Arian Silver Completes GBP3.9 Million Brokered and Non-Brokered Placement

October 25th, 2010

LONDON, ENGLAND—(Marketwire - Oct. 25, 2010) - Arian Silver Corporation (“Arian” or the “Company”) (TSX VENTURE:AGQ)(AIM:AGQ)(PLUS:AGQ)(FRANKFURT:I3A), a silver exploration, development and production company with a focus on projects in the silver belt of Mexico, is pleased to announce the closing of the brokered and non-brokered placement (the “Placement”) previously announced on 18 October 2010.

Jim Williams, Arian’s President and CEO commented, “The funds raised today will enable Arian to proceed with its objective of advancing the drilling programme at its 100%-owned and producing San Jose mine. Funds will also be used towards the purchasing of plant and equipment as well as upgrades to infrastructure in relation to the contract mining and milling operation at San Jose. The mill improvements will increase our throughput and silver recoveries and leading to increasing cash flows at a time when commodity fundamentals are very strong.”

The Placement has raised gross proceeds of £3,888,800 and comprised 21,604,435 common shares of the Company at 18p per common share.

Subscriptions in respect of the brokered portion of the Placement amounted to £3,115,000 for 17,305,547 common shares. These common shares are subject to a restriction to the effect that they cannot be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident prior to 26 February 2011.

Sprott Asset Management (“Sprott”), an insider of the Company, has subscribed £773,800 on behalf of funds it manages, for 4,298,888 common shares in respect of the non-brokered portion of the Placement. These common shares are subject to a hold period expiring on 26 February 2011.

Admission of the Placement common shares to trading to the AIM of the London Stock Exchange will take place at 8.00 am today.

Following Admission, the Company will pay XCAP Securities Plc a fee of £194,440, to be settled in cash.

The participation of Sprott in the Placement constitutes a “related party transaction” under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) of the Canadian Securities Administrators, but the Company is exempt from both the formal valuation and minority shareholder approval requirements of MI 61-101 in connection with the placement as neither the fair market value of the securities issued, nor the consideration for such securities, in so far as it involves the interested party, does not exceed 25% of the Company’s market capitalization as calculated pursuant to MI 61-101.

For purposes of the AIM Rules, Sprott is classified as a Substantial Shareholder in the Company. As such, its participation in the Placement constitutes a Related Party Transaction. The directors of the Company, having consulted with Grant Thornton Corporate Finance, consider the terms of Sprott’s participation in the Placement to be fair and reasonable so far as the shareholders are concerned.

As a result of the Placement, the Company has in issue 267,772,742 common shares, with voting rights.

For more information, please contact:
Arian Silver Corporation
Carlyle House
235-237 Vauxhall Bridge Road
London SW1V 1EJ
England

Arian Silver Corporation
Jim Williams
CEO
(London) +44 (0)20 7963 8670
jwilliams@ariansilver.com

Arian Silver Corporation
Graham Potts
CFO & Corporate Secretary
(London) +44 (0)20 7963 8670
gpotts@ariansilver.com

Grant Thornton Corporate Finance
Gerry Beaney
(London) +44 (0)20 7383 5100
gerry.d.beaney@gtuk.com

XCAP Securities PLC
John Grant / Karen Kelly
(London) +44 (0)20 7101 7070
John.Grant@xcapgroup.com
Karen.Kelly@xcapgroup.com

Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)20 8980 3545
dominic@yellowjerseypr.com

CHF Investor Relations
Alison Tullis
(Canada) +1 416 868 1079 Ext. 233
alison@chfir.com

Forward Looking Information:
This press release contains certain “forward-looking statements”. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the anticipated use of proceeds from the Placement and benefits from mill improvements) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to the failure to implement mill improvements.

Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information contained herein.
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