LYDIAN DRILLS 186m at 1.1g/t and 85m at 1.2g/t GOLD IN EXPLORATORY DRILLING AT ERATO, 900m NORTH OF THE RESOURCE ENVELOPE AT AMULSAR

Drilling to test new gold trends proves successful and opens up potential for further gold and continuity between Erato and the current resource shell

TORONTO, Ontario, October 4, 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. 

The Erato area is located 900 meters to the north of the current resource shell at Amulsar. It is separated from the main Tigranes-Artavasdes area by what appears to be a sill-like porphyritic intrusion. The last round of drilling at the Erato area identified a previously unknown northwest-southeast trending gold-mineralizedcorridor (which included a drill intersection of 95 meters at 1.7g/t gold, see press release August 10th 2010). Two further drill holes were positioned to test this corridor at Erato (see Figure in Appendix) and have returned 85 meters averaging 1.2g/t gold (RCA-280) and 186 meters averaging 1.1g/t gold (RCA-281, including 49m at 2.0g/t gold, see Table in Appendix). Both drill holes collared initially in a thin un-mineralized porphyritic sill-like intrusion which makes these drill holes doubly significant in that further gold mineralization may be found capped and concealed beneath this intrusive body extending from Erato 900m southwards to the current resource shell. Further drilling aimed at extending the mineralized corridor at Erato and testing the concept of capped mineralization is planned for later this month.          

“These are very encouraging results and this is a good „proof of concept‟ confirming that this year‟s drilling, surface mapping and 3D modeling is finally unraveling the complexity of this extensive mineralized system” said Tim Coughlin, Lydian‟s President and CEO “New knowledge regarding the orientation of this zone at Erato means we can follow it along strike towards the southeast and the concept of gold „ponding‟ beneath the sill-like porphyritic intrusion opens up significant potential in the 900 meters of strike distance between Erato and the current resource shell”.    

About Lydian International 

Lydian is a gold-focussed 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