Lydian Armenia announces the signing of a Community Development Agreement with the Government of the Republic of Armenia, represented by the Ministry of Economy, and the enlarged communities of Jermuk, Vayk and Sisian surrounding Amulsar.

Under the Community Development Agreement signed on August 31, Lydian Armenia has committed to providing USD 7 million for community development for each 12-month period during the construction and production phases of the Amulsar Gold Mine. During the production phase, if the average gold price exceeds USD 3,550 per ounce, the Company’s annual contribution will increase to USD 9 million.

The Company’s annual community development contribution will be allocated through a two-basket model.

70% of the annual contribution will be allocated among the enlarged communities of Jermuk, Vayk and Sisian in accordance with the formula established under the Agreement. The formula takes into account several factors, including the population of the affected settlements of Jermuk, Kechut, Gndevaz, Saravan and Gorayk, the area of land used by the Amulsar Project, and the proximity of each settlement to the mine infrastructure. At the same time, the Agreement establishes an important principle: each affected settlement is guaranteed to receive at least 20% of the amount designated for its respective enlarged community.

The remaining 30% of the annual contribution will be allocated to a separate basket and directed, on a competitive basis, toward financing community development projects. This mechanism will enable support for initiatives with the greatest potential to contribute to sustainable community development and deliver long-term, measurable benefits to a broader number of residents.

It should be noted that these funds will not be transferred directly by Lydian Armenia to the community budgets. Instead, they will be provided to the Amulsar Community Development Fund, established by the Company.

The communities will submit their proposed development projects to the Fund for consideration. Once approved, the Fund will provide the necessary funding for their implementation.

Funding decisions will be made by the Fund’s highest governing body, the Board, which will comprise four representatives of Lydian Armenia and one representative from each of the Jermuk, Vayk and Sisian communities.

The Agreement also establishes clear procedures for financial oversight, reporting and auditing to ensure the transparent, targeted and effective management of funds allocated for community development.

The signing of the Community Development Agreement establishes a predictable, transparent and institutional framework for Lydian Armenia’s long-term support for the Amulsar surrounding communities.

As a trusted partner to local communities, Lydian Armenia remains committed to ensuring that the economic benefits generated by the Amulsar Project translate into tangible and lasting development opportunities for the surrounding communities. The Community Development Agreement is a practical expression of this commitment, creating a long-term mechanism to support sustainable development, strengthen local communities, and contribute to the well-being of their residents.