Arian Silver Signs Definitive Contract for New 500 tpd Processing Plant

Tue Nov 27, 2012 2:00am EST

* Reuters is not responsible for the content in this press release.

  LONDON, ENGLAND, Nov 26 (MARKET WIRE) --
Arian Silver Corporation ("Arian" or the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A), a silver exploration, development
and production company with a focus on projects in the silver belt of
Mexico, is pleased to announce the signing of a definitive contract for
exclusive use of a newly refurbished processing plant located close to
the City of Zacatecas ("the Plant"). The Plant has a rated capacity of
500 tonnes per day ("tpd") and is expected to become operational during
December.

    Key points:


--  Definitive contract for exclusive use of a newly refurbished 500 tpd
    Plant; 
--  Anticipates significantly improved recoveries of silver, as well as
    revenue from lead and zinc; 
--  Initial milling contract for 90,000 tonnes of Run Of Mine ("ROM") ore at
    a fixed cost of US$38 per tonne; 
--  Well placed to resume full scale contract mining to feed the new mill;
    and 
--  Arian remains focussed on developing the resources outlined at San Jose
    for a larger scale and more efficient silver, lead and zinc operation. 


    Once the mill is operational, Arian will recommence delivery of the ROM
ore from its 100% owned San Jose mine located approximately 50 kilometres
away. Initially ROM ore will be sourced from surface stockpiles built up
since the suspension of the previous toll milling operation; and
thereafter from the ongoing contract mining.

    The initial milling contract is for 90,000 tonnes of ROM ore at a fixed
processing cost of US$38 per tonne which includes all maintenance and
repair costs. This equates to approximately six months of production at
500 tpd and the contract is renewable. Arian will provide full-time
supervisory staff and a 2% net smelter royalty on concentrate value is
payable under the terms of the San Jose concession purchase. 

    Arian's Chief Executive Officer, Jim Williams, commented: "We expect to
achieve significantly improved recoveries of silver from this new toll
milling operation as well as the potential for additional recoveries from
lead and zinc previously not available to us. It will also provide a
useful stepping stone towards the construction of a Company-owned
processing plant on site at San Jose. While working to finalise the toll
milling agreement, our mining and geological teams have continued to
develop the mine and update the mining plan thus ensuring we are well
placed to resume full scale contract mining to feed the new mill." 

    As previously stated, Arian remains focussed on developing the resources
outlined at San Jose for a larger scale and more efficient silver, lead
and zinc operation. Preliminary metallurgical results announced in
October were encouraging and discussions have commenced on the possible
acquisition of a Company-owned processing plant to support the flow sheet
indicated by this metallurgical testing together with a financing method
to best serve shareholders' interests. Currently, financial models for an
expanded operation indicate positive returns on investment over
relatively short time frames with silver prices significantly discounted
from current values.

    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.

Contacts:
Arian Silver Corporation
Berkeley Square House
Berkeley Square
London
W1J 6BD
England

Arian Silver Corporation
Jim Williams
CEO
(London) +44 (0)20 7887 6599
jwilliams@ariansilver.com

Arian Silver Corporation
David Taylor
Company Secretary
(London) +44 (0)20 7887 6599
dtaylor@ariansilver.com

Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
(London) +44 (0)20 7383 5100
gerry.d.beaney@uk.gt.com

Hawkwood Capital LLP
John Grant / Edmund Glover
(London) +44 (0)20 3195 6500
john.grant@hawkwoodllp.com
edmund.glover@hawkwoodllp.com

XCAP Securities PLC
Jon Belliss
(London) +44 (0)20 7101 7070
jon.belliss@xcapgroup.com

Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)7768537739
dominic@yellowjerseypr.com

CHF Investor Relations
Juliet Heading
(Canada) +1 416 868 1079 x 239
juliet@chfir.com

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