Ivrindi Gold Project

Project Summary

The Ivrindi Gold project is owned 100% by Ariana and encompasses one principle prospect which is summarised below.

Kinik - 750m x 50m gold in soil anomaly occurring above altered andesitic rocks. Channel sampling of in-situ rocks yielded 3.21 g/t over 10m and 3.09 g/t over 5m. This area was drilled in 2007 and yielded encouraging results.

This project was discovered by the Ariana exploration team using remote-sensing targeting methods developed by the Company. The prospect is contained by a licence that was one of the first acquired by the Company in early 2004.

Location and Infrastructure

The Ivrindi Gold Project is located in the Ivrindi District of Balikesir Province in western Turkey. The project comprises two licences, including one with 10-year operational status. The Project area lies approximately 70km from Sindirgi and 70km northeast of the one million ounce vein-hosted Ovacik gold mine and 180km northwest of the five million ounce Kisladag gold mine.

The project area is serviced by a high-quality network of sealed district roads and un-sealed village roads.

Exploration Highlights

Reconnaissance rock-chip sampling along a road-cut identified the prospect area with a peak value of 5.32 g/t Au.

Higher grade sections of 3.21 g/t over 10m, 3.09 g/t over 5m and 1.40 g/t over 13m (using a 0.5g/t Au cut-off) and a peak grade of 10.42 g/t were identified by channel sampling of the road-cut.

Soil sampling across the prospect area defined an extensive and coherent east-west trending gold in soil anomaly of 750m by 50m. 9% of the 230 samples collected returned values above 0.1 g/t Au and the peak soil value was 1.22 g/t Au.

The prospect was then drilled in 2006 and 2007. Drilling provided the intercepts shown in Table 1.

Table 1: Drilling results for exploration at the Kinik Prospect. Results reported for intercepts >1g/t Au using a 0.5 g/t Au lower cut, no upper cut, a 1m minimum composite width and up to 2 metres of waste material allowed.

Geological Outline

Kinik:The prospect contains a 1500m by 500m wide zone of argillically altered Lower Miocene andesitic volcanic rocks, which were initially located in Landsat imagery. The altered and mineralised area has since been defined by geological mapping, channel and rock-chip sampling.

In places, the andesitic units are juxtaposed by steeply dipping normal faults against Permo-Traissic limestones. The contacts between these units are marked by 5-10m wide fault breccias and much of the alteration and mineralisation occurs immediately adjacent to these faults. The mineralisation appears to be disseminated finely within the altered andesitic units.

Economic Potential

No geological resource model for the Kinik prospect has been compiled. The drilling of the Kinik prospect was designed to test the strike and depth continuity of the mineralised zone as defined by soil geochemistry. A formal JORC resource estimate may be constructed on the basis of additional drilling and geological modelling if coherent geological continuity can be demonstrated across and along the mineralised zone. Further work at this site is planned now that the licence containing the Kinik prospect has been upgraded to 10-year operational status.