24 March 2022

AIM: AAU

EXPLORATION ALLIANCE AND INVESTMENT AGREEMENT

Ariana Resources plc ("Ariana" or the "Company"), an AIM-listed mineral exploration and development company with gold mining interests in Europe, is pleased to announce an Exploration Alliance Agreement (the "Alliance") and investment with Newmont Corporation ("Newmont") regarding exploration in south-eastern Europe via Ariana's 75%-owned Western Tethyan Resources Ltd ("WTR").  The Alliance will focus on copper and gold exploration within Bosnia and Herzegovina, Bulgaria, Greece, Kosovo, North Macedonia and Serbia, utilising the teams established by WTR and Ariana.

Highlights:

·      Newmont to invest US$2.5 million in Ariana based on a 10% premium to a 30-day volume-weighted average price ("VWAP"), to enable the funding of the Alliance's activities, in addition to providing access to Newmont's Regional Database.

·      The Alliance between Newmont, Ariana and WTR to run for an intial period of 5 years; such period being mutually extendable with future funding requirements of the Alliance to be met by Newmont, via an option to further invest in Ariana.

·   In the event the Alliance is successful in identifying a project of sufficient merit for further development by Newmont, such project will be transferred to a dedicated "Mining Company", which will initially be held 100% by WTR.

o  Newmont will invest a further US$1 million in the Mining Company over a further period of two years, enabling it to earn-in to 60% in such Mining Company.

o  Expenditure of a further US$15 million on a pre-feasibility study, which establishes a JORC or NI43-101 resource of over two million ounces of gold, will enable Newmont to earn-in to 75%.

o  Should Newmont decide to develop a mining project, funding will be on a pro-rata basis unless WTR elects not to contribute, in which case Newmont will earn-in to a maximum of 85%.

o  If either party withdraws from the Mining Company or dilutes below 10%, such party will relinquish its interest in return for a 2% NSR.

·      On conclusion of the Alliance term, and in the event that no Mining Company is established, Ariana, WTR and Newmont will each retain a copy of the Alliance Database, with Ariana granting a 1% NSR and WTR granting a 0.75% NSR to Newmont.

·      Separately, Newmont, Ariana, and Galata Mineral Madencilik Sanayi ve Ticaret A.S. have agreed to the amendment and extension until March 2031 of an existing non-exclusive database licence agreement primarily comprising Newmont's Turkish exploration database to account for Ariana holding its Turkish interests through Zenit Madencilik San. ve Tic. A.S.

Dr. Kerim Sener, Managing Director, commented:

"We are exceptionally pleased to partner with Newmont on the exploration for large-scale copper-gold deposits across south-eastern Europe, via Western Tethyan Resources.  This is an area that was previously explored primarily in the 1980s and 1990s by entities since absorbed into the Newmont group, such as Normandy Mining.  Accordingly, the partnership is benefitting from substantial data historically collected by Newmont upon which we are undertaking a comprehensive targeting exercise.  Newmont is also providing significant exploration expertise including the potential deployment of several proprietary exploration technologies.

"In addition, we are pleased to be renewing our exisiting data licence agreement with Newmont, primarily encompassing the region of Turkey.  This agreement was due to expire in 2023, but will now be extended to March 2031 under slightly revised terms, to reflect the decreased ownership of our interests in Turkey through Zenit Madencilik.  We are continuing to look out for prospective exploration opportunities across this region and having access to Newmont's data and resources enables us to target exploration more effectively."

Mentor Demi, Managing Director of Western Tethyan Resources Ltd, commented:

"Partnering with the industry's largest gold mining company, Newmont, and deepening our relationship with Ariana will enable us to unlock the mineral potential of south-eastern Europe.  Globally, outcropping mineral deposits have been discovered and developed but south-eastern Europe, to date, remains one of the last underexplored and prospective area plays in the world.

"With our extensive expertise in the region and Newmont's significant capabilities, database and exploration technologies, we are confident that we will make several new copper-gold discoveries and consequently extend our cooperation beyond the initial 5-year period."

Contacts:

Editors' Note:

About Western Tethyan Resources Ltd:

Western Tethyan Resources Ltd ("WTR") is a UK registered, Kosovo-domiciled company holding exploration licence applications in Kosovo through its 100%-owned subsidiary Kosovo Mineral Resources LLC ("KMR").  The company is currently focused on exploration for major copper-gold deposits in the Lecce Magmatic Complex and Vardar Belt.  The company is assessing several other exploration project opportunities across south-eastern Europe, targeting major copper-gold deposits across the porphyry-epithermal transition.  It is the intention of the company to progress to drill testing its projects within the shortest possible timeframe. 

Further information on WTR can be found at the company's website at: www.westerntethyanresources.com

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 2022). 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 2022). 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). Following the approval of its Environmental Impact Assessment, resulting permitting work is ongoing to develop Tavsan as the second joint venture gold mining operation in Turkey. 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 south-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.  WTR is being funded through a five-year Alliance Agrement with Newmont Corporation (www.newmont.com).

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 17Mt @ 0.45% to 1.10% copper (excluding additional gold, silver and zinc), in addition to pursuing a separate 50:50 JV on Hellenic Apliki Mines, which owns the Hellenic SX-EW processing plant and 11Mt @ 0.25% to 0.69% Cu Apliki mine development project. 

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.

Ends.