Modern, Responsible, Different

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Modern, Responsible, Different SOCIAL PROJECTS AND COMMUNITY DEVELOPMENT AT AMULSAR

COOPERATION WITH AMULSAR SURROUNDING COMMUNITIES Lydian Armenia has been cooperating with Amulsar surrounding communities since 2007. This continuous cooperation ensures perceptible social economic development in the communities. Amulsar Project Social Programs have been developed in line with international best practice based on needs assessment and surveys in the communities implemented by the company as well as on requests from the communities. All the programs implemented by Lydian Armenia have been apprized by different stakeholders, such as Lydian International shareholders, government representatives and most importantly - the communities themselves. Lydian Armenia wants to foster a long term partnership with Amulsar surrounding communities and promote sustainable development for them. The Company established Community Liaison Committees (CLC) as a means ensuring consistent ongoing communication with the communities. The CLCs voluntarily include representatives from the communities with different professions, ages and genders ensuring a large participation from the communities. This helps the Company understand needs and concerns of the communities and provide them with updated information on the different aspects of the Project. CLCs were first formed in early 2010 in the rural communities of Gndevaz, Gorayk and Saravan, and later in February 2011 CLC was established in the town of Jermuk.

AMULSAR INFORMATION CENTRES In April 2013, Lydian Armenia established the Amulsar Information Centre in Gndevaz and in 2016 an Information Centre was established in Jermuk. AICs are based with the purpose of providing variety of information, videos, posters, electronic and other hard copy data to nearby community members and other stakeholders. The AICs are locally staffed. The staff members keep the log of visitors; they record questions and concerns and provide feedback from communities.

SOCIAL INVESTMENTS Since 2007 the Company has already invested more than 3 million USD in social programs implemented in Gndevaz, Gorayq, Saravan, and Jermuk communities. The investments have been made in community infrastructures, economic development, education and tourism development, healthcare and service sectors. In 2016 alone, Lydian Armenia invested 870 000 USD in social and livelihood restoration programs, including Social programs in Amulsar surrounding communities Livelihood restoration programs in Gndevaz Irrigation and other infrastructures in Gndevaz

JERMUK, GNDEVAZ, GORAYQ, SARAVAN 52 700 USD Waste collection Weekly waste collection in Gndevaz, Gorayq, Saravan Student support program Providing education fees for students to study mine engineering at Yerevan State University and National Polytechnic University of Armenia Wikipedia summer camp 18 children from the communities attended Wikicamp Road safety program Distribution of school backpacks with special reflectors to 600 children in Jermuk, Gndevaz, and Kechut schools Healthy communities foundation Financial support to help community members in health issues. Irrigation water system renovation Co-financing in Lor & Shenatagh communities Primary health care Organizing eye screening in the communities aimed at early detection of eye problems

JERMUK - 120 200 USD Support to children's choir 20 participants, participating in music/ art festivals etc. From waste to life Environmental awareness and skills learning program, exhibition-sales and other events, 40 beneficiaries. Kechut music school repair Sanitation, dance and other classrooms for 80 children Support to Chess Federation and Chess Academy of Armenia Establishment of Amulsar information centre in Jermuk Road safety program Installation of street lights and signs at the Jermuk city entrance and N1 school area SARAVAN - 32 000 USD Improved livelihood 3 heated greenhouses, 6 high yielding, 40 direct beneficiaries Playground construction Irrigation system renovation Co-financing

GORAYQ 34 700 USD Artificial insemination and technical assistance Training events for local vets and 60 farmers Establishment of dentistry and equipment providing Support to dance group Support to small business Trainings on business module, technical support and advice, development of business plans. As a result, 10 local businesses will be supported by 40 direct beneficiaries GNDEVAZ - 635 000 USD Besides social programs, livelihood restoration activities were supported in this community for the affected landowners as part of the land acquisition. School heating program Windows and doors replaced Support to dance group Support to fruit drying facility and cooperative Over 6500 tons of fresh fruit was processed with 1200 kg of dried fruit (apricot, peach, and plum). During the season, 5-6 jobs were created Livelihood restoration 6 heated green-houses, 6 high yielding gardens established, training events for 40 farmers, 50 direct beneficiaries

Artificial insemination and technical assistance Training events for local vets and 70 herders Support to 14 women-led businesses 50 direct beneficiaries Irrigation water channel repair in Northern Gndevaz Skills learning 30 beneficiaries Road improvement for herders In addition, in 2008-2016, Lydian Armenia land payments to three affected communities totalled 3 374 000 USD, of which: Gndevaz 534 000 USD Saravan Gorayq 1 642 000 USD 1 980 000 USD Land rent payments by Lydian Armenia allowed local governments to provide co-financing for large scale infrastructure programs: Gorayk Saravan Gndevaz Sewage system upgrade, drinking water upgrade Irrigation system upgrade, village administration building renovation Installation of street lights system, community hall renovation January, 2017