Ariana Resources : Annual Report and Accounts 2023

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Contents

Strategic Report	2
Principal Activities	3
At a Glance	4
Strategy & Targets	5
Chairman's Statement	6
Operations Review	10
Financial Review	20
Organisation Review	21
Directors	22
Operational Team	24
Field Team	26
Key Performance Indicators	28
Risks & Uncertainties	30
Section 172(1) Statement	34

Governance	36
Corporate Governance	36
Corporate Responsibility	40
Report of the Directors	42
Independent Auditor's Report	48

Financial Statements	52
Notice of the 2024 Annual General	78
Meeting of Ariana Resources PLC

Advisors

Directors

M J de Villiers

A K Sener

W J B Payne

C J S Sangster

Secretary

M J de Villiers

Registered Office

2nd Floor, Regis House 45 King William Street London, EC4R 9AN

Registered Number

05403426

Auditors

PKF Littlejohn LLP

15 Westferry Circus, London, E14 4HD

Bankers

HSBC

186 Broadway, Didcot, Oxfordshire, OX11 8RP

Solicitors

Gowling WLG (UK) LLP

4 More London Riverside, London, SE1 2AU

Joint Broker

Panmure Gordon (UK) Limited

40 Gracechurch St, London, EC3V 0BT

Joint Broker

WH Ireland PLC

24 Martin Lane, London, EC4R 0DR

Nominated Advisor and Joint Broker

Beaumont Cornish Limited

Building 3, 566 Chiswick High Road,

London, W4 5YA

Registrars

Computershare Investor Services PLC

The Pavilions, Bridgwater Road, Bristol, BS13 8AE

Public Relations

Yellow Jersey PR

Thanet House, 231-232 Strand,Temple, London, WC2R 1DA

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Dymaxion projection of the eastern hemisphere scales countries more realistically than other map projections.

London Registered Oce

KOSOVO	Ankara
Head Oce

CYPRUS

KAZAKHSTAN

TÜRKIYE

LAOS

Harare

Regional Oce

Economy Class Flights

HARARE - ISTANBUL 0.9t CO₂

ISTANBUL - LONDON 0.4t CO₂

SINGAPORE - ISTANBUL 2.2t CO₂

PERTH - SINGAPORE 0.6t CO₂

AUSTRALIA

Perth

Regional Oce

Zenit Madencilik

Western Tethyan Resources

Venus Minerals

Asgard Metals Fund

Dokwe Project

A R I A N A R E S O U R C E S P LC - A N N UA L R E P O RT & AC C O U N TS 2 0 2 3

Principal Activities

Ariana Resources plc is a precious metals and technology metals explorer, developer and producer. We are a successful and profitable company with two-decades of experience in advancing mineral resource opportunities towards commercialisation, involved in the development of gold mines in Türkiye, and having achieved significant internal investment returns of

20-100x across some of our other projects.

The Company holds interests across the south-eastern European region and wider Tethyan Metallogenic Belt. Beyond this region, various mineral exploration opportunities continue to be evaluated elsewhere, in particular the 1.8 million ounce Dokwe Gold Project in Zimbabwe, which the Company is aiming to acquire through an all-share merger with Rockover Holdings Limited in 2024.

COMMODITIES OF INTEREST

PRECIOUS	TECHNOLOGY	INDUSTRIAL	ENERGY
METALS	METALS	METALS	METALS

Au	Cu	Mo	U
GOLD	COPPER	MOLYBDENUM	URANIUM
Ag	Ni	Zn
SILVER	NICKEL	ZINC

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At a Glance

Operational

Strong production performance
17,683oz gold	2023
28,421oz gold	2022
20,737oz gold	2021

Average production: 21,050oz gold (2017-2020)

Industry leading gold discovery cost per ounce

Ariana Resources	Industry average
US$11/oz Au	US$62/oz Au
Lower quartile operational cash costs
Ariana Resources	International average
US$650/oz*	US$1,200/oz

* Average cost of production until 2022, after which the Tavşan site development costs are included

Sustainability

Committed to in-country employment

Zenit Madencilik:	323 staff	100% Turkish Nationals
Ariana Group:	13/18	72% Turkish Nationals
Female/Male Ratio:	32% Female 68% Male

CO₂ emissions per ounce 0.32 CO₂ t/oz

(international average 0.8 CO₂ t/oz)

24,725 saplings planted - rehabilitation of waste storage area and around minesite

5,000 lavender plantings for beekeeping activities

Financial

Total Mining Revenue (to date) $274m

Profit Before Tax
£0.1m	2023
£5.0m	2022
£7.7m	2021
£5.1m	2020

Total Special Dividend £7.74m (2021 & 2022)

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Strategy & Targets

The Company's primary strategy is to achieve sustainable long-term growth via robust and cost-efficient mineral exploration and development. This approach has led Ariana to identify, advance and develop projects rapidly, with a discovery cost per ounce of gold which is less than half that of its peers.

The Company plans to achieve its goals by:

• Focusing on the discovery of sizeable mineral systems,
• Building positive long-term relationships with key stakeholders, including local communities and governments
• Maintaining a strong team with excellent technical, financial and commercial skills
• Forming robust business partnerships for the development of gold and other mineral projects
• Executing selective, high-impact exploration programmes and joint venture opportunities
• Ensuring safe operating procedures and minimising environmental impact

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Chairman's Statement

Dear Shareholders,

As we reflect on the achievements and milestones of Ariana Resources plc in 2023, I am pleased to share that this year has been a period of remarkable progress and significant transformation for our Company. Despite global economic challenges, Ariana Resources has demonstrated resilience, innovation and a commitment to sustainable growth, positioning us strongly for the future.

Most significantly, after completing an assessment of several early and advanced-staged exploration and development opportunities, particularly in Africa, the Company took an initial 2.1% interest in the feasibility-stage 1.8Moz* Dokwe Gold Project in Zimbabwe (owned by Rockover Holdings Limited) via its Asgard Metals subsidiary. This enabled the funding of an extensive due-diligence technical programme on the project during much of 2023 and into 2024, including the completion of four diamond drill-holes, which has led to the proposed merger with Rockover Holdings Limited, post- period end. We are excited about the potential value-accretive opportunity this project presents for the Company and its shareholders, and we look forward to advancing the project towards a definitive feasibility study in the coming year.

* revised from 1.30Moz to 1.83Moz post-period end

"Ariana Resources has demonstrated resilience, innovation and a commitment to sustainable growth, positioning us strongly for the future."

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Operational Highlights

Several substantial advancements across our portfolio of assets, particularly in Türkiye, were seen in 2023. The Kiziltepe Mine has continued to perform robustly during a period which witnessed the development of its fourth open-pit on the Banu Vein. This has been a testament to the operational efficiencies and strategic investments made toward enhancing the mine's capacity and productivity. The specific focus on optimising the Mineral Resource and Reserves, operational workflows and employing state-of-the-art technologies, has resulted in an overall increase in production since operations commenced in 2017, exceeding our initial projections by over 50,000oz of gold by the year-end.

In parallel, the development of the Tavşan Project has progressed significantly after a five-month period in which construction was suspended in 2023 following a local court ruling against its Environmental Impact Assessment. Our operating company in Türkiye, Zenit Madencilik San. ve Tic. A.S. (of which we own 23.5%), successfully navigated this situation and was able to recommence mine construction in July 2023. Furthermore, initial gold production from Tavşan has been recorded post-period end following the trucking of high-grade ore to the Kiziltepe CIL processing plant. We currently anticipate the commencement of gold production from the Tavşan heap-leach towards the end of 2024. These developments underscore our commitment to expanding our production

base and diversifying our project portfolio.

Exploration and Expansion

Exploration remains at the heart of Ariana Resources. Our strategic partnership with Özaltin Holding and Proccea Construction continues to yield benefits, particularly in the context of the Salinbaş Project. These collaborations have provided the financial strength and technical expertise to support the exploration and development of this project, ensuring its efficient advancement through an extensive drilling programme over the past couple of years. This year, our exploration team contributed to important discoveries, including the identification of new mineralised zones, such as Hizarliyayla, which has opened exciting opportunities for future investigation.

Elsewhere, the exploration being undertaken by the team at Western Tethyan Resources Limited in partnership with Newmont is proceeding exceptionally well. This work included extensive new generative exploration programmes across both Kosovo and North Macedonia. Towards the end of the year this culminated in the drilling of the first two holes into the Hertica prospect in eastern Kosovo. We are dedicated to advancing these prospects through rigorous exploration programmes, which we believe will enhance our resource base and contribute to long-term value creation.

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Chairman's Statement continued

Financial Performance

Ariana delivered a financial result for 2023 in line with expectations, underpinned by the production from the Kiziltepe operation and prudent financial management of the Tavşan mine build, which had been funded entirely by Zenit Madencilik to the year-end. Revenue recorded within Zenit Madencilik benefitted from favourable commodity prices, despite the

lower throughput and grade of ore being processed compared to the prior year, and cost control across the Kiziltepe and Tavşan operations delivered a robust year-end profit. Meanwhile, our exploration and associated expenditure increased during the year, largely reflecting the work being undertaken by our subsidiary Western Tethyan, in addition to some Turkish exploration costs. By year-end, we had maintained a healthy cash and gold bullion- backed bank position, the latter held in Türkiye in preference to holding Turkish Lira given the significant currency fluctuations impacting prior years.

Sustainability and

Corporate Responsibility

Sustainability is a core pillar of our business strategy. In 2023, we made meaningful progress in our environmental, social, and governance (ESG) initiatives. We have implemented several measures to reduce our environmental footprint and promote environmental stewardship, including energy-efficient practices

and waste management programmes. In particular, our dedicated office facilities in Ankara now generate more electricity than they consume, through use of a solar-power system installed during the year. We have also introduced the first hybrid-electric vehicles to our fleet, marking a process of change that will come in the years ahead as technologies continue to improve. Our commitment to social responsibility is reflected in our community engagement activities, where we have supported local communities through various development projects and educational and health initiatives in Türkiye and elsewhere. We continue

"Our strategic focus will remain on enhancing operational efficiencies, advancing our exploration projects, and pursuing value-accretive opportunities."

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to prioritise the health and safety of our employees and their personal development, adhering to the highest standards of workplace safety, including access to a helicopter-based medevac service while our team maintained an on-site presence in Zimbabwe. Our dedication to maintaining a safe and inclusive work environment is unwavering and we are proud of our track record in this area.

Looking Ahead

As we look forward to 2024 and beyond, Ariana Resources is well-positioned to continue its growth trajectory, particularly with respect to the development of the Dokwe Gold Project, which we intend to advance into a project feasibility study. Our strategic focus

will remain on enhancing operational efficiencies, advancing our exploration projects, and pursuing value-accretive opportunities. We are confident that our financially disciplined, technology-driven approach and

our robust project pipeline will drive sustainable growth and deliver long-term value for our shareholders.

In closing, I would like to extend my heartfelt gratitude to our dedicated employees, partners, and shareholders for their unwavering support. Your commitment and confidence in Ariana Resources have been instrumental in our success. Together, we will continue to build a prosperous future for our company and all its stakeholders.

Sincerely,

Michael de Villiers

Chairman

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