Zenit Mining Operations Update

Ariana Resources plc ("Ariana" or "the Company"), the AIM-listed mineral exploration and development company with gold project interests in Africa and Europe, is pleased to announce a finance agreement to support ongoing developments of the Zenit Mining Operations in Türkiye. Zenit Mining Operations comprise the Kiziltepe gold-silver mine and the Tavsan mine construction programme in western Türkiye. Zenit Mining Operations are a partnership between Ariana (23.5%), Proccea Construction Co. ("Proccea") (23.5%) and Özaltin Holding A.S. ("Özaltin") (53%). The finance agreement has been secured via the partnership entity, Zenit Madencilik San. ve Tic. A.S. ("Zenit").

Highlights:

• US$20 million credit agreement was completed with Türkiye Cumhuriyeti Ziraat Bankasi A.S. ("Ziraat Bankasi"), the largest bank in Türkiye.
• Loan repayments at an effective interest rate of 8.5% will occur over three years, with a one-year principal repayment holiday following drawn-down.
• Facility is non-recourse and comprises no hedging or currency swap requirements.
• Kerim Sener, Managing Director, commented:

"With our partners, Özaltin Holding and Proccea Construction, we are exceptionally pleased to have completed a credit agreement with Türkiye Cumhuriyeti Ziraat Bankasi A.S. to support our Zenit Mining Operations, in particular for the financing and timely delivery of our second mine in Türkiye. As a State-owned bank, Ziraat Bankasi is the largest bank in terms of total assets (US$129 billion) and number of branches in the country. It is primarily testament to the strength of our partner, Özaltin Holding, for us to have achieved this significant funding milestone.

"This funding facility will enable the partnership to accelerate the construction of the Tavsan mine with the expectation that the mine build will be completed in the latter part of 2024. We would like to take this opportunity to thank both Özaltin and Proccea for their impressive efforts in progressing the Tavsan mine development programme and extend our appreciation to Ziraat Bankasi for the completion of this funding arrangement. Such strong banking relationships bode well for the development of our future project pipeline, both in Türkiye and potentially also in Zimbabwe."

Finance Facility

A US$20 million finance facility has been agreed upon following negotiations with Türkiye Cumhuriyeti Ziraat Bankasi A.S. The facility has been provided in the name of Zenit Madencilik San. ve Tic. A.S. ("Zenit") to support operations in western Türkiye, and particularly, the completion of construction of the Tavsan Gold-Silver Mine. Following receipt of these funds, the Zenit partnership has approximately US$29 million in capital available for the development programmes across the projects in which it is involved.

The facility will have a term of three years from the time of drawdown, with the repayment of the loan occurring via 12 quarterly instalments commencing on 20 August 2024 and completing on 20 May 2027. There is an effective one-year principal repayment holiday after drawdown. The total repayments are capped at c.US$23.6 million, which covers all capital repayments and funding costs.

Özaltin Holding A.S., Proccea Construction Co. and Ariana's subsidiary, Galata Madencilik San. ve Tic. A.S., have provided joint and several securities to the bank until such time that the loan has been repaid. There are no hedging, currency swaps or other overhead requirements that are normally associated with traditional Western-style project finance arrangements.

Ariana has no further financial commitment to Zenit for development-level funding, although it continues to provide technical support on specific exploration and development programmes across the broader Zenit operational region (including at the Salinbas Project) to further enhance the overall potential of the projects, for which it recovers its costs from Zenit.

Editors' Note: