1 February 2022

AIM: AAU

RESOURCE AND RESERVE UPDATE: KIZILTEPE SECTOR

19% Increase in Total Resources

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral exploration and development company with gold mining interests in Europe, is pleased to announce a resource update for the Kiziltepe Sector, including the satellite projects of Kepez, Kizilcukur and Ivrindi.  Kiziltepe is owned by Zenit Madencilik San. ve Tic. A.S. ("Zenit") in partnership with Proccea Construction Co. and Ozaltin Holding A.S. and is 23.5% owned by Ariana.

Highlights:

·      Increase in global (undepleted) Mineral Resource Estimate to over 380,000 oz Au and 6,100,000 oz Ag contained metal*.

·      Ore Reserves of 1.10Mt @ 2.38 g/t Au and 43.16g/t Ag for over 80,500 oz Au and 1,400,000 oz Ag, equivalent to approximately three years of production*.

·      Resource update represents a c. 19% increase over the previous (2020) undepleted global resource estimate (announced in April 2020) on a gold ounce only basis.

·      Over 1.33Mt of ore has been mined from the open pits at Kiziltepe to the end of December 2021, of which approximately 1.03Mt has been processed (quoted as dry tonnes).

*All Mineral Resource and Ore Reserve figures in the announcement are quoted gross with respect to Zenit of which Ariana owns 23.5%.

Dr. Kerim Sener, Managing Director, commented:

"This updated Resource Estimate, demonstrating a 19% increase in total resources compared with our 2020 estimate, is an excellent result and represents the culmination of a full year of work at Kiziltepe, involving over 15,000m of drilling and other detailed technical studies by the Zenit and Ariana teams.  This work highlights the resource upside remaining at Kiziltepe, as operations proceed successfully into their sixth year.  Our total depleted resource is broadly equal to the undepleted resource before mining commenced, inclusive of the satellite prospects.  This highlights the value of the exploration undertaken over recent years, with approximately 125,000 ounces of gold having been added to the resource base since start-up.

"For the first time since our Feasibility Study, we are also reporting a major update to our Reserves since operations commenced in 2017.  This is particularly relevant given we have now produced more gold from Kiziltepe than envisaged in the Feasibility Study, despite having only mined for 5 years out of a projected 8-year mine life.  Significantly our remaining Resources and Reserves include the remaining parts of Arzu South, Arzu North, Derya and possible future mining areas at Banu, Kepez West, Karakavak, Kizilcukur and Ivrindi.  Late last year we commenced mining and haulage of high-grade ore (7-8 g/t Au) from Kepez North, and this is likely to be followed by many other satellite operations in the coming years.

"The increase in Reserves is an outstanding success, with our current Reserve tonnage of 1.1Mt being equal to that of our pre-operational Reserves in early 2017.  This revised Reserve is expected to support at least three years of additional higher-throughput production at a conceptual rate of c. 25,000 ounces of gold per annum, and enable the doubling of total life of mine output, as compared to the Feasibility Study.  With the additional conversion of Resources to Reserves in the coming years, we are currently expecting operations at Kiziltepe to continue through to 2026 and are planning accordingly.  In addition, several significant Exploration Target areas, which are not included in current conceptual planning, could be converted to Resources and Reserves with further exploration and resource development work within the next few years."

Introduction

Between late 2021 and early 2022, the Ariana and Zenit teams undertook a significant new drilling programme across the Kiziltepe Sector (Figure 1), following which an extensive re-estimation of Mineral Resources, Ore Reserves and Exploration Targets were completed.  Additionally, the team have also re-assessed historically announced resources contained within other deposits which are located within potential haulage distance of the Kiziltepe Processing Plant.  These deposits include the satellite areas of Kepez, Kizilcukur and Ivrindi.

This announcement summarises the modelling and Resource Estimation methods, in addition to the approach taken for Reserve Estimation and the definition of the Exploration Target at Kiziltepe.  The classified resources include all Kiziltepe Sector resources, as detailed in the separate JORC Table 1's specific to each project which are provided on the Ariana Resources website for further reference.

This latest iteration of the Resource Estimate includes the addition of 12,579 metres of new diamond drilling data, which was announced systematically through 2021, as assay results became available.  The 2021 drilling programme focused on the expansion of resources at four main areas within Kiziltepe: Arzu South, Arzu North, Derya and Banu.  Where possible, additional drilling was also completed to enable the better definition of peripheral Exploration Target areas.  

Also included here are the summary results of a new pit optimisation study which uses and integrates the latest resource model and mine reconciliation data.  This work was completed internally by the Zenit Mining team and is incorporated into Ariana's own evaluations.  With the aim of outlining a Global Resource for the Kiziltepe Sector, the total resource and reserve figures stated within this announcement also include the following areas:  

·      Kepez West (RNS 31 May 2018, unrevised) and Kepez North (RNS 21 July 2021, updated here), located 16.7km haulage distance from Kiziltepe Mine; since November 2021, haulage of surface scree material commenced from Kepez North.

·      Kizilcukur (RNS 11 May 2020, unrevised).

·      Ivrindi (RNS 29 Oct 2013, unrevised) completed in accordance with JORC 2004.

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Figure 1: Kiziltepe Sector summary map (top) and Kiziltepe, Kepez and Karakavak area map (bottom) showing estimated resources, primary access routes and locations of significant mineralisation and exploration opportunities.

Kiziltepe Resource and Reserve Estimate

The new Mineral Resource and Reserve Estimate is prepared in accordance with JORC 2012 and is based on 275 diamond drill holes (26,235 m), 164 RC drill holes (16,066 m), 15 rotary air blast (RAB) holes (348 m) and 130 rock-saw channels (975 m) as well as in-pit grade control sampling data (over 101,830 m across 2,111 lines perpendicular to mineralisation).

This data was collectively reviewed and modelled to create representative three-dimensional mineralisation domains for the vein mineralisation and host rock alteration typical of the Kiziltepe deposit.  Estimation of grade and tonnage was attributed to the mineralisation models based on internal and external laboratory assay data, and drill core density studies (where available), undertaken by the on-site geologists.

A three-dimensional block model was constructed from the mineralisation model based on optimal data spacing parameters as defined by the Zenit mining team.  This was then reconciled against all existing production numbers since operations commenced in 2017.  This reconciliation was completed on a pit-by-pit and bench-by-bench basis to ensure that any remaining or newly defined down-dip and/or along strike mineralisation was accurately modelled within the grade/tonnage expectations of the mining team.

Finally, the appropriately reconciled mineralisation model and associated block models were subjected to a new open-pit optimisation study completed internally by the Zenit mining team, under revised economic input parameters according to the latest economic and processing factors.  Measured and Indicated Resources captured by the latest pit-shells produced during this study are included as Proven and Probable Ore Reserves.  Taking the Arzu North area as an example, it is apparent that the existing open-pit can be expanded further to the northwest based on the revised Mineral Resource Estimate (Figure 2). 

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Figure 2: Current status of the Arzu North open-pit, taken from the southeastern pit wall.  The main vein structure is seen in the far northwest wall of the pit (reddish tinged rock) and continues for a further 570 m in that direction beyond the pit boundary.  This is likely to become an important exploration and resource development area in the future.

Kiziltepe Geological Modelling

The Kiziltepe vein system is low-sulphidation epithermal in character and typically dips 75-85° towards the northeast, and occurs with associated wallrock alteration halos which are also mineralised in places.  This vein system is modelled here using assay data, geological logging and three-dimensional interpolation modelling methods.  This was completed within Leapfrog Geo 6.0, using the "Vein System" tool to define mineralisation domains based on manually isolated economic drill composites.  Economic composites with up to one meter of internal dilution were defined by nominal 0.5g/t Au, 1.0g/t Au and 2.0g/t Au modelling cut-offs (depending on the vein being modelled).  Lower grade or peripheral intercepts were domained as Alteration Halos using standard interpolation modelling methods and lower modelling cut-offs set at 0.25g/t Au, then clipped using the vein model volumes to create an interlocking vein and alteration model.  The continuity of the various structures is reflected in the Mineral Resource classification.  Exploration target areas on the periphery of the vein system are defined by surface vein mapping, rock-chip and channel sampling assay results and drilling where available.  A 0.25g/t Au modelling cut-off was applied to define the JORC Exploration Targets.  

Kiziltepe Estimation Methodology for Resources

Tonnage and grade estimation of the defined mineralisation and alteration domains was completed using Leapfrog EDGE.  This was done using an Inverse Distance Weighting Squared (IDWS) estimation method, with a three-pass search approach to outline mineralisation to enable later classification according to the spacing of sample and assay data.

Top-cuts applied to the mineralisation model (where required) ranged from 8g/t Au to 20g/t Au and 200g/t Ag to 400g/t Ag for vein domains.  Additional top-cuts were also applied to the alteration halo model domains.  These were applied based on specific areas within the vein system; Arzu South 10g/t Au and 200g/t Ag, Arzu North 5g/t Au and 200g/t Ag and Derya 5g/t Au and 100g/t Ag. Further details concerning the use of top-cuts is described in JORC Table 1 for Kiziltepe (see Appendix).

Compositing of assay data was completed within Leapfrog EDGE, using a 1m best fit routine within the domain boundaries.  Hard domain boundaries were applied to all deposit models, which forced all samples to be included in one of the composites by adjusting the composite length, while keeping it as close as possible to the selected intervals of 1m.  

Specific density averages were applied to both the mineralisation and alteration models based on diamond drill core data defined from 4,794 sample measurements.  A statistical review of this data captured within each geological domain has highlighted that density varies across the Kiziltepe system with depth, varying locally from vein cluster to vein cluster.  For the purposes of this MRE update, average densities applied to the various areas within the Kiziltepe area are as follows:

The block model used is a non-rotated conventional model with no sub-blocking applied (Figure 3).  The block models were constructed using a 1m E by 5m N by 5m RL parent block size.  Isotropic search ellipses and ranges were used.  The variable orientation function (dynamic anisotropy) was used in Leapfrog EDGE to better represent the grade distribution.  Estimation was carried out using IDWS at the parent block scale using a three-pass estimation using all available composites within the hard boundary.  The IDWS method was selected as the most suitable method of interpolation for this deposit, as there is not sufficient nugget affect to warrant an IDWC method. 

The estimates were completed separately for vein and alteration halo.  Domaining the alteration halo separately minimises cross-boundary extrapolation of grades from the main vein to the alteration halo and vice versa.  Areas of alteration and Exploration Targets have been modelled above a 0.2g/t Au cut-off grade and reported above a 0.75g/t Au cut-off grade (Figure 4).  Veins have been modelled above a 1.0g/t Au cut-off and reported above a 1.0g/t Au cut-off grade.  Cut-off grade is based on assumptions concerning mining and processing cost, metallurgical recovery and metals prices.  

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf 

Figure 3: Oblique view of the Kiziltepe undepleted block model of veins and alteration halos (shown in g/t Au) forming the Mineral Resource Estimate and Exploration Target areas, facing north (top). Current and newly (2022) optimised pits for Arzu South, Arzu North, Derya and Banu are shown (bottom). The Kepez area is not included in this figure.

During the review of the Kiziltepe MRE, a visual validation between drillhole data, composite data and block model data was carried out.  The estimate was also compared to reconciliation data.  No mining factors (i.e., dilution, ore loss, recoverable resources at selective mining block size) have been applied to the Resource Estimate.  Likewise, no metallurgical factors have been applied, however, the Kiziltepe Processing Plant has life of mine (LOM) average recoveries of 92% and 75% for gold and silver, respectively.  It is assumed that the remaining ore will be mined via open-pit operations with ore material hauled to the Kiziltepe Processing Plant for gold and silver extraction using the carbon-in-leach (CIL) method.

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf 

Figure 4: Kiziltepe vein system showing current mining areas and exploration target areas, including working pit outlines and 2022 optimisation pit outlines.  This map does not show the Kepez area.

Kiziltepe Estimation Methodology for Reserves

For each of the stated Reserves documented here, no estimation input parameters were altered (with one exception, as detailed below), from the Mineral Resource Estimate reported.  Conversion of Mineral Resources to Ore Reserves occur following the application of modifying factors, including economic studies, metallurgical response and permitting.

Recent work completed during the Kiziltepe annual mine reconciliation review determined that the application of a soft boundary with a 1-meter range to the vein or primary mineralisation domain resulted in more accurate correlation between modelled resources and reported ore mined, specifically in the areas of Arzu North and Derya.  Accordingly, the estimation input parameters were modified to provide more realistic optimisation inputs for forward mine planning.  This result is particularly significant in the Arzu North area, where vein swarms are significantly more stockwork-like in nature.

Changes in the estimation boundary type from hard to soft allows for more accurate representation of what is classified as ore, enabling the grade of material classed as "quartz veins" to be marginally influenced by the grade of "altered wall-rock" material.  This has been proven in practice, particularly during the mining of Arzu North where vein widths of less than 1.5m in altered wallrock (defining lower grade ore) become mixed with the primary ore, lowering its overall grade.  Further details on these modifications to the Kiziltepe Mineral Resource Estimate vs Ore Reserve Estimate is noted in the attached JORC Table 1.  These changes were applied only to the main Kiziltepe veins (Arzu South, Arzu North and Derya) in the absence of data for other areas.

Kiziltepe Pit Optimisation Study

Through early January 2022, the Zenit mining team have completed an extensive peer review of the Ariana MRE studies, adding specific guidance on their experiences of mining at Kiziltepe over the last five years.  The Kiziltepe resource model was then subjected to a revised open-pit optimisation study using revised 2021/2022 economic input parameters in line with current production forecasts (Figure 5).  Mineral Resources classified as Measured and Indicated, and captured within the latest optimisation study, have been defined as Proven and Probable Reserves, respectively.  The latest open-pit optimisation results based on the addition of the 2021 drilling and the latest Measured and Indicated Mineral Resources for Kiziltepe only (not including the Reserves defined at Kepez or Kizilcukur), indicate a mine life of approximately two years, for approximately 52,500oz Au and 871,000oz Ag (Table 4).  The addition of production from satellite areas such as Kepez and Kizilcukur could extend mine life further to approximately three years.  Minor variation on the Reserves based on the optimisations are expected as a result of future mine design requirements. 

Details of key input parameters for the 2022 Kiziltepe optimisation study can be found within Section 4 of the Kiziltepe JORC Table 1. 

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Figure 5: Oblique projection of the Kiziltepe vein system, showing the important development areas of Arzu South, Arzu North, Derya and Banu, with the veins shown in red.  The open-pits currently in place or being worked toward are the 2019 designed pits.  The revised pits will approximate the shape of the 2022 optimisation outputs. 

Kepez North Resource Estimate

In July 2021, a MRE update was announced for Kepez North (Figure 6).  This was based on new drilling completed as part of the wider Kiziltepe Sector development programme.  Since the publication of this MRE, a second phase of drilling was completed during September 2021 on a grid pattern.  This drilling was completed as a priority to support the commencement of mining activities, which were scheduled to commence in November 2021.  The additional drilling brings the total drilling at Kepez North to 2,470m across 45 holes, of which 1,173m was drilled for 23 holes in 2021. 158m of channel sampling was used to support the estimate.  An average specific gravity value of 2.6 g/cm³ was used for vein and 2.55 g/cm³ for scree material based on specific gravity measurements on core samples and operational data from the Kiziltepe Mine.  The new drilling data is incorporated into the resource model and the revised estimation is presented here. 

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf 

Figure 6: Kepez North block model, with designed pit outline, shown facing east (top) and in section facing north (bottom).

Kiziltepe Sector JORC Exploration Targets

Through 2021, the Ariana team continued to develop various exploration targets areas within and around Kiziltepe.  This work is critical for generating future sources of potential ore for production at the Kiziltepe Processing Plant following the depletion of current Reserves.  The areas included in the Exploration Target include a series of underexplored outcropping sub-cropping epithermal quartz veins situated at the periphery of more well-defined parts of the Kiziltepe vein system and elsewhere across the Kiziltepe Sector.  These targets include, but are not limited to: Ceylan, Derya West, Fidan, Hale and Karakavak.

The Exploration Target defined here is prepared in accordance with JORC 2012 and are defined by Ariana with the support of a variety of data sources to which a range of confidence is applied.  The ranges of potential volumes, tonnages and grades for these Exploration Targets are expressed in accordance with the guidance of JORC 2012.  This Exploration Target is based on geological modelling and estimated separately from the Mineral Resources provided here.  As with Inferred Resources, the defined Exploration Targets are not included in further economic studies.

The Exploration Target summarised here is defined by surface geological mapping (1:1,000 to 1:5,000 scale), surface rock-chip and channel sample assay results and any available drilling.  As an example, the Exploration Target defined at Karakavak is supported by over 1,000m of diamond and RC drilling, soil assay and pXRF analysis, and systematic rock-saw channel sampling.  However, in this case, this area still lacks sufficient data to appropriately upgrade to Inferred Resources.  

Tonnages for all defined targets are generated from volumes produced during interpolation modelling from mapped surface outcrops, associated geochemistry and drilling.  The models produced are generated using a 0.25g/t Au modelling cut-off, and are constrained to a maximum thickness, typically ranging from 1.5-3.0m, based on outcrop measurements and drill intercept true thickness lengths.  Estimated gold and silver grade ranges are defined either using the arithmetic mean of surface samples or drill intercept samples.  Whichever variable produces the lowest mean results is used to represent the minimum grade and vice versa.  For silver grades, where sample values are typically low (less than 5g/t) a set value of 5g/t Ag was applied based on evidence of broader mineralisation from known and defined vein extensions within the area.

Resource Classification

The Mineral Resource is classified and reported in accordance with the 2012 JORC Code (JORC Table 1) as Measured, Indicated and Inferred (Table 1 and 2) and is reported in both undepleted and depleted forms, inclusive of Reserves (Table 4).  The classification is determined based on search pass spacing, with confidence increasing with proximity to drill holes.  Table 3 shows the Exploration Target reported in accordance with JORC (2012).

Table 1: Summary of undepleted 2022 Kiziltepe Sector MRE (including Kiziltepe, Kepez, Kizilcukur, and Ivrindi), classified and reported in accordance with JORC 2012 (see associated JORC Table 1's for details).  Reporting is based on cut-off grades as noted in the table.  See Table 2 for depleted resources.  All figures are quoted gross with respect to Zenit.  Figures in the table may not sum precisely due to rounding.

Table 2: Summary of depleted 2022 Kiziltepe Sector MRE (including Kiziltepe, Kepez, Kizilcukur and Ivrindi), classified and reported in accordance with JORC 2012 (see associated JORC Table 1's for details) and excluding material mined to end November 2021.  Reporting is based on cut-off grades as noted in the table.  See Table 1 for undepleted resources.  All figures are quoted gross with respect to Zenit.  Figures in the table may not sum precisely due to rounding.

Table 3: Updated Exploration Target (reported in accordance with JORC 2012) originally established in 2017 for several additional vein systems and vein extensions at Kiziltepe based on geological modelling and grade estimations provided by along-strike and down-dip extrapolation of average grades from drilled sections of the same vein systems (January 2022).  A density of 2.5 g/cm³ is applied to estimated volumes to determine tonnage.  All figures are quoted gross with respect to Zenit.  Figures in the table may not sum due to rounding.

Reserve Classification

The Ore Reserves are classified and reported in accordance with the 2012 JORC Code (JORC Table 1) as Proven and Probable (Table 4).  The classification is determined based on search pass spacing, with confidence increasing with proximity to drill holes.  In addition to in-situ Reserves, stockpiled ore amounting to 308,350 tonnes, is also included as Proven Ore Reserves.  Reserves stated below in Table 4 are included in the resources stated in Tables 1 and 2.

Table 4: Summary of the 2022 Kiziltepe Sector Reserves (Kiziltepe, Kepez and Kizilcukur), classified and reported in accordance with JORC 2012, based on the 2022 Kiziltepe Sector Resources with modifying factors applied.  Reporting is based on a 0.75 and 1g/t Au economic cut-off grade for alteration halos and veins, respectively.  Kiziltepe Reserves include ore in stockpiles to end of December 2021.  Reserves are included in the Resources stated in Tables 1 and 2.  All figures are quoted gross with respect to Zenit.  Figures in the table may not sum precisely due to rounding.

Sampling and Assaying Procedures

All diamond drill core was processed at the Kiziltepe mine site and analysed at the Kiziltepe Mine Laboratory.  The analytical results were assessed systematically according to each individual vein system within the Kiziltepe Sector.

For the most recent drilling programme, HQ size drill-core samples from Kiziltepe were cut in half by a diamond saw and sent for analysis in batches in line with the Company's quality control procedures.  QA/QC sample insertion rates vary depending on the batch size accepted by the laboratory.  For samples sent to Kiziltepe Mine Laboratory, a batch consists of 20 samples (incl. 1 blank, 1 CRM, 1 field duplicate and 1 internal Zenit lab sample) with an insertion rate of 16%.  For samples sent to ALS Global, Izmir, a batch consists of 35 samples (incl. 1 blank, 1 CRM, 1 field duplicate and 1 pulp duplicate) for an insertion rate of 11%. 

Core recovery for all drilling conducted at Kiziltepe is >90% for all mineralised zones, with >93% for diamond and >88% for RC drilling for all core (vein and host rock).  Core recovery for the 2021 Kiziltepe drill programme is 92%.  Drilling completed at Kepez in 2021 resulted in an average recovery for all core at 77%, the lower recovery due in part to the significant drilling which occurred in already broken rock.  More detail on recoveries for each project is available in JORC Table 1 specific to each project.

Between 2020 and 2021, the Kiziltepe Mine Laboratory has been undergoing an extensive expansion to meet the significant demands for sample assaying, from both the mining and exploration teams.  This expansion is now largely complete with the onsite laboratory now housing seven furnaces, two ICP-OES instruments, two Atomic Absorption Spectrometers (AAS), three drying ovens, three crushers and three pulverisers. The laboratory upgrades now allow the Zenit team to increase their sampling throughput by 48% (70 samples per day to 135). The two major upgrades for 2021 included with the above mentioned is the addition of 1) a multi-element ICP-OES (PerkinElmer Avio 550) analyser, and 2) an Elementrac CS-i sulphur-carbon analyser. The ICP-OES is currently operational and now provides the team with a full suite of elements on selected samples (as opposed to just gold and silver). However, new operating procedures are currently being internally reviewed and calibrations of the new instruments are being assessed.  As part of this, the laboratory team are sending in excess of 10% of their crushed rejects from selected drill core samples to ALS Global in Izmir for check assays.  To date, these results have not yet been received, and as such, a full validation of Zenit's new laboratory procedures has not been fully completed.  However, Zenit's internal QA/QC data and sample duplicates have been reviewed, and are considered satisfactory for Ariana's reporting purposes.  In addition, the Kiziltepe laboratory meets the standard of "TS EN ISO/IEC 17025 General Requirements for the Competence of Experimental and Calibration Laboratories".

All samples were assayed for gold using a 30g or 50g fire assay, depending on the generation of drilling and lab-specific protocols since 2006 (and any drilling undertaken prior to Ariana).  Reviews of the assay results have determined that all Quality Control and Quality Assurance samples (blanks, standards and duplicates) passed the quality control checks established by the Company, with duplicate samples showing excellent correlation.  Laboratory sample preparation, assaying procedures and chain of custody are appropriately controlled.  The Company maintains an archive of half core samples and a photographic record of all cores for future reference.

Contacts:

Editors' Note:

The Mineral Resource estimate was prepared by Zack van Coller, BSc (Hons), Special Projects Geologist, a Competent Person as defined by the JORC Code. The estimate was reviewed internally by Ruth Bektas BSc (Hons) CGeol EurGeol, Projects Analyst, Ariana Resources plc.  Miss Bektas is a Competent Person as defined by the JORC Code, 2012 Edition.  Chief Mine Planning Engineer, Kadir Turan BSc, is responsible for the optimisation study and mine designs.  The results are reported in accordance with the JORC Code, under the direction of Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana Resources plc, and a Competent Person as defined by the JORC Code.  Miss Bektas and Dr. Sener have reviewed the technical and scientific information in this press release relating to the Mineral Resource and Reserve estimates and approve the use of the information contained herein.

The information in this announcement that relates to exploration results is based on information compiled by Dr. Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana Resources plc. Dr. Sener is a Fellow of The Geological Society of London and a Member of The Institute of Materials, Minerals and Mining and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity that has been undertaken to qualify as a Competent Person as defined by the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and under the AIM Rules - Note for Mining and Oil & Gas Companies.  Dr. Sener consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company with an exceptional track-record of creating value for its shareholders through its interests in active mining projects and investments in exploration companies. Its current interests include gold production in Turkey and copper-gold exploration and development projects in Cyprus and Kosovo. 

The Company holds 23.5% interest in Zenit Madencilik San. ve Tic. A.S. a joint venture with Ozaltin Holding A.S. and Proccea Construction Co. in Turkey which contains a depleted total of c. 2.1 million ounces of gold and other metals (as at February 2021). The joint venture comprises the Kiziltepe Mine and the Tavsan and Salinbas projects. 

The Kiziltepe Gold-Silver Mine is located in western Turkey and contains a depleted JORC Measured, Indicated and Inferred Resource of 222,000 ounces gold and 3.8 million ounces silver (as at February 2021). The mine has been in profitable production since 2017 and is expected to produce at a rate of c.20,000 ounces of gold per annum to at least the mid-2020s. A Net Smelter Return ("NSR") royalty of 2.5% on production is being paid to Franco-Nevada Corporation.

The Tavsan Gold Project is located in western Turkey and contains a JORC Measured, Indicated and Inferred Resource of 253,000 ounces gold and 0.7 million ounces silver (as at June 2020). The project is being progressed through permitting and an Environmental Impact Assessment, with the intention of developing the site to become the second joint venture gold mining operation. A NSR royalty of up to 2% on future production is payable to Sandstorm Gold. 

The Salinbas Gold Project is located in north-eastern Turkey and contains a JORC Measured, Indicated and Inferred Resource of 1.5 million ounces of gold (as at July 2020). It is located within the multi-million ounce Artvin Goldfield, which contains the "Hot Gold Corridor" comprising several significant gold-copper projects including the 4 million ounce Hot Maden project, which lies 16km to the south of Salinbas. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation.

Ariana owns 100% of Australia-registered Asgard Metals Fund ("Asgard"), as part of the Company's proprietary Project Catalyst Strategy. The Fund is focused on investments in high-value potential, discovery-stage mineral exploration companies located across the Eastern Hemisphere and within easy reach of Ariana's operational hubs in Australia, Turkey and the UK.

Ariana owns 75% of UK-registered Western Tethyan Resources Ltd ("WTR"), which operates across Eastern Europe and is based in Pristina, Republic of Kosovo.  The company is targeting its exploration on major copper-gold deposits across the porphyry-epithermal transition.

Ariana owns 50% of UK-registered Venus Minerals Ltd ("Venus") which is focused on the exploration and development of copper-gold assets in Cyprus which contain a combined JORC Indicated and Inferred Resource of 16.6Mt @ 0.45% to 1.10% copper (excluding additional gold, silver and zinc).

Panmure Gordon (UK) Limited is broker to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser and Broker.

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

Glossary of Technical Terms:

"Ag" chemical symbol for silver;

"Au" 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" grams per tonne;

"IDWC" Inverse Distance Weighted Cubed is a conventional mathematical method used to calculate the attributes of mineral resources.  Near sample points have a greater weighting than samples further away for any given resource block. The cubed method gives even stronger weighting to close samples than the squared method;

"IDWS" Inverse Distance Weighted Squared is a conventional mathematical method used to calculate the attributes of mineral resources.  Near sample points have a greater weighting than samples further away for any given resource block, although the squared method gives less weighting to close samples than the cubed method;

"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.

"JORC" the Joint Ore Reserves Committee;

"JORC 2012" is the current edition of the JORC Code, which was published in 2012.  After a transition period, the 2012 Edition came into mandatory operation in Australasia from 1 December 2013;

"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 drillholes. The locations are spaced closely enough to confirm geological and grade continuity;

"Mt" million tonnes;

"oz" Troy ounces;

"Probable Ore Reserve" is the economically mineable part of an Indicated, and in some cases, Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proven Ore Reserve;

"Proven Ore Reserve" is the economically mineable part of a Measured Mineral Resource. A Proven Ore Reserve implies a high degree of confidence in the Modifying Factors.

Ends.