Lydian International Ltd T.LYD

LETTER TO RESOURCE CAPITAL, MAJOR INVESTOR IN AMULSAR

[JNazar7]

RESOURCE CAPITAL, AS A MAJOR SHAREHOLDER IN LYDIAN PROVE THAT YOU ARE A RESPONSIBLE INVESTOR AND URGE LYDIAN TO ABANDON ITS OPERATIONS IN AMULSAR AND LEAVE!

RESOURCE CAPITAL,

You claim to incorporate ESG in your investment process. For that you only deserve respect and admiration. However, as the saying goes, Actions speak louder than words. Your investment in Lydian International puts your credibility as an organization that strives to follow ESG and sustainable investing principals at a major risk.

I have no doubt that you weren’t aware of anti-ESG and unsustainable nature of the Lydian’s operations in Amular. And I sincerely believe that you have been a victim of Lydian’s falsehoods, just as much as the local population has been.

The company has been painting rosy pictures and not disclosing devastating effects its operations in Amulsar would have, unfortunately encountering little to no serious argumentation or challenge except from concerned environmental groups whom it had shoved aside and ignored or at times learned about risks and began improvising changes to its plans of operations, further proving its pitiful incompetence.

The local version of EPA called Ministry of Nature Protection certainly has failed at fulfilling its responsibilities (which is hardly surprising since previous authorities were criminal in nature). And now there is a criminal case underway because the Ministry willfully concealed material information about the dangers of the goldmine’s operations from public.

I am sorry to note that investors don’t appear to have been very diligent in their assessments of Lydian’s operations and relied on the company’s statements only. I am afraid, though, this is not the first and probably not the last example in the history of investing (the subprime crisis and great recession are prime examples of investor fiasco). And as such inadequate due diligence does lead to losses and poor investment performance.

The local population will continue to block the roads so Amulsar isn't going to be turned into a goldmine, however, the pressure from you would demonstrate that you are a responsible investor if at times not very thorough in your assessments.

Below is a short description of how exploration of Amulsar as a goldmine is against ESG and sustainable investing principals:

Environment – generational damage to the water resources of the country, irrevocable damage to the prized mineral waters of the region, I am sure environmental groups can provide you much longer and detailed list.

Social – robs and devastates a whole region of its ability to continue to exit as healthy and sustainble community since sources of its livelihood - health sanctorums and agriculture will be destroyed. The region has huge potential as a health spa which due to criminal and fascism-like nature of the previous authorities had been severely underdeveloped and underutilized.

Governance – Lydian is marred in incompetence and shadow dealings, for example, paying up significant amounts to charitable organizations founded by country’s top officials at the time (thanks god they are gone now!)

Sincerely,

Concerned Citizen