Release date- 16072012 – London, England – Arian Silver Corporation a silver exploration, development and production company with a focus of projects in the silver belt of Mexico announces its wholly owned subsidiary, Arian Silver de Mexico SA de CV is in dispute with the owner of the toll mill which is contracted to process ore from the trial mining operation at the San Jose mine in Zacatecas State in Mexico; this has resulted in the suspension of milling operations.

Detailed discussions to resolve the dispute are under way.

As previously announced, the toll milling operation is only designed to be a pilot operation to test the potential for a larger scale commercial operation.

As reported in February 2012 the Company has engaged an independent metallurgical and mill consultant to conduct a study for a bespoke milling plant for the San Jose project. This study is evaluating, amongst other things, the viability of such a plant for future mining operations and is expected to significantly increase efficiencies, including recoveries, of silver, lead and zinc at a significantly reduced cost. The results of this study are expected to be received within the current reporting quarter.

Contact:

Arian Silver Corporation

Jim Williams

CEO

Tel: +44 (0)20 7887 6599

Email: jwilliams@ariansilver.com

David Taylor

Company Secretary

Tel: +44 (0)20 7887 6599

Email: dtaylor@ariansilver.com

Grant Thornton Corporate Finance

Gerry Beaney

David Hignell

Tel: +44 (0)20 7383 5100

Email: gerry.d.beaney@gtuk.com

XCAP Securities PLC

Karen Kelly

Tel: +44 (0)20 7101 7070

Email: Karen.Kelly@xcapgroup.com

Yellow Jersey PR Limited

Dominic Barretto

Tel: +44 (0)7768537739

Email: dominic@yellowjerseypr.com

CHF Investor Relations

Juliet Heading

Tel: +1 416 868 1079

Email: juliet@chfir.com