FEASIBILITY STUDY AND EIA UPDATE

17 October 2011
AIM / PLUS Markets: AAU


                        FEASIBILITY STUDY AND EIA UPDATE

Ariana  Resources  plc  ("Ariana"  or  "the  Company"), the gold exploration and
development  company  focused  on  Turkey,  is  pleased  to  announce  that  its
consultants  Wardrop, a  Tetra Tech  Company ("Tetra  Tech") have completed core
components  of its Pre-Feasibility Study ("PFS")  on the Kiziltepe Sector of its
Red  Rabbit Gold Project in western Turkey ("Red Rabbit" or "the Project").  The
PFS  is being completed ahead  of the Company's Feasibility  Study ("FS") on the
Project, which is itself scheduled for delivery before the end of 2011, ahead of
anticipated commencement of production in late 2012.

Highlights:

  * PFS  findings  have  increased  mine  life  at  Red  Rabbit to over 8 years,
    improving the fundamentals of the Project
  * Increased  in-pit  resources  to  1,177,800 tonnes corresponding to 118,200
    ounces of gold and 1,452,600 ounces of silver
  * Targeted  production  of  150,000 tonnes  of  ore per year, corresponding to
    approximately 20,000 ounces of gold per annum during the first 5 years
  * Environmental  Impact  Assessment  ("EIA")  studies  progressing  well and a
    project  summary  document  has  been  prepared  ahead of being submitted to
    Ministry of the Environment and Town Planning

Dr. Kerim Sener, Managing Director, commented:

"The  results from the PFS  provide us with further  evidence of the significant
potential  of the  Red Rabbit  Gold Project  as we  gear up  towards production.
 Importantly,  the increase in mineable tonnage and, in turn, total mine life to
in  excess of 8 years, reinforces the  Company's ability to generate significant
revenues  from  Red  Rabbit.   This  statement  holds  true  even  if  we take a
conservative  approach  to  long-term  gold  prices  as  demonstrated by the pit
optimisation, which was undertaken using a US$1,058/oz base case.

"In  tandem with the Feasibility Study being  completed before the end of 2011,
exploration at Red Rabbit remains a core focus for Ariana as we are confident of
the  wider  area's  potential  to  host  in  excess  of 1 million ounces of gold
equivalent.   New discoveries  such as  the Gamze  Vein, where  continuous high-
grades  of up to 10.7 g/t  gold equivalent were identified;  and the Hande Vein,
where  grades of  up to  7.74 g/t gold  equivalent were  reported, underpin this
confidence.   This  strategy  ensures  near-term  revenue generation whilst also
benefitting  from the significant uplift potential new discoveries will bring to
the Company."


Pre-Feasibility Study

Following on from the scoping study results announced on 4 April 2011, and ahead
of  the FS completion, the Company is now documenting key components of its PFS,
which  has been  completed by  Ariana's consultants,  Tetra Tech.  These involve
aspects of the study that are unlikely to change during the FS, and include, the
open-pit   optimisation   and  design,  site  layout,  production  schedule  and
processing plant design.

Open-pit Optimisation and Design

The  mineral resource estimate announced  on 28 October 2010, remains unchanged.
 However  Whittle Pit  Optimisation Software  has been  run on  this resource to
determine  that part of the total  resource that could be extracted economically
(Table  1).  The combined resource within the selected pit shapes, including the
Arzu  South, Arzu North, Derya, Banu and Kepez pits, is estimated at 1,177,800t
at  an average  of 3.12 g/t  Au and  38.36 g/t Ag.   This resource is based on a
fully  diluted  vein  model  and  takes  in  to account the probable dilution of
higher-grade  vein material by lower-grade host-rock material in the hangingwall
and footwall of the vein.

Table  1: History of pit optimisation results,  comparing the scoping study with
the PFS outputs.

-----------------------+-----------+---------------+-----------------
        Output         |   Unit    | Scoping Study | Pre-feasibility
-----------------------+-----------+---------------+-----------------
 Selected Pit Resource |    Tonnes |     1,034,600 |       1,177,800
-----------------------+-----------+---------------+-----------------
 Au Grade              |    g/t Au |          3.56 |            3.12
-----------------------+-----------+---------------+-----------------
 Ag Grade              |    g/t Ag |         41.57 |           38.36
-----------------------+-----------+---------------+-----------------
 Au Metal              |     Oz Au |       109,600 |         118,200
-----------------------+-----------+---------------+-----------------
 Ag Metal              |     Oz Ag |     1,382,700 |       1,452,600
-----------------------+-----------+---------------+-----------------
 Waste Movement        |    Tonnes |    11,373,000 |      15,740,000
-----------------------+-----------+---------------+-----------------
 Strip Ratio           | waste:ore |          10.9 |            14.5
-----------------------+-----------+---------------+-----------------


Based  on  the  Whittle  pit  optimisation  results,  a series of open-pits were
designed  for the Arzu South,  Arzu North, Banu and  Derya veins (Figure 1).  No
pit  was designed for the  Kepez area, as this  will probably be extracted using
only   mechanical   methods.   Table  2 lists  the  selected  pit  resources  by
mineralised  zone based on the designed pits;  the cut-off grade is estimated at
0.96 g/t  Au equivalent(1)  based on  a gold  metal price  of US$1,058/oz  and a
silver  metal price of US$16.6/oz.   For this base case  only resource blocks of
Measured and Indicated category are used.

The listed tonnes and associated grades in Table 2 represent the portions of the
resource  that could be extracted economically from the pit designs based on the
selected  Whittle pit shapes derived from  the Whittle Pit Optimisation Software
results.   Mineral  reserves  have  not  been  finalised  at  PFS  level but the
resources  outlined here are those that  could be converted to reserve category.
 At  the cut-off grade  of 0.96 g/t Au  equivalent, the percentage extraction of
the total resource is 69% and 60% for gold and silver respectively.

Table  2: Summary of resources  within pit design  at a 0.96 g/t  Au eq. cut-off
grade.   Silver grades at Kepez (*) have not currently been accounted for at the
PFS stage but will be included for the FS.

------------+-----------+-------------+-------------+----------------------
            |           |     Au      |     Ag      | Contained metal (oz)
    Vein    |  Tonnes   | Grade (g/t) | Grade (g/t) +---------+------------
            |           |             |             |   Au    |     Ag
------------+-----------+-------------+-------------+---------+------------
 Arzu South |   614,300 |    3.99     |    44.57    |  78,800 |    880,300
------------+-----------+-------------+-------------+---------+------------
 Arzu North |   266,700 |    2.00     |    36.26    |  17,100 |    310,900
------------+-----------+-------------+-------------+---------+------------
 Banu       |   110,300 |    2.04     |    39.50    |   7,200 |    140,000
------------+-----------+-------------+-------------+---------+------------
 Derya      |   126,500 |    1.50     |    29.86    |   6,100 |    121,400
------------+-----------+-------------+-------------+---------+------------
 Kepez      |    60,000 |    4.90     |    n/a*     |   8,900 |       n/a*
------------+-----------+-------------+-------------+---------+------------
 Total      | 1,177,800 |    3.12     |    38.36    | 118,200 |  1,452,600
------------+-----------+-------------+-------------+---------+------------



Figure  1: Three-dimensional projection of vein  models (in blue), surrounded by
their  corresponding  designed  pit  shapes  based  on the output of Whittle pit
optimisation.  These designed pits provide an average strip ratio of 14.5:1.

Site Layout

Site  layouts have  been finalised  for the  purposes of  the PFS  stage.  It is
unlikely  that  there  will  be  significant  further  changes in the final site
layouts  and design for  the purposes of  the FS.  The  currently envisaged site
layout  is shown in Figure 2.  The  layout minimises the environmental footprint
of the plant and related mine infrastructure.

Figure  2: Site layout  as envisaged  for the  PFS, showing  the location of the
designed  open pits, the preliminary waste rock dump and the tailings dam design
outlines.   Access and haulage  roads are shown  as bright green  lines and mine
building locations shown in red.


Production Schedule

The  mine will be based on one central  pit located at Arzu South with satellite
pits  at Arzu North, Banu,  Derya and Kepez.  The  location of the selected pits
(excluding  Kepez) is  shown in  Figure 2.  The  mine will  target production of
150,000 tonnes  per year of ore over a mine life of 8.1 years, operating for six
days a week (Table 3).  The production will be scheduled with mining starting at
Arzu  South and progressively shifting to the  Kepez, Arzu North, Banu and Derya
pits  as  grades  decrease  later  in  the  mine life.  The final material to be
processed  will  be  a  small  quantity  of  low-grade  stockpile  that  will be
accumulated over the mine life from the various open pits.

Material  from the open pits  will be split in  to three categories, run-of-mine
ore grade (>0.96 g/t Au equ.), low-grade ore (<0.96 g/t Au equ.) and waste.  The
division between low-grade ore and waste will be determined during grade control
and  be influenced by the minimum mining  width (1.5m) and the expected dilution
width (0.25m either side of the vein).



Table  3: Outline mining schedule  for the various  mineralised zones.  Tonnages
for each pit are expressed in '000s tonnes.

---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
      Pit      |Yr 1 |Yr 2 |Yr 3 |Yr 4 |Yr 5 |Yr 6 |Yr 7 |Yr 8 |Yr 9
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Arzu South     |  150| 150 | 150 | 150 | 14  |     |     |     |
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Kepez          |     |     |     |     | 60  |     |     |     |
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Arzu North     |     |     |     |     | 76  | 150 | 41  |     |
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Banu           |     |     |     |     |     |     | 109 |  1  |
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Derya          |     |     |     |     |     |     |     | 126 |
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Stockpile      |     |     |     |     |     |     |     | 22  | 14
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Au Grade (g/t) | 2.99|4.10 |4.44 |4.42 |3.06 |2.04 |2.18 |1.38 |0.68
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Ag Grade (g/t) |32.39|45.34|50.80|49.38|14.41|39.77|43.53|26.86|8.49
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Oz Au (000s oz)| 14.4|19.7 |21.4 |21.3 |14.7 | 9.8 |10.5 | 6.7 |0.3
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----
Oz Ag (000s oz)|156.2|218.7|245.0|238.1|69.5 |191.8|209.9|129.5|3.9
---------------+-----+-----+-----+-----+-----+-----+-----+-----+----

Processing Plant Design

A  conventional hydrometallurgical  process will  be used  for the project.  The
confirmed  configuration  will  involve  a  six  tank  Carbon-in-Column circuit,
proceeding  to a two aerated pre-leach tanks  and finally a five tank Carbon-in-
Leach  circuit (Figure  3).  The plant  will be  placed on  a slope to allow for
gravity-flow  assistance  between  tanks  and  to  save  on pumping costs.  This
process  offers the best recoveries of gold and silver at the lowest capital and
operating  costs.  At full  production, the process  will treat up to 500 tonnes
per  day of run-of-mine  (ROM) ore.  Assuming  a 90% availability the process is
scheduled  to operate 323 days per year.  The estimated metallurgical recoveries
are 87% for gold and 64% for silver.

Figure 3: Plan view of the feasibility stage processing plant layout and design.
 Ore  will be fed from the bottom left side of the plant, sequentially through a
jaw  and cone crusher before being conveyed to  a ball mill at the centre of the
diagram.  The CIC and CIL circuits can also be seen.

Environmental Impact Assessment

Environmental  Impact  Assessment  studies  are  ongoing while the environmental
baseline is drawing to a close.  A project summary document has been prepared in
accordance  with Turkish  government regulations  and will  be submitted  in due
course  to the Ministry of the Environment  and Town Planning.  In the meantime,
applications  have  been  made  to  the  relevant  authorities for drill permits
required  in order  to complete  geotechnical drilling  for the Tailings Storage
Facility  ("TSF").   Due  to  changes  to the environmental guidelines announced
during  2011, the TSF will now need to  be designed and approved by a recognised
engineering  firm in Turkey.  This development is  expected to add some delay to
the  delivery of  the final  FS document,  but will  not immediately  impact the
schedule of work being completed by Tetra Tech on the feasibility.


Contacts:

 Ariana Resources plc              Tel: [phone]

 Michael Spriggs, Chairman

 Kerim Sener, Managing Director



 Beaumont Cornish Limited          Tel: [phone]

 Roland Cornish / Felicity Geidt



 Fairfax I.S. PLC                  Tel: [phone]

 Ewan Leggat / Laura Littley



 St Brides Media & Finance Ltd     Tel: [phone]

 Hugo de Salis / Susie Geliher




Editors' note:

The Competent Persons responsible for this study are as follows:

For  the Resource Estimate, Paul Gribble, FIMMM, C.Eng., a senior geologist with
Tetra Tech in Swindon, UK.

For  the mining studies,  Richard Hope, MIMMM,  C.Eng., a senior mining engineer
with Tetra Tech in Swindon, UK.

For  the processing studies, Dr. Arun Vathavooran, PhD., MIMMM, C.Eng., a senior
processing engineer with Tetra Tech, Swindon, UK.

The  above persons have reviewed this press release and consent to the inclusion
of data and text taken from the study report in the form and context in which it
appears.

Dr  Kerim  Sener,  BSc  (Hons),  MSc,  PhD,  is  the Managing Director of Ariana
Resources  plc.  A graduate of the University of Southampton in Geology, he also
holds  a  Master's  degree  from  the  Royal  School of Mines (Imperial College,
London)  in Mineral Exploration  and a doctorate  from the University of Western
Australia.  He is a Fellow of The Geological Society of London and has worked in
geological  research and mineral  consultancy in Southern  Africa and Australia.
 He   has  read  and  approved  the  technical  disclosure  in  this  regulatory
announcement.

About Ariana Resources

Ariana  is an  exploration and  development company  focused on epithermal gold-
silver and porphyry copper-gold deposits in Turkey.  The Company is developing a
portfolio  of  prospective  licences  selected  on  the  basis  of  its in-house
geological  and remote-sensing  database, on  its own  in western  Turkey and in
Joint   Venture  with  European  Goldfields  Limited  in  north-eastern  Turkey.
 European  Goldfields owns  51% of this  joint venture  and, as the operator, is
fully  funding all  exploration work  on the  JV properties  until delivery of a
feasibility study.

The  Company's flagship assets  are its Sindirgi  and Tavsan gold projects which
form  the Red Rabbit Gold  Project.  Both contain a  series of prospects, within
two  prolific  mineralised  districts  in  the  Western  Anatolian  Volcanic and
Extensional  (WAVE) Province in western Turkey.  This Province hosts the largest
operating  gold mines in Turkey and  remains highly prospective for new porphyry
and epithermal deposits.  These core projects, which are separated by a distance
of  75km, are presently being assessed as to  their economic merits and now form
part  of  a  Joint  Venture  with  Proccea  Construction Co.  The total resource
inventory of the Company stands at 448,000 ounces of gold equivalent.

Ariana   also   has   a   strategic   investment  in  Tigris  Resources  Limited
(www.tigrisresources.com),  a private Jersey-based exploration company, which is
focused  on the exploration of copper  and gold deposits in southeastern Turkey.
 Ariana retains approximately 13% of Tigris Resources Limited.

Fairfax  I.S. PLC are brokers to the Company and Beaumont Cornish Limited is the
Company's Nominated Adviser.

For further information on Ariana you are invited to visit the Company's website
at www.arianaresources.com.

Glossary of Technical Terms

(1) Gold equivalence is derived from the formula:
{(Ag g/t*Ag Recovery*Ag price*0.032)/Au oz Price}/Au Recovery=Au equivalent oz/t
Au recovery by testwork 87%, Ag recovery by testwork 64%

"Au" the chemical symbol for gold;

"cut-off  grade"  The  lowest  grade,  or  quality, of mineralised material that
qualifies  as economically  mineable and  available in  a given  deposit. May be
defined  on  the  basis  of  economic  evaluation,  or  on  physical or chemical
attributes that define an acceptable product specification;

"g/t" grammes per tonne;

"low-sulphidation"  a  style  of  gold  mineralisation  which is typically found
distal  to volcanic centres and is characterised by adularia-sericite alteration
and quartz veins;

"Indicated  resource" a part of a mineral resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with
a  reasonable  level  of  confidence.  It  is based on exploration, sampling and
testing  information gathered through appropriate techniques from locations such
as  outcrops, trenches,  pits, workings  and drill  holes. The locations are too
widely  or inappropriately spaced to  confirm geological and/or grade continuity
but are spaced closely enough for continuity to be assumed;

"Inferred  resource" a part of  a mineral resource for  which tonnage, grade and
mineral  content can be estimated with a low level of confidence. It is inferred
from  geological evidence and  has assumed, but  not verified, geological and/or
grade  continuity.  It  is  based  on  information  gathered through appropriate
techniques  from locations such as outcrops,  trenches, pits, workings and drill
holes that may be limited or of uncertain quality and reliability;

"Inverse  Distance Squared" a conventional mathematical method used to calculate
mineral  resources.  Near sample points provide a greater weighting than samples
further away for any given resource block;

"JORC" the Joint Ore Reserves Committee;

"m"   Metres;

"Measured  resource" a part of a  Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can be estimated with
a  high level of confidence.  It is  based on detailed and reliable exploration,
sampling  and testing  information gathered  through appropriate techniques from
locations  such  as  outcrops,  trenches,  pits,  workings and drill holes.  The
locations  are spaced closely enough to confirm geological and grade continuity;


"Nearest  Neighbour" a methodology used to derive the value of an attribute from
surrounding sample data on the basis of point-to-point proximity;

"Ordinary Kriging" is a geostatistical approach to resource estimation.  Instead
of  weighting nearby data  points by some  power of their  inverted distance, OK
relies  on  the  spatial  correlation  structure  of  the  data to determine the
weighting values.  This is a more rigorous approach to modelling, as correlation
between data points determines the estimated value at an unsampled point;

"oz" Ounces;

"porphyry"  an igneous  rock with  larger crystals  contained within a matrix of
much smaller crystals;

"stockwork"  a  mineral  deposit  in  the  form  of a branching network of small
irregular veins;

"top cut" the maximum gold content for samples used to calculate an average gold
content for a resource;

"variographic"  the use of semi-variograms (a mathematical technique) as part of
the geostatistical methodology used to derive resource estimates;

"Whittle"  computer software that uses the  Lerch-Grossman algorithm, which is a
3-D  algorithm that can be applied to the optimisation of open-pit mine designs.
 The  purpose of  optimisation is  to produce  the most  cost effective and most
profitable open-pit design from a resource block model.

Ends




FEASIBILITY STUDY AND EIA UPDATE FIGURES 1-3: 


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