Final Results

10 June 2008
AIM / PLUS Markets: AAU

FINAL RESULTS FOR THE YEAR ENDED 31ST DECEMBER 2007

Ariana  Resources  plc   ("Ariana"  or  "the   Company"),  the   gold
exploration and development company focused on Turkey, announces  its
final results for the period ended 31st December 2007.

The  report  and  accounts  for   this  period  will  be  posted   to
shareholders   and    will    be    available    on    the    website
www.arianaresources.com

Highlights:

§         Transition from early stage explorer completed
§         Current resource base  300,000 oz gold equivalent;  updated
resource estimate scheduled
§         Positive drilling  results from Arzu  North and South,  and
Banu
§         £973,068 fundraising in September

Post Period Events:

§         Definitive agreement  to acquire Tavsan  gold project,  May
2008
§         JV with European Goldfields covering north-eastern  Turkey,
May 2008
§         £928,551 raised at 5p from European Goldfields
§         Mining options  study at Kiziltepe  examining the  economic
potential

Michael Spriggs, Chairman, commented:

"The year was  one of  further progress  and we  remain committed  to
delivering value via a robust, cost efficient and focused exploration
and development strategy.  The drilling programme has been successful
and we expect to issue a revised resource estimate shortly.

"Post period we completed two  corporate transactions that will  help
transform the  Company and  move  it further  towards it  becoming  a
producer, as well  as strengthening  both the Board  and the  Balance
Sheet.

"On the basis of the  resources outlined and the predicted  potential
of  the  licence  areas,  we  are  confident  that  through  its  own
exploration programme and via acquisition; our target of establishing
a 1 million ounce resource is achievable in western Turkey.  We  look
towards further exciting developments in 2008."

Contacts:


Ariana Resources plc               Tel: [phone]
Michael Spriggs, Chairman
Kerim Sener, Managing Director

Beaumont Cornish Limited           Tel: [phone]
Roland Cornish

Bankside Consultants               Tel: [phone]
Michael Padley / Louise Davis

Loeb Aron & Company Ltd            Tel: [phone]
Peter Freeman / Frank Lucas

City Capital Corporation Limited   Tel: [phone]
Charles Dampney

Alexander David Securities Limited Tel: [phone]
Nick Bealer / David Scott



Editors' note:

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 exploring a portfolio of prospective licences selected
on the basis of its in-house remote-sensing database.

The Company's  flagship asset  is the  Sindirgi Gold  Project,  which
targets a series of prospects, within a prolific mineralised district
in western  Turkey.   The  project hosts  over  45km  of  gold-silver
bearing epithermal  quartz veins.   This project  is presently  being
assessed as to its economic merits.

Loeb Aron  &  Company  Ltd., City  Capital  Corporation  Limited  and
Alexander David Securities Limited are  joint 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.

CHAIRMAN'S STATEMENT

The past year has seen a dramatic transition for Ariana Resources,  a
coming of age for the Company, in which its role has shifted from the
early stage explorer  category to that  of potential mine  developer,
supported by  established  JORC  defined  gold  resources  and  solid
funding capability.

EXPLORATION STRATEGY

Since the  Company's inception,  the  focus of  Ariana's  exploration
strategy has been the location of economic gold deposits in a  highly
prospective area of western Turkey, where three successful  operating
goldmines have been established in recent years.  To this end, Ariana
has assembled an excellent local  exploration team and has  developed
an unrivalled understanding of this  region, built around a  powerful
database of geoscientific  information accumulated over  a number  of
years.

This, together with Ariana's considerable natural advantage of  doing
business in Turkey, has enabled  the company to acquire and  evaluate
large areas of prospective ground within a rapid time frame.

As you will be aware, with  this strategy Ariana was able quickly  to
identify a number  of prospective  gold targets in  Turkey, the  more
important of which are being explored in detail and investigated with
programmes of diamond and reverse circulation drilling.

These activities have now advanced to  the stage where over the  past
year the  Company has  increased its  gold resource  base to  300,000
ounces of gold equivalent.  The  focus of this activity continues  to
be the Sindirgi Project, where a series of positive drilling  results
were announced through the year on the main vein systems, Arzu South,
Arzu North  and Banu  at the  Kiziltepe prospect,  all of  which  are
within a few hundred metres of each other.

Following the  initiation  of a  mining  options study  with  Wardrop
Engineering, the company is now confident  it can now proceed with  a
formal  scoping  study  designed   to  examine  the  opportunity   of
establishing an  open pit  mining operation  based on  the  expanding
resources defined at the Kiziltepe prospect.

CORPORATE DEVELOPMENTS

On the corporate front, in  September 2007, the company  successfully
completed a market placing (at 4p per share) which raised a total  of
£973,068 and which enabled  Ariana to complete  the current phase  of
drilling and to develop a comprehensive evaluation of the results.

Two notable additional  transactions during the  past reporting  year
have greatly increased the strategic  reach and capability of  Ariana
Resources. In early May 2008, Ariana acquired from TSX-listed Odyssey
Resources the Tavsan  gold project,  also in Western  Turkey, with  a
current resource of 140,000 ounces gold equivalent.  This opportunity
became available as Odyssey  Resources pursued its declared  strategy
of shifting its exploration focus to projects in North Africa.

Assuming the resource base at Tavsan can be expanded through  further
drilling, the  company  is  confident  that  this  project  could  be
developed rapidly as a profitable  mining operation.  As detailed  in
the report of your  Managing Director, Dr  Kerim Sener, this  project
will also be the subject  of a scoping study  in 2008 to examine  the
economics  of  open  pit  mining  and  to  assess  the  viability  of
heap-leach treatment.

During the  year,  Ariana  entered into  negotiations  with  European
Goldfields Limited,  an  AIM-  and  TSX-listed  mining  company  with
extensive  operational   experience   in   eastern   Europe.    These
negotiations  culminated  in  April  2008  with  the  signing  of   a
definitive  Joint  Venture  agreement  to  cover  projects  held   in
north-eastern Turkey.   In addition  to the  Joint Venture,  European
Goldfields  has  made  a  cash  investment  in  Ariana  Resources  of
£928,551, acquiring a 20% stake in the enlarged share capital of your
Company.

This agreement  has generated  considerable synergy  for both  Ariana
Resources and European Goldfields on an operational level, as well as
providing a substantial cash injection  for your company.  This  will
enable Ariana to continue to  fund its current exploration  programme
in western  Turkey  as well  as  pursue the  formal  scoping  studies
planned for the Kiziltepe and Tavsan projects.

As a  key  part of  these  arrangements,  we have  invited  Mr  David
Reading, CEO  of European  Goldfields, to  join the  Board of  Ariana
Resources.  We are  very pleased  to welcome  David to  our team;  he
brings wide international experience of senior level exploration  and
mining project  management,  as  well  as a  deep  knowledge  of  the
epithermal gold environment in which  Ariana operates.  Prior to  his
appointment at European  Goldfields, David  held senior  appointments
with Randgold Resources and Anglo American.

OUTLOOK

Ariana Resources has not  been immune from  the market turbulence  of
the past year.  This was a year in which the smaller companies in the
resources  sector  of  the   AIM  market  typically   underperformed.
 Nevertheless, during this period the company successfully  completed
a significant market placing, increased its trading liquidity through
commencing trading on PLUS  Markets and, with  the assistance of  our
brokers, removed the bulk of a market overhang that for some time had
been exerting downward pressure on the share price.

Ariana Resources has now established the largest gold resource of any
company not yet engaged in mining  in this region of western  Turkey.
 On the basis of the resources already outlined and of the  predicted
potential of its licence  areas, Ariana is  confident that -  through
its own exploration programme  and via acquisitions  - its target  of
establishing a 1million ounce resource is eminently achievable.

As I  have outlined,  we expect  the year  ahead to  see  substantial
progress  towards  turning  these  resources  to  account,  with  the
commissioning of scoping studies at Kiziltepe and Tavsan.  With these
projects, we  are  confident  that  the  continuing  support  of  our
shareholders will prove to be amply justified.

We therefore remain extremely grateful to our loyal shareholders, and
to the hard working and  dedicated Turkish exploration team who  have
achieved so  much  in  recent  times.   I  conclude  by  thanking  my
colleagues on the board of  Ariana Resources:  we are very  fortunate
to have the backing,  enthusiasm for the  company, and commitment  to
its success  of  such a  highly  talented and  experienced  group  of
professionals.

I promise you, our shareholders, a year of very exciting developments
for Ariana Resources.


BUSINESS REVIEW

SUMMARY

Ariana is building up  its resources steadily.  Since last year,  the
Company has developed its regional strategy in western Turkey, and is
expanding  its  resource   base  through   focused  exploration   and
acquisition in the region.

Drilling programmes  were undertaken  at  the Sindirgi,  Ivrindi  and
Demirci projects.   At  Sindirgi,  this work  is  leading  towards  a
revised JORC-compliant resource for the Kiziltepe prospect.  A mining
options study for Kiziltepe is also underway, in addition to  further
metallurgical testwork.

The Company finalised  two corporate transactions  post year end.   A
package of licences, which comprise the Tavsan Project, were acquired
from Odyssey  Resources  in May  2008.   An agreement  with  European
Goldfields to explore our licences  in north-eastern Turkey was  also
finalised in May 2008.

Our resource inventory now contains 300,000 ounces gold equivalent in
Measured, Indicated and  Inferred categories,  which represents  more
than a 100% increase in our resource base since last year.  This  has
resulted in the  Company holding  the largest  aggregate resource  in
western Turkey outside of existing gold mining operations.

CORE PROJECTS

The Company dedicates  its effort to  the Western Anatolian  Volcanic
and Extensional  (WAVE) Province  in western  Turkey.  This  province
hosts three operating goldmines (total reserves of about 7 M oz)  and
remains  highly  prospective  for   large  epithermal  and   porphyry
deposits.

Ariana is  developing two  core projects  within the  WAVE  Province,
Sindirgi and  Tavsan, in  addition  to exploring  several  subsidiary
projects including Ivrindi and Demirci.  The region surrounding these
projects is named the WAVE Project Area, with our base of  operations
at Sindirgi located strategically at its core.

The Company is targeting the development  of one or more of the  core
projects as  environmentally friendly  small-footprint mines  in  the
coming years.

Table 1: Selected intercepts from 2007-8 drilling campaign


Hole ID From (m) To (m) Apparent width (m) Grade Au Grade Ag Grade Au
                                           (g/t)    (g/t)    + Au
D15-08  19.8     24.5   4.7                1.1      149      16.1
D17-08  26.6     33.5   6.9                21.3     99       23.3
D19-08  27.8     34.1   6.3                11.1     136      13.8
D21-08  34.6     41.9   7.3                9.4      128      12.0
D24-08  38.9     44.5   5.6                8.5      165      11.8
D30-08  42.0     47.4   5.4                10.9     190      14.7



Table 2: SRK resource statement for Kiziltepe


Classification Vein  Tonnage Grade Grade Au (oz) Ag (oz)   Au
                     (Kt)    Au    Ag                      equivalent
                             (g/t) (g/t)                   (oz)
Measured       Arzu  390     6.4   100.6 80,257  1,261,543 105,488
               South
Indicated      Arzu  110     5.7   105.8 20,161  374,212   27,645
               South
Inferred       Arzu  50      4     65    6,431   104,502   8,521
               South
Inferred       Banu  130     2.6   82.3  10,868  344,019   17,749

Total                                    117,717 2,084,277 159,403


Au +  Au equiv.  g/t  is the  sum  of the  gold  grade and  the  gold
equivalent grade  of silver  based on  a gold/silver  price ratio  of
approximately 50:1

Gold equivalent  (oz) is  the sum  of the  gold ounces  and the  gold
equivalent ounces of  silver based  on a gold/silver  price ratio  of
approximately 50:1


In addition to  containing our  advanced projects,  the Project  Area
encompasses the  majority of  our  exploration tenements  in  western
Turkey, to which we are adding on an ongoing basis.  The  exploration
and development  risk to  future  gold resources  in this  region  is
reduced due to excellent  infrastructure and established gold  mining
operations.

Ariana is targeting an aggregate resource of 1M oz of gold within the
WAVE Project Area and our strategy  is designed to build steadily  on
our existing resource base in  the region via exploration and  future
acquisitions.   The  Company  considers  that  this  target  is  both
realistic and achievable.

SINDIRGI PROJECT

The Sindirgi Gold  Project ("Sindirgi") lies  130km northeast of  the
coastal city  of  Izmir  and  100km  east  of  the  Ovacik  goldmine.
 Sindirgi was acquired  in early  2005 from  Newmont for  US$400,000,
with a  royalty of  up to  2.5% on  future gold  production from  the
project since assigned  to Franco-Nevada  Corporation.  Current  JORC
resources stand at 160,000 ounces gold equivalent.

The project  encompasses an  important regional  trend of  epithermal
gold mineralisation,  known  as  the Sindirgi  Gold  Corridor,  which
contains four  distinct prospects:  Kiziltepe, Kepez,  Karakavak  and
Kizilcukur.  To date, a total of  45km of veins have been  identified
in outcrop on the project.

Since August 2007, 2,961m of RC drilling, 3,060m of  diamond-drilling
has been completed on the project.   All of this work was  undertaken
on the Kiziltepe prospect.

Kiziltepe Prospect

The Kiziltepe prospect contains 20km of outcropping  low-sulphidation
epithermal quartz veins, which are  hosted by dacitic volcanic  units
of  Miocene  age.   The  vein  field  occurs  in  an  area   covering
approximately 3  x 1km  and  is well  serviced  by asphalt  road  and
forestry tracks.

Individual veins are exposed at surface for 750m in strike length and
are between 1 and 14m wide.  Seven of these vein systems were drilled
during the year.

Many of  these  veins  contain mineralisation  which  is  potentially
open-pittable and the  Company envisages  establishing several  small
pits across the prospect.  A mining options study is being undertaken
with Wardrop  Engineering to  evaluate several  different mining  and
processing scenarios.

Arzu Vein

The northwest-trending and steeply northeast dipping Arzu Vein system
comprises two  sections:  Arzu  South  and  Arzu  North.   These  two
sections are separated over  a strike length  of 650m by  rhyodacitic
ignimbrite cover rocks, which obscure the vein system beneath.   Both
southern and  northern  sections  were drilled  in  2007.   Following
several positive  results  in  the periphery  of  the  covered  area,
drill-testing along this zone is now planned.

In April 2008 a revised JORC-compliant mineral resource was estimated
by SRK UK  Ltd ("SRK")  based on our  drilling results  for both  the
southern and northern sections of  the Arzu vein system, in  addition
to the Banu vein (Table 1).  Thirteen mineralized vein segments  were
modelled for Arzu South, with veins typically 5-6m wide.  The mineral
resource was established  to a depth  of 125m from  surface and at  a
cut-off grade of 2g/t Au (Table 2).

The mining options study is presently considering the economic merits
of the  project  as  a  stand-alone operation  based  on  an  initial
open-pittable resource of 100,000 ounces of gold equivalent from  the
high-grade Arzu South Vein.  The  addition of further resources  will
be required ahead  of a decision  to progress the  project to  formal
scoping in 2008.

Other Veins

Exploratory drilling was undertaken on  five additional veins at  the
Kiziltepe prospect as part  of our strategy  to drill any  previously
untested veins.  This work  provided results which were  sufficiently
encouraging to warrant follow-up drilling on three of these veins.

At the Banu  Vein, seven RC  drill holes  on a 300m  section of  vein
provided gold-equivalent intercepts  of 3.81  g/t over  6m, 3.78  g/t
over 5m and 2.58g/t Au over  7m.  This complements the three  diamond
drill holes on this  vein reported in 2007.   At Vein 4, three  drill
holes on a 100m  section of vein provided  intercepts of 1.42 g/t  Au
over 6.0m, 1.26 g/t Au over 7.10m and 1.56 g/t Au over 5.0m.   Silver
grades in these intercepts range from 19 to 49 g/t Ag which  increase
the gold equivalent grades.  Five additional diamond drill holes were
undertaken in early 2008 on Vein 4.

TAVSAN PROJECT

The Tavsan  Gold  Project  ("Tavsan") lies  75km  from  the  Sindirgi
Project, 210km northeast of the coastal city of Izmir and 190km  east
of the  Ovacik  goldmine.  A  definitive  agreement to  purchase  the
Tavsan Project from Odyssey Resources was finalised in May 2008.  The
agreement entails a payment of US$500,000 and 3,000,000 shares in the
Company at 5p  per share,  with a  retained royalty  of up  to 2%  on
future gold production  from the  project assigned  to Teck  Cominco.
 Current 43-101  compliant resources  stand  at 140,000  ounces  gold
equivalent (Table 3).   The project  is located  within an  important
regional trend  of  epithermal  gold  mineralisation,  known  as  the
Dagardi Antimony Province.  The Tavsan project itself contains  three
distinct gold prospects: Tavsan, Evciler and Caldibi.  A total of 8km
of gold mineralised jasperoid has  been identified in outcrop on  the
project.

Tavsan Prospect

The Tavsan  prospect contains  4km  of outcropping  gold  mineralised
jasperoid, which is located along a low-angle thrust fault separating
underlying  Jurassic   limestone  from   overlying  Late   Cretaceous
ophiolitic rocks.   The  outcropping  jasperoid  occurs  in  an  area
covering approximately 4 x 4km and  is well serviced by asphalt  road
and forestry tracks. Individual segments of jasperoid are exposed  at
surface for 500m  and are  up to 20m  thick.  Due  to the  relatively
gently dipping nature of the jasperoid, much of the mineralisation is
potentially open-pittable.   The  Company  envisages  establishing  a
linked series of shallow pits across the prospect.

Table 3: 43-101 resource statement for Tavsan


Classification Zone  Tonnage Grade Grade Au (oz) Ag (oz) Au
                     (Kt)    Au    Ag                    equivalent
                             (g/t) (g/t)                 (oz)
Indicated      Main  767     1.79  3.7   44,146  91,251  45,971
Inferred       Main  1,543   1.49  5.0   73,925  248,071 78,886
Inferred       Sivri 354     1.18  5.3   13,432  60,328  14,638
Total                                    131,502 399,650 139,495


Gold equivalent  (oz) is  the sum  of the  gold ounces  and the  gold
equivalent ounces of  silver based  on a gold/silver  price ratio  of
approximately 50:1


A formal scoping  study will be  pursued in 2008  to re-evaluate  the
resource, undertake additional  heap-leach testwork and  to define  a
potential mine  and  plant design.   Due  to the  simplicity  of  the
project, and assuming that the resource can be increased, the Company
considers merit in its rapid development as a potential mine.


OTHER EXPLORATION

WESTERN TURKEY

Ariana is continuing to advance  its other important licences in  the
WAVE Project  Area. Work  in 2007  concentrated specifically  on  the
Ivrindi and  Demirci  projects  on  which  drilling  programmes  were
undertaken.  In  addition  to  undertaking  this  work,  the  Company
continues to  pursue  opportunities  for  the  acquisition  of  other
prospective licences and advanced projects in this region.

IVRINDI PROJECT

The Kinik prospect  was identified via  proprietary satellite  remote
sensing techniques in 2004. The prospect contains several outcrops of
gold-bearing clay-altered porphyritic andesite of Miocene age,  which
lie adjacent to  a faulted  contact with  Permian-age limestone.  The
mineralisation is defined by  a 750m long and  50m wide gold in  soil
anomaly, which was drill-tested  in 2007 by  ten diamond drill  holes
totalling 572m and six RC  drill holes totalling 525m. This  drilling
provided many encouraging but  relatively narrow intercepts, such  as
4.9 g/t Au  equivalent over 1.7m,  with occasional wider  intercepts,
such as 1.42 g/t Au equivalent  over 6.2m. Peak gold grades, over  1m
intervals, of 10.4g/t Au in surface  channel sampling and 7.9 g/t  Au
in  drilling,  suggest  that  there  is  an  opportunity  to   define
high-grade areas. A comprehensive  re-evaluation of the prospect  and
project area is to be undertaken in 2008.

DEMIRCI PROJECT

The Goveli  prospect occurs  within a  5km  long by  up to  1km  wide
northeast striking alteration system occurring along a  discontinuous
thrust zone  between  a Cretaceous  ophiolitic  sequence,  Palaeozoic
schists  and  Precambrian  gneissic  basement.   Much  of  the   gold
mineralisation in this corridor is low grade, but higher grade  areas
are structurally  controlled  and these  were  specifically  targeted
during exploration.  Trenching in 2006 and six initial RC drill holes
totalling 616m in  2007 defined  several areas of  near surface  gold
mineralisation.  The most  consistent mineralisation  was defined  by
surface rock-saw channel sampling of altered schists, which  provided
0.49 g/t Au over 23m.  The best drill intercepts at this location are
1.52 g/t Au over  2m and 1.36 g/t  Au over 4m from  no more than  10m
vertical depth.

EASTERN TURKEY

During the  year,  Ariana  continued  reconnaissance  exploration  in
eastern Turkey for large porphyry  Cu-Au and related deposits,  which
ultimately led to the definition of potential in a region surrounding
the Ardala Project.  The  project was acquired in  July 2007 and,  in
conjunction with other  projects, will  be advanced  through a  Joint
Venture  agreement  with  European  Goldfields  Limited,  which   was
finalized in May 2008.  As part of this agreement European Goldfields
also made  a  direct investment  in  Ariana  to acquire  20%  of  the
Company.

ARDALA PROJECT

The Ardala Prospect is located  in the Pontide Metallogenic  Province
of Turkey and lies approximately  80km southeast of the coastal  city
of Hopa and 20km east of Artvin.  The prospect was acquired according
to a royalty agreement for  which a 1.5% NSR  will be payable in  the
event that  the  project enters  production.   The prospect  hosts  a
porphyry copper-gold (plus molybdenum) mineralised system  associated
with a  series  of nested  quartz-diorite  intrusions of  Eocene  age
within an  Upper Cretaceous  volcano sedimentary  sequence.   Exposed
parts  of  the   porphyry  have   dimensions  of  600   x  700m   and
interpretation of  ground  magnetic  data  suggests  further  lateral
continuity beneath limestone units.

Thirteen drill  holes  were undertaken  on  part of  the  mineralised
system in the early 1990's  for which an outline (non-JORC)  resource
of 20Mt at an average grade of 0.25  % Cu, 0.45 g/t Au and 65 ppm  Mo
was established.  Surrounding gold-bearing skarns, with a peak  grade
of 5.16 g/t Au and 0.2% Cu in rock chips, remain undrilled.


Kerim Sener, Bsc (Hons), MSc, FGS,  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.

Summarised Consolidated Income Statement
For the year ended 31 December 2007


                                                           2007  2006
                                                          £'000 £'000
Administrative costs                                      (516) (424)
Investment income                                            65    69
Loss before tax                                           (451) (355)
Tax                                                           -     -

Loss for the year attributable to equity shareholders
of the company                                            (451) (355)
Earnings per share:
Basic and diluted loss per share (pence)                   0.84  0.86



Summarised Consolidated Balance Sheet
For the year ended 31 December 2007


                                    31 December 2007 31 December 2006
                                               £'000            £'000
Assets
Non-current- assets
Trade and other receivables                      124              124
Intangible assets                              2,082            1,297
Land, property, plant and                         45               42
equipment
Total non-current assets                       2,251            1,463

Current assets
Trade and other receivables                      179              128
Cash and cash equivalents                      1,182            1,547
Total current assets                           1,361            1,675
Total assets                                   3,612            3,138

Equity
Called up share capital                          713              470
Share premium                                  3,419            2,738
Other reserves                                   720              720
Share options                                      7                7
Translation reserve                               38             (11)
Retained earnings                            (1,442)            (991)
Total equity                                   3,455            2,933

Liabilities
Current liabilities
Trade and other payables                         157              205
Total current liabilities                        157              205
Total equity and liabilities                   3,612            3,138



Summarised Consolidated Statement of Changes in Equity
For the year ended 31 December 2007



                Share   Share    Other   Share Translation Retained
              capital premium reserves options     reserve earnings   Total
                £,000   £,000    £,000   £,000       £,000    £,000   £,000
Changes in
equity to
31 December
2006
Balance at
1 January
2006 as
previously
reported          315     966      720       -           -    (636)   1,365
Loss for
the year            -       -        -       -           -    (355)   (355)

Total
recognised
income and
expenditure
for the
year                -       -        -       -           -    (991) (1,010)
Foreign
currency
translation
differences         -       -        -       -        (11)        -    (11)
Share based
payments            -       -        -       7           -        -       7
Issue of
share
capital           155   1,854        -       -           -        -   2,009
Expenses
offset
against
share
premium             -    (82)        -       -           -        -    (82)

Balance at
31 December
2006              470   2,738      720       7        (11)    (991)   2,933

Changes in
equity to
31 December
2007
Loss for
the year            -       -        -       -           -    (451)   (451)
Total
recognised
income and
expenditure
for the
year                -       -        -       -           -    (451)   (451)
Foreign
currency
translation
differences         -       -        -       -          49        -      49
Issue of
share
capital           243     729        -       -           -        -     972
Expenses
offset
against
share
premium             -    (48)        -       -           -        -    (48)

Balance at
31 December
2007              713   3,419      720       7          38  (1,442)   3,455



Summarised Consolidated Cash Flow Statement
For the year ended 31 December 2007


                                                        2007  2006
                                                       £'000 £'000
Cash flows from operating activities
Cash generated from operations                         (548) (393)
Net cash outflow from operations                       (548) (393)

Cash flows from investing activities
Purchase of land, property, plant and equipment         (25)  (26)
Payments for intangible assets                         (770) (788)
Interest received                                         54    56
Net cash used in investing activities                  (741) (758)

Cash flows from financing activities
Proceeds from issue of share capital                     924 1,927
Net cash proceeds from financing activities              924 1,927

Net (decrease)/increase in cash and cash equivalents   (365)   776
Cash and cash equivalents at beginning of year         1,547   771
Cash and cash equivalents at end of year               1,182 1,547


Principal accounting policies

This statement  has  been  prepared  using  accounting  policies  and
presentation consistent with those applied in the preparation of  the
statutory accounts  of  the  Group  and  under  the  historical  cost
convention.

1. Basis of preparation

Prior to 2007,  the Group prepared  its audited financial  statements
and  unaudited  interim  financial  statements  under  UK   Generally
Accepted Accounting principles (UK GAAP).   From 1 January 2007,  the
Group  consolidated  financial  statements  have  been  prepared   in
accordance with International Financial Reporting Standards (IFRS) as
adopted by the European Union.  The 2007 annual financial  statements
include comparatives for 2006, and as the Group's date of  transition
to IFRS is 1 January 2006,  the 2006 comparatives have been  restated
for compliance with IFRS.

An exercise to assess the full impact that the change to IFRS has had
on the Group's  and Company's  reported equity,  reported losses  and
accounting policies, has  been completed.  In  preparing its  opening
IFRS balance sheet, the  Group and Company  have made adjustments  to
disclosures reported previously in  financial statements prepared  in
accordance  with  its  previous  basis  of  accounting  (UK  GAAP).
However, adoption  of IFRS  resulted in  no changes  in the  reported
numbers from UK GAAP, and no reconciliations are therefore presented.

The financial information  for the  twelve months  ended 31  December
2006 has been derived from  the Group's audited financial  statements
for the period as filed with the Registrar of Companies and  adjusted
for the transition  to IFRS.   It does not  constitute the  financial
statements for that period.

2. Loss per share
The calculation  of  basic  loss  per share  is  based  on  the  loss
attributable to ordinary  shareholders of  £451,000 (2006:  £355,000)
divided by the weighted average number of shares in issue during  the
year 53,488,941 (2006: 41,404,229).  There  is no dilutive effect  of
share options or warrants on the basic loss per share.

3. Events after the balance sheet date

On 4 April  2008 the Company  announced the purchase  of 100% of  the
Tavsan Project from Odyssey for combination of shares and cash.

On 21 April 2008 the Company finalised a joint venture agreement with
European Goldfields Limited along with a placing of 18,571,016 shares
for £928,551 before costs.

4. Summary accounts

The summary accounts set out above do not constitute statutory
accounts as defined by Section 240 of the UK Companies Act 1985. The
summarised consolidated balance sheet at 31 December 2007 and the
summarised consolidated income statement, summarised consolidated
statement of changes in equity and the summarised consolidated cash
flow statement for the year then ended have been extracted from the
Group's 2007 audited statutory financial statements.  The auditor's
report on the statutory financial statements for the two years ended
31 December 2007 were unqualified and did not contain any statement
under Section 237(2) or (3) of the Companies Act 1985.

5. Annual Report

The Annual Report for the year ended 31 December 2007 will be posted
to shareholders shortly. The Annual General Meeting of the Company
will be held at The East India Club, 16 St James's Square, London,
SW1Y 4LH on 9 July 2008 at 11.00 a.m.

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