Arian Silver Corporation - Extension of Exclusive Option and Exploration Update

During this period, the final results of metallurgical testworks are expected to be received, which will indicate the extent to which the gold recoveries can be optimised. To date, we have achieved commercial gold grades in the concentrate but at the expense of recoveries. The additional testwork is to ascertain whether a commercial gold recovery rate can be achieved.

The Company is also discussing with TNM, the potential for participation in their other portfolio projects; these projects are either brownfield sites and/or highly prospective and all are located within 20 km of Goldcorp’s Peñasquito project.

Advanced stage exploration projects

The Company is engaged in preliminary discussions with a view to acquiring advanced stage exploration projects. One such asset is located in the Southern part of the USA and has been extensively drilled in the past; it has a non-compliant mineral resource reported to have been in excess of 100 million ounces of silver, and it is expected that the historical data held would allow a new drill programme to rapidly delineate a compliant resource with a view to near-term production.

Exploration activities

Arian Silver possesses almost 1,500 hectares of mineral concessions within central Zacatecas, Mexico, which includes brownfield sites and past-producing mines. These mineral concessions have been reviewed by Arian Silver’s geologists and a low cost work programme to advance targeted exploration is underway.

Disposal of Calicanto

The Company announced on 1 August 2016 that it has executed a binding agreement with Minera Oro Silver de Mexico SA de CV (“Minera Oro Silver”), a subsidiary of Endeavour Silver Corporation, to sell the Company’s 75 hectare Calicanto Project in the State of Zacatecas, for a cash consideration of US$400,000. The sale proceeds will be received upon the execution and ratification of the assignment agreement in respect of the relevant mineral concessions. The assignment agreement will be concluded upon the completion of registrations by the Ministry of Mines in Mexico, which is expected in the coming weeks.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

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