2 September 2022

AIM: AAU

CONVERTIBLE LOAN AGREED WITH VENUS MINERALS

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 that it has entered into a Convertible Loan Agreement ("CLA") with Venus Minerals Ltd ("Venus") to enable the advancement of the Apliki Project (the "Apliki Project") while Venus pursues its proposed listing on AIM.

Highlights:

·    Convertible secured term loan of £500,000 with a 10% coupon; loan to be used to progress the Apliki Project.

·    Conversion may occur with any accrued interest, at the option of Ariana, on or before the anniversary of the execution of the CLA or when Venus is admitted to trading on a recognised stock exchange at the price of Venus's shares on admission.

·    Ariana will be granted a charge over Venus' shareholding in its operating subsidiary.

·    The Loan is conditional inter alia on confirmation from the Apliki JV partner that the drop-dead date of the Apliki Subscription Agreement has been extended from 30 June 2022 to 31 December 2022; such extension was approved in June.

Dr. Kerim Sener, Managing Director of Ariana, commented:

"We are very pleased to be able to provide the funding for Venus to extend its option to invest into Apliki Project in Cyprus, in addition to some additional funding to progress plans for the mine development programme.  We have recently announced a material update to the Mineral Resource Estimate for this project, which has shown an increase to 17Mt @ 0.26% to 0.69% copper.  This, in turn, should represent a significant improvement to the potential project economics and hence warrants further work to support an improved valuation ahead of the proposed IPO of Venus.  Venus will now focus on reflecting these and other material developments in the documentation being prepared for its AIM IPO, particularly with regard to the proposed capital structure. 

"The Apliki Project will be advanced as a 50:50 Joint Venture ("JV") with HAM whilst Venus maintains management control.  It represents the most advanced copper mining asset in Cyprus with the capacity for at least ten years of mine life.  Venus is working actively with its partners in Cyprus to bring this asset into production.  We would like to congratulate Peter and the rest of the Venus team for bringing about these significant steps forward."

Peter van der Borgh, Managing Director of Venus Minerals, added:

"Venus has identified a number of aspects of the Apliki Project where we believe enhancements to the proposed development will lead to improved project economics. The first of these to deliver significant upside was the Resource upgrade that was published recently.  Our attention is now turning to operational improvements and cost-saving measures and the additional funds secured from Ariana will enable us to work in collaboration with our Cypriot partners on several important studies, not least determining the best solution for generating solar power on the site.

"We are grateful for the continued support shown by Ariana's team and pleased with the confidence they have in the partnership. As previously noted, we find ourselves in an increasingly stronger position as we head towards IPO and continue to remain focused on working closely with our partners in Cyprus to bring the Apliki Project into production." 

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").

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 17Mt @ 0.26% 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.