Interim Results

Ariana Resources PLC
07 October 2005




07 October 2005
AIM: AAU
                 INTERIM REPORT FOR SIX MONTHS TO 30 JUNE 2005

Ariana Resources plc ('Ariana' or 'the Company'), the gold exploration company
focused exclusively on Turkey, today released its interim report for the 6
months ended June 30, 2005.

Highlights:

  * Acquisition of Sindirgi gold project in western Turkey
  * Appointment of experienced Non Executive Directors
  * Further exploration licences granted
  * No long term debt

Post Period Highlights:

  * Admission to AIM on 28 July 2005
  * IPO Financing raising £1.16m
  * Commencement of scoping study on the Kiziltepe gold prospect
  * Reconnaissance exploration in eastern Turkey

Michael Spriggs, Chairman, commented:

'Our vision for Ariana is to discover world class gold and copper-gold deposits
in Turkey using an advanced technology-driven exploration strategy and to
investigate opportunities for early stage cash generation. In this regard, 2005
is proving to be a pivotal year for Ariana, with good progress and significant
developments on several fronts. Our initial targets offer excellent potential
and we look forward to delivering positive result.

'The Company has acquired the advanced Sindirgi gold project, trebled its
grassroots exploration base, and appointed two highly experienced Non Executive
Directors. Despite relatively weak market conditions in July, Ariana
successfully raised £1.16m and its shares were admitted to AIM.'

Enquiries to:
Ariana Resources plc
Steven Poulton, Chief Executive                 Tel: [phone]
[e-mail]                 Mobile: [phone]

Bankside Consultants
Michael Padley / Susan Scott                    Tel: [phone]

Chairman's statement:

It is a pleasure to present my first Chairman's statement to you on your
Company's activities for the six months to 30th June 2005, to accompany the
interim results for the same period which are set out below.

Overview

Ariana is focused exclusively on exploration in Turkey, a geologically complex
country which the Directors consider to be highly prospective for the discovery
of world class epithermal gold and porphyry copper-gold deposits. Despite
Turkey's long history of metal mining, its geology is relatively under-explored.
The existence of such gold deposits as Kiladag (5m oz), Copler (4m oz), Ovacik
(1m oz) and Efemcukuru (1m oz) provide ample demonstration of Turkey's
prospectivity.

Turkey is an attractive country in which to invest and explore. It is also the
world's third largest consumer of gold. Turkey is a stable country with a
rapidly developing economy built around a supportive legislative and investment
framework. The positive developments in the recent negotiations over Turkey's
potential membership of the enlarged EU provide further encouragement.

Ariana's exploration strategy using sophisticated remote sensing techniques and
based on rapid ground turnover is proving highly efficient and cost-effective.
An advanced in-house remote sensing database is being successfully applied to
generate a pipeline of projects. The database contains multiple geoscientific
datasets, including satellite-borne remote sensing data across an area of
approximately 420,000km(2).

To date, over 100 targets have been systematically prioritised, initial licences
acquired and grassroots exploration results used to determine with confidence
whether licence areas are developed or relinquished. Ariana's initial
exploration results have been very encouraging.

Ariana's focus on gold, copper and other key associated metals reflects the
widely held view that the recent market strength in these products is
sustainable, fuelled by the continuing vigorous growth in the world's major
emerging economies. The Company is therefore well positioned to derive full
benefit from the discoveries it is seeking to make.

Activities in the period

In January 2005, the Company acquired the Sindirgi Gold Project from Newmont
Altin Madencilik Limited irketi, a subsidiary of Newmont Mining Corporation
(NYSE & ASX: NEM; TSX: NMC) for a consideration of US$400,000 and a royalty of
up to 2.5% on future production. The Sindirgi Gold Project comprises three
operating licences and eight exploration licences, covering an area of
approximately 235km2 in Balikesir Province, western Turkey.

Sindirgi hosts a number of prospect areas, the most advanced of which is
Kiziltepe, which hosts over 19km in strike length of gold-silver bearing veins.
Work by previous operators at Kiziltepe included mapping, soil sampling,
rock-chipping and 3,425m of diamond drilling from 26 holes. Intersections of up
to 10.5 g/t gold over 7.5m were reported from this previous drilling.
Independent technical consultants SRK have prepared a geological model of
150,000 ounces gold (not a resource as defined by the JORC code) at Kiziltepe on
approximately 5% of the known vein system, based on an average grade of 4.2 g/t
to an approximate depth of 150m.

Ariana's exploration portfolio includes a further 50 licences across western,
north eastern and eastern Turkey. Within these, the company's exploration
strategy has yielded early success with the identification of the Kinik Gold
Prospect in Balikesir Province, western Turkey. A channel sample along a road
cut returned 48m of mineralisation, including higher grade zones of 3.21 g/t
gold over 10m, 3.09 g/t over 5m and 1.4 g/t over 13m (using a 0.5g/t gold
cut-off) and a peak grade of 10.42 g/t.

Board appointments

During the period Ariana welcomed two board members, with Mike Etheridge and
Michael de Villiers joining the board as Non Executive Directors in April 2005.
Their appointment brings to Ariana extensive experience in the resources sector
which will greatly assist the Company in realising its strategy. Mike Etheridge
has over 30 years' industry experience, having served as Executive Chairman of
SRK (Australasia) from 1997 until 2004, and as a Director of SRK Global from
1998-2001. His current directorships include AIM and ASX-listed Ballarat
Goldfields NL and TSX-V listed Geoinformatics Exploration Inc. Michael de
Villiers is a Commercial and Financial Accountant with over 15 years' experience
in mining and chemicals operations in Namibia, Botswana, Ghana, Bulgaria and the
UK. His current directorships include AIM-listed Mercator Gold plc and Eurasia
Mining plc.

Activities post period

Ariana's shares were admitted to trading on AIM on 28 July 2005 with Ambrian
Partners and Beaumont Cornish appointed as the Company's Nominated Broker and
Nominated Adviser respectively. Prior to admission the Company raised £1,165,400
before costs through an Initial Public offering (IPO) of 9,711,665 ordinary
shares at a price of 12p per share. Over 70% of the investors at the IPO were
Institutional or board members. The new shares issued represent 30.9% of the
enlarged capital of 31,431,065 ordinary shares.

On 22 August 2005 we announced the commencement of a scoping study on the
Kiziltepe prospect at the Sindirgi gold project. Two teams are undertaking rock
saw channel sampling to enable a mineral resource estimate to be completed
according to the JORC Code.

On 21 September 2005 we announced the commencement of reconnaissance exploration
in eastern Turkey. This region is a new exploration frontier regarded by the
directors as prospective for the discovery of world-class deposits. With
first-mover advantage, Ariana has established a significant land holding over a
number of prospective remote-sensing anomalies.

Outlook

Ariana has shown both corporate agility and exploration expertise in the period
under review, and its profile as a dynamic junior company has continued to grow.
Based on its progress to date, Ariana remains firmly on course towards achieving
its strategic goals and is confident that it can maintain the tempo of recent
activity.

Your company has brought together experienced management and energetic operating
teams, an advanced exploration strategy, and a first-class portfolio of
prospective properties in Turkey. This is an enviable combination which is
already starting to deliver results. To have come so far so rapidly is a tribute
to all the members of the Ariana team in the UK and Turkey. On behalf of the
Company, I would like also to express our appreciation to all of our
shareholders for their continuing support. We shall strive to keep all
shareholders fully and continuously informed on our activities through regular
progress reports.

We can anticipate considerable activity in the coming year as we advance
existing properties towards the drilling stage, aim for new discoveries and
pursue other corporate developments with both local and international partners
which we consider to be of long term value for shareholders.

Michael Spriggs
Chairman

07 October 2005

About Ariana Resources

Ariana is a technology-driven exploration company focused on the potential
discovery of multi-million ounce epithermal gold-silver and porphyry copper-gold
deposits within the Tethyan metallogenic belt of Turkey. The Company has a
portfolio of prospective licences covering over 1,000km2, selected on the basis
of its advanced in-house remote sensing database. Ariana's nominated broker is
Ambrian Partners Limited and Beaumont Cornish Limited is nominated adviser.

Mike Etheridge, BSc (Hons), PhD, is a non-executive director of the Company and
is a Fellow of the Australian Institute of Geoscientists. He has over 30 years'
experience in geological research and mineral consultancy and served as a
Director of SRK Global from 1978-2001 and as Chairman (SRK Australasia) from
1998-2004. He is a Competent Person with respect to the technical disclosure in
this regulatory announcement, which he has read and approved.

For further information on Ariana you are invited to visit the Company's website
at www.arianaresources.com.



Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005

Consolidated Profit and Loss Account

                                     Notes         Unaudited           Audited
                                                  Six months  ended Year ended
                                                30 June 2005  31 December 2004
                                                       £'000             £'000

Administrative expenses                                (117)             (152)

Operating loss                                         (117)             (152)

Net interest receivable                                   6                 1

Loss on ordinary activities
before taxation                                        (111)             (151)
Tax on loss on ordinary activities                        -                 -

Loss on ordinary activities
after taxation and retained for
the period                                             (111)             (151)

Basic and diluted loss per
share (pence)                            2            (51.1)p          (125.9)p

All transactions arise from continuing operations.
All recognised gains and losses are included in the profit and loss account.

Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005

Consolidated Balance Sheet
                                            Notes     Unaudited        Audited
                                                             At             At
                                                    30 June 2005   31 December
                                                                          2004
                                                         £'000           £'000

Fixed assets
Intangible fixed assets                                    396            67
Tangible fixed assets                                       19             4

                                                           415            71

Current assets
Debtors                                                     51             7
Cash at bank and in hand                                   190           682

                                                           241           689

Creditors: amounts falling due within
one year                                                   (79)          (72)

Net current assets                                         162           617

Total assets less current liabilities                      577           688

Capital and reserves
Called up share capital                                    217           217
Share premium account                                      719           719
Adjustment for shares in subsidiary not yet                  
issued                                                       -             -
Merger reserve                                               -             -
Profit and loss account                                   (359)         (248)

Shareholders' funds                             5          577           688

Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005

                                     Unaudited, Consolidated Cash Flow Statement

                                          Notes     Six months     Year ended
                                                         ended    31 December 
                                                  30 June 2005           2004

                                                         £'000          £'000

Net cash outflow from
operating activities                          3          (150)           (41)

Returns on investment and servicing of
finance
Interest received                                           6              1
Interest paid                                               -              -

Net cash inflow from
returns on investment and
servicing of finance                                        6              1

Taxation                                                    -              -

Capital expenditure and financial
investment
Purchase of tangible fixed
assets                                                    (19)            (5)
Purchase of intangible
fixed assets                                             (329)           (66)

Net cash outflow from
capital expenditure and
financial investment                                     (348)           (71)

Management of liquid resources
Transfer to short term bank deposits                        -              -

Net cash outflow before
financing                                                (492)          (111)

Financing
Issue of shares by Ariana
Exploration & Development
Limited                                                     -            793

Net cash inflow from
financing                                                   -            793

(Decrease)/increase in
cash                                          4          (492)           682

Cash brought forward                                      682              -

Cash carried forward                                      190            682


Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005


Notes to the interim financial information:

1.    Basis of preparation

The interim financial information set on pages 1 to 6 has been prepared under
the historical cost convention. The principal accounting policies applied on a
consistent basis in the preparation of the interim financial information are set
out below.


Going concern

The group is at an early stage of development and in common with many
exploration companies it raises funds in discrete tranches and the proceeds of
the share placings in the year to 31 December 2004 have raised approximately
£800,000 in cash. The parent company, Ariana Resources plc, completed a listing
on AIM in July 2005 and the fund raising by placing of shares provided funds of
approximately £900,000 net of expenses. The funds are forecast to provide
sufficient working capital until the end of 2006. Accordingly the Directors
consider that it is appropriate to prepare this interim report on the going
concern basis.

However, these proceeds will not be sufficient to bring the projects into full
production and, in due course, further funding will be required for these
projects. In the event that the group is unable to secure further finance the
group will not be able to fully develop these projects.



Basis of consolidation

The interim financial information includes the financial information of Ariana
Exploration and Development Limited ('AEDL') and all its subsidiaries (together,
the 'Group') for the period from 1 January 2004 to 30 June 2005.


The consolidated financial information includes the financial information of
AEDL's subsidiary undertakings using the acquisition method of accounting. Under
this method the results of the acquired entity are included in the consolidated
profit and loss account from the date of acquisition. AEDL has a wholly owned
subsidiary, Portswood Resources Ltd, incorporated in the British Virgin Isles
which in turn owns 98% of the issued share capital of a company, Galata
Madencilik Ltd, incorporated in Turkey. The remaining 2% of the issued share
capital is being held in a trust on behalf of Portswood Resources Ltd.


Intangible fixed assets

Intangible fixed assets are stated at cost.


These comprise costs directly incurred in exploration and evaluation. They are
capitalised as intangible assets pending determination of the feasibility of the
project. When the existence of economically recoverable reserves is established
the related intangible assets are amortised on a depletion percentage basis.
Where a project is abandoned or is determined to not be economically viable, the
related costs are written off.


The recoverability of these deferred exploration and evaluation costs is
dependent upon a number of factors common to the natural resource sector. These
include the extent to which the company can establish recoverable reserves on
its properties, the ability of the company to obtain necessary financing to
complete the development of such reserves and future profitable production or
proceeds from the disposition thereof.


2.    Loss per share

The calculation of loss per share is based on a loss of £111,000 for the period
ended 30 June 2005 (31 December 2004: loss of £151,000) and the weighted average
number of shares in issue in the period to 30 June 2005 of 217,194 (31 December
2004: 119,843). There is no difference between the diluted loss per share and
the loss per share presented.

Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005

3.    Net cash outflow from operating activities

                                            Six months ended         Year ended
                                                30 June 2005   31 December 2004                                         
                                                       £'000              £'000

Operating loss                                         (117)              (152)
Depreciation and amortisation
charge                                                    4                  1
Increase in debtors                                     (44)                (6)
Increase/(decrease) in creditors                          7                (22)
Non-cash expenditure                                      -                138

Net cash outflow from operating
activities                                             (150)               (41)

4.    Reconciliation of net cash flow to movements in net funds

                                           Six months ended         Year ended
                                               30 June 2005   31 December 2004
                                                              
                                                      £'000              £'000

(Decrease)/increase in cash in the
period                                                 (492)               682
Increase in short term bank deposits                      -                  -

(Decrease)/increase in funds in
the period                                             (492)               682

Net funds at start of period                            682                  -

Net funds at end of period                              190                682

Represented by:
Cash at bank and in hand                                190                682
Short term bank deposits                                  -                  -

Net funds at end of period                              190                682

5.    Reconciliation of movements in shareholders' funds

                                            Six months ended         Year ended
                                                30 June 2005   31 December 2004
                                                       £'000              £'000

Loss for the period                                    (111)              (151)
New share capital subscribed -
Ariana Exploration & Development
Limited                                                   -                931

Movement in shareholders' funds                        (111)               780

Shareholders' funds at start of
period                                                  688                (92)

Shareholders' funds at end of
period                                                  577                688

Ariana Exploration and Development Limited
Interim report for the six months ended 30 June 2005


6. Intangible assets

Included in intangible assets at 30 June 2005 is an amount of £217,000 being the
purchase of the Sindirgi Gold Project and accompanying data from the Newmont
Mining Corporation ('Newmont') for a total consideration of US$400,000 plus a
Net Smelter Return ('NSR') Royalty on 31 January 2005. The royalty calls AEDL to
pay Newmont 1.5%, 2% and 2.5% of NSR depending on the London gold price trading
below US$400, above US$400 and above US$450 per ounce respectively.


7.  Post balance sheet events

On 19 July 2005 the entire issued share capital of AEDL was acquired by Ariana
Resources Plc in a share for share exchange.


On 19 July 2005 21,719,400 ordinary shares were issued by Ariana Resources Plc
to the existing shareholders of AEDL in accordance with a share for share
exchange agreement, whereby each share held in AEDL was exchanged for 100
ordinary shares in Ariana Resources Plc. Pursuant to this exchange, loss per
share of 51.1 pence equates to 0.51 pence in Ariana Resources Plc based on the
loss of £111,000.


On 28 July 2005 Ariana Resources Plc was admitted to trading on AIM. At this
time the group raised approximately £900,000 in cash, net of expenses, from a
placing of 9,711,665 ordinary shares 12p per share.


8.  Publication of non-statutory accounts

The financial information set out in this interim report does not constitute
statutory accounts as defined in section 240 of the Companies Act 1985.


The profit and loss account and balance sheet for the year ended 31 December
2004 have been audited and this financial information was included in the
Placing and AIM Admission document.


Copies of this report are available from the Companies registered office at
Ridgeway House, 1 Hagbourne Road, Didcot, Oxfordshire, OX11 8ER or the Company's
website www.arianaresources.com.


Ends






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