Arian Silver's Exploration Update -- San Jose: Phase-1 Drill Results Summary; Phase-2 Drilling Progresses

August 11th, 2008

Arian Silver Corporation (“Arian Silver” or the “Company”), the AIM and TSX-V listed silver exploration company with Mexican mineral properties, today announced it has received and tabulated all of the outstanding assay results from the Phase-1 drill programme at its San Jose Project in Zacatecas State, Mexico; while the Phase-2 drill programme is already well underway.

Highlights:
  • Phase-1 drilled 11,772 metres (m) in 70 holes with 65 holes intersecting significant silver and base-metal mineralization;
  • Resource zones appear to be open along strike and down-dip;
  • Phase-2 drill programme underway with 5,500m completed to date;
  • Resource estimation update expected during Q3 2008.
The Phase-1 drill programme has achieved all of its goals to explore for the continuation of known silver zones and potential new areas of mineralization, aimed at defining preliminary NI 43-101 resources around the San Jose Ramp. Several new veins have been discovered along with areas of stockwork-style mineralization that the Company is currently evaluating for possible bulk-tonnage mineralization. The drilling results also indicate that the higher-grade silver zones are open at depth.

Arian’s Chief Executive Officer, Jim Williams, stated, “We are progressing extremely well with our systematic exploration of the San Jose Vein. To date we have only explored some four kilometres (km) of the San Jose Vein, which is a relatively small portion of the total estimated strike length, within our concessions, of more than 12 km. We are also encouraged by the discovery of the continuation of high-grade mineralization adjacent to the historically mined areas. These high-grade zones may represent nearer-term targets for mining.”


Appendix 1 sets out details of the complete sets of results from various batches from the Phase-1 drilling programme. Some of these results have been previously reported, as illustrated in the appendix. Highlights from the complete sets of results are as follows:

  • 1.9m grading 1057.6 g/t Ag, 0.65% Pb and 1.17% Zn
  • 2.4m grading 643.6 g/t Ag
  • 2.3m grading 444.4 g/t Ag, 4.11% Pb and 8.81% Zn
  • 7.9m grading 346.7 g/t Ag, 0.68% Pb and 1.47% Zn
  • 4.8m grading 326.8 g/t Ag
  • 2.5m grading 356.9 g/t Ag, 1.96% Pb and 3.45% Zn
  • 3.6m grading 330.2 g/t Ag
  • 9.6m grading 241.5 g/t Ag, 2.26% Pb and 5.21% Zn
  • 10.2m grading 213.1 g/t Ag
  • 4.2m grading 269.7 g/t Ag
  • 3.4m grading 245 g/t Ag, 1.95% Pb, 2.59% Zn
  • 7.25m grading 164.7 g/t Ag, 1.51% Pb and 2.03% Zn
  • 50.9m grading 65.7 g/t Ag
  • 42.4m grading 81.1 g/t Ag
  • 13.4m grading 73.2 g/t Ag, 1.2% Pb and 3.1% Zn
  • 2.2m grading 109.0 g/t Ag 2.5% Pb and 7.24% Zn.
The more recent holes from the Phase-1 programme have been collared no more than on 100 metre intervals along strike between the previously demarcated inferred resource areas (see Arian Silver’s press release dated 3 March 2008 entitled, “Initial NI 43-101 Resource Calculation at San Jose” available on Sedar at www.sedar.com). The drilling has been designed to further delineate the San Jose Vein and to discover new silver-rich zones.

Arian Silver has submitted all of the Phase-1 drill-hole data to A.C.A. Howe International Limited to update the initial NI 43-101 resource estimation of March this year. The updated resource estimation is expected to be delivered during Q3 2008.

The Company has also completed 25 holes totalling 5,500m of its Phase-2 (12,000m) diamond-drill programme at the San Jose Property. Initial results for the Phase-2 holes are expected later this month. The Phase-2 drill programme is designed to test the San Jose Vein strike further to the west and for infill drilling on 50m or less intervals to gain additional information about metal distribution and controls on mineralization that can be used to upgrade existing resources.

Additional information, including the collar locations of the drill-holes mentioned in this release, is illustrated in the longitudinal section contained in the following link.

http://media3.marketwire.com/docs/arian.pdf

About the San Jose Project

Arian Silver’s 6,200-plus hectare San Jose Property is located in Zacatecas State, Mexico, 55km east of the mining town of Zacatecas, and within the renowned Fresnillo Silver Trend that hosts a number of world-class silver deposits.

Arian Silver Mexico S.A. de C.V., a wholly owned subsidiary of the Company, holds a 100% exclusive option to acquire the San Jose Project. The Project concessions include the past producing San Jose Mine, which was operated by a subsidiary of Peñoles from 1973 to 1991 and then by Monarca, which operated the mine between 1993 and 2001. In 2001 the mine closed due to the then prevailing low silver prices.

QA/QC

All technical information for the San Jose Project is obtained and reported under a formal quality assurance and quality control (QA/QC) programme. The core is logged and photographed by Arian Silver staff and then split using a diamond saw. Half the core is stored on-site in a secure core shed and the other half is sampled, bagged and secured before being transported to a preparation facility in San Luis de Potosi, Mexico. The entire half-core is crushed and two kilograms is pulverized and homogenized. 150-gram pulp samples are then air freighted to OMAC’s analytical laboratory in Ireland for analysis. Systematic assaying of duplicates is performed for precision and accuracy, with check assays regularly conducted by OMAC. Each sample has its own unique sample number. The laboratories in San Luis Potosi, Mexico and Ireland are ISO 17025 and ISO 9001:2000 accredited.

Approximately 5% of the analysed samples are re-sampled and sent to the ALS Chemex preparation facility in Guadalajara, Mexico. The samples consist of both coarse reject samples and 150-gram pulp samples. The coarse material is crushed and pulverised, and all the pulp samples are air freighted to ALS Chemex’s analytical laboratories in Vancouver, British Columbia, for analysis. Results from all duplicate analyses are compared to identify potential analytical or sampling errors.

The OMAC and ALS Chemex laboratories are independent of Arian Silver.

The samples were analysed for 32 elements by ICP (inductively coupled plasma), proceeded by an Aqua Regia acid digestion. High-grade samples (gold >3 g/t and silver >200g/t) were re-analysed by fire assay with a gravimetric finish.

Additional information with respect to the San Jose Project is contained in a technical report prepared by A.C.A. Howe International Limited, dated 15 April, 2008, and entitled “Resource Estimation Study on the San Jose silver-lead-zinc prospect, Zacatecas, Mexico”. A copy of this report can be obtained from the Company’s page on SEDAR at www.sedar.com.

The “qualified person” (as such term is defined in NI 43-101) who prepared the current resource estimates for the San Jose Project is Mr. James Hogg. Mr. Hogg was at the time an employee of A.C.A. Howe International Limited.

Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, DIC, FIMMM, CEng, CGeol, and Chief Executive Officer of Arian Silver, is a “Qualified Person” as defined in the AIM guidelines of the London Stock Exchange, and a “Qualified Person” as defined in NI 43-101. This press release has been prepared under Mr. Williams’ supervision. Mr. Williams has verified the data disclosed by this release (including sampling, analytical and test data underlying the information).

For further information please contact:

Arian Silver Corporation
Jim Williams - CEO
(London) +44 (0)207 529 7511
email: jwilliams@ariansilver.com

Fuad Sillem — Investor Relations
(London) +44 (0)207 529 7511
email: info@ariansilver.com

Bishopsgate Communications Limited
Nick Rome
(London) +44 (0)207 562 3350
email: Nick.Rome@bishopsgatecommunications.com

Grant Thornton Corporate Finance
Gerry Beaney
(London) +44 (0)207 385 5100
email: gerry.d.beaney@gtuk.com

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

About the Company

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 Silver is active in Mexico, the world’s second largest silver producing country. The Company’s main projects are the Calicanto and San Jose projects in Zacatecas State and the Tepal project in Michoacán State. Part of Arian Silver’s forward-looking strategy lies in the envisaged use of large scale mechanized mining techniques over wider mineralized structures, which reduces the overall operating cost per ounce of silver, and to build up NI 43-101 compliant resources.

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

To receive Company news via email, contact mirna@chfir.com and mention “AGQ News” on the subject line.

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

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

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, the mineral resource estimates referred to in this press release and statements regarding exploration results, potential mineralization, potential mineral resources, future production 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, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company’s expectations, 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, foreign currency fluctuations, 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.


Appendix 1

Phase-1 drill sample results

Drill-hole

From

To

Core Length

True thickness

Silver

Lead

Zinc


(m)

(m)

(m)

(m)

(g/t)

(%)

(%)

SJ-07-000 +

69.7

171.3

101.6

*

39.8

Trace

Trace

Inc.

111.7

138.8

27.1

*

143.2

Trace

Trace

SJ-07-001 +

85.7

91.7

6.0

4.2

72.5

0.67

2.97

Inc.

90.7

91.7

1

0.7

53.6

1.07

6.75

SJ-07-001A +

Hole Lost before vein intersected

SJ-07-001B +

166.7

175.4

8.7

3.75

76.7

0.83

2.12

SJ-07-001C

230.55

237.55

7.0

2.3

23.2

0.27

1.31

SJ-07-002 +

139.7

146.15

6.45

2.45

356.9

1.96

3.45

&

146.15

166.6

20.45

*

41.0

0.46

1.89

SJ-07-002B +

126.75

132.3

5.55

2.45

108.2

1.22

2.46

Inc.

146.15

166.6

38.35

*

41.0

0.46

1.89

SJ-07-003 +

156.6

158.45

1.85

1.15

40.1

0.51

1.89

SJ-07-003A

Hole Lost Before Vein intersected

SJ-07-004 +

55.00

74.4

19.4

13.7

151.2

Trace

Trace

SJ-07-005 +

49.45

73.8

24.35

17.2

84.0

Trace

Trace

Inc.

67.5

71.7

4.2

2.4

217

Trace

Trace

SJ-07-006 +

41.45

70.55

29.1

20.6

98.7

Trace

Trace

Inc.

52.3

54.5

2.2

1.6

276

Trace

Trace

SJ-07-007 +

0

60.0

60

42.4

81.1

Trace

Trace

Inc.

37.65

40.8

3.15

1.8

316.0

Trace

Trace

SJ-07-008 +

53.4

72.8

19.4

13.7

111.3

Trace

Trace

Inc.

56.4

59.4

3

1.7

225.2

Trace

Trace

SJ-07-009 +

64.5

65.95

1.45

1.0

154.9

Trace

0.2

&

71.75

74.75

3

2.1

120

0.4

0.5

SJ-07-010 +

85.7

93.05

7.35

3.7

142

0.46

0.78

SJ-07-011 +

59.6

68.65

9.1

6.4

133

0.3

0.1

SJ-07-012





No Significant Results

SJ-07-013





No Significant Results

SJ-07-014

86.85

94.3

7.45

5.3

No Significant Results

Inc.

86.85

89.15

2.3

1.6

138

0.3

0.44

SJ-07-015





No Significant Results

SJ-07-016 +

215.1

237.9

22.8

13.75

137.6

0.96

1.47

Inc.

218.75

227.05

8.3

5.0

191.1

1.15

1.93

Inc.

235.05

237.9

2.85

1.70

242.4

2.64

2.93

SJ-07-017 +

57.6

61.1

3.5

2.9

135.1

0.18

0.15

SJ-07-018 +

79.65

125.5

45.85

15.2

44.8

0.40

0.70

Inc.

87.0

90.9

3.9

1.3

150.0

0.13

0.34

SJ-07-019 +

56.35

66.6

10.05

7.2

127.8

0.21

0.52

Inc.

57.75

62.75

5

3.4

162.4

0.18

0.41

SJ-07-020 +

93.7

122.4

28.7

10.1

95.4

0.37

1.00

Inc.

114.9

122.4

7.5

2.6

101.2

0.95

2.39

SJ-07-021 +





No Significant Results

SJ-07-022 +

55.65

56.4

0.75

*

582.6

0.1

1.31

&

93.3

121.9

28.6

11.1

112.4

0.35

0.82

Inc.

93.3

97.6

4.3

1.7

218.2

0.24

0.42

SJ-07-023 +

63.75

67.4

3.65

2.5

196.8

0.11

0.32

SJ-07-024 +

121.85

140.75

18.9

7.25

164.7

1.51

2.03

Inc.

130.5

139.3

8.8

3.4

245.0

1.95

2.59

SJ-07-025 +

229.65

244.25

14.6

9.6

241.5

2.26

5.21

Inc.

240.75

244.25

3.5

2.3

444.4

4.11

8.81

SJ-07-026 +

50.9

55.75

4.85

3.4

185.3

0.10

0.28

Inc.

51.9

54.35

2.45

1.7

294.9

0.13

0.36

SJ-07-027 +

80.7

88.45

7.75

2.7

128.2

0.21

0.2

inc.

81.45

84.5

3.05

1.7

271.9

0.29

1.37

SJ-07-028 +

196.85

198.2

1.35

*

161.0

0.55

2.37

SJ-07-029 +

Hole lost before intersecting San Jose Vein

SJ-07-030 +

55.9

69.1

13.2

10.2

213.1

0.26

0.57

Inc.

65.95

69.1

3.15

2.4

643.6

0.17

0.36

SJ-07-031 +

112.45

119.9

7.45

6.5

130.9

1.08

1.69

Inc.

118.45

119.9

1.45

1.25

280.2

1.35

2.49

SJ-07-032 +

165.55

177.7

12.15

7.9

346.7

0.68

1.47

Inc.

174.75

177.7

2.95

1.9

1057.6

0.65

1.17

SJ-07-033 +

236

271.2

35.2

24.9

70.1

0.7

1.4

Inc.

238.95

239.65

0.7

0.5

187.0

4.2

8.9

SJ-07-034





No Significant Results

SJ-07-035

141.55

149.65

8.1

5.7

180.3

0.1

0.4

Inc.

142.75

144.75

2

1.4

270.1

0.1

0.2

SJ-07-036

200.5

231.05

30.55

21.6

102.1

0.2

0.4

Inc.

205.7

208.7

3

2.1

208.8

0.2

0.6

SJ-07-037

109.6

11.25

1.65

1.2

288.5

0.3

0.9

SJ-07-038 +

165.95

168

2.05

1.3

100

0.72

1.01

SJ-07-039

118.6

121

2.4

1.5

208.5

Trace

Trace

Inc.

119.6

121

1.4

1.0

326.5

Trace

Trace

SJ-07-040

3.05

75

71.95

50.9

65.7

0.1

0.2

Inc.

6

11.15

5.15

3.6

330.2

0.1

0.1

Inc.

21.35

24.4

3.05

2.2

236.4

0.1

0.4

SJ-07-041

0

75

75

53.0

61.0

0.1

0.1

Inc.

36.15

46.2

10.05

7.1

213.8

0.1

0.2

Inc.

62

65.45

3.45

2.4

394.2

0.5

0.7

SJ-07-042

0

82

82

58.0

43.1

0.1

0.1

Inc.

53.55

60.3

6.75

4.8

326.8

0.2

0.2

SJ-07-043

60.65

69.2

8.55

4.2

269.7

0.13

0.45

Inc.

61.65

65.5

3.85

1.9

350.2

0.2

0.55

SJ-07-044 +

75.95

79.6

3.65

1.8

238.9

0.12

0.46

SJ-07-045

No Veins Intersected

SJ-07-046





No Significant Results

SJ-07-047





No Significant Results

SJ-07-048

Hole lost before intersecting San Jose Vein

SJ-07-048A

211.55

218

6.45

4.6

131.4

0.3

0.6

Inc.

216

217

1

0.7

206.0

0.8

2.6

SJ-07-049

110.95

111.8

0.95

0.7

234.0

0.3

1.3

SJ-07-050

132.85

160.0

27.15

17.5

68.8

0.49

1.10

Inc.

143.75

146.75

3

2.1

175.7

0.2

0.3

SJ-07-051

216.95

234.9

17.95

8.9

115.0

0.71

1.45

Inc.

226.5

229.5

3

1.4

290

0.37

0.60

SJ-07-052

102.3

104.45

2.15

1.5

221.8

0.34

0.98

SJ-07-052A

103.75

105.75

2

1.4

100.0

0.1

0.3

SJ-07-053

Hole Lost Before Intersecting San Jose Vein

SJ-07-053A

218.6

220.6

2

1.4

144.0

0.4

2.2

SJ-07-054

149.95

150.8

0.85

0.6

245.0

1.83

0.94

SJ-07-055

206.5

217.05

10.55

6.2

18.5

0.37

1.48

&

149.95

150.8

2.0

1.2

24.5

0.80

3.64

SJ-07-056

125.15

139.4

14.25

10.75

83.4

0.44

1.14

Inc.

133.95

139.4

5.45

4.1

123.3

0.78

2.18

SJ-07-057

157.0

180.5

23.5

13.2

51.9

0.43

1.61

&

180.5

200.55

20.02

*

36.7

1.00

2.40

Inc.

182.4

184.4

2

*

148.0

4.56

7.42

SJ-07-058

116.7

117.8

1.1

1.05

52.0

0.23

0.56

SJ-07-059

155.95

165.95

10

5.0

124.3

0.59

0.89

Inc.

155.95

159.95

4

2

190

0.31

0.47

SJ-07-060

127.1

131.25

4.15

2.9

88.2

2.2

3.0

&

141.25

145.95

4.7

3.3

211.4

0.6

1.0

SJ-07-061

229.95

260.2

30.25

13.4

73.2

1.2

3.1

Inc.

231.55

236.55

5

2.2

109.0

2.5

7.24


The above drill results were tabulated using the following Ag cut-off grades: (1) wider intersections are included if they grade >30 g/t Ag over a minimum core length of 10m; (2) shorter intersections are included if they grade >100 g/t Ag, or >1% Pb or Zn over a core length of >0.5m.

* True thickness not known
+ Results previously reported
.