Arian Silver's MD&A and Results for the Three and Nine Months Ended 30 September 2012

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES NOT FOR DISTRIBUTION IN THE
UNITED STATES 


Arian Silver Corporation ("Arian" or the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A), a silver exploration, development and
production company with a focus on projects in the silver belt of Mexico, today
announced the release of its Management's Discussion and Analysis ("MD&A") and
unaudited Financial Statements ("Financials") for the three and nine months
ended 30 September 2012.


The MD&A and Financials are available at SEDAR at www.sedar.com and on the
Company's website at www.ariansilver.com. These documents can also be obtained
on application to the Company. The following information has been extracted from
the MD&A and Financials. The financial information in this announcement does not
constitute full statutory accounts.


Arian's Chief Executive Officer, Jim Williams, commented today, "The Q3 results
are in line with expectations, reflecting the suspension to our milling
operations. I am pleased with our ability to respond swiftly and decisively, and
this is reflected in the reduction of operating cash costs whilst we are not
milling, from over US$1 million per month down to US$0.1 million per month.


Discussions regarding the refurbished mill continue positively, and I hope to be
able to provide a more complete update on this matter very soon."


OVERVIEW OF THIRD QUARTER AND NINE MONTHS OF 2012 AND SUBSEQUENT EVENTS

Financial 



--  Year-to-date revenue decreased by $0.5 million from $5.1 million in Q3
    2011 to $4.6 million in Q3 2012. 
--  Year-to-date gross loss of $0.5 million compared to a gross profit of
    $0.4 million in Q3 2011. 
--  Year-to-date consolidated pre-tax loss has decreased by $9.3 million
    from $10.5 million in Q3 2011 to $1.2 million in Q3 2012. 
--  Working capital decreased by $3.7 million from $5.9 million at end of Q4
    2011 to $2.2 million at end of Q3 2012. 
--  Total assets decreased by $1.9 million from $16.3 million at end of Q4
    2011 to $14.4 million in Q3 2012, which includes intangible assets of
    $1.2 million, property, plant and equipment of $10.2 million, trade and
    other receivables of $1.2 million, inventories of $0.7 million,
    financial assets of $0.3 million and cash of $0.9 million. 



Operations 



--  San Jose production Q3 2012 
    --  4,072 tonnes mined representing a decrease of 88% from Q3 2011 
    --  No tonnes milled representing a decrease of 100% from Q3 2011 as a
        result of the suspension of production at the plant owned by
        Contracuna SA de CV ("Contracuna") 
    --  No silver ounces produced representing a decrease of 100% from Q3
        2011 
    --  32 silver concentrate tonnes sold representing a decrease of 86%
        from Q3 2011 
    --  8,937 silver ounces sold representing a decrease of 88% from Q3 2011

--  San Jose production nine months 2012 
    --  51,893 tonnes mined representing a decrease of 32% from 2011 
    --  53,297 tonnes milled representing a decrease of 13% from 2011 
    --  600 silver concentrate tonnes produced representing an increase of
        21% from 2011 
    --  165,304 silver ounces produced representing a decrease of 4% from
        2011 
    --  648 silver concentrate tonnes sold representing an increase of 40%
        from 2011 
    --  177,960 silver ounces sold representing an increase of 12% from 2011

--  On 16 July 2012 Arian announced a dispute between its wholly owned
    subsidiary Arian Silver de Mexico SA de CV ("Arian Mexico") and
    Contracuna, from whom the mill was contracted. This dispute resulted in
    the suspension of milling operations. 

--  On 9 August 2012 Arian announced that it had signed a letter of intent,
    which reflects the Company's intent to negotiate a definitive contract
    for the exclusive hire of a newly refurbished and soon to be re-
    commissioned 500 tpd mill. 



Post 30 September 2012



--  On 1 October 2012 Arian announced its findings from the metallurgical
    testing run of mine ("ROM") that stated recoveries in the order of 80%
    were achieved using a "Leach-Ox" process (direct leaching of the run of
    mine material). The report further suggested there is significant upside
    potential to improve the recoveries of silver with the addition of
    flotation within the mill circuit to process the deeper seated, less
    oxidised/more sulphide rich material. 



THE STRATEGY 

Arian's overall objective is to develop additional resources on the San Jose
property concurrent with the existing contract mining and (presently suspended)
milling operations, and complete an independent detailed metallurgical and mill
study with a view to building our own bespoke mill for larger-scale and
envisaged more-efficient production.


REVIEW OF FINANCIAL PERFORMANCE 

In the nine months ended 30 September 2012, the Company made a pre-tax loss of
$1.2 million (30 September 2011: $10.5 million) which comprised a gross loss for
the San Jose mine of $0.5 million (30 September 2011: $0.4 million), recognising
the fair value non-cash expense of share purchase options vesting of $0.2
million (30 September 2011: $8.3 million), a credit of $1.7 million (30
September 2011: $nil) for the reversal of the fair value of share purchase
options vesting that lapsed in the period, other administrative expenses of $2.1
million (30 September 2011: $2.2 million) and investment loss of $11,000 (30
September 2011: $0.4 million).


As at 30 September 2012, the Company had working capital of approximately $2.2
million (31 December 2011: $5.9 million). See Liquidity, Capital Resources and
Working Capital for the items of working capital. Intangible assets amounted to
$1.2 million (31 December 2011: $1.1 million) which relate to deferred
exploration and evaluation costs in respect of the Company's Mexican projects.
Property, plant and equipment amounted to $10.2 million (31 December 2011: $8.1
million); $10.1 million of this relates to the San Jose mine development costs.
Share capital increased by $0.1 million to $47.4 million (31 December 2011:
$47.3 million) as a result of the issue of common shares in connection with the
exercise of share options. 


REVIEW OF OPERATIONS 

The Company currently owns 31 mineral concessions in Mexico totalling 7,900
hectares as set out below. 


Property Summary



        ------------------------------------------------------------        
        Project Name    No. of Concessions   Area in hectares ("ha")        
        ------------------------------------------------------------        
        San Jose                        11                   6,279.5        
        ------------------------------------------------------------        
        Calicanto                        7                      84.0        
        ------------------------------------------------------------        
        Others                          13                   1,536.5        
        ------------------------------------------------------------        



Qualified Person 

Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, DIC, FIMMM, the Chief Executive
Officer of Arian, a "Qualified Person" as defined in the AIM guidelines of the
London Stock Exchange, and a "Qualified Person" as such term is defined in
Canadian National Instrument 43-101 ("NI 43-101"), has reviewed and approved the
technical information in this Review of Operations other than the mineral
resource estimates referred to below.


San Jose Project, Zacatecas State 

The 100%-owned San Jose property is located approximately 55 kilometres ("km")
to the southeast of Zacatecas City and comprises 11 mining concessions totalling
approximately 6,300ha. The property has significant infrastructure, including a
4.5 x 5 metre ("m") main haulage ramp extending more than 4.0km along the San
Jose vein ("SJV") system, and a 350m deep, 500 tonne per day ("tpd") vertical
shaft with operational hoist. In addition, a number of shallower vertical shafts
are located along the SJV.


Production Information 

Production information summary for San Jose mine is as follows:



----------------------------------------------------------------------------
                          Q3      Q2      Q1      Q4      Q3      Q2      Q1
                        2012    2012    2012    2011    2011    2011    2011
----------------------------------------------------------------------------
Head grade (mill) -                                                         
 Ag grams per tonne                                                         
 (g/t)                     -     181     173     201     199     178     178
Tonnes mined           4,072  26,268  21,553  24,433  33,941  22,387  19,462
Tonnes milled              -  28,903  24,394  22,971  21,512  18,348  21,128
Ag concentrate                                                              
 tonnes produced           -     298     302     256     204     144     146
Recovery %                 -   58.74   49.01   51.68   47.76   56.66   38.08
Ag ounces produced         -  98,616  66,688  76,618  65,804  59,568  46,236
Ag ounces per                                                               
 concentrate tonne                                                          
 produced                  -     331     221     300     323     412     316
Ag ounces sold         8,937  93,112  75,911  77,738  77,587  41,868  38,772
Ag concentrate                                                              
 tonnes sold              32     286     330     242     221     117     126
                                                                            
Quarter end                                                                 
 inventory balances                                                         
Mined tonnes                                                                
 stockpile            18,204  15,003  17,637  20,478  19,016   9,972   2,549
Ag concentrate                                                              
 inventory tonnes          -      36      24      52      39      57      29
Ag ounces included                                                          
 in concentrate                                                             
 inventory                 -  11,276   5,772  14,995  14,118  23,075  10,195
----------------------------------------------------------------------------



Tonnes mined 

The decrease in tonnes mined from Q3 2011 to Q3 2012 of 29,869 tonnes (88%) and
decrease in tonnes mined from Q2 2012 to Q3 2012 of 22,196 tonnes (84%) was due
to the suspension of processing at the Contracuna plant.


The continuation of mining at the San Jose mine enabled the mine to remain fully
operational and ready to re-commence at significant increased tonnages when
milling resumes.


Tonnes milled 

No tonnes were milled in the quarter due to the suspension of production.

Mined tonnes stockpile 

The stockpile of mined ore is 18,204 tonnes at the end of Q3 2012 compared to
20,478 tonnes at the end of Q4 2011. This stockpile will be processed upon the
resumption of milling. 


Ag concentrate inventory tonnes 

The silver concentrate inventory balance at the end of Q3 2012 was nil compared
to 52 tonnes at the end of Q4 2011. This follows the suspension of processing at
the Contracuna plant and the subsequent sale of all silver concentrate held. 


Mining Operations 

The initial mining operation focussed on the Ramal Norte/Sur, San Jose 75m Level
Central Zone and Santa Ana resource blocks. These were selected by Arian, from
several delineated resource blocks, to support an initial pilot scale mining
operation with the potential to increase the mining rate up to 1,500 tpd subject
to milling capacity availability. 


Arian continued preparing and exploring mining blocks to verify continuity of
mineralisation to ensure production to the plant, ready for the increase in
milling capacity due to the operation of the 4th ball mill which commenced
operation in May 2012. In particular, in Q1 2012 Arian developed 429m which
includes 98m on the ramp, 179m preparation, 32m on raises and 120m exploration;
in Q2 2012 Arian developed 545.41m which includes 242.17m on the ramp, 150.59m
preparation, 31.41m on raises and 121.24m exploration and in Q3 2012 Arian
developed 121.6m which includes 68.1m on the ramp, 8.3m preparation, 33.2m on
raises and 12m exploration.


Ramp development in the Santa Ana area provided access to blocks indicated by
diamond drilling on level 70, enabling further verification of resource for
further exploitation and extraction below this level. The ramp continues
development below level 120 to explore continuity of blocks as there is evidence
of mineralisation at 300m depth.


Contract mining was reduced to reflect the suspension of processing and to avoid
excessive stockpiling. Whilst there is no processing mining costs are
approximately $40/tonne. Should Arian successfully negotiate a new milling
contract and recommence processing, mining costs are estimated at $30/tonne
including transport between the mine and mill.


Milling Operations 

During Q1 and Q2 2012 Arian contracted its milling operations on a fixed monthly
fee basis.


On 16 July 2012 Arian announced a dispute had arisen between Arian Mexico and
Contracuna I SA de CV ("Contracuna"), from whom the mill was contracted. This
dispute resulted in the suspension of milling operations, and on 9 August 2012,
Arian announced that Arian Mexico would be implementing the necessary procedures
against Contracuna to recover all losses and damages resulting from an alleged
illegal termination, and breaches of contract, which led to the suspension of
milling.


It should be noted that this contracted mill had a maximum rating of 400 tpd but
it was not designed for the hardness and abrasiveness of the San Jose ROM
material. Significant improvement had been made to this mill that allowed it to
increase to over 400 tpd during May 2012, partly as a result of the installation
of the 4th in-line ball mill and other modifications.


On 9 August 2012 Arian announced that it had signed a letter of intent, which
reflects the Company's intent to negotiate a definitive contract for the
exclusive hire of a newly refurbished and soon to be re-commissioned 500 tpd
mill. This mill, which is located nearby on the outskirts of the city of
Zacatecas, is currently expected to become operational during Q4 2012.


Arian believes that this new re-commissioned mill will enable the continuation
of its trial milling operation, which forms part of the requisite set of studies
necessary to design a fully bespoke and optimised mill.


Based on a contained silver content of 300 ounces per tonne ("opt") at a spot
price of $28/oz silver, a concentrate value of $7,300/tonne, after deductions,
is forecast.


A 2% NSR (net smelter royalty) on SJV revenue is payable to the vendor of the
San Jose property.


Exploration Drilling 

In January 2012, Arian released interim drill results relating to the Phase 4
drilling programme which indicated continuity of the vein thickness, silver
mineralisation and grade along the SJV. Also announced were the results of the
geophysical Induced Polarisation ("IP") survey which identified the areas of
probable vein displacements and provided targets for some of the last holes to
be drilled in the Phase 4 drilling programme (see the Company's press release
dated 16 January 2012 entitled "Arian Silver Reports Further Encouraging
Exploration Progress at San Jose").


On 12 March 2012 the Company announced the conclusions of an independent
resource update by CSA Global (UK) Limited which took into account all the Phase
1, 2, 3 and 4 drilling programmes; the Technical Report is available on the
Company's website and was filed on SEDAR on 25 April 2012 at www.sedar.com.


Mineral Resource 

On 12 March 2012, Arian reported a significant resource estimate upgrade (see
the Company's press release entitled "Arian Silver Increases Contained Silver at
San Jose by 32% to More Than 117 Million Ounces in Updated Mineral Resource
Estimate").


The highlights of this announcement were:



--  29% increase in resource tonnage along the SJV from the July 2011
    mineral resource estimate; 
    --  Contained ounces of silver increased by 32%; 
    --  Contained pounds of lead increased by 29%; and 
    --  Contained pounds of zinc increased by 30%; 
--  Mineralisation remains open along the western and eastern strikes of the
    SJV and to depth; and 
--  Further drilling is planned to infill the current resources, step out
    along the remaining SJV structure in both directions, and to drill at
    depth on the SJV. 



Arian's resource estimate includes all drilling programmes from 2006 along the
SJV which has a delineated NI 43-101 and a JORC-compliant resource estimate of
approximately 30.61 million ounces of silver, 67.02 million pounds of lead and
149.91 million pounds of zinc in the "indicated" mineral resource category, and
88.65 million ounces of silver, 205.25 million pounds of lead and 410.50 million
pounds of zinc in the "inferred" mineral resource category. These NI 43-101 and
JORC-compliant mineral resources are summarised in the table below: 




----------------------------------------------------------------------------
                                  Average Grade          Contained Metal    
----------------------------------------------------------------------------
Resource                                                                    
Category      Tonnes             Ag       Pb      Zn     Ag      Pb      Zn 
----------------------------------------------------------------------------
              (t)              (g/t)       %       %   (Moz)   (Mlb)   (Mlb)
----------------------------------------------------------------------------
Indicated     8,000,000         119     0.38    0.85  30.61   67.02  149.91 
----------------------------------------------------------------------------
Inferred      24,500,000        110     0.38    0.76  86.65  205.25  410.50 
----------------------------------------------------------------------------

1.  Geological characteristics and +30 ppm grade envelopes used to define
    resource volumes. 
2.  Each mineral resource estimate is in accordance with CIM standards. 
3.  The effective date of each mineral resource estimate is 12 March 2012. 
4.  The estimates are based on geological, statistical and geostatistical
    data assessment and computerised IDW3, Ag grade wireframe restricted,
    linear block modelling. 
5.  The resource was estimated using 188 drill holes and more than 38,000
    metres. 
6.  Resource figures were prepared under the supervision of Malcolm Titley
    who is a Qualified Person (as defined in Canadian National Instrument
    43-101). 
7.  Tonnage figures have been rounded to reflect this as an estimate. 
8.  Ag (silver) ounces have been calculated using 31.1035 g = 1 oz. 
9.  Pb (lead) and Zn (zinc) tonnes have been calculated using 2204.622 lbs =
    1 tonne. 
10. The mineral resource is 100% owned by Arian. 



The following reports prepared by A.C.A. Howe International Limited relating to
the San Jose project are available on the Company's website www.ariansilver.com
or on SEDAR at www.sedar.com:- 


a) Report dated 22 September 2009 and entitled "Preliminary Economic Assessment
Report (PEAR) on the San Jose Silver-Lead-Zinc Deposit, Zacatecas, Mexico"; and 


b) Report dated 15 August 2008 and entitled "Resource Estimation Update for the
San Jose Silver-Lead-Zinc Deposit, Zacatecas, Mexico". 


Readers are reminded that mineral "resources" are not mineral "reserves" as they
have not yet demonstrated economic viability. There is no certainty that mineral
resources can be upgraded to mineral reserves through continued exploration.


Laboratory 

Arian has an independently operated sample preparation and analytical laboratory
on site at San Jose which has been operational since April 2011; it is operated
by the Stewart Group which is now a subsidiary of the ALS Chemex Group. This is
a valuable asset for Arian because it allows for the rapid turnaround of samples
and provides vital information to our operational personnel to ensure that
decisions are made at the operation in a timely manner. In addition the
laboratory provides an invaluable tool during drilling programmes which again
has significantly decreased the turnaround times for analysis of Arian's drill
samples.


The laboratory comprises a comprehensive sample preparation facility, wet
chemistry facility, and Atomic Absorption Spectrometry ("AAS") and fire-assay
("FA") in use for final determinations of silver, lead and zinc. It is operated
under the sole control and management of professional personnel from the Stewart
Group who ensure the results are fully compliant with Arian's quality assurance
and quality control (QA/QC) programme. 


Calicanto Project, Zacatecas State 

Arian owns 100% of the Calicanto Project which consists of seven adjacent mining
concessions totalling 75ha, namely: Calicanto, Vicochea I, Vicochea II, Misie 1
and Misie 2, and Missie 1 and Missie 2 properties, collectively known as the
"Calicanto Group". The concessions are located in the historic mining district
of Zacatecas. The Calicanto Group of concessions comprises at least four main
mineralised vein systems. 


There has been no significant expenditure on the Calicanto Project during the
past two years.


Additional information in respect of the Calicanto Project is contained in a
technical report prepared by A.C.A. Howe International Limited dated 20 March
2006 and entitled "Technical Report on the Calicanto and San Celso Projects,
Zacatecas, Mexico". A copy of this report is available on the Company's website
www.ariansilver.com or on SEDAR at www.sedar.com.


RESULTS OF OPERATIONS 

Three months ended 30 September 2012 compared to three months ended 30 September
2011 


The pre-tax loss for the quarter was $1.0 million (2011: $0.6 million). This
included a gross loss of $0.3 million (2011: gross profit $0.5 million)
generated by the San Jose mining operation, the expensing of the fair value of
share purchase options vesting of $nil (2011: $0.3 million), and other
administrative expenses of $0.7 million (2011: $0.7 million), net investment
income of $0.1 million (2011: net investment loss of $0.1 million) which
included interest income of $1,000 (2011: $11,000), and a fair value adjustment
loss for Geologix shares held of $0.1 million (2011: $0.2 million).


Nine months ended 30 September 2012 compared to nine months ended 30 September 2011 

The pre-tax loss for the period was $1.2 million (2011: $10.5 million). This
loss included a gross loss of $0.5 million (2011: $0.4 million profit) generated
by the San Jose mining operation, the expensing of the fair value of share
purchase options vesting of $0.2 million (2011: $8.3 million), a credit of $1.7
million (2011: $nil) for the reversal of the fair value of share purchase
options vesting that have lapsed in the period, and other administrative
expenses of $2.1 million (2011: $2.25 million), net investment income of $11,000
(2011: net investment loss of $0.4 million) which included interest income of
$11,000 (2011: $35,000), offset mainly by a fair value adjustment loss for the
Geologix shares held of $nil (2011: $0.5 million).


SUMMARY OF QUARTERLY RESULTS



----------------------------------------------------------------------------
                                           Q3        Q2        Q1        Q4 
----------------------------------------------------------------------------
Unaudited                                2012      2012      2012      2011 
                                        $'000     $'000     $'000     $'000 
----------------------------------------------------------------------------
Revenue from sale of silver                                                 
 Concentrate                              136     2,104     2,314     2,367 
----------------------------------------------------------------------------
Cost of sales                             475     2,242     2,379     1,921 
----------------------------------------------------------------------------
Gross profit/(loss)                      (339)     (138)      (65)      446 
----------------------------------------------------------------------------
Net profit/(loss) before finance                                            
 revenue/costs                         (1,025)   (1,006)      866      (411)
----------------------------------------------------------------------------
Finance revenue                             1         4         6         9 
----------------------------------------------------------------------------
Net profit/(loss) for the period         (968)   (1,133)      947      (443)
----------------------------------------------------------------------------
Basic and diluted loss per share        $0.00     $0.00     $0.00     $0.00 
----------------------------------------------------------------------------
Total assets                           14,409    15,021    16,732    16,250 
----------------------------------------------------------------------------
Shareholders' equity                   13,464    13,647    15,370    14,909 
----------------------------------------------------------------------------
Cash dividend declared per share            -         -         -         - 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                           Q3        Q2        Q1        Q4 
----------------------------------------------------------------------------
Unaudited                                2011      2011      2011      2010 
                                        $'000     $'000     $'000     $'000 
----------------------------------------------------------------------------
Revenue from sale of silver                                                 
 concentrate                            2,434     1,529     1,137       184 
----------------------------------------------------------------------------
Cost of sales                           1,914     1,470     1,350       175 
----------------------------------------------------------------------------
Gross profit/(loss)                       520        59      (213)        9 
----------------------------------------------------------------------------
Net profit/(loss) before finance                                            
 revenue/costs                           (484)   (1,358)   (8,275)      936 
----------------------------------------------------------------------------
Finance revenue                            11        13        11       141 
----------------------------------------------------------------------------
Net profit/(loss) for the period         (602)   (1,535)   (8,390)      991 
----------------------------------------------------------------------------
Basic and diluted loss per share        $0.00    $(0.01)   $(0.03)   $(0.01)
----------------------------------------------------------------------------
Total assets                           16,894    18,843    19,631    18,876 
----------------------------------------------------------------------------
Shareholders' equity                   15,806    17,764    18,342    16,744 
----------------------------------------------------------------------------
Cash dividend declared per share            -         -         -         - 
----------------------------------------------------------------------------



Third quarter 2012 vs. second quarter 2012 

A gross loss of $0.3 million was reported in the third quarter $0.2 million
higher than the second quarter mainly as a result of the suspension of
processing of mined ore as a result of a dispute with the mill owner. The net
loss in the period was $0.1 million higher than for the previous quarter due to
the increase in value of the Geologix shares held received as partial payment
for the disposal of the Tepal property. Cash decreased by $0.5 million to $0.9
million largely as a result of investment in the development of the San Jose
mine. The decrease in shareholders' equity was largely attributable to the
movement in the foreign exchange reserve and the loss for the period.


LIQUIDITY, CAPITAL RESOURCES AND WORKING CAPITAL 

As announced on 27 September 2012, the Company entered into a 3 year GBP 5
million standby equity distribution agreement ("SEDA") with YA Global Master SPV
Ltd ("Yorkville"), an investment fund managed by YA Global LP. The SEDA allows
the company to draw down funds in exchange for the issue of shares in the
Company.


Under the terms of the SEDA, any equity issued shall be priced at 95 per cent of
the prevailing market price over a pricing period of between 5 and 20 days, in
accordance with the agreement. The amount of each advance may not exceed, an
amount not more than 400 per cent of the average daily trading volume of shares
multiplied by the volume weighted average price on AIM for the five trading days
prior to the drawdown request.


Use of the facility is entirely at the discretion of the Company and there are
no penalties for not drawing down on the facility. 


During the period, the Company received new funding from:



--  the exercise of 525,000 share purchase options which generated GBP
    61,375. 



The following share purchase options are currently outstanding, each entitling
the holder to acquire one common share of the Company:




--  15,960,000 share purchase options with exercise prices ranging from GBP
    0.055 to GBP 0.4925 (Cdn$0.10 to Cdn$0.79) and expiring on various dates
    up to May 2017. 



Working Capital - 30 September 2012 

As at 30 September 2012, the Company had working capital of approximately $2.2
million (31 December, 2011: $5.9 million). The items of working capital and
changes compared to 31 December 2011 are as follows: 


Current assets



--  cash and cash equivalents of $0.9 million (31 December 2011: $4.0
    million); 
--  trade and other receivables of $1.2 million (31 December 2011: $1.9
    million) - the outstanding balance relates to the IVA debtor owed to
    Arian which is in the process of being recouped; 
--  inventories of $0.7 million (31 December 2011: $0.9 million) - relates
    to stockpile held at cost relating to production at the San Jose mine;
    and 
--  financial assets held at fair value through profit or loss of $0.3
    million (31 December 2011: $0.3 million) - relates to the Geologix
    shares received as part consideration for the final instalment for the
    sale of the Tepal project. 



Current liabilities



--  trade payables of $0.8 million (31 December 2011: $1.2 million). 



Off-balance sheet arrangements 

The Company has no off-balance sheet arrangements.

TRANSACTIONS WITH RELATED PARTIES 

During the nine months ended 30 September 2012 the group entered into the
following transactions involving related parties:


Transactions with key management personnel 

The Dragon Group Ltd charged the Company a total of $91,904 (30 September 2011:
$94,048) which relates to the reimbursement of Tony Williams' remuneration paid
on behalf of the Company. Tony Williams, Chairman and a director of the Company,
beneficially owns the Dragon Group. At 30 September 2012 $10,462 (30 September
2011: $10,114) was outstanding.


Key management personnel also participate in the Company's share option programme. 

FUTURE OUTLOOK 

Management anticipates, subject to the successful negotiation of a new milling
contract the profitability of the operations would increase to a sustainable
level generating cash flow to be used for further mining exploration and
development programmes. This is based on the assumption that silver prices will
remain at least around $28 per ounce, although some price volatility is
expected. The preliminary results of the detailed mill and metallurgical studies
are expected to be received during the fourth quarter. It is anticipated these
studies will eventually enable greater efficiencies with milling and ultimately
reduce Arian's silver production cost per ounce. 


CRITICAL ACCOUNTING ESTIMATES 

The preparation of financial statements in conformity with IFRS requires the
Company to select from possible alternative accounting principles and to make
estimates and assumptions that determine the reported amount of assets and
liabilities at the balance sheet date and reported costs and expenditures during
the reporting period. Estimates and assumptions may be revised as new
information is obtained and are subject to change. The Company's accounting
policies are considered appropriate in the circumstances, but are subject to
judgements and uncertainties inherent in the financial reporting process.


The following section discusses the critical accounting estimates and
assumptions that management has made and how they affect the amounts reported in
the consolidated financial statements. We consider these estimates to be an
important part of understanding our consolidated financial statements.


Going Concern 

Since the Company is still at a relatively early stage of development with trial
mining, it will require additional funding for projects which may comprise debt,
equity or a combination of the two. Arian has an equity facility with Yorkville
which enables Arian to draw down up to GBP 5 million if or when required.


The directors of the Company currently believe it appropriate to prepare the
Company's financial statements on a going concern basis.


Resource Properties, Deferred Exploration and Development Costs 

All costs related to the exploration of mineral properties are capitalised until
either the properties are brought into production, at which time they are
amortised over the estimated life of the project, or until the properties are
sold, or title rights allowed to lapse, or are abandoned or determined not to be
commercially viable, at which time they are charged to the income statement.


The amounts capitalised at any time represent costs to be charged to operations
in future and do not necessarily reflect the present or future values of
particular properties. The recoverability of the carrying values of exploration
properties is dependent upon the discovery of economically recoverable reserves,
the ability of the Company to obtain necessary financing to complete development
and future profitable production therefrom, or alternatively, upon the Company's
ability to dispose of its interests on an advantageous basis. 


Management is of the view that the current policy is appropriate for the Company
at this time and is consistent with many other public mineral exploration and
development companies in the UK and Canada. Shareholders are advised that
carrying values are not necessarily indicative of present or future values. The
Company assesses whether impairment exists in any of its exploration projects
and writes down that project to its estimated recoverable value when such
impairment is found to exist. Any write-down is recorded as an expense in the
Company's income statement in the financial statements for the relevant period.


Share-based Payments 

The share option programme allows group directors, officers, employees and
consultants to acquire shares of the Company. The fair value of share purchase
options granted is recognised as an expense with a corresponding increase in
equity. The fair value is measured at the grant date and spread over the period
until the share purchase options vest unconditionally. The fair value of the
share purchase options granted is measured using the Black-Scholes model, taking
into account the terms and conditions upon which the share purchase options were
granted. The amount recognised as an expense is adjusted to reflect the actual
number of share purchase options that vest, except if the change is due to
market based conditions not being satisfied.


Revenue Recognition 

Revenue from sales of metal concentrate is recognised when title transfers and
the rights and obligations of ownership pass to the customer. The Company's
sales of concentrate are made under pricing arrangements where final sales
prices are determined by quoted market prices in a period subsequent to the date
of sale. In these circumstances, revenue from sales is recorded at the time of
the sale based on forward prices for the expected date of final settlement.
Subsequent variations in prices are recognised as revenue adjustments as they
occur.


In a period of extreme and unusual price volatility, the effect of
mark-to-market price adjustments related to the quantity of metal which remains
to be settled with independent smelters could be significant.


Inventories 

Concentrates and stockpile ore are valued at the lower of the average production
costs or net realisable value. The assumptions used in the valuation of those
inventories included estimates of metal contained in stockpiled ore, assumptions
of the amount of metal that is expected to be recovered, assumptions of the
smelting terms as well as assumptions of the metal prices and exchange rates
expected to be realised when the metals are recovered. If these estimates or
assumptions prove to be inaccurate the Company could be required to write-down
the recorded value of its inventories, which would reduce the Company's earnings
and working capital. Net realisable value is determined with reference to market
prices.


FINANCIAL RISK FACTORS 

Market Risk 

Market risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risk for
Arian comprises two types of risk: currency risk and price risk.


Price Risk 

The price risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate because of changes in market prices, whether
those changes are caused by factors specific to the individual financial
instrument or its issuer, or factors affecting all similar financial instruments
in the market. 


Currency Risk 

The Company's exploration expenditure is made in Mexico in Mexican Peso and head
office expenses are predominantly made in the UK in Pounds Sterling, United
States Dollars and Canadian dollars. The Company is therefore exposed to the
movement in exchange rates for these currencies. The Company does not currently
hedge foreign exchange risk.


The majority of the Company's cash resources were held in US Dollars. The
Company therefore also has downside exposure to any strengthening of Pound
Sterling, the Mexican Peso, or the Canadian Dollar against the US dollar as this
would increase expenses in US Dollar terms and accelerate the depletion of the
Company's cash resources. Any weakening of Pound Sterling, the Mexican Peso, or
the Canadian Dollar against the US Dollar would, however, result in a reduction
in expenses in US Dollar terms and preserve the Company's cash resources.


In addition, any movements in Pound Sterling or Mexican Peso would affect the
presentation of the consolidated statement of financial position when the net
assets of the Mexican subsidiary and parent company in the UK are translated
from their functional currencies into United States Dollars.


Liquidity Risk 

The Company's approach to managing liquidity risk is to ensure that it will have
sufficient liquidity to meet liabilities when due. As at 30 September 2012, the
Company had cash of $868,000, financial assets of $282,000, and receivables of
$1,183,000 to settle accounts payable of $770,000. The Company's accounts
payable have contractual maturities of less than 30 days and are subject to
normal trade terms.


Credit Risk 

Credit risk is the risk of loss associated with a counterparty's inability to
fulfil its payment obligations. The Company's credit risk is attributable to
cash and trade receivables. The credit risk on cash is limited because the
Company invests its cash in deposits with well capitalised financial
institutions with strong credit ratings. 


OTHER RISK FACTORS 

The financing, exploration, development and exploitation of the Company's
properties and the operations of the Company' business are subject to a number
of factors, including metal prices, laws and regulations, political conditions,
currency fluctuations, hiring qualified people and obtaining necessary services
in jurisdictions where the Company operates.


The Company is subject to a number of risk factors due to the nature of the
mining business in which it is engaged, not least are adverse movements in
commodity prices, which are impossible to forecast. The Company seeks to counter
this risk, as far as possible, by selecting exploration areas on the basis of
their recognised geological potential to host economic deposits. 


The following is a brief discussion of those distinctive or special
characteristics of the Company's operations and industry that may have a
material impact on, or constitute risk factors in respect of the Company's
future financial performance.


Mining concessions and Title 

In relation to mining concessions over which the Company holds legal rights, if
the Company fails to fulfil the specific terms of any of its concessions or
operates in the concession areas in a manner that violates Mexican law,
regulators may impose fines, suspend or revoke the concessions, any of which
could have a material adverse effect on the Company's operations and proposed
operations.


Whilst the Company has received legal opinions in respect of title to its
properties there is no guarantee that title to such properties will not be
challenged or impugned by third parties. The Company's concessions may be
subject to prior unregistered agreements, transfers or other claims and title
may be affected by unidentified or unknown defects or government actions. 


Nature of Mineral Exploration and Mining 

Any exploration programme entails risks relating to the location of economic ore
bodies, the development of appropriate metallurgical processes, the receipt of
necessary governmental permits and the construction of mining and processing
facilities. Save in respect of the San Jose project, the Company's projects are
not in production and no assurance can be given that any exploration programme
will result in any new commercial mining operation or in the discovery of new
resources.


The exploration and development of mineral deposits involves significant
financial risks over a prolonged period of time, which even a combination of
careful evaluation, experience and knowledge may not eliminate. While discovery
of a mineral structure may result in substantial rewards, few concessions which
are explored are ultimately developed into producing mines. Major expenditures
may be required to establish reserves by drilling and to construct mining and
processing facilities at a site. It is impossible to ensure that preliminary
feasibility studies or full feasibility studies on the Company's projects or the
current or proposed exploration programmes on any of the concessions in which
the Company has rights or is negotiating rights will result in a profitable
commercial mining operation.


The Company's operations are subject to all of the hazards and risks normally
incidental to exploration, development and the production of minerals. These
could result in damage to or destruction of the Company's facilities, damage to
life or property, environmental damage or pollution and possibly legal liability
for any or all damage which could have a material adverse impact on the
business, operations and financial performance of the Company. The Company's
activities may be subject to prolonged disruptions due to weather conditions
depending on the location of operations in which the Company has interests.
Hazards, such as unusual or unexpected geological formations, rock falls,
flooding or other climatic conditions may be encountered in the drilling and
removal of material. Although precautions to minimise risk will be taken, even a
combination of careful evaluation, experience and knowledge may not eliminate
all of the hazards and risks.


Whether a mineral deposit will be or will continue to be commercially viable
depends on a number of factors, some of which are the particular attributes of
the deposit, such as its size and grade, proximity to infrastructure, financing
costs and governmental regulations, including regulations relating to prices,
taxes, royalties, infrastructure, land use, importing and exporting of silver,
changes in the silver price, and environmental protection. The effect of these
factors cannot be accurately predicted, but the combination of these factors may
result in the Company not receiving an adequate return on invested capital.


The Company is transitioning from an exploration company to a producer. In the
mining industry such a transition is sometimes a difficult and challenging
exercise due to operational issues and risks.


Volatility of Metal Prices 

The value of the Company's resources and financial results of operations will be
affected by fluctuations in metal prices over which the Company has no control.
A reduction in the metal prices may prevent the Company's properties from being
economically mined or result in curtailment of existing production activities or
result in the impairment and write-off of assets.


The price of silver, which is affected by numerous factors including inflation
levels, fluctuations in the US Dollar and other currencies, supply and demand
and political and economic conditions, may have a significant influence on the
market price of the Company's common shares.


Requirement of Additional Financing 

The exploration and development of the Company's concessions, including
continuing exploration projects, and the construction of larger scale mining
facilities and commencement of larger scale mining operations, will require
substantial additional financing. However, if the required funding is not
forthcoming on a timely basis the Company may not be able to meet its on-going
working capital and project expenditure requirements. No assurance can be given
that the Company will be able to raise the additional financing necessary to
continue its production activities or to explore and/or develop its concessions.
Failure to obtain sufficient financing for any projects will result in a delay
or indefinite postponement of exploration, development or production on
properties covered by the Company's concessions or even the loss of a
concession. The only sources of funds currently available to the Company are
through the sale of product from production activities, the issue of equity
capital, the sale of concessions or other assets, royalty interests or the
entering into of joint ventures. In addition, the Company's ability to obtain
further financing will depend in part on the price of silver and the industry's
perception of its future price and other factors outside the Company's control.
Additional financing may not be available when needed, or if available, the
terms of such financing might not be favourable to the Company and might involve
substantial dilution to shareholders. In the absence of adequate funding the
Company may not be able to continue as a going concern in which event the
carrying value of the Company's projects would be required to be reviewed.


Limited Operating History 

The Company has a limited history of producing revenue and its ultimate success
will depend on its ability to generate cash flow from its concessions in the
future. The Company has not earned any material profits to date and there is no
assurance that it will do so in the future. A major portion of the Company's
activities will be directed to the development of the SJV as well as the search
for and the development of new silver deposits. Significant capital investment
will be required for exploration at the concessions and to achieve commercial
production from the Company's existing projects and from successful exploration
efforts. There is no assurance that the Company will be able to raise the
required funds to continue these activities.


Mineral Resource Estimates 

The mineral resource figures disclosed in this MD&A are estimates and no
assurances can be given that the indicated levels of minerals will be produced.
Such estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices. Valid estimates
made at a given time may significantly change when new information becomes
available. While the Company believes that the resource estimates included in
this MD&A are well established, by their nature resource estimates are imprecise
and depend, to a certain extent, upon statistical inferences, which may
ultimately prove unreliable. If such estimates are inaccurate or are reduced in
the future, this could have a material adverse impact on the Company.


Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that mineral resources can be upgraded to
mineral reserves through continued exploration.


No Reserves 

The Company does not hold any concessions in respect of which mineral reserves
estimates have been established that comply with CIM Standards and Guidelines or
other similar recognised industry standards.


Insurance and Uninsured Risks 

The mining industry is subject to significant risks that could result in damage
to, or destruction of, mineral properties or producing facilities, personal
injury or death, environmental damage, delays in mining or monetary losses and
possible legal liability.


The Company's insurance policies may not provide adequate coverage for losses
related to these or other risks. The Company's insurance policies do not cover
all possible risks that may arise in relation to the Company's exploration
activities and production facilities and as a result the Company may incur
losses or damages that could have a material and adverse effect on the Company's
operations and finances. 


In the course of the Company's activities certain risks or unexpected or unusual
geological conditions both underground and on surface may occur. It is not
always possible to insure against such risks due to the absence of available
cover or the Company may decide not to insure due to costs considerations of
available cover. As a result the Company could incur losses or damages that
could have a material and adverse effect on the Company's operations and
finances.


Reliance on Contractors in Mexico 

The Company relies on contractors to implement the Company's exploration and
development programmes as well as its current mining operation at the San Jose
project. The failure of a contractor to perform properly its services to the
Company could delay or inconvenience the Company's operations, and have a
materially adverse effect on the Company.


Key Personnel 

The Company's business is dependent on retaining the services of a small number
of key personnel of the appropriate calibre as the business develops. The
Company has entered into employment agreements with certain key managers. The
success of the Company is, and will continue to be to a significant extent,
dependent on the expertise and experience of the directors and senior
management. The loss of one or more of these individuals could have a materially
adverse effect on the Company. The Company does not currently have any insurance
in place with respect to key personnel.


Environmental Factors 

The Company's operations are subject to environmental regulation in the
jurisdictions in which the Company operates. Such regulation covers a wide
variety of matters, including, without limitation, prevention of waste,
pollution and protection of the environment, labour regulations and health and
safety. The Company may also be subject under such regulations to clean-up costs
and liability for toxic or hazardous substances, which may exist on or under any
of the properties covered by its concessions, or which may be produced as a
result of its operations. 


If the Company does not comply with environmental regulations or does not file
environmental impact statements in relation to each of its concessions, it may
be subject to penalties, its operations may be suspended, closed and/or its
concessions may be revoked. 


Environmental legislation and permit requirements are likely to evolve in a
manner which will require stricter standards and enforcement, increased fines
and penalties for non-compliance, more stringent environmental assessments of
proposed projects and a heightened degree of responsibility for companies and
their directors and employees.


Political Risk 

The Company is conducting its exploration activities in the Republic of Mexico.
The Company may be adversely affected by changes in economic, political,
judicial, administrative or other regulatory factors such as taxation in the
Republic of Mexico, where the Company will operate and holds its major assets.
The Republic of Mexico may have a more volatile political environment and/or
more challenging trading conditions than in some other parts of the world. The
Directors believe the government of Mexico supports the development of natural
resources by foreign operators. There is no assurance that future political and
economic conditions in Mexico will not result in the government of Mexico
adopting different policies in respect of foreign development and ownership of
mineral resources. Any such changes in policy may result in changes in laws
affecting ownership of assets, taxation, rates of exchange, environmental
protection, labour relations, and repatriation of income and return of capital.
These changes may affect both the Company's ability to undertake exploration and
development activities in respect of future properties in the manner currently
contemplated, as well as its ability to continue to explore and develop those
properties, in respect of which it has obtained exploration and development
rights to date.


Payment Obligations 

Under the mineral property concessions and certain other contractual agreements
to which a member of the Company is, or may in the future become, a party, any
such company is, or may become, subject to payment and other obligations. If
such obligations are not complied with when due, in addition to any other
remedies which may be available to other parties, this could result in dilution
or forfeiture of interests held by such companies. The Company may not have, or
be able to obtain, financing for all such obligations as they arise.


Regulatory Approvals 

The operations of the Company require approvals, licenses and permits from
various regulatory authorities, governmental and otherwise. The Board believes
that the Company holds or will obtain all necessary approvals, licenses and
permits under applicable laws and regulations in respect of its current
projects. There can be no guarantee that the Company will be able to obtain or
maintain all necessary approvals, licenses and permits that may be required to
explore and develop its various projects and/or commence construction or
operation of mining facilities that economically justify the cost.


Competition 

The Company competes with numerous other companies and individuals in the search
for and acquisition of mineral claims, leases and other mineral interests, as
well as for the recruitment and retention of qualified employees. There is
significant competition for the silver opportunities available and, as a result,
the Company may be unable to acquire further silver concessions on terms it
considers acceptable.


Conflicts of Interest 

Certain directors and officers of the Company also serve as directors and/or
officers of other companies involved in mineral exploration and development and
consequently there is the potential for conflicts of interest. The Company
expects that any such director or officer shall disclose such interest in
accordance with its articles of association or his contractual obligations to
the Company and any decision made by any of such directors and officers
involving the Company will be made in accordance with their duties and
obligations to deal fairly and in good faith with a view to the best interests
of the Company and its shareholders.


Other risks and uncertainties have been detailed in the Company's 2011 Annual
MD&A which can be accessed on SEDAR at www.sedar.com or the Company's website at
www.ariansilver.com. Such risks have not changed materially during the reporting
period to 30 September 2012.


Forward-Looking Statements 

This MD&A contains certain "forward-looking statements". All statements, other
than statements of historical fact, that address activities, events or
developments that the Company believes, expects or anticipates will or may occur
in the future (including, without limitation, statements relating to the mineral
resource estimates, statements regarding the contract mining and milling
operation at the San Jose Project (the "SJ Mining Operation"), the ability of
the Company to achieve, maintain and possibly increase planned levels of
production from the SJ Mining Operation, the ability of the Company to generate
positive cash flow from the SJ Mining Operation, the ability to continue or
implement proposed drilling programmes on the SJV system and the Company's
exploration, development and production plans and objectives) are
forward-looking statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently available
to the Company. Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements, and even if
such actual results are realised or substantially realised, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ materially
from current expectations include, among other things, the performance of the
contractors and plant and equipment engaged in relation to the SJ Mining
Operation, failure to achieve anticipated production levels and mineral grades
for ore from the SJ Mining Operation, failure to establish estimated mineral
reserves, the possibility that future exploration results will not be consistent
with the Company's expectations, uncertainties relating to the availability and
costs of financing needed in the future, changes in the silver commodity price,
changes in equity markets, political developments in Mexico, changes to
regulations affecting the Company's activities, delays in obtaining or failures
to obtain required regulatory approvals, the uncertainties involved in
interpreting exploration results and other geological data, and the other risks
involved in the mineral exploration and development industry. Any
forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking statements
are reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein.


The mineral resource figures disclosed in this MD&A are estimates and no
assurances can be given that the indicated levels of minerals will be produced.
Such estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices. Valid estimates
made at a given time may significantly change when new information becomes
available. While the Company believes that the resource estimates included in
this MD&A are well established, by their nature resource estimates are imprecise
and depend, to a certain extent, upon statistical inferences, which may
ultimately prove unreliable. If such estimates are inaccurate or are reduced in
the future, this could have a material adverse impact on the Company.


OTHER INFORMATION 

Additional Information 

Additional information relating to the Company may be accessed through SEDAR on
the internet at www.sedar.com or the Company's website, www.ariansilver.com.


Disclosure of Outstanding Share Data 

The following table sets out the outstanding securities of the Company as at 31
October, 2012:-




                                    Number in issue                         
                                                                            
Common shares of no par value           301,714,112                         
Share purchase options                   15,960,000                         



Each share option and share purchase warrant entitles the holder thereof to
purchase one common share of the Company.


About the Company 

Arian is a silver exploration and development company and is listed on London's
AIM, is listed on Toronto's TSX Venture Exchange and on the Frankfurt Stock
Exchange. Arian is active in Mexico, the world's second largest silver producing
country. The Company's main project is the San Jose project in Zacatecas State.
Part of Arian's forward-looking strategy lies in the envisaged use of large
scale mechanized mining techniques over wider mineralized structures, which
reduces the overall unit operating cost of metals, and to build up NI 43-101
compliant resources.


Further information can be found by visiting Arian's website:
www.ariansilver.com or the Company's publicly available records at
www.sedar.com.


Forward-Looking Statements 

This press release contains certain "forward-looking statements". All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements relating to
the mineral resource estimates, statements regarding the contract mining and
milling operation at the San Jose Project (the "SJ Mining Operation"), the
ability of the Company to achieve, maintain and possibly increase planned levels
of production from the SJ Mining Operation, the ability of the Company to
generate positive cash flow from the SJ Mining Operation, the ability to
continue or implement proposed drilling programmes on the SJV system and the
Company's exploration, development and production plans and objectives) are
forward-looking statements. These forward-looking statements reflect the current
expectations or beliefs of the Company based on information currently available
to the Company. Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to differ
materially from those discussed in the forward-looking statements, and even if
such actual results are realised or substantially realised, there can be no
assurance that they will have the expected consequences to, or effects on the
Company. Factors that could cause actual results or events to differ materially
from current expectations include, among other things, the performance of the
contractors and plant and equipment engaged in relation to the SJ Mining
Operation, failure to achieve anticipated production levels and mineral grades
for ore from the SJ Mining Operation, failure to establish estimated mineral
reserves, the possibility that future exploration results will not be consistent
with the Company's expectations, uncertainties relating to the availability and
costs of financing needed in the future, changes in the silver commodity price,
changes in equity markets, political developments in Mexico, changes to
regulations affecting the Company's activities, delays in obtaining or failures
to obtain required regulatory approvals, the uncertainties involved in
interpreting exploration results and other geological data, and the other risks
involved in the mineral exploration and development industry. Any
forward-looking statement speaks only as of the date on which it is made and,
except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise. Although the
Company believes that the assumptions inherent in the forward-looking statements
are reasonable, forward-looking statements are not guarantees of future
performance and accordingly undue reliance should not be put on such statements
due to the inherent uncertainty therein.


The mineral resource figures disclosed in this press release are estimates and
no assurances can be given that the indicated levels of minerals will be
produced. Such estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices. Valid estimates
made at a given time may significantly change when new information becomes
available. While the Company believes that the resource estimates included in
this press release are well established, by their nature resource estimates are
imprecise and depend, to a certain extent, upon statistical inferences, which
may ultimately prove unreliable. If such estimates are inaccurate or are reduced
in the future, this could have a material adverse impact on the Company.


Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that mineral resources can be upgraded to
mineral reserves through continued exploration.


This press release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities of the Company in the United Sates. The
securities of the Company have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the United
States or to U.S. persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Arian Silver Corporation
Berkeley Square House
Berkeley Square
London
W1J 6BD
England


Arian Silver Corporation
Jim Williams
CEO
(London) [phone]
[e-mail]


Arian Silver Corporation
David Taylor
Company Secretary
(London) [phone]
[e-mail]
www.ariansilver.com


Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
(London) [phone]
[e-mail]


XCAP Securities PLC
Jon Belliss
(London) [phone]
[e-mail]


Yellow Jersey PR Limited
Dominic Barretto
(London) [phone]
[e-mail]


CHF Investor Relations
Juliet Heading
(Canada) [phone] x 239
[e-mail]