Ariana Resources plc: Red Rabbit Gold-Silver Pr...

2 April 2014

AIM: AAU

RED RABBIT GOLD-SILVER PROJECT UPDATE

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce an update on the Kiziltepe Sector ('Kiziltepe') of the Red Rabbit Gold-Silver Project in Western Turkey ('Red Rabbit'). The Kiziltepe Sector will be the initial mine site at Red Rabbit, which is being advanced towards production with its joint venture partner Proccea Construction Co. ("Proccea").

Highlights:

• Proccea continuing to earn-in on Red Rabbit, having spent approximately US$1.2 million during 2013.

• Proccea has indicated that a conditional financing arrangement to fund mine construction has been negotiated with a Turkish bank.

• Proccea now owns 26.5% of the project and is continuing sole-funding through the final permitting and construction stages.

• Trial mining at the Kiziltepe Sector has produced 4,800 tonnes of ore, which is stockpiled on site ready for processing.

• Positive report completed by the General Directorate of Mining Affairs following a site visit as part of the mining licence renewal process.

Dr. Kerim Sener, Managing Director, commented:

"We are very encouraged by the progress our Joint Venture partner Proccea has made on the Red Rabbit project and specifically at the Kiziltepe Sector which is being advanced towards production. Following the receipt of the Environmental Impact Assessment, which was a major project milestone, our partners are continuing to fund the development of Kiziltepe through the permitting and construction stages. With the final stage of permitting fast approaching, we look forward to updating our shareholders on new developments in due course."

Joint Venture Update

Following the Annual General Meeting held in Ankara, Turkey, on 31 March 2014 for the Joint Venture ("JV") company, Zenit Madencilik San. ve Tic. A.S. ("Zenit"), Ariana is able to provide an update on the current status of the Joint Venture ("JV") project.

Approximately US$1.2 million of project expenditures were incurred by Proccea on the JV properties in 2013, with 65% of this expenditure having been made on the licence containing the Kiziltepe gold-silver mine. To date, Proccea has spent approximately US$2.9 million on the JV since its inception in August 2010. Accordingly, Proccea now holds 26.5% of the JV company and continues to earn-in on 50% of the project.

Proccea has informed Ariana that a conditional agreement has been reached with a Turkish bank to provide the requisite finance for the construction of the Kiziltepe gold-silver mine. The finance will be conditional on certain conditions precedent relating to permitting and the approval of certain tax incentives.

During 2013, the JV company completed further trial mining at the Kiziltepe Sector in accordance with Turkish mining legislation (Figure 1). Approximately 4,800 tonnes of ore have now been stockpiled on site ready for processing (Figure 2).

Zenit is currently awaiting the approval of an extension to the mining licence that contains the Kiziltepe gold-silver mine. A positive site visit report has been completed by the General Directorate of Mining Affairs as part of the licence extension process. Once the licence is approved, the company may proceed to the final permitting stage of the project.

Figure 1: Trial production underway at the Arzu North pit. The 25 tonne truck is being loaded with ore before transport to the Arzu South stockpile area.

Figure 2: Arzu South stockpile area, looking south towards the Banu Vein. Approximately 4,800 tonnes of ore are stockpiled here ready for processing. The stockpile contains material mined from the Arzu South, Arzu North and Karakavak pits.

Contacts:

Ariana Resources plc	Tel: [phone]
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: [phone]
Roland Cornish / Felicity Geidt
Beaufort Securities Limited	Tel: [phone]
Saif Janjua
Loeb Aron & Company Ltd.	Tel: [phone]
John Beresford-Peirse / Dr. Frank Lucas
St Brides Media & Finance Ltd	Tel: [phone]
Susie Geliher / Lottie Brocklehurst

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 developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey. Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%. The total resource inventory within this JV is 1.09 million ounces of gold.

The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project. Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co. The total resource inventory at the Red Rabbit Project stands at 475,000 ounces of gold equivalent.

Beaufort Securities Limited and Loeb Aron & Company Ltd. 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.

Ends

Figures 1 & 2

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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ariana Resources plc via Globenewswire

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