Ariana Regulatory News (AAU)

Vein Area

Average density applied (g/cm3)

Arzu South Vein

2.60

Arzu South Alteration Halo

2.50

Arzu North Vein

2.45

Arzu North Alteration Halo

2.40

Derya Vein

2.55

Derya Alteration Halo

2.50

Banu Vein

2.50

Exploration Targets

2.50

Waste Rock

2.53

KIZILTEPE SECTOR

Average Value

Material Content

UNDEPLETED RESOURCE

Cut-off Grade

Density

Volume

Mass

Au

Ag

Au

Ag

Classified

g/t Au

g/cm3

m3

t

g/t

g/t

oz

oz

Kiziltepe

Dec-21

Appendix 1

Measured

0.75 halo, 1.00 vein

2.52

738,780

1,857,180

3.04

45.55

181,400

2,719,690

Indicated

0.75 halo, 1.00 vein

2.51

294,680

740,930

2.39

45.94

56,850

1,094,250

Inferred

0.75 halo, 1.00 vein

2.49

437,430

1,097,640

2.12

38.49

74,660

1,358,360

Kepez North

Sep-21

Appendix 2

Measured

1.00

2.6 vein, 2.55 scree

69,430

179,650

4.90

44.92

28,320

259,480

Indicated

n/a

Inferred

Kepez West

May-18

Appendix 3

Measured

n/a

Indicated

Inferred

1.25

2.55

59,210

150,990

1.89

12.50

9,180

60,440

Kizilcukur

May-20

Appendix 4

Measured

1.00

2.55

51,180

130,510

2.79

84.11

11,720

352,940

Indicated

1.00

2.55

34,430

87,800

2.60

69.01

7,340

194,830

Inferred

1.00

2.55

14,650

37,340

1.75

57.31

2,100

68,810

Ivrindi

Oct-13

(JORC 2004, no Table 1)

Measured

n/a

Indicated

Inferred

1.00

2.50

82,800

207,000

1.65

n/a

11,000

n/a

GLOBAL TOTAL

Measured

2.52

859,380

2,167,340

3.18

47.82

221,430

3,332,110

Indicated

2.52

329,110

828,740

2.41

48.38

64,190

1,289,080

Inferred

2.51

594,080

1,492,970

2.02

30.99

96,940

1,487,610

TOTAL

2.52

1,782,570

4,489,050

2.65

42.33

382,560

6,108,800

Kiziltepe

Dec-21

Appendix 1

Measured

0.75 halo, 1.00 vein

2.51

167,450

420,430

2.20

43.47

29,800

587,620

Indicated

0.75 halo, 1.00 vein

2.51

277,830

698,260

2.33

46.09

52,310

1,034,790

Inferred

0.75 halo, 1.00 vein

2.51

409,830

1,029,220

2.12

38.55

70,070

1,275,460

Kepez North*

Sep-21

Appendix 2

Measured

1.00

2.6 vein, 2.55 scree

69,430

179,650

4.90

44.92

28,320

259,480

Indicated

n/a

Inferred

Kepez West

May-18

Appendix 3

Measured

n/a

Indicated

Inferred

1.25

2.55

59,210

150,990

1.89

12.50

9,180

60,440

Kizilcukur

May-20

Appendix 4

Measured

1.00

2.55

51,180

130,510

2.79

84.11

11,720

352,940

Indicated

1.00

2.55

34,430

87,800

2.60

69.01

7,340

194,830

Inferred

1.00

2.55

14,650

37,340

1.75

57.31

2,100

68,810

Ivrindi

Oct-13

(JORC 2004, no Table 1)

Measured

n/a

Indicated

Inferred

1.00

2.50

82,800

207,000

1.65

n/a

11,000

n/a

GLOBAL TOTAL

Measured

2.54

288,060

730,600

2.97

51.09

69,830

1,200,050

Indicated

2.52

312,260

786,070

2.36

48.65

59,650

1,229,620

Inferred

2.51

566,480

1,424,550

2.02

30.67

92,340

1,404,710

TOTAL

2.52

1,166,800

2,941,220

2.35

40.55

221,820

3,834,380

Kiziltepe Sector

Exploration Targets

Mass

Average Value

Material Content

Min

Max

Au Min

Au Max

Ag Min

Ag Max

Au Min

Au

Max

Ag

Min

Ag

Max

Jan-22

t

t

g/t

g/t

g/t

g/t

oz

oz

oz

oz

Kiziltepe

986,900

1,023,200

1.25

3.40

22.00

64.00

32,620

89,720

576,410

1,673,830

Karakavak

 195,100

 195,240

0.90

 1.45

 2.00

 5.00

 9,770

 17,055

 22,035

 55,090

TOTAL

1,182,000

1,218,440

 1.12

 2.73

 15.75

 44.13

42,390

106,775

598,445

1,728,920

KIZILTEPE SECTOR

RESERVES

Average Value

Material Content

Cut-off Grade

Density

Volume

Mass

Au

Ag

Au

Ag

g/t Au

g/cm3

m3

t

g/t

g/t

oz

oz

KiziltepeDec-21

Proven

1.00

2.50

 171,660

 428,810

 1.90

 29.30

 24,830

 385,210

Probable

1.00

2.52

 134,900

 339,390

 2.37

 42.45

 25,800

 461,470

Sub-total

1.00

2.51

 310,140

 777,150

 2.10

 35.05

 52,530

 871,200

Kepez

Sep-21

Proven

1.00

2.60

 14,140

 36,770

 5.11

84.18

 6,030

 99,500

Probable

1.00

2.60

 43,090

 112,050

 3.52

32.09

 12,690

 115,600

Sub-total

1.00

2.60

 57,230

 148,810

 3.91

44.96

 18,730

 215,100

Kizilcukur

Jan-22

Based on May 2020 model

Proven

n/a

Probable

1.00

2.55

 48,290

 123,130

 2.27

92.54

 8,990

 366,340

Sub-total

1.00

2.55

 48,290

 123,130

 2.27

92.54

 8,990

 366,340

 TOTAL

1.00

2.52

 417,520

 1,053,720

 2.38

43.16

 80,580

 1,462,310

Ariana Resources plc

Tel: +44 (0) 20 3476 2080

Michael de Villiers, Chairman

Kerim Sener, Managing Director

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

Roland Cornish / Felicity Geidt

Panmure Gordon (UK) Limited

Tel: +44 (0) 20 7886 2500

John Prior / Hugh Rich / Atholl Tweedie

Yellow Jersey PR Limited

Tel: +44 (0) 20 3004 9512

Dominic Barretto / Henry Wilkinson / Matthew McHale

arianaresources@yellowjerseypr.com

Sampling techniques

· Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

· Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

· Aspects of the determination of mineralisation that are Material to the Public Report.

· In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

· Reverse circulation (RC) chips were collected at 1 m intervals and in some cases over 0.5 m intervals over the mineralised zone. The chips were collected into plastic sample bags from a cyclone to ensure maximum recovery. The samples were split using a standard riffle-splitter to around 0.25 to 0.5 kg per sample.

· Diamond drillcore is split using a diamond rock saw, and half-core samples are taken at variable intervals. Core recovery is recorded into the database.

· Samples were sent to an ISO accredited ALS laboratory in Romania for Au and Ag analysis by fire assay and latterly to a similar ALS laboratory in Izmir, which is still used as an external laboratory for QA/QC purposes.

· Samples are now prepared and analysed at Zenit laboratory at Kiziltepe Mine, for Au (fire assay), Ag (AAS), and 4-acid digest for all other elements.

· Under normal Company operational procedures, sampling undertaken as early-stage exploration or reconnaissance is submitted to the laboratory for 30g fire assay analysis. However, sampling undertaken on more advanced or resource stage projects are submitted for 50g fire assay analysis, where it is expected that the larger samples mass will provide marginally more representative results.

· Through 2021, the Kiziltepe Mine Laboratory, under its current transforming setup, is only able to analyse samples at a 30g fire assay sample shot capacity. Therefore, check samples sent to ALS in Izmir for external review have been, and will continue to be sent as a mixture of both 30g and 50g assay shot capacities, so that the various teams involved can appropriately reconcile the minor variation in the compared datasets.

· As of January 2022, the Zenit Laboratory houses two ICP-OES (PerkinElmer Avio 550 and PerkinElmer Optima 8000) instruments, two Atomic Absorption Spectrometers (PerkinElmer's PinAAcle 900F), three drying ovens, three crushers, three pulverisers and seven furnaces.

· Portable X-ray Fluorescence (pXRF) analysis is typically used on 1m intervals on all drill core not sampled for assaying. This is primarily for geological modelling purposes.

· Pulp rejects from all assayed samples are also analysed using pXRF analysis. This data is not used for mineral resource estimation purposes, but rather for internal evaluations conducted by the exploration team. pXRF certified reference standards are used on a regular basis in line with company procedures.

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf 

Drilling techniques

· Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· Pre-2018 drilling programmes included percussion drilling, reverse circulation (RC, 130 mm diameter) and diamond drilling (NQ diameter).

· 2018 drilling was undertaken by NQ diamond drilling (918 m)

· 2019 drilling was undertaken by RC drilling (3,186 m)

· 2020 drilling was undertaken by HQ diamond drilling (2,391 m)

· 2021 drilling was undertaken by HQ diamond drilling (12,579 m)

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Note: x = drill hole numbering

Drill sample recovery

· Method of recording and assessing core and chip sample recoveries and results assessed.

· Measures taken to maximise sample recovery and ensure representative nature of the samples.

· Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

· Recoveries were monitored and recorded into the sampling database. Drill recoveries for all mineralised intercepts exceeded 90% recovery.

· Overall core recovery for diamond drilling is >93%. The recent drilling (2021) had overall recovery of 92%.

· Overall recovery for RC drilling is >88%.

· There is no bias between sample recovery and grade.

Logging

· Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

· Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

· The total length and percentage of the relevant intersections logged.

· All diamond core holes were logged lithologically using a coded logging system for rock type, grain size, colour, alteration and any other relevant observations.

· Mineralised zones were identified from observation of mineralogy and lithological characteristics. Portable XRF (pXRF) analysis was conducted post drilling, to provide supporting geochemical data for non-sampled regions. Areas identified as geochemically anomalous by pXRF were further sampled. The pXRF was checked by use of certified referenced standards to ensure good quality data was produced.

· Logging of RC samples was carried out on washed samples with geological characteristics recorded into a database.

· All drilled metres [275 diamond drill holes (26,235 m), 164 RC drill holes (16,066 m), 15 rotary air blast (RAB) holes (348 m) and 130 rock-saw channels (975 m)] were logged regardless of presence of mineralisation.

Sub-sampling techniques and sample preparation

· If core, whether cut or sawn and whether quarter, half or all core taken.

· If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

· For all sample types, the nature, quality and appropriateness of the sample preparation technique.

· Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

· Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

· Whether sample sizes are appropriate to the grain size of the material being sampled.

· Samples from diamond drill core were collected from sawn halves of identified zones of interest. Half core remains in the core tray for reference.

· RC sampling: Samples were collected at 1 m intervals and split using a two-stage riffle splitter, running each sample through the splitter twice. Wet intervals were sub-sampled with scoop or spear. Samples were oven-dried at the laboratory if necessary.

· Sample preparation technique is appropriate to the mineralisation style.

· Splitting and sample preparation conducted on samples at the Zenit laboratory:

o Drying at 105OC

o Crushing whole sample to ≤2mm

o Splitting of crushed sample to analyse

o Pulverising sub-sample to 80% passing ≤75μm

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· Splitting and sample preparation conducted on samples at the ALS laboratory:

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Quality of assay data and laboratory tests

· The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

· For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

· Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

· QC procedures employed in all drill programmes prior to 2019 included the insertion of certified reference standards (1:22), blank samples (1:22), pulp and crush duplicates (2:22) to monitor the accuracy and precision of laboratory data when samples were submitted to ALS Global, Izmir. Insertion rate of 18%.

· In drill programmes since 2019, samples have been submitted in batches of 35 to ALS Global, Izmir, to include 1 blank, 1 CRM, 1 field duplicate and 1 pulp duplicate. Insertion rate of 11%.

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· Samples submitted to Zenit Laboratory are in batches of 20 to include 1 blank, 1 CRM, 1 field duplicate and 1 internal Zenit Lab sample. Insertion rate of 16%.

· 10% of all drill samples are duplicated to submit to ALS Global, Izmir, as check samples at an external laboratory to confirm internal Zenit Laboratory results, whilst the laboratory expansion is taking place.

· The overall quality of QA/QC procedures is considered adequate to ensure the validity of the data used for resource estimation purposes.

· The handheld XRF is an Olympus Vanta. A series of 10 blank and certified reference material samples are used to check the quality of the pXRF data. These are scanned at a rate of 1 blank and 1 CRM for every 100 samples. The device does not require further calibration.

Verification of sampling and assaying

· The verification of significant intersections by either independent or alternative company personnel.

· The use of twinned holes.

· Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

· Discuss any adjustment to assay data.

· All samples before 2019 were submitted to the internationally accredited laboratory of ALS Global in Izmir, Turkey (ISO 9001:2008 accredited).

· Samples taken in 2019, 2020 and 2021 have been submitted to Zenit Laboratory at the Kiziltepe Mine, with 10% also selected for check assays at ALS Global in Izmir throughout the sampling programme. Samples are chosen from areas suspected to be mineralised.

· Primary data, data entry procedures, data verification and data storage protocols are in line with industry best-practice.

· Assay data has not been adjusted.

· All samples (30g or 50g) are analysed using fire assay with AAS (Au-AA23) and aqua regia with ICP-AES (ME-ICP41).

· Since early 2021 the Zenit Mine Laboratory has been undergoing expansion to deal with increased sample capacity. Initial verification of assay results from newly installed laboratory instruments is still undergoing internal review. To date, only partial check results from the external laboratory (ALS Izmir) have been received and reviewed. Initial checks have demonstrated that received assay data and associated QA/QC samples fall within expected levels. Evaluations of incoming check data for the Zenit and ALS laboratories will continue to be assessed through 2022 until results conclusively prove that all new instruments are appropriately calibrated and operating as intended.

Location of data points

· Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

· Specification of the grid system used.

· Quality and adequacy of topographic control.

· All collar positions were located initially by hand-held GPS (Garmin Etrex 10 and 30) and later surveyed by a professional surveyor using dGPS equipment.

· Holes were surveyed using a standard Electronic Multi-shot Magnetic survey deviation tool (Devico PeeWee). All holes were surveyed in the 2021 drilling programme.

· All coordinates are collected by dGPS, converted to the local grid and recorded in UTM ED50 35N.

· Topographic data is collected by dGPS and regular surveys are completed to update the topography in areas being mined.

Data spacing and distribution

· Data spacing for reporting of Exploration Results.

· Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

· Whether sample compositing has been applied.

· At Kiziltepe, drill section spacing is typically 10 to 12.5 m with several holes often being collared from a single site.

· 275 diamond drill holes (26,235 m), 164 RC drill holes (16,066 m), 15 rotary air blast (RAB) holes (348 m) and 130 rock-saw channels (975 m) were used to model the vein systems. In-pit grade control sampling data (over 101,830 m across 2,111 lines perpendicular to mineralisation) was also included in the geological modelling of veins and alteration.

· Exploration targets are defined typically on sample drill collars spacing from 50m to a maximum of 200m, and must be supported by surface geological mapping, soil sampling and/or other forms of geochemical/geophysical verification.

· Sample compositing has not been applied at the sampling stage.

· Sample spacing and distribution is sufficient to establish the geological and grade continuity required for modelling and resource estimation.

Orientation of data in relation to geological structure

· Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

· If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

· The dip of the mineralisation for most of the deposit is 75-85° towards the northeast.

· Local grade continuity follows the dip of the mineralisation for the entire deposit. All drilling is angled, thus intersecting the mineralisation obliquely.

· No biases are expected from the drilling direction.

Sample security

· The measures taken to ensure sample security.

· Samples are stored at a secure company facility (Sindirgi Depot) in a clean area free of any contamination.

· During drilling programmes pre-2019 samples were delivered to ALS Global, Izmir once a week by Aras Cargo, Sindirgi. The measures taken to ensure sample security for samples used for analysis and QA/QC include the following:

1. Chain of Custody is demonstrated by both the Company and ALS Global in the delivery and receipt of sample materials.

2. Upon receipt of samples, ALS Global delivers by email to the Company's designated Quality Control Manager, confirmation that each batch of samples has arrived, with its tamper-proof seal intact, at the allocated sample preparation facility.

3. Any damage to or loss of samples within each batch (e.g., total loss, spillage or obvious contamination), must also be reported to the Company in the form of a list of samples affected and detailing the nature of the problem(s).

· In all drilling programmes since 2020, the majority of samples have been analysed by the laboratory at the Kiziltepe Mine. Samples are delivered securely from the drill site to the laboratory by the exploration team and are securely held at the laboratory in the fenced off and guarded mine site, with no unauthorised access.

Audits or reviews

· The results of any audits or reviews of sampling techniques and data.

· Ariana has implemented QA/QC programmes covering all aspects of sample location and collection that meets or exceeds the currently accepted industry standards.

· Ariana implemented a QA/QC programme based on international best practice during the initial exploration work and subsequent drilling programmes. The company has continued to review and refine the QA/QC programme as these exploration campaigns have progressed.

Mineral tenement and land tenure status

· Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

· The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

· The Kiziltepe area is within one of three operating licences in the Sindirgi District of Balikesir Province in western Turkey owned by Zenit Madencilik San. ve Tic. A.S. ("Zenit") Joint Venture ("JV") with Proccea Construction Co. and Ozaltin Holding A.S. (23.5% owned by Ariana). Licence numbers:

o Yolcupinar licence: 44830

o Coturtepe licence: 20065879

o Umurlar licence: 44828

· Royalties include the State Right payable to the Turkish Government and a Net Smelter Return ("NSR") royalty of up to 2.5% on production is payable to Franco-Nevada Corporation.

· There are no known impediments to current operations.

Exploration done by other parties

· Acknowledgment and appraisal of exploration by other parties.

· In 1990, Eurogold Madencilik A.S. conducted regional BLEG stream-sediment sampling around the Kiziltepe area. This led to the initial discovery of anomalous gold in the district. Follow-up work led to the identification of several gold-bearing low sulphidation epithermal veins.

· The Kiziltepe deposit was then explored from 1991 by a Tuprag Madencilik Ltd. and Newmont Overseas Exploration Ltd. joint venture. In 1992 the licence area was acquired via state auction by Tuprag following the identification of areas of potential hydrothermal alteration, as defined in Landsat colour-composite imagery. The Kiziltepe and Kepez areas were drill-tested for the first time.

· In 1994, Normandy La Source acquired the project from the joint venture. No further exploration was carried out and the licence areas were relinquished.

· Newmont acquired the key licences via state auction in 2000. In 2002, Newmont undertook an exploration targeting exercise using Landsat structural interpretations and new BLEG stream-sediment geochemistry across the Sindirgi district, which led to the rediscovery of the epithermal veins. They completed an extensive programme of regional and detailed rock-chip sampling. Newmont completed 19 diamond drillholes in 2002/2003 on the Kiziltepe deposit (for 2,987.5 m).

· By 2005 a total of 4,378 m of diamond drilling had been completed on the project before Galata Madencilik San. ve Tic. Ltd. This wholly owned subsidiary of Ariana acquired the licences in early 2005 from Newmont.

· Since 2006 Ariana Resources and Zenit Madencilik have completed new mapping and sampling, including diamond drilling (HQ, NQ), reverse circulation drilling (RC), rotary air blast drilling (RAB), rock-saw channel sampling of vein outcrop and composite rock-chip sampling.

Geology

· Deposit type, geological setting and style of mineralisation.

· The Kiziltepe area is dominated by Miocene volcanic rocks, comprising a series of dacitic volcanoclastic units, which host the low-sulphidation epithermal gold-silver style mineralisation. An upper dacitic ignimbrite unit, covers parts of the vein field. The dimensions of the en-echelon quartz veins vary and are typically between 100 m and 1200 m in strike length, although smaller vein systems are also present. The veins dip steeply and dip lengths are typically 100 m to 200 m. Vein widths are typically 2 m to 5 m, with some exceeding 7 m. A general 30° south plunge is noted on the veins in the Kiziltepe area.

Drill hole Information

· A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

· If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

· All drilling prior to 2021 has been reported. The table below summarises the 2021 HQ diamond drilling programme (UTM ED50 35N).

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Data aggregation methods

· In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

· Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

· The assumptions used for any reporting of metal equivalent values should be clearly stated.

· Metal equivalents have not been used.

· Significant down-hole intercepts calculated for the Kiziltepe 2021 drilling programme, using a 1.0 g/t Au minimum cut-off and allowing for 0.5 m internal dilution:

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Relationship between mineralisation widths and intercept lengths

· These relationships are particularly important in the reporting of Exploration Results.

· If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

· If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

· Down hole length, true width not known. All drilling has previously been reported and modelled in three-dimensions accordingly.

Diagrams

· Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

KIZILTEPE

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Derya

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Arzu North

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Arzu South

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Banu

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Balanced reporting

· Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

· Intercepts depths stated in the drill hole information but not stated in the data aggregation methods section are lower grade intersections. Widths of intercepts are stated.

Other substantive exploration data

· Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

· Ariana completed IP/resistivity geophysics from 2008 to 2010 over the Kiziltepe vein field. These survey results were initially modelled in 2D and then later as 3D inversions in 2012. The results highlighted several anomalous areas representing potential mineralisation at depth and beneath cover.

· In October 2014, Ariana commenced a ground magnetic survey over the Kiziltepe Sector JV licences (totalling 50 km2). The geophysical survey was undertaken by the Ariana field team utilising two backpack magnetometers with continuous readings undertaken along N-S oriented lines spaced 200 m apart.

http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf 

· Prior to the initiation of the geophysical survey the Company collected approximately 15,000 soil samples across the JV licence area (totalling 100 km2) and analysed these using a portable X-ray fluorescence (pXRF) device. The soil samples were collected every 50 m along N-S oriented lines spaced 100 m apart. The resulting XRF geochemical maps have provided an unprecedented amount of data coverage for key trace elements (e.g. antimony, arsenic, copper, lead, manganese, molybdenum and zinc) that can be used as vectors to gold and silver mineralisation.

Further work

· The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

· Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

· Substantial at surface and near surface exploration targets exist within the immediate and surrounding areas of the Kiziltepe Sector. These generally exist as strike extensions of known gold bearing quartz veins that have not been drill tested adequately or are currently being drill tested according to exploration priority. Notable targets include; 1) the 600 m vein extension between Arzu South and Arzu North, where geochemical, drilling and geophysical evidence suggests vein continuity to exist under a 60-100 m thick rhyo-dacite cap rock; 2) the 600 m strike extension of Arzu North, where geological mapping and surface rock-chip sampling and recent drilling shows strong geological continuity of gold bearing quartz veins; and 3) the 700 m Ceylan vein structure as defined by three early stage exploration drill holes, surface rockchip sampling and geological mapping. These three major exploration zones are combined to form the Company's Parallelogram Target, where significant exploration is currently underway.

· Detailed exploration targets:

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

Database integrity

· Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

· Data validation procedures used.

· The Kiziltepe resource data was stored in Datashed. Data has now been transferred to MX Deposit, the database management system used by the company, which started in Q3 2021.

· Data was logged onto field sheets which were then entered into the data system by data capture technicians.

· Data was validated on entry into the database, or on upload from the earlier MS Access databases, by a variety of means including the enforcement of coding standards, constraints and triggers. These are features built into the data model that ensure data meets essential standards of validity and consistency.

· Laboratory data has been received in digital format and uploaded directly to the database.

· Original data sheets and files have been retained and are used to validate the contents of the database against the original logging.

· Zenit Madencilik and independent consultants such as Tetra Tech and Odessa Resources Pty Ltd performed a visual validation by reviewing drill holes on section and by subjecting drill hole data to data auditing processes in specialised mining software (e.g. checks for sample overlaps etc.).

· Independent consultants Tetra Tech performed a visual validation by reviewing drill holes on section in Datamine Studio RM mining software.

· Ariana Resources performed validation checks in Leapfrog GEO and EDGE v. 6.0.

Site visits

· Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

· If no site visits have been undertaken indicate why this is the case.

· Ariana staff have visited the site on numerous occasions, and supervised all drilling, sampling and other operations at all times in order to introduce appropriate logging, sampling and drilling protocols.

· Zack van Coller (BSc) of Ariana Resources has been involved in all work on the project since 2010.

· Ruth Bektas (BSc, CGeol, EurGeol) of Ariana Resources is acting as the Competent Person for this study, and has been on site during mining, active drilling programmes and other exploration activities.

· Ariana Resources (Galata Madencilik) and Zenit Madencilik field staff are permanently on site.

Geological interpretation

· Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.

· Nature of the data used and of any assumptions made.

· The effect, if any, of alternative interpretations on Mineral Resource estimation.

· The use of geology in guiding and controlling Mineral Resource estimation.

· The factors affecting continuity both of grade and geology.

· Veins in the Kiziltepe prospect, comprise WNW-NNW trending, sub-parallel, low sulphidation style veins and related stockworks are hosted by dacite and dacitic pyroclastic units.

· At Arzu North and Banu the veins appear to bifurcate.

· Interpretations of geological surfaces are derived from 3D modelling of drill hole and mine grade control data in Leapfrog GEO and EDGE v. 6.0.

· Interpolation and wireframe modelling of the mineralised zones in Leapfrog EDGE was completed using a 0.25 g/t and 1.0 g/t Au modelling cut-off grade (CoG) for alteration and veins, respectively. Where continuity was not established between sections, the strike extrapolation was limited both manually (wireframes) and statistically (interpolations). The continuity of the various structures is reflected in the Mineral Resource classification.

Dimensions

· The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

Arzu South

· In plan orientation, the deposit is approximately 900 m long and 2 m to 10 m metres wide.

· One primary lode trending 320° and 180 m northerly-trending southern section separated from main lode by interpreted fault.

· Lodes vary from 2 m to 10 m in thickness with main lode averaging 5 m thickness.

· Mineralisation has vertical extents ranging between 385 metres above reference level (mRL) and 150 mRL.

Arzu North

· The deposit is approximately 700 m long and comprises several steeply dipping parallel and partly overlapping 310° trending lodes.

· Mineralisation has vertical extents ranging between 405 mRL and 220 mRL.

Derya

· The deposit is approximately 500 m long and comprises several steep north dipping sub-parallel and partly overlapping, 290° trending lodes.

· Mineralisation has vertical extents ranging between 390 mRL and 140 mRL (average 100 m down dip distance).

Arzu Central

· The deposit is approximately 350 m long and comprises several vertical 305° trending lodes.

· Mineralisation has vertical extents ranging between 410 mRL and 250 mRL.

Banu

· The deposit extends over a strike length of 600 m and comprises a single subvertical 330° trending lode. The lode is disrupted by possible fault/shear zone that breaks up the lode into several sub-parallel segments.

· Mineralisation has vertical extents ranging between 395 mRL and 245 mRL.

Other Veins

· There are extensions along strike to the main veins listed above. There are also other less well-defined veins between these, such as Ceylan at >400 m length.

· Vertical lodes with a general 320° trend.

· Mineralisation has vertical extents ranging between 400 mRL and 200 mRL.

Estimation and modelling techniques

· The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

· The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

· The assumptions made regarding recovery of by-products.

· Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

· In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

· Any assumptions behind modelling of selective mining units.

· Any assumptions about correlation between variables.

· Description of how the geological interpretation was used to control the resource estimates.

· Discussion of basis for using or not using grade cutting or capping.

· The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

· Drill hole sample data was constrained within:

o Systematic vein interpolation models based on manually isolated economic drill intercepts, where all the Kiziltepe vein were modelled using Seequent's "Vein System" model tool to define grade driven domains. Economic intercepts were defined by nominal 0.5 g/t Au, 1.0 g/t Au and 2.0 g/t Au modelling cut offs (depending on vein).

o Lower grade or periphery intercepts were domained as Alteration Halos using standard interpolation modelling methods, then clipped using the vein model volumes to create an interlocking vein and alteration model.

· Compositing was completed in Leapfrog EDGE using a 1 m best fit routine. Hard domain boundaries were applied to both deposit models, which forced all samples to be included in one of the composites by adjusting the composite length, while keeping it as close as possible to the selected intervals of 1m.

· An analysis of the grade distribution characteristics of the domain composites for each deposit was undertaken. In each case one of the following was identified:

o Noticeable high-grade inflection points on log-probability graphs.

o Significant gaps on disintegration plots.

· Top cuts were applied for Au and Ag, specific to each vein and alteration domain.

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· Isotropic search ellipses and ranges were used. The variable orientation function (Dynamic anisotropy) was used in Leapfrog to better represent the grade distribution.

· The block models were constructed using a 1 mE by 5 mN by 5 mRL parent block size.

· The block model is a non-rotated conventional block model with no sub-blocking used.

· Estimation was carried out using inverse distance weighted squared (IDWS) at the parent block scale using a three-pass estimation using all available composites within the hard boundary. The Inverse Distance Weighted Squared (IDWS) method was selected as the most suitable method of interpolation in this deposit, as there is not sufficient nugget affect to warrant an IDWC method. Ordinary Kriging was not used as satisfactory variograms were not obtainable.

· Samples for each block were limited:

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· Check estimates were carried out and the final estimate was compared to previous estimates and production figures.

· Gold and silver have been estimated as mining products. No by-products or deleterious elements have been modelled.

· In general, gold and silver show a positive correlation with each other.

· A visual validation between drillhole data, composite data and block model data is carried out. The estimate was also compared to mining reconciliation data.

· Reserves were estimated with the same parameters as above, but with soft boundaries with a 1m range applied to the vein domains of Arzu South, Arzu North and Derya, based on production data and reconciliation studies.

 http://www.rns-pdf.londonstockexchange.com/rns/2102A_1-2022-1-31.pdf

· The application of soft boundaries with a 1m range to the named above quartz vein domains only, resulted in a more accurate overall estimated resource; when compared to the Zenit mine production models. This therefore provided a more accurate model for future production forecast once the revised models are applied to further economic studies, such as an open-pit optimisation analysis.

Moisture

· Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

· Tonnes have been estimated on a dry basis.

Cut-off parameters

· The basis of the adopted cut-off grade(s) or quality parameters applied.

· Alteration and exploration resources have been modelled above a 0.2 g/t Au cut-off grade and reported above a 0.75 g/t Au cut-off grade. Veins have been modelled above a 1.0 g/t Au cut-off and reported above a 1.0 g/t Au cut-off grade. Cut-off grade calculated from assumptions on mining and processing cost, metallurgical recovery and metals prices.

Mining factors or assumptions

· Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

· No mining factors (i.e., dilution, ore loss, recoverable resources at selective mining block size) have been applied to the original resource.

· It is assumed that the remaining resources will be open pit operations with ore material trucked to the Kiziltepe Mine carbon in leach (CIL) plant for gold and silver extraction.

Metallurgical factors or assumptions

· The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

· No metallurgical assumptions have been built into the resources. However, metallurgical test work conducted for the Feasibility Study (Tetra Tech DFS) concluded that recoveries of up to 87% and 64% for gold and silver respectively were possible.

· The operating Kiziltepe plant has life of mine (LOM) average recoveries of 92% and 75% for gold and silver respectively.

Environmental factors or assumptions

· Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

· The Competent Person is not aware of any known environmental or permitting issues on the projects.

· Statutory forestry permits have been approved by the Prime Ministry and issued by the Department of Forestry for the Kiziltepe Sector.

Bulk density

· Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

· The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

· Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

· Density is seen to increase with depth, in the sulphide zone, as seen in the Arzu South vein with densities varying from 2.4 to 2.8 g/cm3.

· Density modelling at Kiziltepe was evaluated from 4,794 drill core measurements taken from diamond drilling between 2016 and 2021. The data was domained according to the various model volumes. Statistical averages within each domain were used as a representative value of density. Further work is needed to code the density to each model to better show density variations to depth and along strike, rather than applying statistical averages.

· For modelling purposes, average specific gravity values ranging from 2.4 to 2.6g/cm3 were used for veins and 2.4 to 2.5g/cm3 for alteration halos based on specific gravity measurements on core samples and operational data from the Kiziltepe Mine.

Classification

· The basis for the classification of the Mineral Resources into varying confidence categories.

· Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

· Whether the result appropriately reflects the Competent Person's view of the deposit.

· The Mineral Resource is classified and reported in accordance with the 2012 JORC code as Measured, Indicated and Inferred. The classification is determined based on search pass spacing, with increasing confidence with proximity to drill holes. These are given in more detail under section "Estimation and modelling techniques".

· Measured Mineral Resources have been defined by Pass 1 (up to 30 m x 15 m x 5 m) depending on the vein characteristics and drill hole spacing.

· Indicated Mineral Resources have been defined by Pass 2 (up to 60 m x 30 m x 10 m) depending on the vein characteristics and drill hole spacing.

· Inferred Mineral Resources have been defined in areas beyond the Indicated search radius to the limits of the resource wireframes in Pass 3 (up to 120 m x 80 m x 20 m). Any material beyond Pass 3 but estimated by a 300 m x 150 m x 30 m pass was also classified as Inferred. However, the expansion of Inferred resources beyond pass 3 were manually constrained by surface and down-hole geochemistry and geological mapping.

Audits or reviews

· The results of any audits or reviews of Mineral Resource estimates.

· The IDWS model was validated against the input drill hole composites for each vein model by visual comparisons carried out against the composited drill hole samples and against the modelled block grade.

· The Zenit Mining team conducted their own internal MRE estimation of Kiziltepe, using both their own and Ariana's input parameters and domain models, but using different software (Datamine Studio RM). Results between the Ariana and Zenit estimations were peer-reviewed and discussed until a level of agreement was met between both parties in terms of correct data interpretations.

Discussion of relative accuracy/ confidence

· Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

· The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

· These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

· The Mineral Resource estimate at the global level for the Measured and Indicated Resources based on the estimation technique and data quality and distribution is considered to be adequate for the classification. Inferred Resources have a lower level of confidence outside of this range, and the Exploration Target is categorised separately from Mineral Resources.

· The Mineral Resource estimate was compared to production data and appropriately adjusted to improve accuracy (introduction of soft boundaries with 1m range), allowing for the introduction of various mining factors (e.g. internal and external dilution). Overall, the 2022 MRE model reconciled with an average of 7% mass variance, 10% gold variance and 7% silver variance, which is deemed acceptable to suit Zenit's future mine planning studies.

·

Mineral Resource estimate for conversion to Ore Reserves

· Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.

· Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.

· The Measured and Indicated resources for the Kiziltepe area, as reported here, based on data to end November 2021, were used as the basis for Ore Reserves.

· The Ore Reserves, including adjustment for ore loss and dilution factors are included within declared Mineral Resources.

Site visits

· Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

· If no site visits have been undertaken indicate why this is the case.

· See above for site visits of Competent Person for resource estimation.

· Kadir Turan (BSc) of Zenit Madencilik is the Chief Mine Planning Engineer responsible for the Reserves, optimisation study and mine design.

· Kerim Sener BSc (Hons), MSc, PhD, Managing Director of Ariana Resources plc, and a Competent Person as defined by the JORC Code is acting as the Competent Person for the Reserves part of this study.

Study status

· The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.

· The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.

· The optimization and mine scheduling study was completed by the head Mine Planning Engineer of Ariana Resources' JV partner, Zenit Madencilik using Datamine Studio OP v2.10.200.0 and Auto scheduler plugin, as well as Studio NPVS v.1.0.51.0 for optimisation.

· Kiziltepe is an existing and currently operating mine.

· A mine plan that is technically achievable and economically viable has been identified, with an open pit mine life of approximately 2-3 years for Kiziltepe, not including satellite projects. The mine plan and reserves are limited to current permit boundaries, and could potentially be expanded beyond this with the expansion of the permit boundaries.

· All material modifying factors are considered by the Competent Person to have been accounted for in this Ore Reserve estimate.

Cut-off parameters

· The basis of the cut-off grade(s) or quality parameters applied.

· To determine the optimum open pit design, a cut-off grade estimate was performed. The cost per ton for mining, processing and overhead costs, mining dilution and loss factors, processing plant recoveries and net payable gold prices were derived from actual mine estimations, as provided by Zenit Madencilik.

· A cut-off grade of 1g/t Au at a minimum mining width of 1.5 m was used to identify mineable shapes which formed the basis of the mine design.

· These cut-off grades are currently being used for the mining operations and are considered by the Competent Person to be appropriate for the operation, considering the nature of the deposit and the associated project economics.

· The mine currently produces gold/silver doré bars for sale to the Istanbul Gold Refinery.

Mining factors or assumptions

· The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).

· The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.

· The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling.

· The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).

· The mining dilution factors used.

· The mining recovery factors used.

· Any minimum mining widths used.

· The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.

· The infrastructure requirements of the selected mining methods.

· Open pit designs were updated in 2021 and form the basis of the updated mine schedule, constrained by applying the following scheduling parameters:

o 325 tonnes/hour processing limit (85% operational efficiency, 90% mechanical efficiency, 90% usage efficiency)

o 3 stockpiles (for different ore characteristics) with capacity limits from 10,000t to 350,000t.

o Total loader capacity limit of 597 tonnes/hour at 100% availability.

o Additional loader (reclaimer) included for movement of ore within stockpiles and to feed the plant.

o Constraints on mineable tonnages by season and pit stages as well as areas which are able to be mined simultaneously.

· The mining methods used for the life of mine schedule are in line with what is currently used on site.

· The Competent Person considers the proposed mining method to be appropriate for the size and scale of mineralisation.

· Pit wall slopes of 41-46o (Arzu North), 43-46o (Derya) and 45o (Banu) were used, with the optimum pit slope selected based on iteration with a combination of different pit designs. Geotechnical parameters were based on design work undertaken for the Kiziltepe Feasibility Study by the Middle East Technical University (METU) Mining Engineering Department in Ankara, taking into account geological structure, rock type and design orientation constraints. It was established that the geotechnical parameters considered for the operation to date are suitable for further mining.

· Mining dilution assumed for the reserve estimation is 10%. Ore mining recovery factor for reserve estimation is 90-95% depending on the pit: 90% for Arzu North, 95% for Derya and Banu.

· A minimum mining width of 1.5 m and bench height of 10m (production slice height of 5m) is used based on the nature of the deposit and the equipment fleet currently in use at the Kiziltepe Mine.

Metallurgical factors or assumptions

· The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.

· Whether the metallurgical process is well-tested technology or novel in nature.

· The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.

· Any assumptions or allowances made for deleterious elements.

· The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.

· For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?

· The ore extracted from Kiziltepe is treated at the Kiziltepe Processing Plant. This plant processes all ore sources from the Kiziltepe Sector.

· Ore is ground using a standard crushing circuit followed by a ball mill for grinding. The ground ore is thickened and treated by a combination of Carbon in Column (CIC) and Carbon in Leach (CIL) processes. Gold and silver loaded carbon undergo standard elution, electrowinning and smelting processes to produce doré bars.

· Ore is blended based on grade to maintain a constant input grade to the process plant.

· As the mine has been operating since late 2016 (first gold pour in 2017), the metallurgical recoveries of different ore types are well understood. Metallurgical recovery for this processing plant to this date is 92% for Au and 75% for Ag.

· There are no deleterious elements of significance.

· See Section 3 for details on metallurgical test work.

· The ore reserve estimation is based on the appropriate mineralogy and grades for the Kiziltepe Processing Plant.

Environmen-tal

· The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.

· A previous Environmental Impact Assessment (EIA) was completed in 2013. The Kiziltepe vein system is located within the Kiziltepe Licence area for which the EIA is valid. The processing methods and tailings storage facility as assessed by the EIA is the same as has been assumed for this Ore Reserve estimate.

· Tailings from the process plant are discharged to the tailings dam after cyanide destruction.

· Baseline environmental monitoring is carried out on and around mine site, in line with regulations.

· The waste rock has potential for acid rock drainage (ARD) due to the presence of arsenic and sulphide bearing mineralisation. Limestone (calcium carbonate) is trucked to the waste rock dump (WRD) from a local quarry at regular elevation intervals and spread to cover the whole WRD to minimize any potential ARD. There is a water channel around the WRD diverting any water from the area. Water draining out of the WRD is channelled into a concrete sump, where it is monitored and then diverted to the tailings dam.

· A top-soil management plan is in place, with soil stored for remediation purposes at the end of mine life.

· Stockpile areas for waste rock were identified with sterilization drilling. Waste material is also utilized for construction of infrastructure such as road and earthworks.

· Kiziltepe Gold and Silver Mine is an operating mine and is compliant with all local environmental regulatory requirements and permits.

Infrastructure

· The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.

· The existing infrastructure is adequate to support the existing operations. The processing facilities were expanded in 2021 to allow greater ore throughput, accommodating the lower grade and higher tonnage nature of other areas of the Kiziltepe Sector.

· The deposits are located within the Company's licence area with extraction rights according to the General Directorate of Mining and Petroleum Affairs (Maden ve Petrol İşleri Genel Müdürlüğü: MAPEG). Ore is processed at the Company's current facilities, with ore delivered by truck from the pit to the processing plant. Currently there is 1 complete and 2 operating pits, with further pits planned to come online as the others near the end of their life.

· Offices and mechanical workshop buildings are available. Power for the offices, workshop and weighbridge is provided via the existing grid system, with diesel generators as backup.

· Labour is readily available as the operation is in production and planned extraction rates are consistent with current capacity.

· G&A and processing labour are part of the existing company staff. Canteen facilities and associated services requirements continue to be serviced by the current infrastructure.

Costs

· The derivation of, or assumptions made, regarding projected capital costs in the study.

· The methodology used to estimate operating costs.

· Allowances made for the content of deleterious elements.

· The source of exchange rates used in the study.

· Derivation of transportation charges.

· The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.

· The allowances made for royalties payable, both Government and private.

· Kiziltepe Gold and Silver Mine is an operating open pit mine with associated infrastructure and an operating processing facility on site. Capital expenditure is largely limited to that required to sustain the ongoing operation at the current level.

· Operating cost estimates are derived from actual costs incurred by the existing mining and processing operations within the licence area.

· Average mining operating costs (drill, blast, load, haul) of US$1.1 per ton was assumed, consistent with the current mining rates.

· Assumed processing costs of US$35 per ton processed (including G&A) for this processing method are based on actual costs to date. The effect on the design below US$45/t processing costs is minimal.

· There are no deleterious elements of significance at this project.

· All financial calculations for the Ore Reserves have been completed using US Dollars. Local Turkish Lira exchange rates are pegged to the US Dollar.

· Transportation charges are based on current contracts.

· Gold/silver doré is sold to Istanbul Gold Refinery. Selling costs of US$160/oz are assumed.

· Royalties and taxes are assumed as a percentage of ounce price plus smelter costs.

Revenue factors

· The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.

· The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.

· A life of mine production schedule was derived from the mine design and the updated geological block model. The production schedule was used to generate monthly estimates of the mined tonnes and grade.

· Revenue is based on a gold price of US$1,750 per troy ounce and silver price of US$24 per troy ounce. These are considered to be reasonable long-term average prices for the purposes of Ore Reserve estimates.

Market assessment

· The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.

· A customer and competitor analysis along with the identification of likely market windows for the product.

· Price and volume forecasts and the basis for these forecasts.

· For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.

· The market for gold and silver is well established. The metal price is fixed externally, however the Company has reviewed a number of metal forecast documents from reputable analysts and is comfortable with the market supply and demand situation.

· A specific study relating to customer and competitor analysis has not been completed as part of this project. Gold and silver are openly traded via transparent open-market systems and marketing of these products is generally straightforward.

· Price and volume forecasts have been studied in reports from reputable analysts, based on metal supply and demand, US$ and global economics.

Economic

· The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.

· NPV ranges and sensitivity to variations in the significant assumptions and inputs.

· The Kiziltepe Mine is an operating asset and is not subject to project-type analysis.

· The mine development and open pit designs are developed or updated on an annual basis and reflect current and projected mine performances for the Ore Reserves.

· The mine plan created to derive the Ore Reserves is optimised to maximise cash flow, thus providing positive cash margins in all years when modifying factors are applied.  

Social

· The status of agreements with key stakeholders and matters leading to social licence to operate.

· To the best of the Competent Person's knowledge, agreements with key stakeholders pertaining to social licence to operate are valid and in place.

Other

· To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:

· Any identified material naturally occurring risks.

· The status of material legal agreements and marketing arrangements.

· The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.

· There are no material naturally occurring risks associated with the Ore Reserves.

· The Company is currently compliant with all legal and regulatory requirements and marketing arrangements.

· The project is located within a current operating licence area.

Classification

· The basis for the classification of the Ore Reserves into varying confidence categories.

· Whether the result appropriately reflects the Competent Person's view of the deposit.

· The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).

· Measured Mineral Resources that are above the nominated Ore Reserves cut-off grade criteria and are within the open pit designs (which have been derived by applying the appropriate modifying factors as described above) have been classified as Proven Ore Reserves.

· Indicated Mineral Resources that are above the nominated Ore Reserves cut-off grade criteria and are within the open pit designs (which have been derived by applying the appropriate modifying factors as described above) have been classified as Probable Ore Reserves.

· It is the opinion of the Competent Person for Ore Reserves that the results are an appropriate reflection of the deposit.

· No Probable Ore Reserves have been classified from Measured Mineral Resources.

Audits or reviews

· The results of any audits or reviews of Ore Reserve estimates.

· No external audits or reviews of this Ore Reserves estimate have been conducted. The Ore Reserves estimate and all work and reports underpinning the estimate have been internally reviewed by Zenit Madencilik and Ariana Resources.

Discussion of relative accuracy/ confidence

· Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.

· The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

· Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.

· It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

· The Ore Reserve has been completed to a feasibility standard with the data generated from a closely spaced drilling grid and grade control data, thus confidence in the resulting figures is considered high.

· Extraction of ore from the Kiziltepe Mine will continue.

· Mining costs and haulage costs are as per the current contracts in place being utilised at Kiziltepe operation (Arzu South, Arzu North, Derya, Banu) and other mines in the Kiziltepe Sector.

· Project capital is well managed and capital requirements are for maintenance of ongoing operations only.

· The Modifying Factors for mining, processing, metallurgical, infrastructure, economic, gold price, legal, environmental, social and governmental factors as references above have been applied to the open pit designs and Ore Reserves calculation on a global scale and data reflects the global assumptions.

· Ore Reserves are best reflected as global estimates.

· Other than dilution and recovery factors described above, no additional modifying factors are applied. There is a high confidence in these models as the area is well known and well drilled and production data reconciles well with the Mineral Resource estimate, and thus the Ore Reserve estimate.