Arian Silver loses $4.89-million (U.S.) in 2007

Arian Silver Corp (C:AGQ)
Shares Issued 105,395,469
Last Close 4/29/2008 $0.28
Wednesday April 30 2008 - News Release

Mr. Jim Williams reports

ARIAN SILVER CORPORATION: RESULTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2007

Arian Silver Corp. has released audited results for the 12 months ended Dec. 31, 2007. All amounts are expressed in United States dollars unless otherwise stated.

Highlights

Financial:

• As at Dec. 31, 2007, the company had assets of $8.4-million (2006 -- $4.8 million), including cash of $3.1-million (2006 -- $3.2 million).
• Expenditure on projects in Mexico and on other assets in the year was $3.3-million (2006 -- $1.1-million).
• Proceeds from the issue of share capital in the year was $7.4-million (2006 -- $5.5-million).
• Consolidated pretax loss before exceptional items and finance income for the year of $5-million (2006 -- $3.7-million) includes non-cash share option expense of $1.1-million (2006 -- $900,000). In 2006, there was an exceptional loss relating to the writeoff of goodwill arising on the merger with ASCL of $13.4-million.

Operational:

• Continuing exploration work at the company's three key projects, namely, San Jose, Tepal and Calicanto;
• Significant drilling programs completed at San Jose (12,000 metres drilled) and at Tepal (7,178 metres drilled);
• Canadian National Instrument 43-101 inferred mineral resource estimates for San Jose and Tepal announced by the company;
• Continuing work at the Calicanto group of projects with further development of the Calicanto and San Buenaventura ramps;
• Landholding at San Jose increased by approximately 50 per cent to 6,280 hectares;
• The company owns or has options over concessions covering in excess of 20,000 hectares of prime silver-bearing property in the Mexican states of Zacatecas and Michoacan.

Arian's chief executive officer, Jim Williams, said: "We have had an excellent 2007 and the outlook for 2008 remains exciting. Arian has accomplished more than 20 kilometres of drilling in the past 15 months. This has so far enabled us to quote initial National Instrument 43-101 inferred resources on two of our three key projects, namely San Jose and Tepal, and we shall be updating both of these resources during the summer of 2008. We have already started a phase 2 drilling program at San Jose and in time will explore the entire 12-plus kilometres of strike length of the San Jose vein, in addition to the new veins our recent drilling has found within our enlarged project area. We have commenced dewatering of the old deeper workings of the San Jose mine and so far this has allowed us to access two deeper levels, where we are now undertaking surveying and sampling. Despite the very positive news with the progress of the company, the turmoil in worldwide financial markets has affected sentiment in most sectors, including the junior and mid-ranking exploration and development companies. However, we believe we can continue to achieve organic growth in our company by continuing to discover metals in the ground at a significantly reduced cost to that of many other similarly ranked companies. Hence we continue to believe that Arian offers significant leverage to the price of the metals we have within our portfolio".

                      CONSOLIDATED INCOME STATEMENT

                       (in thousands of dollars)

                                                             For the year 

                                                            ended Dec. 31,

                                                           2007        2006



Administrative expenses                                $ (4,955)   $ (3,653)

Goodwill written off                                          -     (13,446)

                                                       ---------   ---------

Operating (loss) before financing costs                  (4,955)    (17,099)

                                                       ---------   ---------

Finance income                                               62          71

Finance expenses                                              -          (5)

                                                       ---------   ---------

Net financing costs                                          62          66

                                                       ---------   ---------

(Loss) before tax                                        (4,893)    (17,033)

                                                       ---------   ---------

(Loss) for the period                                    (4,893)    (17,033)

                                                       =========   =========

Basic and diluted (loss) per share                        (0.05)      (0.24)



          CONSOLIDATED STATEMENT OF RECOGNIZED INCOME AND EXPENSE



                                                             For the year 

                                                            ended Dec. 31,

                                                           2007        2006

Foreign exchange translation differences 

recognized directly in equity



In respect of retranslation of net 

investment in subsidiaries                                   27          80

In respect of presentation of financial

statements in United States dollars                          18        (992)



(Loss) for the period                                    (4,893)    (17,033)

                                                       ---------   ---------

Total recognized income and expense for the period       (4,848)    (17,945)

                                                       ---------   ---------

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