Arian Silver Corporation (the "Company") (TSX
VENTURE:AGQ)(AIM:AGQ)(FRANKFURT:I3A), a silver exploration, development and
production company with a focus on projects in the silver belt of Mexico,
provides an update today regarding a proposed share consolidation and capital
raising.


Proposed share consolidation

The Board is convening a shareholder vote at the Company's upcoming general
meeting on 29 August 2013 (the "2013 GM"), to effect a consolidation of all of
the issued and outstanding common shares of the Company (the "Consolidation"),
such that for up to every 10 common shares held, each shareholder would receive
one common share upon completion of the Consolidation. A General Meeting of the
Company's shareholders has been called for 29 August 2013 for the shareholders
to consider and approve the share consolidation, and the Notice of General
Meeting and management information circular, which will be sent to shareholders
in due course. 


Proposed Private Placement

The Company is also pleased to announce that it has appointed a North American
based investment dealer, whose principals collectively have over 30 years of
experience focused on the natural resource sector, as Agent in connection with
an indicative term sheet for a private placement debt financing (the "Private
Placement") for up to US$15 million of senior secured convertible notes (the
"Notes"). The Notes are expected to mature twelve months from their date of
issuance and will bear interest at an annual rate of 14% to be prepaid in full
upon closing of the Private Placement.


The Notes are expected to be convertible, in whole or in part, at the option of
the holder, at any time following the closing date and up to and including the
maturity date into fully paid and non-assessable common shares in the capital of
the Company (collectively the "Note Shares") at a price of CAD$0.11 which is a
premium to the current market price. The Notes are expected to be secured on all
or substantially all of the Company's and its subsidiaries' assets.


The Agent has received an expression of interest from a proposed subscriber that
is expected to satisfy the entire Private Placement. The Private Placement is
conditional upon receipt of TSXV approval and admission of the common shares to
London's AIM. A four month hold period would apply to the Notes under applicable
Canadian securities laws.


Assuming that all the regulatory conditions are satisfied, the proceeds from the
Private Placement are intended to be used to acquire the El Bote processing
plant, including transportation of plant to new site, refurbishment of plant,
and new ground works at the site, mine expansion as well as for working capital
and corporate purposes.


Jim Williams, Chief Executive Officer of Arian, commented today: "Upon the
completion of this financing arrangement, Arian will be fully funded for at
least 12 months over which it is intended to refurbish, transport and reassemble
the El Bote custom processing plant. This processing plant has the capacity for
processing up to 1,500 tonnes per day and is expected to provide significant
cost savings from toll milling. 


"The consolidation of shares in conjunction with the financing is intended to
bring greater stability to the share price over the coming months."


Forward-Looking Information:

This press release contains certain "forward-looking information". All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements relating to
the Company's anticipated plans to acquire, transport, refurbish, operate and
finance the El Bote processing plant and planned mine expansion constitute
forward-looking information). This forward-looking information reflects the
current expectations or beliefs of the Company based on information currently
available to the Company as well as certain assumptions (including that the
Company will be able to obtain the necessary financing and that the proposed
subscriber will complete the Private Placement). Forward-looking information is
subject to a number of significant risks and uncertainties and other factors
that may cause the actual results of the Company to differ materially from those
discussed in the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company. Factors that could
cause actual results or events to differ materially from current expectations
include, but are not limited to, the failure to close the Private Placement and
obtain the necessary financing to acquire the El Bote processing plant or to
satisfy the other conditions precedent to the transaction as well as unexpected
delays in completing the transportation and refurbishment of the El Bote
processing plant which could lead to unexpected delays in the start of
operations and delays in the Company's mine expansion plans.


Any forward-looking information speaks only as of the date on which it is made
and, except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking information,
whether as a result of new information, future events or results or otherwise.
Although the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking information is not a
guarantee of future performance and accordingly undue reliance should not be put
on such information due to the inherent uncertainty therein.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) and no stock
exchange, securities commission or other regulatory authority accepts
responsibility for the adequacy or accuracy of this release nor approved or
disapproved of the information contained herein.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Arian Silver Corporation
Berkeley Square House
Berkeley Square
London
W1J 6BD
England


Arian Silver Corporation
Jim Williams
CEO
(London) +44 (0)20 7887 6599
jwilliams@ariansilver.com


Arian Silver Corporation
David Taylor
Company Secretary
(London) +44 (0)20 7887 6599
dtaylor@ariansilver.com


Grant Thornton UK LLP
Philip J. Secrett / David Hignell
(London) +44(0)20 7383 5100
Philip.J.Secrett@uk.gt.com


XCAP Securities PLC
Jon Belliss
(London) +44 (0)20 7101 7070
jon.belliss@xcapgroup.com


Yellow Jersey PR Limited
Dominic Barretto
(London) +44 (0)7768537739
dominic@yellowjerseypr.com


CHF Investor Relations
Juliet Heading
(Canada) +1 416 868 1079 x 231
juliet@chfir.com