Ariana Resources PLC Postive Interim Feasibility Completed on Red Rabbit Gold Project

 
TIDMAAU 
 
29 October 2012 
AIM: AAU 
 
 
       POSITIVE INTERIM FEASIBILITY COMPLETED ON RED RABBIT GOLD PROJECT 
 
Ariana  Resources  plc  ('Ariana'  or  'the  Company'), the gold exploration and 
development  company focused on Turkey, is pleased to announce the completion of 
an  interim  Feasibility  Study  ('FS')  report  which  demonstrates that highly 
attractive economic fundamentals are achievable from the Kiziltepe Sector of its 
Red Rabbit Gold Project in western Turkey ('Red Rabbit' or 'the Project'), which 
is held within a Joint Venture currently 86% owned by Ariana. 
 
Highlights: 
 
  * Combined  reserve in designed pits at the Kiziltepe Sector of the Red Rabbit 
    Gold Project is approximately 1.1 million tonnes at an average grade of 3.1 
    grams   per   tonne   ('g/t')   gold  ('Au')  and  39.8 g/t  silver  ('Ag'), 
    corresponding to 115,460 oz Au and 1,468,200 oz Ag. 
 
  * Output  expected at a rate of 150,000 tonnes ore per annum, corresponding to 
    an  average production of approximately 21,000 oz/year of Au equivalent over 
    the first five years of operation. 
 
  * Financial  model at a 'current' gold price of US$1,650/oz and a silver price 
    of  US$25/oz provides  a (gross  with respect  to the  JV terms) Net Present 
    Value  ('NPV') (8% discount) of US$49.8  million and Internal Rate of Return 
    ('IRR') of 47.8%, with payback secured in 2.1 years. 
 
  * Capital cost estimated at US$29.5 million, including US$14.2 million for the 
    processing   plant   and   EPCM   (Engineering,   Procurement,  Construction 
    Management). 
 
  * Cash  costs  estimated  at  between  US$678  and US$693 per ounce across the 
    financial model range. 
 
  * Significant  potential to identify additional  resources at Kiziltepe and on 
    four  other prospects  in the  vicinity currently  held under licence by the 
    Company. 
 
 
Dr. Kerim Sener, Managing Director, commented: 
 
"The  results from the  interim FS demonstrate  the potential of  the Red Rabbit 
Gold Project as we move to a decisive stage of permitting.  The study reinforces 
the Company's ability to generate significant revenues from the Kiziltepe Sector 
of our Red Rabbit Project. 
 
"Recent  discoveries in  the Kiziltepe  area including  bonanza grade intercepts 
from strike extensions to the known veins, underscores the longer term potential 
of  the deposit.  While the current life  of mine will be approximately 8 years, 
there  is significant potential to locate further resources in the vicinity that 
may  be mined  and trucked  to the  Kiziltepe plant.   An example of this is the 
Kizilcukur property upon which we recently secured a 10-year operating licence. 
 
"At  the present time, the Company remains  in wait for the necessary permits to 
enable  access  to  the  designated  Tailings  Storage  Facility  area for final 
geotechnical  and hydrogeological drilling.  This  remains the last major hurdle 
for  the project before  completion of the  feasibility and environmental impact 
assessment works, and the approval for construction." 
 
 
Feasibility Interim Report 
 
Following  on  from  the  completion  of  the  Pre Feasibility Study ('PFS') the 
Company  and  its  consultants,  Tetra  Tech  WEI  Inc. ('Tetra Tech'), formerly 
Wardrop Engineering, have completed additional work on its Feasibility Study for 
the  Kiziltepe Sector of its  Red Rabbit Gold Project.   The interim FS has been 
completed  ahead of the Company's final  Feasibility Study on the Project, which 
is currently delayed as a consequence of a new permitting regime in Turkey. 
 
Reserves and Resources 
 
Mineral  Resources (Table 1) and Mineral  Reserves (Table 2) have been estimated 
for  the project.  The  Mineral Resource estimate  has not changed since October 
2011, though Mineral Reserves are provided here for the first time. 
 
Table 1: Summary of Mineral Resources, reporting at a cut-off grade of 1 g/t Au; 
inclusive  of  Ore  Reserves.   All  figures  are  reported gross and need to be 
multiplied  by a  factor of  0.86 to determine  the net  figures attributable to 
Ariana with respect to the Red Rabbit Joint Venture. 
 
=-------------------+---------+-----+-----+-------+---------+------------------ 
                    | Tonnes  | Au  | Ag  |  Au   |   Ag    |    Au equiv. 
                    |   (t)   |(g/t)|(g/t)| (oz)  |  (oz)   |    (oz)(***) 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Vein Zones 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Measured           |  782,942| 4.1 |51.4 |103,319|1,294,836|           118,080 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Indicated *        |  619,029| 2.3 |41.4 | 46,496|  891,368|            56,658 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Measured &         |1,401,971| 3.3 |47.0 |149,815|2,186,204|           174,738 
 Indicated          |         |     |     |       |         | 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Inferred           |  164,998| 1.8 |40.9 |  9,752|  217,005|            12,226 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Alteration Halo** 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Indicated          |  352,819| 1.6 |25.8 | 18,430|  293,007|            21,770 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Measured &         |  352,819| 1.6 |25.8 | 18,430|  293,007|            21,770 
 Indicated          |         |     |     |       |         | 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Inferred           |   76,059| 1.4 |33.7 |  3,544|   82,341|             4,483 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Subsidiary Veins 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 Inferred           |  115,941| 1.5 |51.3 |  5,505|  191,446|             7,687 
=-------------------+---------+-----+-----+-------+---------+------------------ 
 GLOBAL             |2,111,788| 2.8 |43.7 |187,046|2,970,002|           220,904 
=-------------------+---------+-----+-----+-------+---------+------------------ 
    *Includes Kepez. 
  **Some of the Alteration Halo material will be necessarily mined and may be 
 processed at the end of mine 
     life but Tetra Tech considers more studies are required to determine the 
 nature of the mineralisation. 
 
 ***Au equivalents are derived from the formula: 
      {(Ag g/t*Ag Recovery*Ag price*0.032)/Au oz Price}/Au Recovery=Au 
 equivalent oz/t 
     Au recovery determined by testwork at 85.5%, Ag recovery determined by 
 testwork at 64%. 
 
 
Table  2: Summary of  Ore Reserves  by mining  area at  1 g/t Au  equiv. cut-off 
grade.  All figures are reported gross and need  to be multiplied by a factor of 
0.86 to determine the net figures attributable to Ariana with respect to the Red 
Rabbit Joint Venture. 
 
=----------------------------+---------+--------+--------+------------------ 
                             |         |        |        | Contained Metal 
             Zone            | Tonnes  |Au Grade|Ag Grade|       (oz) 
                             |         | (g/t)  | (g/t)  +-------+---------- 
                             |         |        |        |  Au   |    Ag 
=----------------------------+---------+--------+--------+-------+---------- 
 Proven 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu South                  |  588,110|     4.1|    45.4| 76,880|   858,500 
=----------------------------+---------+--------+--------+-------+---------- 
 Kepez                       |        -|       -|       -|      -|         - 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu North                  |  210,620|     2.0|    37.5| 13,840|   253,620 
=----------------------------+---------+--------+--------+-------+---------- 
 Banu                        |   71,370|     2.2|    42.8|  5,050|    98,110 
=----------------------------+---------+--------+--------+-------+---------- 
 Derya                       |   45,680|     1.9|    42.8|  2,660|    61,410 
=----------------------------+---------+--------+--------+-------+---------- 
 Total                       |  914,770|     3.3|    43.2| 98,440| 1,271,650 
=----------------------------+---------+--------+--------+-------+---------- 
 Low Grade Stockpile         |    7,880|     0.7|     7.1|    180|     1,808 
 (<1.0 g/t Au equiv.)        |         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 Probable 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu South                  |   16,990|     2.4|    36.5|  1,340|    19,930 
=----------------------------+---------+--------+--------+-------+---------- 
 Kepez                       |   60,000|     4.6|    34.7|  8,870|    66,900 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu North                  |   37,900|     1.9|    29.7|  2,270|    36,150 
=----------------------------+---------+--------+--------+-------+---------- 
 Banu                        |   15,490|     1.7|    44.0|    860|    21,900 
=----------------------------+---------+--------+--------+-------+---------- 
 Derya                       |   63,700|     1.4|    20.5|  2,800|    41,890 
=----------------------------+---------+--------+--------+-------+---------- 
 Total                       |  194,070|     2.6|    19.2| 16,150|   119,880 
=----------------------------+---------+--------+--------+-------+---------- 
 Low Grade Stockpile         |   30,830|     0.7|     8.0|    690|     7,970 
 (<1.0 g/t Au equiv.)        |         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 Total                       |         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu South                  |  605,100|     4.0|    45.2| 78,220|   878,440 
=----------------------------+---------+--------+--------+-------+---------- 
 Kepez                       |   60,000|     4.6|    34.7|  8,870|    66,900 
=----------------------------+---------+--------+--------+-------+---------- 
 Arzu North                  |  248,510|     2.0|    36.3| 16,120|   289,770 
=----------------------------+---------+--------+--------+-------+---------- 
 Banu                        |   86,850|     2.1|    43.0|  5,920|   120,010 
=----------------------------+---------+--------+--------+-------+---------- 
 Derya                       |  108,370|     1.6|    29.6|  5,470|   103,310 
=----------------------------+---------+--------+--------+-------+---------- 
 Total                       |1,108,840|     3.2|    40.9|114,590| 1,458,424 
=----------------------------+---------+--------+--------+-------+---------- 
 Low Grade Stockpile         |   38,710|     0.7|     7.9|    870|     9,780 
 (<1.0 g/t Au equiv.)        |         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 Included Inferred Resources*|         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 Total                       |   38,020|     1.6|    28.1|  1,980|    34,400 
=----------------------------+---------+--------+--------+-------+---------- 
 Low Grade Stockpile         |    8,130|     0.8|     8.1|    200|     2,110 
 (<1.0 g/t Au equiv.)        |         |        |        |       | 
=----------------------------+---------+--------+--------+-------+---------- 
 
*The  reader is  cautioned that  the included  Inferred material  shown Table 2 
contributes  to  the  production  scheduling  and  economic  assessment  of this 
project.   The  included  Inferred  material  represents  less  than  5% of  the 
scheduled reserve. 
 
Open-pit Optimisation and Design 
 
Whittle  Pit Optimisation Software has been run  on the resource and an open-pit 
design (Figure 1) based on the optimised pit shapes have determined that part of 
the  total resource that  could be extracted  economically (Table 3). No pit was 
designed  for the  Kepez area,  as this  will probably  be extracted  using only 
mechanical methods. 
 
The  combined resource within the selected pit shapes, including the Arzu South, 
Arzu  North, Derya, Banu and Kepez pits,  is estimated at 1,147,000 tonnes at an 
average  of  3.3 g/t  Au  and  41.9 g/t  Ag.   This resource is based on a fully 
diluted vein model and takes in to account the probable dilution of higher-grade 
vein  material by lower-grade host-rock material in the hangingwall and footwall 
of  the vein. Importantly the new  pit designs have enabled considerable savings 
in  waste rock movement reducing the  strip ratio from 14.5:1 (waste:ore) at the 
PFS level to 12.5:1 at the FS level. 
 
A  cut-off grade is estimated at 1 g/t Au equivalent for the reserves based on a 
gold  metal price of  US$1,058/oz and a  silver metal price  of US$16.6/oz.  For 
this  base case,  only resource  blocks of  Measured and  Indicated category are 
used. 
 
Table  3: History of pit optimisation results,  comparing the scoping study with 
the PFS outputs. 
 
=---------------------+---------+----------+---------------+----------- 
        Output        |  Unit   | Scoping  |Pre-feasibility|Feasibility 
=---------------------+---------+----------+---------------+----------- 
 Selected Pit Resource|   Tonnes| 1,034,600|      1,177,800|  1,147,000 
=---------------------+---------+----------+---------------+----------- 
 Au Grade             |   g/t Au|      3.56|           3.12|        3.3 
=---------------------+---------+----------+---------------+----------- 
 Ag Grade             |   g/t Ag|     41.57|          38.36|       41.9 
=---------------------+---------+----------+---------------+----------- 
 Au Metal             |    Oz Au|   109,600|        118,200|    117,647 
=---------------------+---------+----------+---------------+----------- 
 Ag Metal             |    Oz Ag| 1,382,700|      1,452,600|  1,504,722 
=---------------------+---------+----------+---------------+----------- 
 Waste Movement       |   Tonnes|11,373,000|     15,740,000| 14,906,000 
=---------------------+---------+----------+---------------+----------- 
 Strip Ratio          |waste:ore|      10.9|           14.5|       12.5 
=---------------------+---------+----------+---------------+----------- 
 
 
 
Figure  1: Three-dimensional projection of vein  models (in blue), surrounded by 
their  corresponding  designed  pit  shapes  based  on the output of Whittle pit 
optimisation.  These designed pits provide an average strip ratio of 12.5:1. 
 
Site Layout 
 
Site  layouts have been finalised for the  purposes of the Interim FS stage. The 
currently  envisaged site layout is shown in Figure 2.  The layout minimises the 
environmental  footprint of the plant  and related mine infrastructure.  Current 
studies  in progress do not indicate that any  major changes will be made to the 
site layout on completion of the FS. 
 
Figure  2: Site layout as envisaged for the  Interim FS, showing the location of 
the  designed  open  pits,  the  waste  rock  dump  and  the tailings dam design 
outlines.   Access and haulage  roads are shown  as bright green  lines and mine 
building locations shown in red. 
 
 
Production Schedule 
 
The  mine will be based on one central  pit located at Arzu South with satellite 
pits  at Arzu North, Banu,  Derya and Kepez.  The  location of the selected pits 
(excluding  Kepez) is  shown in  Figure 2.  The  mine will  target production of 
150,000 tonnes  per year of ore  over a mine life  of 8 years, operating for six 
days a week (Table 4).  The production will be scheduled with mining starting at 
Arzu  South and progressively shifting to the  Kepez, Arzu North, Banu and Derya 
pits  as  grades  decrease  later  in  the  mine life.  The final material to be 
processed  will  be  a  small  quantity  of  low-grade  stockpile  that  will be 
accumulated over the mine life from the various open pits. 
 
Material  from the open pits  will be split in  to three categories, run-of-mine 
ore  grade (>1  g/t Au  equ.), low-grade  ore (<1  g/t Au  equ.) and waste.  The 
division between low-grade ore and waste will be determined during grade control 
and  be influenced by the minimum mining  width (1.5m) and the expected dilution 
width (0.25m either side of the vein). 
Table  4: Outline mining schedule  for the various  mineralised zones.  Tonnages 
for each pit are expressed in '000s tonnes. 
 
 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
   Zone   |Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |Year 6 |Year 7 |Year 8 |  Total 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Arzu     |       |       |       |       |       |       |       |       | 
 South    | 150.4 | 150.0 | 150.0 | 150.0 |  4.6  |   -   |   -   |   -   |  605.1 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Kepez    |   -   |   -   |   -   |   -   | 60.0  |   -   |   -   |   -   |  60.0 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Arzu     |       |       |       |       |       |       |       |       | 
 North    |   -   |   -   |   -   |   -   | 85.4  | 150.0 | 15.2  |   -   |  250.6 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Banu (kt)|   -   |   -   |   -   |   -   |   -   |   -   | 109.5 |   -   |  109.5 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Derya    |   -   |   -   |   -   |   -   |   -   |   -   | 25.3  | 96.3  |  121.7 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Low Grade|       |       |       |       |       |       |       |       | 
 Mined    |  4.0  |  0.4  |  0.3  |  0.2  |  2.3  |  0.9  | 12.7  | 25.9  |  46.8 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Process  |       |       |       |       |       |       |       |       | 
 Tonnes   | 150.4 | 150.0 | 150.0 | 150.0 | 150.0 | 150.0 | 150.0 | 143.2 | 1,193.7 
 (kt)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Process  |       |       |       |       |       |       |       |       | 
 Au Grade | 3.44  | 3.95  | 4.30  | 4.44  | 2.87  | 2.15  | 1.99  | 1.31  |  3.07 
 (g/t)    |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Process  |       |       |       |       |       |       |       |       | 
 Ag Grade | 36.87 | 41.64 | 50.92 | 51.40 | 28.36 | 42.83 | 36.75 | 24.22 |  39.21 
 (g/t)    |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Contained|       |       |       |       |       |       |       |       | 
 Au Metal |16,620 |19,038 |20,745 |21,404 |13,821 |10,369 | 9,615 | 6,035 | 117,647 
 (oz)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Contained|       |       |       |       |       |       |       |       | 
 Ag Metal |178,294|200,848|245,588|247,893|136,782|206,567|177,259|111,491|1,504,722 
 (oz)     |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 Contained|       |       |       |       |       |       |       |       | 
 Au eqv.  |18,653 |21,328 |23,545 |24,230 |15,380 |12,724 |11,636 | 7,306 | 134,802 
 (oz)*    |       |       |       |       |       |       |       |       | 
=---------+-------+-------+-------+-------+-------+-------+-------+-------+--------- 
 
*Au equivalents are derived from the formula: 
     {(Ag g/t*Ag Recovery*Ag price*0.032)/Au oz Price}/Au Recovery=Au equivalent 
oz/t 
    Au recovery determined by testwork at 85.5%, Ag recovery determined by 
testwork at 64%. 
 
Processing Plant Design 
 
A  conventional hydrometallurgical  process will  be used  for the project.  The 
confirmed  configuration  will  involve  a  six  tank  Carbon-in-Column circuit, 
proceeding  to a two aerated pre-leach tanks  and finally a five tank Carbon-in- 
Leach  circuit (Figure  3).  The plant  will be  placed on  a slope to allow for 
gravity-flow  assistance  between  tanks  and  to  save  on pumping costs.  This 
process  offers the best recoveries of gold and silver at the lowest capital and 
operating  costs.  At full  production, the process  will treat up to 500 tonnes 
per  day  of  run-of-mine  ('ROM')  ore.   Assuming  96% availability  and  97% 
utilisation  the  process  is  scheduled  to  operate  340 days  per  year.  The 
feasibility level estimated metallurgical recoveries are 85.5% for gold and 64% 
for silver. 
 
Figure 3: Schematic view of the feasibility stage processing plant layout. 
 
Environmental Impact Assessment 
 
Environmental  baseline  work  has  been  completed  while  Environmental Impact 
Assessment studies are ongoing.  A project summary document has been prepared in 
accordance  with Turkish  government regulations  and will  be submitted  to the 
Ministry  of the  Environment and  Urban Planning  once the  current delays with 
permits for the designated Tailings Storage Facility area are resolved. 
 
Financial Model 
 
An  economic evaluation of the Kiziltepe Project was prepared based on a pre-tax 
financial model of an 8 year mine life and 1,194,000 tonnes processed.  The pre- 
tax  financial  model  was  established  on  a 100% equity basis, excluding debt 
financing  and loan interest charges on  a total capital expenditure estimate of 
US$29.5  million.  The financial  outcomes have been  tabulated for NPV, IRR and 
Payback  of Capital.   Discount rates  of 8% and  10% were applied  to all cases 
identified  by metal  price scenario.   Tetra Tech's  base case  prices for this 
analysis were as follows: 
 
  * Gold -  US$1,265/oz 
  * Silver -  US$20/oz 
 
The continued use of the US$1,058/oz Au for the pit optimisation study and final 
pit  design was to maintain  continuity with the PFS  and a subsequent trade-off 
study,  which demonstrated  that this  price captured  much of the resource that 
could otherwise be captured even with very much higher gold prices.  Sensitivity 
analyses  on  the  financial  models  were  carried  out to evaluate the project 
economics  with plus  or minus  (+/-) 10%, US$1,500/oz  and US$1,650/oz Au metal 
prices (Table 5). 
 
The US$1,265/oz Au price is used as a forecast long-term price obtained from the 
Energy  and  Metals  Consensus  Forecast  (EMCF), at31 August 2012.  A 'current' 
price  of US$1,650/oz Au is also included,  which provides a view on the present 
worth of the project. 
 
Table  5: Sensitivity analysis results based on variation of the gold and silver 
price  away from the base case. The  cash costs provided are the operating costs 
including on-site and all off-site charges and royalties.  Consequently the cash 
costs  scale in line with  the gold and silver  price across the financial model 
range.   The sensitivity analysis results are reported gross with respect to the 
Red Rabbit JV of which 86% is currently attributable to Ariana. 
 
 
=----------------+-------+-------+----+-------+----------------------- 
     Scenario    |NPV 10 | NPV 8 |IRR |Payback|Cash Cost (US $/ oz Au) 
                 |(US $M)|(US $M)|(%) | year  | 
=----------------+-------+-------+----+-------+----------------------- 
 Minus 10%       | 10.0  | 12.7  |19.5|  3.2  |          678 
=----------------+-------+-------+----+-------+----------------------- 
 Base Case       | 18.7  | 22.0  |27.1|  2.9  |          682 
=----------------+-------+-------+----+-------+----------------------- 
 Plus 10%        | 27.4  | 31.3  |34.3|  2.6  |          685 
=----------------+-------+-------+----+-------+----------------------- 
 US $1,500 /oz Au| 36.1  | 40.6  |41.1|  2.3  |          689 
=----------------+-------+-------+----+-------+----------------------- 
 US $1,650 /oz Au| 44.8  | 49.8  |47.8|  2.1  |          693 
=----------------+-------+-------+----+-------+----------------------- 
 
 
It  is  important  to  note  that  there  remains  further potential to identify 
additional  resources  at  Kiziltepe  and  on  prospects in the vicinity of this 
location.   At Kiziltepe, the  potential remains to  identify further high-grade 
resources  at depth and  along blind structures  that have little  or no surface 
expression.   Furthermore, there is  potential to identify  new resources in the 
vicinity  of  Kiziltepe  and  the  recent  announcement  on  the 2 October 2012 
concerning  the grant of a 10 year  operational licence status on the Kizilcukur 
property,  located 21km from  Kiziltepe, is  a part  of the  Company strategy to 
identify satellite resources. 
 
 
 
Contacts: 
 
  Ariana Resources plc              Tel: [phone] 
 
  Michael Spriggs, Chairman 
 
  Kerim Sener, Managing Director 
 
 
 
  Beaumont Cornish Limited          Tel: [phone] 
 
  Roland Cornish / Felicity Geidt 
 
 
 
  Fairfax I.S. PLC                  Tel: [phone] 
 
  Ewan Leggat / Laura Littley 
 
 
 
  St Brides Media & Finance Ltd     Tel: [phone] 
 
  Hugo de Salis / Susie Geliher 
 
 
 
 
 
 
Editors' note: 
 
The Competent Persons responsible for this study are as follows: 
 
For  the Resource Estimate, Paul Gribble, FIMMM, C.Eng., a senior geologist with 
Tetra Tech in Swindon, UK. 
 
For  the mining studies,  Richard Hope, MIMMM,  C.Eng., a senior mining engineer 
with Tetra Tech in Swindon, UK. 
 
For  the processing studies, Dr. Arun Vathavooran, PhD., MIMMM, C.Eng., a senior 
processing engineer with Tetra Tech, Swindon, UK. 
 
The  above persons have reviewed this press release and consent to the inclusion 
of data and text taken from the study report in the form and context in which it 
appears. 
 
Dr  Kerim  Sener,  BSc  (Hons),  MSc,  PhD,  is  the Managing Director of Ariana 
Resources  plc.  A graduate of the University of Southampton in Geology, he also 
holds  a  Master's  degree  from  the  Royal  School of Mines (Imperial College, 
London)  in Mineral Exploration  and a doctorate  from the University of Western 
Australia.  He is a Fellow of The Geological Society of London and has worked in 
geological  research and mineral  consultancy in Southern  Africa and Australia. 
 He   has  read  and  approved  the  technical  disclosure  in  this  regulatory 
announcement. 
 
About Ariana Resources 
 
Ariana  is an  exploration and  development company  focused on epithermal gold- 
silver and porphyry copper-gold deposits in Turkey.  The Company is developing a 
portfolio  of  prospective  licences  selected  on  the  basis  of  its in-house 
geological  and remote-sensing  database, on  its own  in western  Turkey and in 
Joint  Venture with Eldorado Gold Corporation in north-eastern Turkey.  Eldorado 
owns  51% of this joint venture and is fully funding all exploration work on the 
JV properties, while Ariana owns 49% and is the operator. 
 
The  Company's flagship assets  are its Sindirgi  and Tavsan gold projects which 
form  the Red Rabbit Gold  Project.  Both contain a  series of prospects, within 
two  prolific  mineralised  districts  in  the  Western  Anatolian  Volcanic and 
Extensional  (WAVE) Province in western Turkey.  This Province hosts the largest 
operating  gold mines in Turkey and  remains highly prospective for new porphyry 
and epithermal deposits.  These core projects, which are separated by a distance 
of  75km, are presently being assessed as to  their economic merits and now form 
part  of a Joint Venture with Proccea Construction Co.  Proccea is earning in to 
50% of  this Joint Venture  on expenditure of  US$8 million.  The total resource 
inventory of the Company stands at 448,000 ounces of gold equivalent. 
 
Ariana   also   has   a   strategic   investment  in  Tigris  Resources  Limited 
(www.tigrisresources.com),  a private Jersey-based exploration company, which is 
focused  on the exploration of copper  and gold deposits in southeastern Turkey. 
 Ariana retains 12.3% of Tigris Resources Limited. 
 
Fairfax  I.S. PLC are brokers to the Company and Beaumont Cornish Limited is the 
Company's Nominated Adviser. 
 
For further information on Ariana you are invited to visit the Company's website 
at www.arianaresources.com. 
 
Ends 
 
 
Glossary of Technical Terms 
 
(1) Gold equivalence is derived from the formula: 
{(Ag g/t*Ag Recovery*Ag price*0.032)/Au oz Price}/Au Recovery=Au equivalent oz/t 
Au recovery by testwork 87%, Ag recovery by testwork 64% 
 
"Au" the chemical symbol for gold; 
 
"cut-off  grade"  The  lowest  grade,  or  quality, of mineralised material that 
qualifies  as economically  mineable and  available in  a given  deposit. May be 
defined  on  the  basis  of  economic  evaluation,  or  on  physical or chemical 
attributes that define an acceptable product specification; 
 
"g/t" grammes per tonne; 
 
"low-sulphidation"  a  style  of  gold  mineralisation  which is typically found 
distal  to volcanic centres and is characterised by adularia-sericite alteration 
and quartz veins; 
 
"Indicated  resource" a part of a mineral resource for which tonnage, densities, 
shape, physical characteristics, grade and mineral content can be estimated with 
a  reasonable  level  of  confidence.  It  is based on exploration, sampling and 
testing  information gathered through appropriate techniques from locations such 
as  outcrops, trenches,  pits, workings  and drill  holes. The locations are too 
widely  or inappropriately spaced to  confirm geological and/or grade continuity 
but are spaced closely enough for continuity to be assumed; 
 
"Inferred  resource" a part of  a mineral resource for  which tonnage, grade and 
mineral  content can be estimated with a low level of confidence. It is inferred 
from  geological evidence and  has assumed, but  not verified, geological and/or 
grade  continuity.  It  is  based  on  information  gathered through appropriate 
techniques  from locations such as outcrops,  trenches, pits, workings and drill 
holes that may be limited or of uncertain quality and reliability; 
 
"Inverse  Distance Squared" a conventional mathematical method used to calculate 
mineral  resources.  Near sample points provide a greater weighting than samples 
further away for any given resource block; 
 
"JORC" the Joint Ore Reserves Committee; 
 
"m"   Metres; 
 
"Measured  resource" a part of a  Mineral Resource for which tonnage, densities, 
shape, physical characteristics, grade and mineral content can be estimated with 
a  high level of confidence.  It is  based on detailed and reliable exploration, 
sampling  and testing  information gathered  through appropriate techniques from 
locations  such  as  outcrops,  trenches,  pits,  workings and drill holes.  The 
locations  are spaced closely enough to confirm geological and grade continuity; 
 
 
"Nearest  Neighbour" a methodology used to derive the value of an attribute from 
surrounding sample data on the basis of point-to-point proximity; 
 
"Ordinary Kriging" is a geostatistical approach to resource estimation.  Instead 
of  weighting nearby data  points by some  power of their  inverted distance, OK 
relies  on  the  spatial  correlation  structure  of  the  data to determine the 
weighting values.  This is a more rigorous approach to modelling, as correlation 
between data points determines the estimated value at an unsampled point; 
 
"oz" Ounces; 
 
"porphyry"  an igneous  rock with  larger crystals  contained within a matrix of 
much smaller crystals; 
 
"stockwork"  a  mineral  deposit  in  the  form  of a branching network of small 
irregular veins; 
 
"top cut" the maximum gold content for samples used to calculate an average gold 
content for a resource; 
 
"variographic"  the use of semi-variograms (a mathematical technique) as part of 
the geostatistical methodology used to derive resource estimates; 
 
"Whittle"  computer software that uses the  Lerch-Grossman algorithm, which is a 
3-D  algorithm that can be applied to the optimisation of open-pit mine designs. 
 The  purpose of  optimisation is  to produce  the most  cost effective and most 
profitable open-pit design from a resource block model. 
 
Ends 
 
 
Positive Interim Feasibility Completed on Red Rabbit Gold Project: 
http://hugin.info/138153/R/1652919/533772.pdf 
 
 
 
This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
 
Source: Ariana Resources plc via Thomson Reuters ONE 
[HUG#1652919]