February 10th, 2010
London, England, Arian Silver (“Arian” or the “Company”) a silver exploration and development company with a focus on projects in the silver belt of Mexico, is pleased to update shareholders on the progression of its San José Property, Zacatecas state, Central Mexico.
• Completion of acquisition of 100% of San José Property in Mexico;
• San José Property progresses towards production;
• Strong balance sheet following recent over-subscribed Cdn$3.5m Private Placement;
• Successful unwinding of the major shareholding position of Grafton Resource Investments Ltd; and
• Aggressive 2010 marketing drive to investment and partner community.
Commenting on today’s statement, Arian’s Chief Executive Officer, Jim Williams, said: “This is an exciting time for Arian. After a challenging 2009, the start of 2010 has so far worked in our favour with the successful unwinding of Grafton Resource’s shareholding position in the Company, the successful closing of an over-subscribed private placement financing, the outright purchase of our key San José Property, and the signing of a definitive option agreement with Geologix Explorations for the disposal of our Tepal Project. All efforts remain focused on getting San José into production as soon as possible, and we look forward to updating shareholders in due course on developments in this respect.”
Update on the San José Property
Following the recent news regarding the Company’s completed and over-subscribed Cdn$3.5 million non-brokered Private Placement, Arian announces that it has concluded the acquisition of the remaining 33.33% interest in the San José Property to take its ownership interest to 100%.
Arian’s final payment of US$500,000 (plus IVA) has been paid to the underlying vendors and the acquisition contracts have been executed, notarized and are in the process of being registered with the appropriate Mexican authorities.
A 2% Net Smelter Return remains payable to the vendors of the San José Property.
Progressing towards Production
All necessary permits are in place and the Company’s efforts will remain focused on pushing the San José Property into production. Contracts for the proposed initial contract mining and custom milling operations are currently being finalized. Road upgrading has already begun within the mine site area to ease the movement of heavy plant away from local built-up areas and minimize any environmental impact.
The parameters of the initial contract mining and custom milling operations are set out in the Preliminary Economic Assessment prepared by A.C.A. Howe International Limited dated 22 June, 2009. A copy of this report entitled “Preliminary Economic Assessment Report (PEAR) on the San José Silver-Lead-Zinc Deposit, Zacatecas, Mexico” is available on the Company’s website www.ariansilver.com or on SEDAR at www.sedar.com
Aggressive 2010 Marketing Plan
Following January’s significant achievements, Arian is now well positioned to be taking an aggressive approach to its corporate marketing activities. The Company announces the recent engagement of Yellow Jersey PR to spearhead the public relations and marketing programme in the United Kingdom. CHF Investor Relations will continue to lead the investor and public relations programme in Canada.
For further information please contact:
Arian Silver Corporation
235-237 Vauxhall Bridge Road
London SW1V 1EJ
Jim Williams - CEO
(London) +44 (0)20 7963 8670 / email: email@example.com
Graham Potts — CFO & Corporate Secretary
(London) +44 (0)20 7963 8670 / email: firstname.lastname@example.org
Grant Thornton UK LLP
(London) +44 (0)20 7383 5100 / email: email@example.com
Yellow Jersey PR
(London) +44 (0)20 8980 3545 / email firstname.lastname@example.org
CHF Investor Relations
(Canada) +1 416 868 1079 Ext. 233 / email: email@example.com
About the Company
Arian is a silver exploration and development company and is listed on London’s AIM; trades on London’s “PLUS” market; 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 projects are the Calicanto and San José projects in Zacatecas State. Arian’s Tepal project in Michoacán State is subject to an exclusive purchase option to Geologix Explorations Inc. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information contained herein.
Forward Looking Information
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, the Company’s expectation to move towards production) 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 or events to differ materially from those discussed in the forward-looking statements, and even if such actual results or events 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, failure to achieve production in the short term, risks related to the stage of the Company’s projects, uncertainties related to fluctuations in commodity prices 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.