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Re:   Press Releases - Thursday, August 27, 2009
      ARIAN SILVER'S MD&A AND FINANCIAL RESULTS FOR THE THREE AND SIX
      MONTHS ENDED 30 JUNE 2009
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London, England, Arian Silver Corporation ("Arian" or the "Company")
today announced the release of its Management's Discussion and Analysis
("MD&A") and unaudited Financial Statements for the three and six
months ended 30 June, 2009 ("Financials"). Extracts from the MD&A and
unaudited results are reported below.

Arian's Chief Executive Officer, Jim Williams, commented today, "In
June we were very pleased to be able to issue the positive results from
the Preliminary Economic Assessment (scoping study) carried out by
A.C.A. Howe for initial production at San Jose by way of contract
mining and milling. These results confirmed the conclusion of our
original in-house scoping study. However, due to the delay in obtaining
new funding through the sale of our Grafton shares we have not been
able to progress our plans for initial production at San Jose. As a
consequence we are unlikely to be able to achieve our target for
initial production at San Jose in Q4 of 2009. Once we have the required
funding in place we will be able to determine a revised schedule for
initial production at San Jose. Notwithstanding the funding delay which
has disrupted our plans for San Jose, we should acknowledge that
Grafton has so far provided us with $800,000 of interim loan funding
interest free which, most importantly, has enabled us to continue
operating and, so far, to preserve all the property assets of the
Company. Grafton has confirmed to us that it remains optimistic about
disposing of our Grafton shareholding in due time and will continue to
pursue that process. We are also considering a number of options to
assist the fund raising process."

The MD&A and Financials are available at 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. All amounts are
expressed in US dollars unless otherwise stated. The financial
information in this announcement does not constitute full statutory
accounts.

HIGHLIGHTS

Financial

.. The consolidated pre-tax loss for Q2 was $0.9 million.

.. As at 30 June, 2009, there was a working capital deficit of $0.2
million.

.. As at 30 June, 2009, total assets were $12.9 million, including
intangible assets of $6.9 million, available for sales assets of $5.2
million, receivables of $0.5 million and cash of $0.2 million.

.. As at 30 June, 2009, total liabilities were $0.9 million, including
payables of $0.3 million and short terms loans of $0.6 million.

.. Expenditure on projects in Mexico and on other assets in Q2 was $0.6
million.

.. Completion of share exchange transaction with Grafton Resource
Investments Ltd ("Grafton") pursuant to which the Company received in
total 128,591 Grafton shares which are to be placed to raise funding.

.. Deferral of $450,000 of the $500,000 Tepal option instalment from
June to September 2009.

Post 30 June 2009
.. Further advance from Grafton of $250,000 received to fund operating
overheads pending the receipt of funding from the disposal of the
Grafton shares.

Operations

.. During Q2 all project operations in Mexico were largely curtailed
pending receipt of new funding.

.. Release of positive results of a Preliminary Economic Assessment
("PEA") prepared by A.C.A Howe International Limited of the economics
for initial production by contract mining and milling at San Jose.

.. PEA based on working only three demarcated mining blocks over a four
year mine life. The limited number of blocks and mine life were
stipulated by the Company, the intention being to develop concurrently,
during this mining period, a full feasibility study for moving to full
scale independent commercial production by the Company.

.. PEA forecasts operating cash costs of $32 per tonne, a project net
present value of $13.44 million based on an 8% discount rate and a
project internal rate of return of 159%.

.. Target date for initial production at San Jose during Q4 of 2009
unlikely to be achieved due to delay in funding.

.. Arian has acquired a 66.67% controlling interest in the San Jose
project, subject to completion of legal and registration formalities in
Mexico and has the right to take 100% ownership interest on payment of
final instalment of $500,000 due in December 2009. 

OVERALL FINANCIAL PERFORMANCE

In the six months to 30 June, 2009, the Company incurred a loss of $0.9
million (2008 - $1.6 million) which loss includes expensing the fair
value of options vesting of $26,000 (2008 - $0.2 million), and other
administrative expenses of $0.9 million (2008 - $1.4 million). There
was no income other than interest of $8,000 (2008 - $20,000) from short
term cash deposits. During the period the Company continued to reduce
costs in relation to its Mexican operations and corporate overheads
where possible in order to preserve cash resources.

As at 30 June, 2009, the Company had a working capital deficit of
approximately $0.2 million (31 December, 2008 - $1.1 million surplus).
Cash balances amounted to approximately $0.2 million (31 December, 2008
- $0.8 million) and short term loans from Grafton Resource Investments
Ltd ("Grafton") totalled $0.6 million (31 December, 2008 - $nil).
Intangible assets amounted to $6.9 million (31 December, 2008 - $6.0
million) which relate to deferred exploration and evaluation costs in
respect of the Company's Mexican projects.

LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN

During the period to 30 June 2009, the Company completed share exchange
transactions (the "Share Exchange") with Grafton intended to provide
new funding for the Company. As a result of the Share Exchange, Grafton
became a 42.2% shareholder of the Company having acquired 109,090,909
new common shares in the Company in exchange for the issue to the
Company of 128,591 Grafton participating shares (the "Grafton Shares").
The intention is for Grafton and its associates to place the Grafton
Shares for cash on behalf of the Company to provide new funding for the
Company. Whilst the principals of Grafton and their associates have
experience in providing funding for junior mining and exploration
companies using this type of transaction the Company is reliant on them
being able to replicate this experience. However, the disposal of the
Grafton Shares is experiencing delays and the anticipated funding has
not, so far, been forthcoming. In view of the delay, Grafton has been
providing loans to the Company, to fund its operating overheads, which
currently total $800,000. The loans are interest free and whilst they
have a repayment date of 31 October 2009 it is intended that they will
be repaid from the proceeds from disposal of the Grafton Shares.

At 30 June 2009 the Grafton Shares, which are shown as an available for
sale asset, were valued at $5.2 million. However, this value is not
necessarily indicative of the realisable value of the Grafton Shares.

Grafton has confirmed that it remains optimistic about disposing of the
Grafton Shares in due time and will continue to pursue that process.
The Company is also considering a number of options to assist the fund
raising process.

The proceeds of the disposal of the Grafton Shares are intended to be
used by the Company to progress the San Jose Project to initial
production as well as for general corporate purposes. The delay in the
disposal of the Grafton Shares and consequent lack of project funding
means that the Company is unlikely to achieve its original target of
initial production at San Jose in Q4 of 2009. Once the required funding
is in place the Company will be in a position to determine a revised
schedule for initial production at San Jose.

The directors of the Company currently believe it appropriate to
prepare the Company's financial statements on a going concern basis.
However, if funding from the disposal of the Grafton Shares or other
sources is not forthcoming on a timely basis the Company may not be
able to meet its ongoing working capital and project expenditure
requirements. If these circumstances arose then there would be
significant doubt on the Company's ability to continue as a going
concern and the carrying value of the Group's exploration projects
would be impaired.

REVIEW OF OPERATIONS

The Company owns, or has options to purchase, 39 mineral concessions in
Mexico totalling 21,691 hectares. The Company's main projects are the
Calicanto Group and San Jose, in Zacatecas State, and the Tepal project
in Michoac�n State.

During the period under review exploration operations in respect of the
Company's three principal projects in Mexico were largely deferred in
order to preserve the Company's cash resources pending receipt of new
funding.

Qualified Person

Mr. Jim Williams, Eur Ing, Eur Geol, BSc, MSc, D.I.C., FIMMM, the Chief
Executive Officer of Arian, 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 ("NI
43-101"), has reviewed and approved the technical information in this
Review of Operations other than the information extracted from the PEA
and the mineral resource estimates referred to below.

San Jose Project, Ojocaliente District, Zacatecas State

In June 2009, the Company announced the results of a Preliminary
Economic Assessment ("PEA") for the San Jos� Project undertaken by
A.C.A. Howe International Limited (see the Company's press release
dated 23 June 2009). The PEA reviewed the economics of entering into
contract mining and toll milling on three silver blocks with lead and
zinc credits over a four year mine life. The limiting of the PEA to
just three mining blocks over a four year mine life was stipulated by
the Company, as the intention is to develop concurrently, during this
mining period, a full feasibility study for moving to full scale
independent commercial production by the Company.

Highlights from the PEA are as follows:

.. The PEA concluded that Arian's approach and mining plan is achievable
and realistic;
.. Up to four years of contracted mechanized mining, with concurrent
exploration and development on the rest of the property;
.. Operating 250 days per year at 500 tonnes per day ("tpd") will
produce an average of approximately 125,000 tonnes per year ("tpy")
using three selected mining blocks;
.. Sub-level open stoping and full mechanization, accessible via either
the San Jos� West or East ramp;
.. Mining and milling of approximately 500,000 tonnes of resources
estimated to recover approximately 2.15 million ozs of silver, 1,800
tonnes of lead and 3,100 tonnes of zinc;
.. Operating cash costs of $32.00 per tonne;
.. Project net present value ("NPV") of $13.44 million based on an 8%
discount rate and a maximum four year mine life using contract mining
and milling; and
.. Project internal rate of return ("IRR") of 159%.

A copy of the PEA prepared by A.C.A. Howe International Limited dated
22 June, 2009 and entitled "Preliminary Economic Assessment Report
(PEAR) on the San Jos� Silver-Lead-Zinc Deposit, Zacatecas, Mexico" is
available on the Company's website www.ariansilver.com or on SEDAR at
www.sedar.com

The "Qualified Person", as such term is defined in NI 43-101, who
prepared the PEA in respect of the San Jos� Project, is Mr. Julian
Bennett who is an associate employee of A.C.A. Howe International
Limited.

The current NI 43-101 Resources at San Jose are set out below:

During the second quarter of 2009 activity at the San Jos� Project was
largely curtailed pending receipt of new funding.

Tepal Project; Michoac�n State

In June 2009 the Company renegotiated the terms of the option agreement
relating to the Tepal property such that $450,000 of the $500,000
option instalment due that month has been deferred to September 2009.
The balance of the instalment amounting to $50,000 was paid in July
2009.

The current NI 43-101 Resources at Tepal are set out below:

The "Qualified Person", as such term is defined in NI 43-101, who
prepared the above mineral resource estimates in respect of the San
Jose Project and the Tepal Project, is Mr. Galen White. Mr. White was
at the time these estimates were prepared an employee of A.C.A. Howe
International Limited.

For further information please contact:

Arian Silver Corporation
Carlyle House
235-237 Vauxhall Bridge Road
London SW1V 1EJ
England

Jim Williams - CEO
(London) +44 (0)20 7963 8670 / email: jwilliams@ariansilver.com

Graham Potts -- CFO & Corporate Secretary
(London) +44 (0)20 7963 8670 / email: gpotts@ariansilver.com

Bishopsgate Communications Limited
Nick Rome
(London) +44 (0)20 7562 3350 / email:
nick.rome@bishopsgatecommunications.com

Grant Thornton UK LLP
Gerry Beaney
(London) +44 (0)20 7383 5100 / email: gerry.d.beaney@gtuk.com

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

About the Company

Arian Silver Corporation is a silver exploration and development
company and is listed on London's AIM; trades on London's "PLUS"
market; is listed 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 Michoac�n 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 unit operating cost of metals, and to build up NI
43-101 compliant resources.

Further information can be found by visiting Arian'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.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE
SERVICES NOR 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.

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, funding from the disposal of the Grafton shares or from
other sources, the mineral resource estimates contained in this press
release, statements regarding exploration results, potential
mineralisation, 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
realised or substantially realised, 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 reserves, 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, the possibility that the placing of the
Grafton shares held by the Company will not be sold on a timely basis
and/or that such placement will not generate sufficient funds for the
Company to meet its ongoing obligations, 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.

The mineral resource figures disclosed 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 included 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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Copyright (c) 2009 ARIAN SILVER CORPORATION (AGQ)  All rights reserved.
 For more information visit our website at http://www.ariansilver.com/
or send mailto:info@ariansilver.com
Message sent on Thu Aug 27, 2009 at 6:48:10 AM Pacific Time
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