Red Rabbit Gold Project

In 2009 Ariana Resources combined its two flagship assets, Kiziltepe and Tavsan into one project named "Red Rabbit". The Kiziltepe and Tavsan sectors of the Red Rabbit Project are located approximately 75km apart in the highly prospective WAVE Province in western Turkey. The Kiziltepe sector (which comprises Kiziltepe, Kepez and Karakavak) and the Tavsan sector demonstrate potential for additional resource growth.

Near Term Gold Production Potential

The Red Rabbit gold project has a JORC compliant resource of 448,000 oz Au equivalent. There is potential to increase the resource through additional exploration and, as a result, the Company is targeting in excess of 500,000 oz Au equivalent which will include approximately 4 million oz Ag.

In 2010, Ariana Resources committed to develop the Red Rabbit gold project in partnership with Proccea Construction Company. The project is currently being developed ahead of production from the Kiziltepe Sector, currently anticipated in early 2014. The Kiziltepe Sector would provide for an open pittable, high grade, moderate strip-ratio, Carbon-In-Leach (CIL) operation.

Ariana has successfully completed trial gold production, producing 387 oz gold at the Kiziltepe sector of the Red Rabbit gold project. Following trial mining, a scoping study was undertaken by Wardrop Engineering (Wardrop). This study was then superseded by a Pre-feasibility Study and most recently by an Interim Feasibility Study.

The results from the interim FS demonstrate the potential of the Red Rabbit Gold Project as it moves to a decisive stage of permitting. The study reinforces the Company's ability to generate significant revenues from the Kiziltepe Sector.

Highlights of the interim feasibility study include:

• Combined reserve in designed pits at the Kiziltepe Sector of the Red Rabbit Gold Project is approximately 1.1 million tonnes at an average grade of 3.1 grams per tonne ('g/t') gold ('Au') and 39.8 g/t silver ('Ag'), corresponding to 115,460 oz Au and 1,468,200 oz Ag.
• Output expected at a rate of 150,000 tonnes ore per annum, corresponding to an average production of approximately 21,000 oz/year of Au equivalent over the first five years of operation.
• Financial model at a 'current' gold price of US$1,650/oz and a silver price of US$25/oz provides a (gross with respect to the JV terms) Net Present Value ('NPV') (8% discount) of US$49.8 million and Internal Rate of Return ('IRR') of 47.8%, with payback secured in 2.1 years.
• Capital cost estimated at US$29.5 million, including US$14.2 million for the processing plant and EPCM (Engineering, Procurement, Construction Management).
• Cash costs estimated at between US$678 and US$693 per ounce across the financial model range.

Through 2012, Ariana continued to accelerate its exploration efforts within the Red Rabbit Project area. Early in the year the company completed a total of 1,995m of diamond drilling over the Kiziltepe prospect. Results from the programme returned with exceptional “bonanza” grades, and widths of mineralisation greater than anything seen in the seven years of exploring on the deposit (Table 1). Furthermore and importantly the work has also proved that the vein system extends under cover between the Arzu South and Arzu North structures. Highlighted results from this programme can be seen below:

• 12.1m @ 13.1 g/t Au + 187.6 g/t Ag (16.5 g/t Au equiv.)
• including 3.2m @ 38.7 g/t Au + 511 g/t Ag (48.0 g/t Au equiv.)
• and including 1m @ 65.9 g/t Au + 760 g/t Ag (79.7 g/t Au equiv.)

Exploration drilling has also determined that the Arzu North vein system extends to the southeast beneath cover, rather than being truncated by an E-W structure as previously considered. Intercepts from this drilling include:

• 34m @ 1.04g/t Au equiv.
• 7.6m @ 7.60g/t Au equiv.
• 5.8m @ 5.71g/t Au equiv.

Additional results from the eastern most part of the Emel Vein have highlighted an additional prospective zone extending towards the Arzu South structure:

• 7.4m @ 1.71 g/t Au equivalent

All of the above highlight the significant potential within the Kiziltepe sector – A follow-up deeper drilling programme is being planned.

Table 1: New drilling results for the Kiziltepe prospect. Results reported for intercepts >1m using a 0.5 g/t Au lower cut, no upper cut and a 1m minimum composite width.

In Q2 of 2012 the Company completed an IP/Resistivity and ground magnetic survey over Kiziltepe. The IP was designed to penetrate deep (300-400m) below the Arzu North/Arzu South mineralised system. Positive results have displayed distinct extensions of the majority of mineralised zones, and emphasise the potential for deeper drilling targets. Importantly, subtle anomalies between the Arzu North/Arzu South “Gap Zone” support recent exploration drilling results, and suggest a likely corridor of linked mineralisation which is covered by a pumice ignimbrite cap. Ground magnetic results were superimposed over, and compliment surface mapping and existing geochemistry.

Phased Development to Production

Phase 1

FS & EIA

Proccea are funding US$1.4 million including all costs associated with the Feasibility Study (FS), Environmental Impact Assesment (EIA), permitting, land acquisition and additional exploration in the vicinity of Kiziltepe.

Phase 2

Construction

Encompasses the construction and commissioning of the gold mine. This will involve the establishment of the processing plant, tailings and waste-rock disposal areas in addition to related mine infrastructure and facilities.

Phase 3

Production

Production and further investment. This involves the longer term development of the Kiziltepe Sector and the advancement of the Tavsan Sector.

Ariana has the option to sell into the JV any resources discovered in the Red Rabbit project area at three times the exploration cost incurred by the Company.