=======================================================================
      Arian Silver's MD&A and Results for the Six Months Ended 30 June
      2011
=======================================================================

Not for Distribution to U.S. Newswire services
nor for Distribution in the United States

London, England, Arian Silver Corporation ("Arian" or the "Company")
(TSXV: AGQ) (AIM: AGQ) (FRANKFURT: I3A), a silver exploration,
development and production company with a focus on projects in the
silver belt of Mexico, today announced the release of its Management's
Discussion and Analysis ("MD&A") and unaudited Financial Statements
("Financials") for the six months ended 30 June 2011.

The MD&A and Financials will be available at SEDAR at www.sedar.com and
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 does not constitute full
statutory accounts.

Arian's Chief Executive Officer, Jim Williams, commented today, "The
conclusion of Q2 has shown a gross profit with our San Jos� mining and
milling operation and we continue to fine tune our operations with a
view to significantly improving on this. In addition, during July we
released an updated NI 43-101 and JORC-compliant resource estimate
where we have more than doubled our in-situ silver resources at the San
Jos� project; we have also significantly upgraded resources to the
"indicated" resource category. We have started yet another drilling
programme (Phase-4) at San Jos� where we have outlined a 40-hole,
10,000 m programme, with the intention of drilling the entirety of the
San Jos� Vein, and most of the other known associated mineralised
targets within the confines of our concession areas, which we are now
more than 25% of the way through. Our balance sheet remains strong and
we continue to have no debt."

OVERVIEW OF SECOND QUARTER OF 2011 AND SUBSEQUENT EVENTS

Financial (all amounts expressed in US dollars unless otherwise
stated)REVIEW OF FINANCIAL PERFORMANCE

In the six months ended 30 June 2011, the Company incurred a pre-tax
loss of $9.9 million (2010 - $0.6 million) which includes a gross loss
for the San Jos� mine of $0.2 million, recognising the fair value
non-cash expense of share purchase options vesting of $8.0 million
(2010 - $14,000) and other administrative expenses of $1.4 million
(2010 - $0.7 million).   Interest income from cash resources was
$24,000 (2010 - $4,000). Finance loss was $0.3 million (2010 - $0.1
million).

As at 30 June 2011, the Company had working capital of approximately
$9.1 million (31 December 2010 - $10.2 million). See Liquidity, Capital
Resources and Working Capital for the items of working capital.
Intangible assets amounted to $2.4 million (31 December 2010 - $1.2
million) which relate to deferred exploration and evaluation costs in
respect of the Company's Mexican projects. Property, plant and
equipment amounted to $6.4 million (31 December 2010 - $5.4 million);
$6.3 million of this relates to the San Jos� mine development costs.
Share capital increased by $1.9 million to $47.3 million (31 December
2010 - $45.4 million) as a result of the issue of common shares in
connection with the exercise of share options and share purchase
warrants.

REVIEW OF OPERATIONS

The Company currently owns 32 mineral concessions in Mexico totalling
approximately 8,038 hectares ("ha").

San Jos� Project, Zacatecas State

The San Jos� property lies 55 kilometres to the southeast of Zacatecas
City and covers 11 mining concessions totalling approximately 6,300 ha.
The property has significant infrastructure, including a 4 x 4 metre
("m") main haulage ramp ("SJ Ramp"), which extends for nearly 3.2 km
along the footwall of the San Jos� Vein ("SJV") system, and a 350 m
deep, 500 tonne per day ("tpd"), vertical shaft with operational hoist.
In addition, a number of shallower vertical shafts are located in a
westerly direction along the SJV.

Production Information


Mining Operations

The initial mining operation is limited to the Ramal Norte/Sur, San
Jos� 75 m Level Central Zone and Santa Ana resource blocks. These were
selected by Arian, from seven delineated resource blocks, to support an
initial four-year mining operation with the potential to increase the
mining rate to 1,500 tpd subject to milling capacity being available.

>From January to the end of June 2011 approximately 161 m were developed
along the main westerly strike of the SJ Ramp in a combination of
Run-Of Mine ("ROM") and waste material. In addition, some 73 m were
developed off the main SJ Ramp, initially in a northerly direction
before running parallel and with a steeper decline; this was to access
deeper seated sulphide-rich material of the Santa Ana Block (less
oxidation) which should further increase recoveries at the mill.
Anticipated grades of silver in this area, based on diamond drilling
information, are in the order of 450 g/t.

Mining expectations remained unchanged at 500 tpd for the contract
mining operation. Mining was planned to operate 20 days per month.
Total costs to mine and deliver ore to the mill were estimated at
approximately $26/tonne.

Milling Operations

Q2 recoveries increased 49% to 56.66% from the Q1 result of 38.08%.
Arian is continuing to focus on the custom mill and plant operations
and is overseeing changes in the reagents and modifications to the
physical plant to increase the recoveries.  It is anticipated that
recoveries will increase to the level initially planned.

During Q2 the plant was audited and those recommendations are being
reviewed and implemented.  The decisive action taken during May as a
result of the previously reported theft has, consequently, provided
improved results for Q2; Arian expects results to continue to improve.
Arian has also implemented actions to ensure that the smelter and plant
results are correlated to an acceptable level.

Arian has signed a new lease with the custom mill and plant owner for a
period of up to two years at a cost of MXP 6 million (approx. US$ 0.5
million)  per month. There is an early break provision in favour of the
owner of the plant in the event that an option to purchase the plant
held by a third party is exercised on 31 October 2011. However, if this
option is exercised Arian currently believes it would be able to
negotiate continued use of the plant with the new owner. The lease also
has an early break provision in favour of Arian giving it the right to
terminate the lease after twelve months. The increase in the lease cost
is due to the operation of a new 200 tpd mill which is currently being
commissioned and should allow Arian to meet its expected milling target
of 400 tpd (for 30 days), with up to 125 tonnes of concentrate to be
produced per month with an anticipated silver content of between 370
and 440 ounces per tonne ("opt").
 
The mill is rated a 400 tpd throughput mill, however Arian only started
with a daily throughput of 120 tonnes and is currently around 250 per
day.  The plant is not designed for the hardness and abrasiveness of
the San Jos� ROM material ore.  This issue was partially overcome with
the installation of a reconditioned impact crusher placed within the
circuit to more finely grind the ROM material before the ground rock
entered the flotation stage of the plant.

This phase of milling has allowed Arian to review all the key data as
it would if it were operating a test plant and provides information for
Arian to build an optimised plant, should it decide to build one.
Arian is currently reviewing alternatives as well as continuing to work
to improve the mill design and recoveries. 

Based on a contained silver content of 405 opt at $35/oz silver, a
concentrate value of $12,700/tonne, after deductions, is forecast to be
achieved although the higher the silver price, which is calculated
based on a quotation period paying the average of the second month
after delivery, the greater the return.

A 2% NSR (net smelter royalty) on concentrate value is payable to the
vendor of the San Jos� property.

Exploration Drilling

In May 2011 Arian completed the Phase 3 drill programme, which
commenced in November 2010, drilling over 10,000m. The purpose of the
drill programme was to delineate additional areas of high grade
mineralisation and to upgrade existing resources, between the Santa Ana
and Guanajuatillo resource areas along the SJV. The drill programme had
also started to explore in detail the SJV system that lies to the west
of the village of Guanajuatillo. The results of Phase 3 are included in
the resource table under the heading 'Exploration Resource'.

In April and June 2011 the drilling results from the Phase 3 drilling
programme were released (see the Company's press releases dated 4 April
2011 entitled "Arian Silver's continuing exploration drilling
intercepts high-grade silver at San Jos�" and 27 June 2011 entitled
"Arian Silver Reports Wide High-Grade Silver and Base Metal
Intercepts").

In June 2011, Phase 4 drilling programme commenced and at the end of
July 2011 there were approximately 2,200 m drilled.  The purpose of
this drilling phase is to drill the entire SJV combining infill and
step out drilling which will endeavour to maximise the data points in
the given area and upgrade the resource categories.

Arian's overall objective is to develop additional resources on the San
Jos� property concurrently with the existing mining operation, complete
a full feasibility study, and move to large-scale independent
commercial production.

Exploration Resource

On 20 July 2011 Arian announced a significant resource estimate upgrade
(see the Company's press release entitled "Arian Silver Announces
Significant increase in Mineral Resources at San Jos�").   The
highlights of this announcement were:Arian's new resource estimate
upgrade which includes all drill programmes from 2006 along the SJV has
a delineated NI 43-101 and a JORC Code compliant resource estimate of
approximately 30.03 million ounces of silver, 69.9 million pounds of
lead and 126.6 million pounds of zinc in the "indicated" mineral
resource category and 58.42 million ounces of silver, 140.1 million
pounds of lead and 291.1 million pounds of zinc in the "inferred"
mineral resource category. The NI 43-101 and JORC code compliant
mineral resources mentioned above is summarized in the table below:


Note: The resource estimate in the table above is wholly owned by
Arian.Readers are reminded that mineral resources are not mineral
reserves and have not demonstrated economic viability. There is no
certainty that mineral resources can be upgraded to mineral reserves
through continued exploration.

Laboratory Update

The laboratory purchased in November 2010 from Stewart Group's
Geochemical & Assay Division ("Stewart Group") became fully operational
in April 2011. The laboratory comprises a comprehensive sample
preparation facility, a fire assay laboratory and a wet chemistry
laboratory with Atomic Absorption Spectrometry ("AAS"), and is operated
under the sole control and management of professional personnel from
the Stewart Group in order that results are fully compliant with
Arian's quality assurance and quality control (QA/QC) programme. The
laboratory has significantly increased the turnaround times for
analysis of Arian's sampled drill cores.

LIQUIDITY, CAPITAL RESOURCES AND WORKING CAPITAL

During the period the Group received new funding from:Working Capital -
30 June, 2011

As at 30 June 2011, the Company had working capital of approximately
$9.1 million (31 December, 2010 - $10.2 million). The items of working
capital and changes compared to 31 December 2010 are as follows:

Current assets:Current liabilities: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 the
Review of Operations other than the mineral resource estimates.

For further information please contact:

Arian Silver Corporation
Berkeley Square House
Berkeley Square
London
W1J 6BD
England

OR

Arian Silver Corporation
Jim Williams
CEO
(London) +44 (0)20 7887 6599
jwilliams@ariansilver.com

OR

Grant Thornton Corporate Finance
Gerry Beaney
(London) +44 (0)20 7383 5100
gerry.d.beaney@gtuk.com

OR

XCAP Securities PLC
John Grant / Karen Kelly
(London) +44 (0)20 7101 7070
John.Grant@xcapgroup.com / Karen.Kelly@xcapgroup.com

OR

Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0) 7768 537 739
dominic@yellowjerseypr.com

OR

CHF Investor Relations
Cathy Hume
(Canada) +1 416 868 1079 x 231
cathy@chfir.com

About the Company

Arian 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 is
active in Mexico, the world's second largest silver producing country.
The Company's main project is the San Jos� project in Zacatecas State.
Part of Arian'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.

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
and no stock exchange, securities commission or other regulatory
authority accepts responsibility for the adequacy or accuracy of this
release nor approved or disapproved of the information contained
herein.

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

This press 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, statements relating to the mineral resource estimates,
statements regarding the contract mining and milling operation at the
San Jos� Project (the "SJ Mining Operation"), the ability of the
Company to achieve, maintain and possibly increase planned levels of
production from the SJ Mining Operation, the ability of the Company to
generate positive cash flow from the SJ Mining Operation, the ability
to continue or implement proposed drilling programmes on the SJV system
and the Company's exploration, development and production 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, the performance of the
contractors and plant and equipment engaged in relation to the SJ
Mining Operation, failure to achieve anticipated production levels and
mineral grades for ore from the SJ Mining Operation, 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, changes in the silver commodity price,
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.

=======================================================================
Copyright (c) 2011 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 Mon Aug 22, 2011 at 10:00:47 AM Pacific Time
=======================================================================
.