Ariana Regulatory News (AAU)

30 September 2015

AIM: AAU

INTERIM RESULTS

Ariana Resources plc ("Ariana" or "the Company"), the gold exploration and development company focused on Turkey, is pleased to announce its unaudited interim results for the six months ended 30 June 2015.

Highlights:

· Advancement of the Red Rabbit Gold Project ("RRGP"), Kiziltepe Mine, into construction.

· Strategic investment incentives approved by the Turkish Government for Kiziltepe.

· Continued progress across exploration and development portfolio - new mineralised zones at Kiziltepe to be drill tested in Q4 2015.

· Kiziltepe on track to deliver first gold pour in H2 2016.

Michael de Villiers, Chairman, commented:

"I am very pleased to be able to report the significant progress made by Ariana in the first half of this financial year where we are transitioning into a gold producer at our Red Rabbit Gold Project in Turkey. We have been further encouraged by results from recent work suggesting the project contains significant potential for further resource discoveries in the vicinity. The Board is looking forward the continuing the successful execution of our Company strategy and to a positive year end."

Contacts:

Editors' note:

About Ariana Resources:

Ariana is an exploration and development company focused on epithermal gold-silver and porphyry copper-gold deposits in Turkey. The Company is developing a portfolio of prospective licences selected on the basis of its in-house geological and remote-sensing database, on its own in western Turkey and in Joint Venture with Eldorado Gold Corporation in north-eastern Turkey. Eldorado owns 51% of this joint venture and are fully funding all exploration work on the JV properties, while Ariana owns 49%. The total resource inventory within this JV is 1.09 million ounces of gold.

The Company's flagship assets are its Kiziltepe and Tavsan gold projects which form the Red Rabbit Gold Project. Both contain a series of prospects, within two prolific mineralised districts in the Western Anatolian Volcanic and Extensional (WAVE) Province in western Turkey. This Province hosts the largest operating gold mines in Turkey and remains highly prospective for new porphyry and epithermal deposits. These core projects, which are separated by a distance of 75km, are presently being assessed as to their economic merits and now form part of a Joint Venture with Proccea Construction Co. The total resource inventory at the Red Rabbit Project stands at 475,000 ounces of gold equivalent.

Beaufort Securities Limited and Loeb Aron & Company Ltd. are joint brokers to the Company and Beaumont Cornish Limited is the Company's Nominated Adviser.

For further information on Ariana you are invited to visit the Company's website at www.arianaresources.com.

Ends

Chairman's Statement

During the period, the Company has successfully transitioned into the construction stage of its first mine at Kiziltepe. This mine is part of the Red Rabbit Gold Project ("RRGP"), which the Company is developing in a 50:50 partnership with Proccea Construction Co., with development finance of US$33 million provided by Turkiye Finans Katilim Bankasi A.S. Current progress on mine development includes the acquisition of all required freehold land, installation of perimeter security fencing and the laying of foundations for mine buildings. Long-lead orders and selection of mining contractor have also been negotiated. The Company remains on target for first gold pour in in the second half of 2016.

The Kiziltepe Mine will be producing at a rate of approximately 20,000 ounces gold equivalent per annum over the course of eight years at an expected cash cost in the vicinity of US$600 per ounce. It is apparent from recent work that the project contains significant potential for further resource discoveries in the vicinity and the Company is advancing to drill-testing several targets in the coming months. The area is host to a prolific gold-bearing vein system, which at Kiziltepe contains significant quantities of silver (approaching 40 grammes per tonne of silver in Reserve) and at Kepez (up to c.380 grammes per tonne of silver in rock-chips). On the exploration front, the work that we are progressing now is focused on the identification of new resource areas in order to enhance late-stage mine life and profitability.

Meanwhile we have been encouraged by the discovery of the 3 million ounce gold equivalent Hot Maden deposit by Mariana Resources and Lidya Madencilik, which sits on our doorstep at our Salinbas/Ardala Joint Venture project with Eldorado Gold Corp. This reinforces our view that this area has the potential to host multi-million ounce gold deposits. Ariana owns 49% of the joint venture which already contains approximately 1 million ounces in Inferred and Indicated resources, and for which a positive scoping study was completed in the period. We have continued discussions with both Eldorado and a number of Turkish groups, on this project in order to determine the most beneficial way forward and in an effort to crystallise early value.

Post the period end in July, the Company completed a placing for £1 million which strengthened the balance sheet and will enable meaningful exploration and development work to be conducted across its portfolio. It is a rare occurrence for any mineral resources company to successfully make the transition from explorer to producer, simply because the odds on any individual discovery becoming a mine are so small. Ariana is in the process of making this transition, reaching this point by having carefully focused its strategy and undertaking exploration in a cost-effective manner.

We have made significant progress in the first half of the year and are optimistic in achieving a successful outcome to the year as we continue with our strategy in becoming a gold producer and it is my privilege to be a part of the team making this transition happen. I would like to take this opportunity to thank our employees for their hard work and dedication, and our shareholders for your support throughout the period.

Ariana Resources Plc

Unaudited Condensed Consolidated Interim Financial Statements

for the six months ended 30 June 2015

Condensed consolidated statement of comprehensive income

Condensed consolidated interim statement of financial position

Condensed consolidated interim statement of changes in equity

Condensed consolidated interim statement of cash flows

Notes to the interim financial statements for the six months ended 30 June 2015

1. General information

Ariana Resources Plc (the "Company") is a public limited company incorporated and domiciled in Great Britain and whose registered office is Bridge House, London Bridge London SE1 9QR. The principal activities of the Company and its subsidiaries (the "Group") are related to the exploration for and development of gold and other minerals in Turkey. The Company's shares are listed on the Alternative Investment Market of the London Stock Exchange.

2. Basis of preparation

The condensed interim financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards and in accordance with International Accounting Standard 34 Interim Financial Reporting.  The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2014, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The condensed interim financial statements set out above do not constitute statutory accounts within the meaning of the Companies Act 2006. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 31 December 2014 were approved by the Board of Directors on 2 June 2015 and delivered to the Registrar of Companies. The financial information for the periods ended 30 June 2015 and 30 June 2014 are unaudited.

3. Significant accounting policies

The condensed interim financial statements have been prepared under the historical cost convention.

The same accounting policies have been followed in these condensed interim financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2014.

The Group and Company financial statements have been prepared on a going concern basis. As an exploration and development company the Directors are mindful that there is an ongoing need to monitor overheads and cash associated with the exploration and development programme; and to raise additional working capital on an ad hoc basis to support the Group's activities.

The Group expects to incur further losses in the development of its business. The Group's ability to continue its operations and to realise its assets at their carrying values is dependent upon obtaining additional financing and generating revenues sufficient to cover its operating costs. These financial statements do not give effect to any adjustments which would be necessary should the Group be unable to continue as a going concern and therefore be required to realise its assets and discharge its liabilities in other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.

The Company raised £414,000 in the six month period under review and £1m after the period end in July 2015 and the Directors remain confident that if future funding is required they will be able to raise this finance to meet the Group exploration and development programme and associated overhead cost.

4. Finance cost

5. Interest in joint venture

6. Segmental analysis

Management currently identifies one division as an operating segment - mineral exploration. This operating segment is monitored and strategic decisions are made based upon this and other non-financial data collated from exploration activities.

Principal activities for this operating segment are as follows:

Mining - incorporates the acquisition, exploration and development of gold resources in Turkey.  

Reconciling items include non mineral exploration costs and transactions between Group and associate companies.

Geographical segments

All of the Group`s mining assets and liabilities are located in Turkey.

7. Taxation

The Group has incurred tax losses for the period and a corporation tax charge is not anticipated.

8. Loss per share

The calculation of basic loss per share is based on the loss attributable to ordinary shareholders of £621,000 divided by the weighted average number of shares in issue during the period, being 667,927,904

9. Intangible exploration assets

10. Other financial asset

During previous accounting periods the Company raised £1.25 million following the issue of 125 million new shares at 1p per share to Lanstead Capital L.P. (Lanstead). The Company received £250,000 in cash and entered into an equity swap price mechanism with Lanstead for the balance of these shares with consideration payable on a monthly basis over a period of 24 months. The Company also issued 12.5 million shares to Lanstead in consideration for the equity swap agreement. A second equity swap arrangement was entered into on similar terms with Lanstead for £152,000 during the January 2014 share placement, where the Company raised £789,000 following the issue of 87 million new shares at 0.9p per share.

The consideration from Lanstead has been treated as a non-derivative financial asset and its fair value has been determined by reference to the Company`s share price at the balance sheet date as measured against a benchmark price of 1.33pence for the first equity swap agreement and 1.20pence per share for the second agreement.

The amounts reported in the balance sheet relating to other financial instruments mature as follows:

11. Called up share capital and share premium

Details of issued capital are as follows:

12. Post period end event

In July 2015 the Company raised £1,000,000 before expenses through the issue of 111,111,111 ordinary shares.

13. Approval of interim financial statements

The interim financial statements were approved by the Board of Directors on 29/09/2015.