Eastern Turkey update

31 Oct 2006 08:30

Ariana Resources PLC31 October 2006 31 October 2006AIM: AAU MEMORANDUM OF UNDERSTANDING SIGNED IN EASTERN TURKEY Ariana Resources plc ("Ariana" or "the Company"), the gold exploration companyfocused exclusively on Turkey, announces that its wholly owned Turkish operatingsubsidiary Galata Madencilik San. ve Tic. Ltd. Sti. ("Galata") has signed aMemorandum of Understanding ("MoU") with Besler Insaat Turizm ve Madencilik San.ve Tic. Ltd. Sti. ("Besler") in eastern Turkey. •MoU provides Ariana with an experienced local partner in highly prospective eastern Turkey •Exploration campaign to commence in 2007 •Royalty payments to be made on commercial production Besler operate chromite mines in the Erzurum region of eastern Turkey and alsohold a number of additional exploration licences. These additional licences willbe transferred to Galata for inclusion in the Company's exploration programme in2007. A number of these licences have been visited by Ariana's field teams andshow encouraging potential for epithermal and skarn-related gold and coppermineralisation. The MoU provides for the payment of a royalty on the production of gold, silver,copper, molybdenum, lead and zinc within a designated Area of Interest. Theroyalty payable by Ariana to Besler will be 1.25% for licences selected byAriana and 2.5% for licences previously held by Besler. Steven Poulton, Chief Executive, commented: "This deal illustrates Ariana's strategy of applying to maximum effect our incountry know-how to develop strong local partnerships. The agreement representsan excellent opportunity for the two companies to use their combined expertiseto unlock the potential for significant gold and copper-gold discoveries withinthe highly prospective and under explored metallogenic belts of eastern Turkey." Contacts: Ariana Resources plcSteven Poulton, Chief Executive Tel: 01235 511 767s.j.poulton@arianaresources.cominfo@arianaresources.com Mobile: 0797 408 6712 Bankside ConsultantsMichael Padley / Susan Scott Tel: 020 7367 8888 About Ariana Resources Ariana is a dynamic exploration company focused on the discovery of epithermalgold-silver and porphyry copper-gold deposits with multi-million ounce potentialwithin the Tethyan metallogenic belt of Turkey. The Company has a portfolio ofprospective licences covering 1,755km2, selected on the basis of its advancedin-house remote sensing database. Ariana's broker is Ambrian Partners Limitedand Beaumont Cornish Limited is the Company's nominated adviser. For furtherinformation on Ariana you are invited to visit the Company's website atwww.arianaresources.com. This information is provided by RNS The company news service from the London Stock Exchange