Ariana Resources increase and update of its JORC for the Kiziltepe Project

Ariana Resources plc has told DirectorsTalk this morning about 
an increase and update of its JORC compliant Mineral Resource estimate 
for the Kiziltepe Project following its recent drilling programme in 
Turkey.  Kiziltepe is part of the Red Rabbit Joint Venture with Proccea 
Construction Co. and will be 50% owned by Ariana once mine construction 
is completed in H2 2016. 
 
   Highlights: 
 
 
   -- Overall increase in Mineral Resource estimate of c. 44,500 oz Au and 
      886,000 oz Ag to a total of 195,200 oz Au and 3.15Moz Ag contained metal 
      on four main veins, excluding existing resources on several subsidiary 
      veins such as Kepez.* 
 
 
   -- Substantial increase in tonnage (to c. 2.5Mt) with a corresponding 
      reduction of grade (to c. 2.5 g/t Au and 40.3 g/t Ag) as a result of 
      adoption of revised geological model. 
 
 
   -- Large increase (approx. 45%) in volume of new Whittle-generated pit 
      shells in comparison to designed pits, notably Arzu North and Derya. 
 
 
   -- Whittle base case optimisation demonstrates a potential increase in mine 
      life from c. 8 years to c. 10 years at a designed throughput rate of 
      150,000 tonnes per annum. 
 
 
 
   Dr. Kerim Sener, Managing Director, commented: 
 
   "Following the completion of an extensive review of our geological model 
and the addition of new drilling data, this result is a very pleasing 
update on our resource estimate for the Kiziltepe Mine.  Importantly, 
the discovery cost of these additional ounces is approximately US$5 per 
ounce, which demonstrates the very cost-efficient exploration we are 
able to conduct on this project. 
 
   The resource update, in addition to Whittle optimisation work, 
demonstrates the potential for Kiziltepe to provide for a mine life of 
about 10 years at the designed throughput rate of 150,000 tonnes per 
annum.  This also excludes several subsidiary veins on which we have 
already established resources, which with further work may add further 
to mine life. 
 
   With the enlarged resource and with expectations of further resource 
growth, we are now reviewing our options to potentially increase the 
mine throughput rate up to 200,000 tonnes per annum with our partners, 
Proccea.  Meanwhile, construction at the mine is proceeding well, with 
delivery of the ball-mill to site occurring a few days ago." 
 
   * All Mineral Resource figures in the announcement are quoted gross with 
respect to the Red Rabbit Joint Venture.  Ariana will own 50% of the 
production from the JV when the Kiziltepe Mine is operational. 
 
   Resource Estimate 
 
   Following the completion of a 1,208m Reverse Circulation ("RC") drilling 
programme in December 2015 (see 31 January 2016 Announcement), 
geological consultants Odessa Resources Pty. Ltd. undertook a resource 
estimate for Kiziltepe.  The recent RC drilling coupled with certain 
diamond drilling completed in late 2011 and early 2012, totalling 1,290m, 
was used in the new estimation. 
 
   The new Kiziltepe JORC 2012 compliant Mineral Resource estimate has been 
defined by 213 drill holes and 125 rock-saw channels on 212 
cross-sections with typically 10m section spacing (see JORC Table 1 
below).  Wireframes were constructed using sectional polylines defined 
by a cut-off of 0.5 g/t gold. Several lodes were created from the 
sectional interpretations, which are orientated NW and WNW and typically 
dip steeply at up to 85 degrees towards the northeast (Figure 1) 
comprising four main areas, Arzu South, Arzu North, Banu and Derya. Top 
cuts of 15 g/t Au and 200 g/t Ag were used and a variable bulk density 
ranging between 2.50 and 2.65 g/cm(3) were assigned to the appropriate 
solids and used for the resource estimation.  Grade interpolation was by 
the Inverse Distance Squared ("ID2") method. 
 
   The previous estimate, completed in 2013 by Tetra Tech, identified a 
JORC 2004 compliant Mineral Resource of 1,502,000 tonnes at 3.12g/t gold 
and 46.97g/t silver on four main veins (excluding separate estimates on 
subsidiary veins and alteration halo mineralisation), based on drilling 
completed until 2011.  The addition of 16 diamond holes and 19 RC holes 
undertaken for infill and extension drilling at Kiziltepe completed 
since late 2011, in addition to corresponding modifications of the 
geological model, has increased the Mineral Resource on these four main 
veins to 2,436,315 tonnes at 2.49g/t gold + 40.27g/t silver and has 
confirmed the potential extension of the Arzu structure under cover 
between Arzu South and Arzu North.  This estimate specifically excludes 
several subsidiary veins on which Inferred resources have previously 
been established (for an additional 18,555 oz Au equivalent), such as 
Kepez, Derya West, Aybor, Ceylan and Arzu Far North, in addition to a 
potential 28,230 oz Au equivalent, referred to as "Alteration Halo" in 
the Tetra Tech estimate.  Further drilling, modelling and economic 
assessments will be required on these subsidiary veins and alteration 
halo mineralisation to determine their potential to be included as Ore 
Reserves. 
 
   Table 1: Summary 2016 Kiziltepe JORC 2012 compliant Mineral Resource 
estimate, based on 125 diamond and 76 RC drill holes.  This estimate 
excludes several subsidiary veins such as Kepez, which were a part of 
the previous resource estimate.  Gold equivalent is the sum of the gold 
ounces and the gold equivalent ounces of silver based on a price ratio 
of 60:1. Reporting at a 1/g/t Au cut off, excluding Banu which is 
included in these figures at a 0.5 g/t Au cut-off.  All figures are 
quoted gross with respect to the Red Rabbit Joint Venture. 
 
 
 
 
                  Tonnage   Grade Au  Grade Ag                       Au equiv. 
Classification      (t)      (g/t)      (g/t)    Au (oz)   Ag (oz)     (oz) 
   MEASURED      1,051,491      3.19       43.7  108,009  1,476,700    132,621 
   INDICATED       512,422      2.16       40.6   35,650    668,490     46,792 
   INFERRED        872,402      1.84       36.0   51,545  1,008,906     68,360 
    GLOBAL       2,436,315      2.49       40.3  195,205  3,154,096    247,773