Arian Silver Corporation: Operations Update

Arian Silver Corporation: Operations Update 
LONDON, ENGLAND -- (Marketwire) -- 02/19/13 -- Arian Silver
Corporation ("Arian" or the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A), a silver exploration,
development and production company with a focus on projects in the
Zacatecas silver belt of Mexico, announces that toll milling fully
resumed on 16 February 2013. 
The toll mill is located 50 km from the Company's San Jose mine in
Zacatecas State in Mexico and is privately owned and operated by
Beneficiadora de Jales y Minerales Juan Reyes SA de CV ("Juan
The Juan Reyes mill is newly refurbished, has a maximum capacity of
500 tonnes per day, and benefits from two separate flotation streams
to extract zinc in addition to lead and silver concentrate. The
contract with Juan Reyes gives exclusive use of the mill to Arian, is
renewable by mutual consent and is initially for the processing of
90,000 tonnes of Run-of-Mine material from the San Jose mine; this
should take approximately six months once the maximum daily
throughput rate is achieved and maintained. 
The Juan Reyes mill commenced processing on 16 February 2013 with
supervisory assistance from Arian personnel to help optimise
processing to maximise material throughput and silver, lead and zinc
MRI Trading AG, who previously provided partial off-take services
while Arian was using a previous toll mill ("Contracuna Mill"), will
now provide 100% off-take services. 
The dispute with the owners of the Contracuna Mill caused toll
milling operations to be suspended in July 2012. Although all amounts
owed to Arian by the owner of the Contracuna Mill have now been
repaid, Arian has submitted a claim for damages, which has been met
by a counter-claim by Contracuna, which Arian believes, has been
submitted solely to frustrate the legal process and is without merit. 
Separately, Arian has identified a second-hand processing plant which
appears to be suitable for treating the San Jose ore. The Company
will provide an update on these discussions as they progress. 
As previously reported (27 September 2012), the Standby Equity
Distribution Agreement ("SEDA") was agreed for a maximum of GBP 5
million over a 3 year period. To date, approximately 18% of this
facility has been utilised for co
ntinued development and mining work
at the San Jose mine and as a contribution to working capital. 
Arian's Chief Executive Officer, Jim Williams, commented today, "The
commencement of processing at the Juan Reyes toll mill once again
puts Arian back into the ranks of silver producers after frustrating
delays since mid 2012. However, as we have previously stated, this
new toll mill arrangement, while providing useful cash flow, should
be regarded as only a stepping-stone towards acquiring our own
processing plant. We have now identified such a plant and are
currently in discussions regarding its acquisition, which if
successful will eventually allow greater daily ore throughput from
the San Jose mine with increased efficiencies all round. 
We have already established very significant resources of silver,
lead and zinc at San Jose and the proposed acquisition of our own
plant will accelerate our aim of becoming a significant silver
producer in the medium term." 
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
Arian Silver Corporation
Jim Williams
(London) +44 (0)20 7887 6599 
Arian Silver Corporation
David Taylor
Company Secretary
(London) +44 (0)20 7887 6599 
Grant Thornton Corporate Finance
Gerry Beaney / David Hignell
(London) +44 (0)20 7383 5100 
Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)77 6853 7739 
XCAP Securities PLC
Jon Belliss
(London) +44 (0)20 7101 7070 
CHF Investor Relations
Juliet Heading
(Canada) +1 416 868 1079 x 239
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