Arian Silver Upgrades San Jose Resource Estimate

August 21st, 2008

Arian Silver Corporation (“Arian Silver” or the “Company”), the AIM and TSX-V listed silver exploration company with Mexican mineral properties, today announced the results from its updated Canadian National Instrument (NI) 43-101 mineral resource estimate for the San Jose Property, located in Zacatecas State, Mexico. The resource estimate has been prepared by independent consultants, A.C.A. Howe International Limited.

Highlights:

  • 59% increase in tonnage since March 2008 resource estimate
    • 55% increase in silver to 42.78 M oz
    • 85% increase in lead to 120.4 M lbs
    • 69% increase in zinc to 247.8 M lbs
  • Resource estimate based on all (71) Phase-1 drill holes, totalling 11,772m
  • Resource zones appear to be open along strike and down dip
  • 50% (34 holes) of 12,000m Phase-2 drill programme completed
This resource of 11,190,000 tonnes in the inferred mineral resource category, containing 33.76 million (M) ounces (oz) of silver (Ag), 95.7 M pounds (lbs) of lead (Pb) and 205.5 Mlbs of zinc (Zn), has been defined from the Phase-1 drill-holes drilled by Arian Silver from May 2007 until March 2008.

In addition, Arian Silver has upgraded 16% of the previously defined inferred mineral resource (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) to the indicated mineral resource category, and this represents 2,196,000 tonnes, containing 9.02 Moz of Ag, 24.7 Mlbs of Pb and 42.3 Mlbs of Zn.

Arian Silver’s Chief Executive Officer, Jim Williams, stated, “We are very pleased with this updated resource estimate for our San Jose project. Not only have we significantly increased our tonnage by 59% from our previous resource estimate in March this year, we have also significantly increased the contained metals of silver, lead and zinc and at the same time upgraded approximately 16% of the resources into the ‘indicated’ category. Even with this current resource estimate we still have another 8 kilometres (km) of westerly strike of the SJV to explore and more than 2 km in the easterly direction.

To date, Arian has only explored, with detailed drilling and underground sampling, approximately 2.5 kilometres (km) of the San Jose Vein (SJV), and the updated mineral resources have been defined into 6 separate areas. The deepest drilling has only explored the SJV to a maximum depth of 250m. The resources are summarised in the table below, and a plan showing the location of the resources in relation to the strike of the SJV is shown in the following link:

http://www.ariansilver.com/i/pdf/San_Jose_Aug_PR_Figure1.pdf

San Jose Mineral Resources

Resource Category Grade Contained Metal
Tonnes Ag Pb Zn Ag Pb Zn
g/t % % (M oz) (t) (t)
Indicated 2,196,000 127.7 0.51 0.88 9.02 11,200 19,200
Inferred 11,190,000 93.8 0.39 0.83 33.76 43,400 93,200

  1. Geological characteristics and +30 ppm grade envelopes used to define resource volumes
  2. The mineral resources estimate is in accordance with CIM and JORC standards
  3. The effective date of the mineral resources is 15 August 2008
  4. The estimates are based on geostatistical data assessment and computerised IDW3, Ag grade wireframe restricted, linear block modelling
The resource estimate does not include results from any of the Phase-2 drill-holes. To date Arian has completed 6,200m, representing 52%, of its ongoing 12,000m programme, in 34 holes sited within or with close proximity to the zones currently delineated by the resource estimate. The Phase-2 drill programme has been designed to test the SJV strike further to the west and for infill drilling on 50m or less intervals to gain additional information about metals distribution and controls on mineralisation that can be used to further upgrade known resources. Initial observations from core logging indicate that the SJV has been intercepted but at this time assay results are pending. Arian Silver anticipates completing its Phase-2 drilling programme at San Jose by Q1 2009, after which a further revised resource estimate will be presented.

The area covered by this resource estimate represents less than 20% of the currently known strike length of the SJV. The Phase-2 programme is currently exploring the western extension of the SJV, where detailed geological mapping and sampling has indicated it may continue for several kilometres along strike within the concessions controlled by Arian Silver. A number of holes are planned for a second vein system at San Jose. The Bety Vein is parallel with the SJV, and surface samples have returned grades up to 500 grams per tonne (g/t) silver over 2m, and Arian Silver is confident that this structure also has the potential to contain significant mineralisation.

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 (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 25 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 SEDAR at www.sedar.com

The “Qualified Person” (as such term is defined in Canadian National Instrument 43-101) who prepared the current resource estimates for the San Jose Project is Mr. Galen White, who is an employee of A.C.A. Howe International Limited. Mr. White has reviewed and approved the contents of this release.

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 such term is defined in Canadian National Instrument 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

Vicarage Capital Limited
Martin Wood
(London) +44 (0)207 060 1303
email: martin@vicaragecapital.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.

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.

The mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the resource estimates referred to in this press release are well established, by their nature resource estimates are imprecise and depend, to a certain extent, upon statistical inferences, which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.
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