Arian Silver Corporation Announces Results for the 12 Months Ended December 31, 2006

April 30th, 2007

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Not for Distribution to U.S. Newswire services or for Distribution in the United States

Arian Silver Corporation (“Arian” or the “Company”) is a silver exploration and development company focused on identifying, acquiring and developing resource projects in Mexico. Today it reports audited results for the 12 months ended December 31, 2006. All amounts are expressed in US dollars unless otherwise stated.

HIGHLIGHTS

Financial
  • The Company, formerly Hard Assets Inc. (“HAI”), merged with Arian Silver Corporation Limited (“ASCL”) on the May 24, 2006, and changed its name to Arian Silver Corporation.
  • Following the merger, the Company re-listed on AIM and then listed on the TSX-V and Frankfurt exchanges and PLUS, London trading platform.
  • As at December 31, 2006, the Company had assets of $4.8 million (2005: $1.8 million), including cash of $3.2 million (2005: $1.4 million).
  • Expenditure on projects in Mexico and on other assets in the year was $1.0 million (2005: $0.3 million).
  • Consolidated pre-tax loss before exceptional items for the year of $3.6 million (2005: $1 million) includes non-cash share option expense of $0.9 million (2005: nil). There was an exceptional loss relating to the write-off of goodwill arising on the merger with ASCL of $13.4 million (2005: nil).
Operational
  • Continuing exploration work at the Calicanto Group of projects with a Phase-1 (3,000 metres (“m”)) drilling programme completed and the continuing development of the Calicanto and San Buenaventura ramps.
  • Acquisition of the Tepal Project and the completion of preliminary systematic exploration comprising, but not limited to, a remote sensing and photo-geology survey, and the start of a Phase-1 (3,000m) drilling programme in mid April 2007.
  • Acquisition of the San Jose Project and the completion of preliminary systematic exploration comprising, but not limited to, a remote sensing and photo-geology survey, and the commencement of a Phase-1 (5,000m) drilling programme in early May 2007.
  • Further exploration work at the San Celso Project.
  • The Company owns or has options over 29 concessions covering some 20,000 hectares (“Ha”) of prime silver-bearing property in the Mexican States of Zacatecas and Michoacan.
Arian’s Chief Executive Officer, Jim Williams, said, “We believe the outlook for 2007 is very exciting. Arian is actively seeking additional assets that fall within its target objectives and has scheduled considerable exploration and development work on its existing projects. These activities include: Completion of a phase-one drilling programme at Calicanto, commencement of a significant drilling programme and the completion of a remote sensing survey and aerial mapping at the Tepal concessions, and advanced exploration, including the commencement of drilling at the San Jose mine project. We are optimistic that the results from these activities will delineate compliant silver resources and consequently increase shareholder value.”


MANAGEMENT’S DISCUSSION AND ANALYSIS

A full Management’s Discussion and Analysis of results for the year ended December 31, 2006 (“MD&A”) and audited Financial Statements for the Company for the year ended December 31, 2006 (“Financials”) are available on SEDAR at www.sedar.com or on the Company’s website at www.ariansilver.com. These documents can also be obtained on application to the Company. The following information has been extracted from the MD&A and Financials. The financial information in this announcement has been extracted from but does not constitute full statutory accounts. The Annual Report and Financial Statements for the year ended December 31, 2006 will be sent to shareholders shortly.

FINANCIAL RESULTS

Description


Significant assets were acquired in Mexico through the merger with ASCL in May, 2006 upon which the Company changed its name from Hard Assets Inc. to Arian Silver Corporation and became registered in the British Virgin Islands.

Results for the year

In the year to December 31, 2006, the Company lost $3.6 million after expensing the fair value of options granted of $0.9 million and before the exceptional write off relating to goodwill arising on the merger with ASCL of $13.4 million. There was no income other than interest from short term cash deposits of $71,000. The Company continued to incur administrative costs in its Mexican operations and in respect of corporate overheads, which included costs incurred in connection with the admission to the AIM and TSX-V stock exchanges.

In the year to December 31, 2006, intangible assets increased by $0.9 million to $1.2 million in respect of the Mexican projects and tangible assets increased by $0.1 million.


LIQUIDITY AND CAPITAL RESOURCES

As at December 31, 2006, the Company had working capital of approximately $3 million (2005: $1.2 million) which is sufficient to cover ongoing obligations as they become due. The increase in working capital is the result of cash raised from the placement of shares, offset by project and administrative expenditure. Cash raised from the issues of shares was $5.4 million during the year (2005: $2.3 million).

The most significant asset at December 31, 2006 was cash of $3.2 million (2005: $1.4 million) In addition, there were intangible assets of $1.2 million (2005: $0.2 million) and tangible assets of $0.1 million (2005: $0.05 million).

Exploration and development commitments as at December 31, 2006
The Company does not have any exploration and development expenditure commitments in respect of its projects. However, the following are the material payments that will need to be made in order to maintain certain properties in good standing:

(a) In order to maintain the Company’s interest in the Calicanto property, the Company is required to pay, over the period to June 30, 2011, $380,000 in option payments. At December 31, 2006, $124,000 had been paid, leaving a remainder of $256,000 to be paid.

(b) In order to maintain the Tepal option agreement in good standing the Company is required to pay the vendor $5 million in instalments over the five-year period through to June 2011 and will also grant the vendor a Net Smelter Return (“NSR”) of 2.5%. At December 31, 2006, $256,000 had been paid.

(c) In order to maintain the recently acquired San Jose option agreement in good standing the Company is required to pay the vendor $1.5 million in instalments over the three-year period through to 2009 and will also grant the vendor a NSR of 2%. At December 31, 2006, $70,000 had been paid.

The Company has the right to withdraw from the option agreements relating to Calicanto, Tepal and San Jose at any time during the term of each option without financial penalty.

REVIEW OF OPERATIONS

During the period, exploration work was carried out at the Calicanto Group of properties and at the Ojocaliente Group, namely; San Celso, Donovan 1, Donovan 2 and the Africana properties all within the Zacatecas State of Mexico. A new concession named “Misie” was acquired adjacent to the Calicanto concessions and an agreement was reached in principle to purchase the “Missie” concession, which is adjacent to “Misie”. In addition, property visits were undertaken to the Tepal project in Michoacán State, Mexico. Several tailings projects and new hard-rock properties were also investigated.

Qualified Person
Mr. Jim Williams, the Company’s Chief Executive Officer and a “qualified person” as such term is defined under National Instrument 43-101, has reviewed and approved the technical information in this document.


The following is a review of the primary projects:

Calicanto Group, Zacatecas

The Calicanto Project consists of three adjacent mining concessions totalling approximately 45 hectares (“Ha”) namely, Calicanto, Vicochea I and Vicochea II. In addition, Arian was recently granted the Misie and Missie properties, which are adjacent to the Calicanto Project. The Calicanto Project and the Misie and Missie properties, collectively referred to as the “Calicanto Group”, together total approximately 74 Ha. The concessions are located in the historic mining district of Zacatecas and are completely surrounded by other concessions. The Calicanto Group of concessions comprises at least four main mineralised vein systems.

Prospecting work at the Calicanto Group commenced and the first phase of sampling was completed, with assay results obtained from laboratories in Mexico and Canada. Underground exploratory development work continued along the strike of the vein. The tunnel itself averages approximately 4-5 metres high and 5-6 metres wide. The ramp was extended to a total of 80 metres, significantly widened and deepened as material was excavated from high grade zones. Access was gained to historic mine workings to enable surveying and chip and channel sampling. Environmental permitting required for drilling was obtained within the stipulated time frame. Phase-one drilling was completed following the award of the drilling contract for 3,000 metres.

Initial reconnaissance sampling was conducted on the newly acquired adjacent Misie property. The property was surveyed, and a number of shafts, trenches and prospects on the Sorpresa structures were identified. A new ramp, along the San Buenaventura vein was initiated and extended to 67 metres. A.C.A. Howe, independent consultants, visited the project and completed a Canadian National Instrument 43-101 technical report which is dated March 20, 2006 and entitled “Technical Report on the Calicanto and San Celso Projects, Zacatecas, Mexico.” A copy of this report can be obtained from SEDAR at www.sedar.com.

San Celso; Ojocaliente

The San Celso Project consists of three contiguous mining concessions totalling 88.58 Ha. The concessions are located in the historic mining district of Pánfilo Natera-Ojocaliente and are surrounded by other concessions to the south and west. The San Celso Project is owned outright by Arian. Rehabilitation and re-laddering of the San Celso shaft and underground workings proceeded. Chip and channel samples were taken across the faces of the veins, foot walls, hanging walls and country rock areas throughout all accessible levels of the workings. Samples were sent for treatment to laboratories in Mexico and Canada. A small area of formerly inaccessible workings in the San Celso Mine was opened up and a number of chip and channel samples were taken from across the vein. Underground geological mapping was completed in the Las Cristinitas Mine. A number of new areas were accessed and sampled.

A third shaft was accessed, laddered, sampled and mapped. This shaft is 80 metres west of the San Celso workings and appears to access the lateral extension of the San Celso vein. Concurrently with the underground mapping, a small geochemical survey was conducted, with a number of soil and ant-hill samples taken from the property. Surface geological mapping was completed. A number of new shafts and prospects were discovered and exposed vein material was sampled. Surveying of the property was completed and a surface ownership map prepared. Fencing has been erected around the open shafts, old stopes and prospect pits on the properties. A surface ground magnetic program has been planned and lines have been cut in preparation. A.C.A. Howe visited the property and prepared a technical report which is dated March 20, 2006 and entitled “Technical Report on the Calicanto and San Celso Projects, Zacatecas, Mexico.” A copy of this report can be obtained from SEDAR at www.sedar.com.

Tepal Project; Michoacán

On August 9, 2006 the Company announced that it had entered into an agreement to acquire the exclusive option over 100% of the Tepal polymetallic project in Michoacán State, Mexico. The option agreement is for a five-year term. Assuming the option is exercised in full, the Company will pay Minera Tepal $5 million in instalments and will grant Minera Tepal a NSR of 2.5%. The Company has the right to withdraw from the option agreement at any time during the five-year period without penalty and has right of first refusal to buy out the NSR for an unspecified amount.

Arian has recently increased its landholdings in the Tepal area to approximately 14,000 Ha. Initial investigation by Arian indicates that the Tepal Project consists of four gossanous polymetallic deposits containing copper, gold and silver with potential for additional areas of mineralisation.

The Tepal Project was previously explored in the 1970s and the 1990s by a number of companies including INCO, Teck and Hecla. The historical data indicates 78.82 million tonnes of mineralisation grading 0.5 grammes/tonne (g/t) gold and 0.25% copper, equating to 1.23 million contained ounces of gold and 432.63 million contained pounds of copper. The historical data also indicates that there are potentially higher-grade zones within these mineralised zones.

Both INCO and Teck were interested in the Tepal Project as a copper-gold porphyry target, regarding silver only as a by-product. Hecla’s primary focus on the Tepal Project was as a large tonnage, low-grade gold target.

The Tepal Project has not been systematically tested for silver by previous owners, as the silver market had been subdued, with a price averaging less than $6 an ounce during the 1970s and 1990s. The management of Arian believes that potentially significant quantities of silver, as well as other metals, could also be present at the Tepal Project.

The Tepal Project was initially explored in the early 1970s by INCO who identified the area as having potential to host a porphyry copper-gold deposit. INCO drilled 21 diamond drill holes, totalling 3,247m and identified significant mineralisation at the North Zone.

In 1992, Teck acquired the Tepal Project, drilled an additional 50 Reverse Circulation (“RC”) holes, totalling 8,168m, and discovered a second area of mineralization at the South Zone. Spacing between drill holes was typically 50 or 100m. In 1994 Teck completed a resource estimate of 78.82 million tonnes grading 0.5 g/t gold and 0.25% copper. However, Teck only assayed for gold and copper. Teck used polygonal block estimates to calculate its resource estimate. Intercept intervals were based on combined gold and copper values calculated to a dollar value equivalent using gold at US$375/oz and copper at US$0.80/lb. Two cut-off values, greater than $4/ton and greater than or equal to $8/ton over a minimum of 6.0 m were used. A specific gravity of 2.6 g/cm3 was used.

Subsequently Hecla owned the Tepal Project. Hecla collected nearly 900 rock chip samples on a 50m by 50m grid, re-analysed 298 pulps from the Teck RC drilling programme and drilled a further 17 RC holes, totalling 1,506m. Hecla’s focus was exclusively on gold potential. In 1997, Hecla estimated a total historic resource of 9.063 million tonnes averaging 0.90 g/t gold containing 262,359 ounces of gold. However, Hecla used a specific gravity of 2.2 g/cm3, which is substantially lower than the 2.6 g/cm3 used by Teck. Hecla used polygonal block estimates to calculate its resource estimate, using drill sections constructed at intervals ranging from 50 m to 90 m. Cut-off grades of 0.5 g/t gold and 0.30 % copper were used in the estimate although there is no copper resource in the Hecla material.

Silver was assayed for by both INCO and Hecla and returned some interesting values.

Arian has obtained environmental permits and all relevant permissions to conduct exploration on the Tepal Project properties, without payments or royalties to be made to the landowners. Phase-one exploration has started with remote sensing and aerial mapping surveys currently underway. A 3,000 metre drilling programme has commenced on the property.

Two visits were undertaken to the Tepal property by Arian personnel in July 2006. The objective of these trips was to locate new concessions and undertake geological and environmental reconnaissance work over the property. For Tepal all historical drill-hole data has now been entered into the Geosoft database. Phase-one of the drilling programme is currently underway. A.C.A. Howe visited the project and completed a technical report which is dated September 18, 2006 and entitled “Technical Report on the Tepal Project, Michoacán, Mexico.” A copy of this report can be obtained from SEDAR at www.sedar.com.


San Jose Project, Ojocaliente

In December 2006 the Company acquired an exclusive option over 100% of the San Jose silver-base metal property in Zacatecas State. The property lies 55 kilometres to the South-East of Zacatecas and covers two mining concessions totalling approximately 4,300 Ha. Assuming the option is exercised in full, the Company will pay US$1.5 million in instalments over three years and a 2% NSR although the Company has the right to buy the NSR out for US$1 million.

The mine was previously operated by Zimapan (Peñoles), 1973-1991, and Monarca, 1993-2001, extracting over 2 million tonnes of ore averaging 250g/t silver. An existing underground development ramp extends 3 kilometres along the San Jose vein.

The western portion, over 4 kilometres of strike length, of the San Jose vein remains unexploited as mining activity focused on the eastern part of the vein. An additional two main vein structures are exposed on the property, which have not been explored by modern systematic methods.
Arian Silver Corporation
Consolidated balance sheet

As at December 31, 2006

                                                       2006    2005
                                                      $'000   $'000

Assets
 Property, plant and equipment                          131      52
 Intangible assets                                    1,235     253
                                                   -----------------
Total non-current assets                              1,366     305
                                                   -----------------

 Trade and other receivables                            243     101
 Cash and cash equivalents                            3,193   1,380

                                                   -----------------
Total current assets                                  3,436   1,481
                                                   -----------------
Total assets                                          4,802   1,786
                                                   -----------------
                                                   -----------------

Equity
 Share capital                                       22,448   2,604
 Share-based payment reserve                            947       -
 Foreign exchange translation reserve                  (910)      -
 Retained earnings                                  (18,062) (1,027)

                                                   -----------------
Total equity                                          4,423   1,577
                                                   -----------------

 Bank overdraft                                           6       -
 Trade and other payables                               373     209

                                                   -----------------
Total current liabilities                               379     209
                                                   -----------------
Total liabilities                                       379     209
                                                   -----------------
Total equity and liabilities                          4,802   1,786
                                                   -----------------
                                                   -----------------
Arian Silver Corporation
Consolidated income statement

For the year ended December 31, 2006

                                                              2006    2005
                                                             $'000   $'000

Administrative expenses                                     (3,653) (1,044)
Goodwill written off                                       (13,446)      -
                                                          -----------------
Operating profit before financing costs                    (17,099) (1,044)
                                                          -----------------

Finance income                                                  71      15
Finance expenses                                                (5)      -
                                                          -----------------
Net financing costs                                             66      15
                                                          -----------------

Loss before tax                                            (17,033) (1,029)
                                                          -----------------

                                                          -----------------
Loss for the period                                        (17,033) (1,029)
                                                          -----------------
                                                          -----------------

Basic and diluted loss per share ($)                       (0.24)  (0.07)
Consolidated Statement of recognised income and expense

Foreign exchange translation differences recognised
 directly in equity
- in respect of re-translation of net investment in
   subsidiaries                                                 80       2
- in respect of presentation of financial statements in
   United States dollars                                      (992)      -

Loss for the period                                        (17,033) (1,029)
                                                          -----------------

Total recognised income and expense for the period         (17,945) (1,027)
                                                          -----------------
                                                          -----------------
Arian Silver Corporation
Consolidated statement of cash flows

For the year ended December 31, 2006
                                                          2006    2005
                                                         $'000   $'000

Cash flows from operating activities
Loss for the period                                    (17,099) (1,044)
Adjustments for:
Depreciation                                                23       4
Goodwill written off                                    13,446       -
Exchange Difference                                          8       2
Equity-settled share-based payment transactions            947       -
Shares issued in lieu of payment of services                 -     160
                                                      -----------------
                                                        (2,675)   (878)
                                                      -----------------
Change in trade and other receivables                     (142)   (101)
Change in trade and other payables                         164     209
                                                      -----------------
                                                        (2,653)   (770)
Interest paid                                               (5)      -
                                                      -----------------
                                                      -----------------
Net cash used in operating activities                   (2,658)   (770)
                                                      -----------------
                                                      -----------------

Cash flows from investing activities
Interest received                                           71      15
Acquisition of intangibles                                (982)   (253)
Acquisition of property, plant and equipment              (102)    (56)
                                                      -----------------
                                                      -----------------
Net cash used in investing activities                   (1,013)   (294)
                                                      -----------------
                                                      -----------------
Cash flows from financing activities
Proceeds from issue of share capital                     5,478   2,772
Payment of transaction costs                                 -    (328)
Bank overdraft                                               6       -
                                                      -----------------
                                                      -----------------
Net cash from financing activities                       5,484   2,444
                                                      -----------------
                                                      -----------------
Net increase in cash and cash equivalents
Cash and cash equivalents at January 1                   1,380       -

                                                      -----------------
                                                      -----------------
Cash and cash equivalents at December 31                 3,193   1,380
                                                      -----------------
                                                      -----------------
Arian Silver Corporation
Notes to the Consolidated Financial Statements


The Financials have been prepared in accordance with International Financial Reporting Standards (“IFRSs” or “IFRS”).

1. Reporting entity

Arian Silver Corporation (the “Company”) is a company domiciled in the British Virgin Islands. The consolidated financial statements of the Company for the year ended December 31, 2006 comprise the Company and its subsidiaries (together referred to as the “Group”). The Group is primarily involved in the acquisition and development of mineral resource assets.

The Company was previously named Hard Assets Inc. until its merger with Arian Silver Corporation Limited (“ASCL”) on May 24, 2006 whereupon it was renamed Arian Silver Corporation (“ASC”) and re-admitted to the AIM market of the London Stock Exchange on May 25, 2006. ASCL ceased to be a legal entity at the date of the merger.

The merger of the Company with ASCL in May 2006 was accounted for in accordance with the reverse take over method of accounting. Under this method, ASCL has been identified as the acquirer and accordingly the consolidated entity is considered to be a continuation of ASCL and the historical financial information prior to the acquisition is that of ASCL only. For accounting purposes, Hard Assets Inc. is thus deemed to have been acquired by ASCL.

The comparative figures used are for the period from December 8, 2004 to December 31, 2005.

2. Merger with Arian Silver Corporation Ltd

On May 24, 2006, the Company acquired all the shares of Hard Assets Inc. by issue of 37,000,003 common shares at a deemed consideration £0.195 per share and issued 48,898,000 common shares in a two for one issue to acquire all the share capital of ASCL . The merger of the Company with ASCL was accounted for in accordance with the reverse take over method of accounting. Under this method, ASCL has been identified as the acquirer and accordingly the consolidated entity is considered to be a continuation of ASCL and the historical financial information prior to the acquisition is that of ASCL only. For accounting purposes, Hard Assets Inc. is thus deemed to have been acquired by ASCL.

3. Summary of significant accounting policies

Basis of preparation

(a) Going concern and adequacy of project finance

The Group is at an early stage of development and in common with many mineral exploration companies, it raises funds in discrete tranches. The current cash resources of the Group will not be sufficient to develop its exploration projects and bring them into production and further funding will be required. In the event that the Group is unable to secure further finance it will not be able to fully develop these projects.

The directors have reviewed the Group’s cash flow forecast and believe that further equity fund raising will be required in the next 12 months and that these funds will be forthcoming. They therefore consider it appropriate to prepare the financial statements on a going concern basis.

The audit report on the Company’s results is not qualified in this regard, but contains an “emphasis of matter” paragraph in respect of the adequacy of project finance noted above.


(b) Use of estimates and judgement
The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to US dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to US dollars at foreign exchange rates ruling at the dates the fair value was determined.

(ii) Financial statements of foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on consolidation, are translated to US dollars at foreign exchange rates ruling at the balance sheet date. The revenues and expenses of foreign operations are translated to US dollars at rates approximating to the foreign exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on retranslation are recognised directly as a separate component of equity. They are released into the income statement upon disposal.
Intangible assets

(i) Goodwill
All business combinations are accounted for by applying the purchase method. Goodwill (negative goodwill) arises on the acquisition of subsidiaries, associates and joint ventures. Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired.

Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is tested annually for impairment. Goodwill arising on acquisition is capitalised and shown within fixed assets. The excess of net assets over consideration paid on an acquisition is recognised directly in profit or loss.

(ii) Deferred Exploration and Evaluation Costs
These comprise costs directly incurred in exploration and evaluation as well as the cost of mineral licences. They are capitalised as intangible assets pending the determination of the feasibility of the project. When the existence of economically recoverable reserves is established the related intangible assets are transferred to Property, plant and equipment and the exploration and evaluation costs are amortised over the estimated life of the project. Where a project is abandoned or is determined not economically viable, the related costs are written off.

The recoverability of deferred exploration and evaluation costs is dependent upon a number of factors common to the natural resource sector. These include the extent to which a Company can establish economically recoverable reserves on its properties, the ability of the Company to obtain necessary financing to complete the development of such reserves and future profitable production or proceeds from the disposition thereof.


Share-based payment transactions

The share option programme allows Group employees to acquire shares of the Company. The fair value of options granted is recognised as an employee expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period until the options vest unconditionally to the employee. The fair value of the options granted is measured using the Black-Scholes model, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of share options that vest, except if the change is due to market based conditions not being satisfied.

Earnings per share

The Group presents basic and diluted earnings per share (“EPS”) data for its common shares. Basic EPS is calculated by dividing the profit or loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all potentially dilutive common shares, which comprise warrants and share options granted to employees.

Future project expenditure

The Company does not have any capital commitments at December 31, 2006 (2005: nil).

The Company does not have any exploration and development expenditure commitments in respect of its projects. However, certain payments in respect of Calicanto, Tepal and San Jose will be necessary to maintain the interests in good standing.

Explanation of transition to IFRSs

The Group has adopted IFRSs with effect from January 1, 2006. The directors have elected a transition date of January 1, 2005 as this is the start date for which the Group has presented full comparative information under IFRSs in the 2006 financial statements.

The accounting policies set out in the notes have been applied in preparing the restatement of the financial statements for the year ended December 31, 2005 and in the preparation of an opening IFRS balance sheet at January 1, 2005 (the Group’s date of transition).

There are no material differences between equity at the date of transition and profit and cash flows for 2005 presented under IFRSs and as previously presented under UK GAAP.


ANNUAL GENERAL MEETING, ANNUAL REPORT AND PROXY INFORMATION

The Annual General meeting of the Company is scheduled for June 28, 2007 and will be held in London, England at a time and date to be announced.

Documentation filed on SEDAR may be accessed on www.sedar.com.


For further information please contact:

In London:

Jim Williams — CEO / James Cable — CFO
Arian Silver Corporation
+44 (0)20 7529 7511

Justine Howarth/ Clare Irvine
Parkgreen Communications
+44 (0)20 7851 7480

Gerry Beaney,
Grant Thornton Corporate Finance
+44 (0)207 385 5100

Daniel Brooks,
Haywood Securities (UK) Limited
+44 (0) 207 031 8000

In Vancouver:

Investor Relations,
Vanguard Shareholder Solutions
+1 (604) 608 0824 Toll free: 1866 898 0825


Arian Silver Corporation is a silver exploration company listed on London’s AIM and “PLUS”, on Toronto’s TSX Venture Exchange and on the Frankfurt Stock Exchange. Arian is active in Mexico, the world’s largest silver producing country. The Company’s main projects are the Calicanto Group, the San Jose, and San Celso projects in Zacatecas state, and the Tepal project in Michoacán State. Part of Arian’s forward-looking strategy lies in the envisaged use of large scale mechanised mining techniques over wider mineralised structures, which reduces the overall operating cost per ounce of silver, and to build up National Instrument 43-101 compliant resources.

Arian was founded by Jim Williams, Chief Executive Officer, and Tony Williams, Chairman, who together have over 50 years experience in exploration, project construction and mining worldwide. Arian is supported by the Dragon Group in London, and the Endeavour Group in Canada.

Further information can be found by visiting Arian’s website: www.ariansilver.com or the Company’s publicly available records at www.sedar.com.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in the United Sates. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

Cautionary Note Regarding Forward-Looking Statements
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 regarding exploration results, potential mineralization and mineral resources, and the Company’s exploration and development plans and objectives) 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 risks and uncertainties 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, among other things, uncertainties relating to the availability and costs of financing needed in the future, changes in commodity prices, changes in equity markets, political developments in Mexico, changes to regulations affecting the Company’s activities, delays in obtaining or failures to obtain required regulatory approvals, the uncertainties involved in interpreting exploration results and other geological data, and the other risks involved in the mineral exploration and development industry. 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.
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