes RCA 245 (25m at 1.0 g/t gold) and RCA 255 (20m at 1.3 g/t gold) have extended gold mineralization to the southeast of the resource envelope at Tigranes and infill drilling continues to produce consistent results with highlights including RCA 240 (89m @ 1.0 g/t gold), RCA 254 (37m at 1.0 g/t), RCA 258 (69m at 1.7 g/t) and RCA 262 (6m at 12.3 g/t, EOH). 

Logging of new drill core suggests that the high-grade “feeder-zone” which returned 84m at 4.9g/t gold (see release August 10 2010) may now be connected and traced in an east-west direction for over 400m (see Figure in Appendix). Results from these drill holes are yet to be returned.    

Significant new intersections include (see Table in Appendix):    

• RCA-235 (Erato)  37 meters at 0.9 g/t gold,  

• RCA-239 (Erato)   55 meters at 0.9 g/t gold, and  

35 meters at 1.0 g/t gold

• RCA-240 (Tigranes)  89 meters at 1.0 g/t gold,  

• RCA-245 (SE Tigranes ) 25 meters at 1.0 g/t gold,  

• RCA-254 (Tigranes)  37 meters at 1.0 g/t gold,  

• RCA-255 (SE Tigranes)  20 meters at 1.3 g/t gold,  

• RCA-258 (Tigranes)  69 meters at 1.7 g/t gold,  

• RCA-262 (Tigranes)  6 meters at 12.3 g/t gold (EOH),

• RCA-264 (Tigranes)  25 meters at 1.0 g/t gold.   

“First-pass drilling at Erato, although early stage, has been highly positive and there is enough information now to guide future drilling below the silica cap and along strike towards the southeast” said Tim Coughlin, Lydian’s President and CEO “The mapping of what appears to be the high-grade “feeder-zone” over about 400m strike length in new drill core is also very exciting and once results from this drilling are in, will hopefully lead to a significant increase in resource and overall resource grade. Drill rigs are now positioned across the ridge top to test new exploration targets which include an approximately 3km long breccia-zone located along the eastern flank of Amulsar and other untested targets with supporting rock-chip geochemical results on the western flank”  

About Lydian International 

Lydian is a diversified 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  3 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