Arian Silver Upgrades Tepal Resource Estimate

September 24th, 2008

Arian Silver Corporation (“Arian Silver” or the “Company”), the AIM and TSX-V quoted mineral exploration company with properties in Mexico, is pleased to announce an updated resource estimate at its Tepal Property, located in Michoacán State, Mexico.

Arian Silver has upgraded 36% of the previously defined inferred mineral resource estimate to the indicated resource category following the completion of the updated Canadian National Instrument (NI) 43-101 mineral resource estimate for Tepal.

The resource estimation has been prepared by international mineral consultants, A.C.A. Howe International Limited.

Highlights —
  • 440,000 ounces of gold in the Indicated resource category and 720,000 ounces of gold in the inferred resource category
  • 938,000 of gold-equivalent ounces in the Indicated resource category and 1.61 million of gold-equivalent ounces in the inferred mineral resource category
  • Updated resource from all of the Phase-1 drill-holes
  • Resource area is open along strike to the south and to the northwest of the deposit
  • Scoping study currently underway
This resource of 54,964,000 tonnes in the inferred mineral resource category, containing 720,000 ounces (oz) of gold (Au) and 265.4 million pounds (lbs) of copper (Cu), for a gold-equivalent (Au-Eq) of 1,612,000 oz, has been defined from the Phase-1 drill-holes (42 holes for 7,178.55 metres) drilled by Arian Silver from April 2007 until April 2008.
In addition, Arian Silver has upgraded 36% of the previously defined inferred mineral resource (see press release dated 10 March 2008, entitled, “Initial NI 43-101 Resource Calculation at Tepal” available on Sedar at www.sedar.com) to the indicated mineral resource category, and this represents 24,995,000 tonnes, containing 440,000 oz of Au and 147.1 million lbs of Cu, for a Au-Eq of 938,000 oz.

Arian Silver’s Chief Executive Officer, Jim Williams, stated, “It has been satisfying to prove up and expand our Tepal resources. Not only do the results build on previous estimates, but by revealing a significant indicated mineral resource and a higher grade gold component we are confident that the long-term prospects of this project remain strong.”

“The objective of our Phase-1 drilling programme was two-fold; firstly, to verify previous historic resource estimates, and secondly, to build up significant gold and copper resources with a view to expanding upon these in due course. We have achieved both of these goals. However, we have only explored a relatively small area of our total 14,000 hectare landholding at Tepal and the only way to realise the bigger picture here is to continue with systematic exploration of this typical Au-Cu porphyry.”


The mineral resources are currently defined to two distinct mineralised porphyry zones, the North and South Zones. The drilling has indicated that these two zones are in part open, in particular the North Zone to the Northwest and the South Zone to the South. There are indications that the mineralisation may also extend further in depth. A third zone of porphyry-style Au-Cu mineralisation has been discovered approximately 1.5 kilometres (km) east of the South Zone, but this zone, due to insufficient data, is not included in this resource estimate.

Assay results from an additional 15 holes that were not available for the initial mineral resource estimate (see press release, dated 10 March 2008 referred to above) have been included in this estimate. These infill holes were located in the centre of the previously demarcated mineralized areas and have enabled resource modelling to define significant indicated resources within the study area. The mineral resource estimates are summarised in the table below, and a plan showing the extent of the resources with the updated drill holes is shown in the following link:

http://www.ariansilver.com/i/pdf/2008-09-24_NRlink.pdf

Tepal Mineral Resources



Grade

Contained Metal


Tonnes

Au

Cu

AuEq

Au

Cu

Au Eq


(‘000)

g/t

%

g/t

(oz x 000’s)

(Mlbs)

(oz x 000’s)

Indicated

24,995

0.54

0.27

1.2

440

147.1

938

Inferred

54,964

0.41

0.22

0.9

720

265.4

1,612


  1. Au = Gold. Cu = Copper. AuEq = Gold Equivalent
  2. Arian Silver has an exclusive option agreement to purchase 100% of the Tepal properties
  3. Gold Equivalent Grades (g/t) were calculated using metal prices of US$600/oz Au, US$2/lb Cu and assuming 100% recoveries.
  4. The mineral resource estimates are in accordance with CIM and JORC standards
  5. The effective date of the mineral resource estimates is 11 September 2008
  6. The estimates are based on geostatistical data assessment and computerised IDW3, 0.18 g/t Au grade wireframe envelope restricted, linear block modelling
Arian Silver continues to work on its in-house scoping study for the Tepal project. The results of this study will be reported in due course.

Arian Silver Mexico S.A. de C.V., a wholly owned subsidiary of the Company, holds a 100% exclusive option to acquire the Tepal Property. The Property comprises six exploitation concessions covering some 14,000 hectares (ha) that contain Au-Cu porphyry-style mineralization that have been explored in the past by Inco, Teck and Hecla.

QA/QC

All technical information for the Tepal Project is obtained and reported under a formal quality assurance and quality control (QA/QC) programme. The core is logged and photographed by Arian 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 transporting to ALS Chemex’s sample preparation facility in Guadalajara, Mexico. The entire half-core is crushed and two kilograms is pulverised and homogenised. 150-gram pulp samples are then freighted to ALS Chemex’s analytical laboratory in Vancouver, British Columbia for analysis. Systematic assaying of duplicates is performed for precision and accuracy; check assays are regularly conducted by ALS Chemex. Each sample has its own unique sample number.

Approximately 5% of all samples analysed by Arian were QA/QC samples including blanks, standards and duplicates. Approximately 2% of all samples were re-sampled and sent to the SGS preparation and analytical facility in Durango, Mexico. The samples consist of both coarse reject samples and 150-gram pulp samples. Results from all duplicate analyses are compared to identify potential analytical or sampling errors.

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

The samples were analysed for 32 elements by ICP (inductively coupled plasma), preceded by an Aqua Regia digestion. Gold was analysed by fire assay with an atomic absorption finish. High-grade samples (gold >3 g/t and silver >100 g/t) were re-analysed by a fire assay with a gravimetric finish.

Additional information with respect to the Tepal 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 Tepal gold-copper prospect, Michoacán, Mexico”. A copy of this report can be obtained from SEDAR at www.sedar.com

The “qualified person” (as such term is defined in National Instrument 43-101) who prepared the current resource estimates for the Tepal Project disclosed in this press release is Mr. Galen White. Mr. White was at the time an employee of A.C.A. Howe International Limited. Mr. White has reviewed and approved the contents of this press 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 defined in the Canadian Securities Administrators National Instrument 43-101. This press release has been prepared under Mr. Williams’ supervision.

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.

Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability worthy of public disclosure, except in certain limited circumstances set out in National Instrument 43-101. Inferred mineral resources are excluded from estimates forming the basis of a feasibility study.
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