ARIANA RESOURCES PLC

Earnings Release • Apr 15, 2020

National Storage Mechanism | Additional information

RNS Number : 6163J

Ariana Resources PLC

15 April 2020

15 April 2020

AIM: AAU

Q1 2020 PRELIMINARY PRODUCTION RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed exploration and development company operating in Europe, is pleased to announce its preliminary production results for the quarter ended 31 March 2020 for the Kiziltepe Mine ("Kiziltepe" or "the Project") in Turkey. Kiziltepe is part of the Red Rabbit Joint Venture ("JV") with Proccea Construction Co. and is 50% owned by Ariana through its shareholding in Zenit Madencilik San. ve Tic. A.S. ("Zenit").

First Quarter Preliminary Production Results*:

• Gold production for the quarter was 5,129 ounces (Q4 2019: 7,318 ounces#), exceeding average annualised quarterly guidance by 14%.

• Total ore processed for the quarter was 53,840 tonnes (Q4 2019: 54,735 tonnes) at an average head grade to the plant of 3.22 g/t gold.

• Quarterly open-pit ore mined was 92,482 tonnes, breaking a new record, at an average mined grade of 2.54 g/t gold, and total material movement for the quarter was 1,030,697 tonnes.

• Average metallurgical recovery of gold for the quarter remains high at 92.5%.

* All figures are given gross with respect to the JV.

Dr. Kerim Sener, Managing Director, commented:

"We have entered 2020 with a strong first quarter of production from the Kiziltepe Mine. Unlike the same period last year, production was not impacted by unusually poor weather, resulting in operations proceeding as planned across the Arzu South, Arzu North and Derya pits.

"Material movements from the pits were maintained at near all-time highs, while ore production for the quarter broke a new record. This higher production rate is in part to compensate for the expected reduction in grades from the satellite pits.  Production from our highest-grade pit, Arzu South, is due to be completed during Q3 2020 and production thereafter will be focused on Arzu North and Derya. In addition, the mine has built up a stockpile of over 130,000 tonnes of ore, sufficient to cover at least eight months of mill feed.

"I would like to take this opportunity to thank the mine team for their efforts during a period which coincided with the advent of a global pandemic.  All necessary precautionary measures have been implemented at the mine in order to mitigate the health risk as much as practically possible, and the team has continued to operate without interruption during these trying conditions.  In addition, the Turkish Government has implemented restrictions on movement around Turkey to limit the spread, although this has not impacted the mining industry specifically.  We wish the team and their families well during this time and look forward to maintaining production for the foreseeable future."

Q1 2020 Preliminary Production Results

	Unit	Q1 2020	Q4 2019#	Q1 2019#
Open Pit - material moved (wet)	Tonnes	1,030,697	1,082,303	771,190
Open Pit - ore mined (wet)	Tonnes	92,482	74,034	26,746
Open Pit - mined grade	g/t Au	2.54	3.59	4.04
Process plant throughput	Tonnes	53,840	54,735	46,824
Plant feed grade	g/t Au	3.22	4.42	4.83
Metallurgical recovery	%	92.5	92.2	93.7
Gold produced	Troy Ounces	5,129	7,318	7,296
Silver produced	Troy Ounces	67,459	107,074	84,109

Re-stated following year-end mine and mill reconciliation.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Contacts:

Ariana Resources plc	Tel: +44 (0) 20 7407 3616
Michael de Villiers, Chairman
Kerim Sener, Managing Director
Beaumont Cornish Limited	Tel: +44 (0) 20 7628 3396
Roland Cornish / Felicity Geidt
Panmure Gordon (UK) Limited	Tel: +44 (0) 20 7886 2500
James Stearns / Atholl Tweedie
Yellow Jersey PR Limited	Tel: +44 (0) 20 3004 9512
Dom Barretto / Joe Burgess / Henry Wilkinson	arianaresources@yellowjerseypr.com

Editors' Note:

About Ariana Resources:

Ariana is an AIM-listed mineral exploration and development company operating in Europe. It has interests in gold production in Turkey and copper-gold assets in Cyprus. The Company is developing a portfolio of prospective licences in Turkey, which contain a total of 1.6 million ounces of gold and other metals (as at end-2017).

The Red Rabbit Project is comprised of the Company's flagship assets, the Kiziltepe and Tavsan gold projects, and is part of a 50:50 Joint Venture with Proccea Construction Co. Both assets are located in western Turkey, which hosts some of the largest operating gold mines in the country and remains highly prospective for new porphyry and epithermal deposits. The Kiziltepe Sector of the Red Rabbit Project is fully permitted and is currently in production. The total resource inventory at the Project and its wider area is c. 605,000 ounces of gold equivalent (as at end-2017). At Kiziltepe a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation. At Tavsan an NSR royalty of up to 2% on future production is payable to Sandstorm Gold.

The 100% owned Salinbas Gold Project is located in north-eastern Turkey and has a total resource inventory of c. 1 million ounces of gold equivalent. The project comprises three notable licence areas: Salinbas, Ardala and Hizarliyayla, all of which are located within a multi-million ounce Artvin Goldfield. The "Hot Gold Corridor" contains several significant gold-copper projects including the 4Moz Hot Maden project, which lies 16km to the south of Salinbas and 7km south of Hizarliyayla. A NSR royalty of up to 2% on future production is payable to Eldorado Gold Corporation on the Salinbas Gold Project.

Ariana is also earning-in to 50% of UK-registered Venus Minerals Ltd ("Venus"). Venus is focused on the exploration and development of copper-gold assets in Cyprus.

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

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

Ends.

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