3 August 2022

AIM: AAU

2022 HALF-YEAR PRODUCTION RESULTS

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 its half-year production results for 2022 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey.  Kiziltepe is 23.5% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").

Production Update*:

·    Gold production guidance for 2022 from Kiziltepe is maintained at c. 25,000 ounces of gold*; production during H1 2022 was 13,378 ounces of gold, c. 7% above forecast for the period.

·    Average monthly mine production during H1 2022 was c. 22,600 tonnes of ore and a stockpile of over 270,200 tonnes has been established, representing 8 months of enhanced production capacity.

·    Mining operations are continuing across all pits; pit expansion is underway at Arzu South and Arzu North, with ore currently being mined from Derya and Kepez.

·    Construction operations are underway at the Tavsan Mine, with workers' accommodation, office facilities and other key infrastructure due to be installed.

* Silver production guidance is not provided, as silver is treated as a by-product credit.  All figures are stated gross to the Project unless otherwise stated.

Dr. Kerim Sener, Managing Director, commented:

"It has been great to see the impressive progress of our operations at Kiziltepe and Tavsan during the past six months.  At Kiziltepe, we remain very much on track to meet our guidance of 25,000 ounces of gold for the year, particularly given our average grade has increased to over 2.5 g/t gold, largely as a result of the high-grade ore currently being blended from Kepez.

"Mining at Kepez is continuing very well and to date approximately 60,000 tonnes of ore at an average grade of 5.04 g/t gold has been extracted.  We are expecting mining to continue at Kepez until the end of the year, although there is further potential to expand this operation once further resource evaluation work is completed.  It is notable that we have already mined more than twice the gold expected from the Reserve established for this area.

"This fortunate situation has not been unique to Kepez.  During the past six years of operation, the gold mined from the Kiziltepe Sector has exceeded our Reserve forecast substantially.  In part this is due to the under-reporting of grade within our drilling results caused by the loss of fines during drilling, in addition to significant additional mineralisation being encountered during mining which occurs along subordinate vein structures. 

"Zenit is now advancing a two-rig drilling programme across the Kiziltepe Sector to further test extensions of known vein systems, with the aim of adding to our Resource and Reserve position.  Significantly, we have now mined 22% more gold than was scheduled from our Feasibility Study and we have at least two more years of Reserves to mine.  This represents an excellent outcome and we would like to congratulate our exploration and mining teams for enabling this substantial uplift to mine output and mine life at Kiziltepe.

"Meanwhile, construction of our Tavsan Mine has formally commenced and we look forward to seeing this mine in operation within approximately 12 months.  Certain project development work is still underway in the background, including a Reserve estimate, which will go hand-in-hand with a finance package that Zenit is expecting to conclude for the project."

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").

Summary of Project

The Kiziltepe gold-silver mine is expected to deliver a total of up to 200,000 oz gold based on current Reserves, with operations currently projected to conclude during 2025.  The operating company, Zenit Madencilik San. ve Tic. A.S., is a partnership between Ariana (23.5%), Proccea (23.5%) and Ozaltin (53%).  Management control of the partnership lies with Proccea.  Commercial production was initiated at Kiziltepe during July 2017 and has continued without interruption to the present, with production consistently being delivered above plan.

The latest resource estimate for Kiziltepe was based on recent drilling and geological interpretation in February 2022.  Detailed technical and economic assessments are underway on several satellite vein systems which are not currently in the mining plan, in anticipation of these being developed in future years.  The Kiziltepe operation is currently targeting an increase in mine life at an enhanced processing rate of 400,000 tonnes of ore per annum.  Ariana is confident that increases to mine life can be achieved following the success of recent exploration and assuming the conversion of existing Resources to Reserves.

Contacts:

Editors' Note:

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 Mine 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 and associated permitting, Tavsan is being developed as the second 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 Agreement 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 the 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.