Arian Silver Corporation (the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A) 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.


Further announcements will be made in due course.