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On July 24, 2018, Lydian Armenia CJSC, a subsidiary of Lydian International Limited, filed a complaint with the Jermuk Unit of the Vayots Dzor Police Department to initiate an investigation and file criminal charges against the protesters that had set up illegal blockades of roads accessing the Amulsar [gold mine] Project site, the company noted in a statement.

The Police denied this request, resulting in the Company applying for a reversal of the Police decision with the Ararat and Vayots Dzor Regions’ General Jurisdiction Court on September 30, 2018. The court ruled in Lydian’s favor on January 18, 2019, establishing that the Police failed to initiate a criminal case based on the alleged violations. The Vayots Dzor Prosecutor appealed the Court’s ruling.

On April 19, 2019 the Criminal Court of Appeal of the Republic of Armenia rejected the appeal filed by the Vayots Dzor Prosecutor requesting that the court’s ruling in favor of the Company be overturned.

The Prosecutor will have fifteen days from the official receipt of the judgment to appeal to the Cassation Court of Armenia (the highest Armenian court). If the Prosecutor does not appeal or if the appeal is rejected the original ruling will be sustained and the Prosecutor will be compelled to initiate a criminal investigation of the protesters under the articles of hooliganism and arrogation of the Armenian Criminal Code.

“Lydian has suffered unlawful actions and inactions that have been in breach of both Armenian and international law,” João Carrêlo, Lydian’s President and CEO stated. “The recent rulings of the courts in Armenia support Lydian’s position with respect to the illegal road blockades that have deprived Lydian of its legal right to operate. We hope that the Armenian authorities will follow up promptly on the court rulings, and initiate criminal proceedings and remedy the damage caused to Lydian by the illegal road blockades. We strongly believe that the restoration of the rule of law is in the best interest not only of Lydian, its shareholders, lenders, employees and the surrounding communities, but also serves the interests of Armenia as a whole.”

As per the statement, Lydian fully reserves all rights and remedies to address any disputes under Armenian and international law.

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