A little late in posting it. Might still be a good read for some. Cheers. Red Mars

DJ Arian Silver Corp 9-Mo Pretax Loss $3.3M -2-

Dec 01, 2008 (Dow Jones Commodities News via Comtex) -- ASLRF | Quote | Chart | News | PowerRating -- Edited Press Release

Arian Silver Chief Executive Officer, Jim Williams, said that following on from the excellent progress at the San Jose project reported in Q2, the final Phase-1 drilling results from the Tepal property were calculated, which resulted in a 36% upgrade of previously reported "inferred" resources into the "indicated" resource category.

"This confirms the excellent continuity of mineralisation in multiple directions on our Tepal property, which in turn gives us great encouragement for potential expansion of resources", Williams said.

Regarding the Phase-2 drilling programme at San Jose, the company has now completed nearly 7,000 metres of drilling in 38 drill holes.

Results from assay batches comprising the initial 19 drill holes were very encouraging as reported Nov. 6.

"Meanwhile we continue to dewater the San Jose mine workings and will carry out additional underground sampling to supplement our drilling on "new" areas exposed by lowering the water table", he said.

In addition the company is also close to completing an initial scoping study to examine a preliminary production scenario based on some of its existing resources and involving contract mining and toll milling.

The Company, in common with all junior exploration companies, requires access to equity markets as they develop and of course during 2008 this has become increasingly difficult.

Accordingly the board decided to operate at a reduced pace until market conditions improve.

"We have, therefore, deferred some 5,000 metres of additional drilling planned as a finalisation of the Phase-2 programme at San Jose as well as curtailing exploration on the other projects in our extensive portfolio. We are also making reductions in overheads in our London and Mexican offices", Williams said.

The board believes it has already identified a very significant silver-lead-zinc resource at San Jose with obvious expansion potential.

It has established excellent management teams in Mexico and London and once the financial markets stabilize expects the value of the assets in Arian to be recognized and re-rated in due course.

In management's view, the most meaningful information concerning the Company relates to its current liquidity and solvency since it is not currently generating any income from its mineral projects.

The Company will require additional funding in the future in order to progress exploration programmes on its mineral projects, to meet property option payments, for development and for general working capital requirements.

Sources of funds currently available to the Company are through the issue of equity capital, the sale of its interests in one or more of its projects, by way of project joint ventures or business combinations.

The Company has accumulated IVA (sales tax), which amounted to $997,000 at Sept. 30. This relates to past exploration expenditure and is now being repaid in installments by the Mexican tax authorities.

Any delay in future repayments of this IVA debtor will have an impact on the timing of further funding required for the Company and could bring forward a funding requirement into Q1 of 2009.

The directors are currently investigating funding options, other than through direct equity placements, which may be available to the Company in the future.

Since the Company is at an early stage of development, it has in the past raised funds in several discrete tranches, which is a common practice for junior mineral exploration companies. Although the Company has been successful in the past in raising equity finance, there can be no assurance that the funding required by the Company will be made available to it when needed or, if such funding were to be available, that it would be offered on reasonable terms.

The terms of such financing might not be favourable to the Company and might involve substantial dilution to existing shareholders.

The directors of the Company currently believe it appropriate to prepare the Company's financial statements on a going concern basis. However, if the Company is unable to raise sufficient financing in the future, it may not be able to meet its ongoing working capital and other expenditure requirements.

If these circumstances arose this would cast significant doubt on the Company's ability to continue as a going concern.

As at Sept. 30, the Company had working capital of $0.5 million (Dec. 31, 2007: $3.5 million). Exploration and development commitments as at Sept. 30, in the MD&A the Company will need to make some material payments in order to maintain in good standing its interests in certain properties.

The next such payment amounting to $255,000 falls due in February 2009.

The decrease in working capital during the period is the result of project and administrative expenditure.

Order free Annual Report for Arian Silver Corp.

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(END) Dow Jones Newswires

12-01-08 0431ET