The update to the independent mineral reserve estimate was prepared by Neil Prenn of Mine Development Associates ("MDA"), an “independent Qualified Person” as this term is defined in NI 43-101. MDA classifies reserves in order of increasing confidence into probable and proven categories in accordance with the "CIM Definition Standards-For Mineral Resources and Mineral Reserves" (2014) and NI 43-101.

The mineral reserve estimate is based on the February 27, 2017 AMC mineral resource model within the currently designed pit boundaries established by MDA in the 2015 technical report (see Lydian’s NI 43-101 Technical Report, Amulsar Value Engineering and Optimization, Armenia, report dated November 20, 2015, which is available at The pit design was not changed for this estimate due to the similarities of the economic pit shells used to design the pits to those estimated for the prior pit design.

The program was successful in increasing mineral reserves by 184,000 contained gold ounces to 2,606,000 contained gold ounces, an increase of approximately 8% compared to the previous mineral reserve statement prepared by MDA effective October 23, 2015. The updated mine plan also reflects an 8% increase in contained gold ounces scheduled in the initial five years of production, which now includes 1.5 million contained gold ounces. Additionally, themine plan improves within the currently designed pit boundaries by reducing the waste to ore strip ratio from 2.4 to 2.2.

Mineral Reserve Statement (0.24 g/t gold cutoff)
Mine Development Associates, February 27, 2017


Quantity Tonnes (000s)

Gold Grade (g/t)

Contained Gold (Koz)

Silver Grade (g/t)

Contained Silver (Koz)

Proven Reserves 44,709 0.84 1,202 4.58 6,587
Probable Reserves 57,944 0.75 1,404 3.29 6,132
Total Proven & Probable Reserves 102,653 0.79 2,606 3.85 12,719
Waste 223,553        
  1. The effective date of this mineral reserve estimate is February 27, 2017.
  2. The pit design for this mineral reserve estimate was the same as the pit design used for the MDA mineral reserve statement dated October 23, 2015, which was based on an optimization shell generated on gold only at a gold price of $912/oz.
  3. The economic evaluations were based on a gold price of $1150/oz and a silver price of $16.00/oz.
  4. A diluted gold cut-off grade of 0.24 g/t was used for processing.