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December 21, 2007

Arian Silver
by Peter Zihlmann

ARIAN SILVER CORP. (TSXV:AGQ): NEW RECOMMENDATION / DECEMBER 21, 2007

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SILVER EXPLORATION IN ZACATECAS, MEXICO

Business Summary

The management of Arian is committed to building a significant silver, gold and base metal producer through a combination of development and acquisition opportunities.

Consequently, Arian is currently focussing its exploration and development efforts in one of the richest known silver-bearing districts in the world -- Zacatecas State, and one of the more recently known mining provinces in Mexico -- the Tepal area of Michoacan State.

With strong financial backing and a well connected operations group, Arian offers exposure to investors seeking strong leverage to silver, gold and base metal prices. Arian's aim is to be in production by the end of 2008.

Projects

The Calicanto Group

Phase one, 3,000 metre drill programme began on the Calicanto group of properties in December 2006 and was completed in April 2007.

Arian is continuing to advance two underground declines along the Calicanto and San Buenaventura structures. The Calicanto decline is currently 95 metres in and the San Buenaventura decline is 80 metres in. Run-Of-Mine (ROM) material is being stockpiled before being treated in a nearby milling facility which will indicate both head grade and recovery. Mapping and sampling is ongoing as the decline is advanced along strike.

Some of the better results from the initial phase of the Calicanto exploration campaign include >10,000 g/t Ag and 10.9 g/t Au over 1.2 m, 1,720 g/t Ag and 1.92 g/t Au over 1.7 m, 649 g/t Ag and 2.37 g/t Au over 1 m, 533 g/t Ag and 1.12 g/t Au over 2 m, 407 g/t Ag and 2.08 g/t Au over 2 m and 383 g/t Ag and 5.7 g/t Au over 1.1 m. These samples were taken from veins which are part of a wider (4.5 - 5 m) zone of stockwork mineralisation.

San Jose

The San Jose property covers approximately 4,300 hectares and includes the San Jose mine which has the potential for near-term underground mechanised mining. The mine was previously operated by Zimapan (Peñoles), 1973-1991, and Monarca, 1993-2001, extracting over 2 million tonnes averaging 250g/t silver. An existing underground development ramp extends 3 km along the San Jose vein.

The western portion, over 4 kilometres of strike length, of the San Jose Vein (SJV) remains un-exploited as previous mining activity focused on the eastern part of the SJV. An additional two main vein structures are exposed on the property, which have not been explored by modern systematic methods.

Phase one, 5,000 metre, drill programme commenced in May 2007. The drill programme has been designed to confirm the historical drill-hole data and to expand on a number of priority target areas.

Priority Target Areas

Block 450
Arian has identified a number of historical "reserve" (not NI 43-101 compliant) blocks that still exist east of the San Jose mine. Work is currently underway to re-access these areas for sampling and mapping and a number of short drill holes have been designed to confirm the historical drill-hole data.

Santa Ana Mine

The Santa Ana Mine exploited a number of narrow, high-grade silver shoots within the San Jose Vein system to a depth of 120 metres below surface to where the vein mineralization changed from oxide to sulphide-rich, which gave poor metal recovery using historical processing techiques. In the adjacent San Jose mine (800 metres east of the Santa Ana workings), Penoles exploited the sulphide portion of the San Jose Vein to a depth of 275 metres and Arian is planning to drill the down-dip continuation of the vein below the Santa Ana to test for mineralization at depth.

Solidad Mine

A number of prospects and shafts explore a portion of the San Jose Vein approximately 2 km west of the San Jose Shaft, where three, wide spaced shallow drill-holes have indicated a wide, silver-base-metal vein system. Arian is planning to drill a number of holes to confirm the historical drill-hole and trench data.

Arian has also completed a preliminary Induced Polarization (IP) study over the area with a view to identifying vein structures beneath the quaternary cover that covers a large area of the San Jose property. Initial results have been positive with a number of potential new structures identified, that will be explored in the immediate future.

Arian has also completed the photo topographical survey on the property, and the satellite photo has identified the San Jose Vein along strike, and has also identified a number of new structures that are hidden beneath the soil cover.

Tepal

Arian Silver Corporation has acquired an exclusive option over 100% of the Tepal poly-metallic project in Michoacán State, Mexico. The Project is located approximately 450 miles to the south of Zacatecas, where Arian's other properties are located.

The Tepal Project comprises six exploration concessions covering approximately 14,000 hectares. Initial investigation by Arian indicates that the Tepal Project consists of four gossanous poly-metallic deposits containing copper, gold and silver, with potential for additional areas of mineralization.

The Tepal Project was previously explored in the 1970s and the 1990s by a number of companies including INCO, Teck and Hecla. The historical data indicates 78.82 million tonnes of mineralization grading 0.5 grammes/tonne (g/t) gold and 0.25% copper, equating to 1.23 million contained ounces of gold and 432.63 million contained pounds of copper. The historical data also indicates that there are potentially higher grade zones within these mineralized zones.

Both INCO and Teck were interested in the Tepal Project as a copper-gold porphyry target, regarding silver only as a by-product. Hecla's primary focus on the Project was a large tonnage, low grade gold target. The Tepal Project has not been systematically tested for silver by previous owners, as the silver market had been subdued, with a price averaging less than $6 an ounce during the 1970s and 1990s. The management of Arian believes that potentially significant quantities of silver, as well as other metals, could also be present at the Tepal project.

The Tepal Project was initially explored in the early 1970s by INCO who identified the area as having potential to host a porphyry copper-gold deposit. INCO drilled 21 diamond drill holes, totalling 3,247 metres and identified significant mineralization at the North Zone.

In 1992, Teck acquired the Tepal Project, drilled an additional 50 Reverse Circulation ("RC") holes, totalling 8,168 metres, and discovered a second area of mineralization at the South Zone. Spacing between drill holes was typically 50 or 100 metres. In 1994 Teck completed a resource estimate of 78.82 million tonnes grading 0.5 g/t gold and 0.25% copper. However, Teck only assayed for gold and copper. Teck used polygonal block estimates to calculate its resource estimate. Intercept intervals were based on combined gold and copper values calculated to a dollar value equivalent using gold at $375/oz and copper at $0.80/lb. Two cut-off values, greater than $4/ton and greater than or equal to $8/ton over a minium of 6.0 metres were used. A specific gravity of 2.6 g/cm3 was used.

Subsequently Hecla owned the Tepal Project. Hecla collected nearly 900 rock chip samples on a 50 metres by 50 metres grid, re-analysed 298 pulps from the Teck RC drilling programme and drilled a further 17 RC holes, totalling 1,506 metres. Hecla's focus was exclusively on gold potential. In 1997 Hecla estimated a total historic resource of 9.063 million tonnes averaging 0.90 g/t gold containing 262,359 ounces of gold. However, Hecla used a specific gravity of 2.2 g/cm3, which is substantially lower than the 2.6 g/cm3 used by Teck. Hecla used polygonal block estimates to calculate its resource estimate, using drill sections constructed at intervals ranging from 50 metres to 90 metres. Cut-off grades of 0.5 g/t gold and 0.30% copper were used in the estimate although there is no copper resource in the Hecla material.

Arian has established a local operational base in the area and has obtained environmental permits and all relevant permissions to conduct exploration on all the Tepal properties, without payment or royalties to be made to the landowners. Phase one exploration has started with remote sensing and aerial mapping surveys. Phase one drilling commenced in April 2007 on known targets.

Additional information with respect to the Tepal Property is contained in a technical report prepared by A.C.A. Howe International Limited, dated September 18, 2006, and entitled "Technical Report on the Tepal Project, Michoacán, Mexico".

San Celso

The San Celso property covers numerous historical workings over a number of high grade silver epithermal veins. Three main veins are exposed on the property. Arian has rehabilitated two workings to over 100 metres depth in order to access the workings and undertake detailed mapping and sampling.

Sampling has returned bonanza grades from the vein systems, in places up to 4 metres in thickness. Historical workings have only explored the oxide portions of these veins above the water table. Geological mapping has identified additional structures on, or trending on to Arian's property.

Recent News: Underground sampling reveals bonanza-grade silver areas

Highlights

• Underground sampling identifies bonanza-grade silver area of San Jose Vein
• Underground sampling results include 4.9m @ 1128 g/t silver, 2.36% lead and 3.14% zinc
• Mineralisation remains open in multiple directions
• Drilling programme extended to 12,000 metres
• Magnitude of the San Jose Vein has grown significantly
• Commencement of Canadian National Instrument 43-101 resource study
• Warrants exercised; increasing cash position

Arian Silver Corporation announced that it has completed the Phase-1 underground sampling programme at the San Jose property. The sampling programme has identified a number of bonanza-grade silver areas that can be quickly accessed via the existing haulage ramp.

The Phase-1 sampling programme was conducted concurrently with the surface drilling programme and focused on sampling and surveying the historic mine workings as initial reconnaissance work had identified the potential for these workings to contain a considerable tonnage of mineralised material.

Additional assay data received from further drill-holes in the central part of the San Jose Vein system, around the Solidad Shaft, has emphasised the importance of the area.

In a press release dated 30th October 2007, the Company announced the discovery of a zone of disseminated stockwork silver mineralisation, not related to the San Jose Vein, at San Jose. This latest set of results further highlights the potential for low-cost mechanised mining and the prospect of achieving initial production by 2009.

Arian has now drilled in detail an area of some 4 kilometres (km) west of the San Jose head-frame. In view of the extremely encouraging results to-date, the drilling programme has been extended by 2,000 metres (m) to 12,000 m.

Drilling and Sampling Results

The Company has now received the initial results from the western-most drill-holes. These holes were drilled 2.8km west of the San Jose head-frame. All of the holes intersected a quartz-calcite vein with high-grade silver and base-metal values within a much wider (>30m wide in places) zone of pervasive veining.

Arian has commenced a Canadian National Instrument (NI) 43-101 resource study on the San Jose property. All drill-hole and assay data has been sent to ACA Howe, of England, to compile a preliminary NI 43-101 resource study.

During November, 9,600,000 warrants were exercised raising Cdn$4.4 million which will be used to fund additional systematic exploration on the Company's properties, including San Jose.

Arian's Chief Executive Officer, Jim Williams, stated, "The exploration programme is still continuing to discover new areas of silver and base-metal mineralisation at the San Jose property. As a result we have increased our drilling programme to 12,000m. Out of this we have already drilled nearly 9,000m.

"The area to the west of the San Jose head-frame was completely unexplored before we started our drilling programme. The results to date indicate that the magnitude of the San Jose Vein is now significantly larger than we previously envisaged."

Fundamental Considerations

43-101 reports on three projects are expected to be released shortly. Nevertheless, the historical resource at Tepal of 1.2M oz Au* and 430 M lbs Cu* based on 87 diamond and R/C drill holes (12.6Km) give an indication of what can be expected.

Above historical resource of one project only gives us a non 43-101 compliant silver equivalent resource of 140 million ounces. Assuming that the historical figure will be confirmed, we shall have a higher resource than any of the companies listed above and the market capitalisation per ounce of silver would drop de less than 50 cents.

Latest bonanza drill results indicate that the present resource figures could be dramatically increased in coming years.

This suggests than Arian Silver is another example of a massively undervalued silver stock considering that Coeur d'Alene paid close to $ 5 per ounce of silver.

Technical Considerations

THE TIMELESS PRECIOUS METAL FUND & THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND are shareholders in the Company and will benefit from any increase in the company's share price.

Peter Zihlmann
P. ZIHLMANN INVESTMENT • MANAGEMENT AG
www.pzim.com
invest@pzim.ch
Tel. +41 44 268 51 10
Mobile +41 79 379 51 57

Your independent Swiss asset manager

THE TIMELESS PRECIOUS METAL FUND
THE SIERRA MADRE GOLD & SILVER VENTURE CAPITAL FUND

Copyright 2007-2008 © Peter Zihlmann

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