AGM Statement

RNS Number:0274B
Archipelago Resources PLC
20 July 2004

                           ARCHIPELAGO RESOURCES PLC

                                                                   JULY 20, 2004


               50 WORKERS NOW ON SITE PREPARING CONSTRUCTION PHASE
                     OF ARCHIPELAGO'S NORTH SULAWESI GOLD MINE
     
*    Processing Plant Prepared For Shipment To Toka Tindung
*    Company Confident Of Project's US$46m Capital Cost
*    Excellent Exploration Potential Within Project Area

AIM-listed Archipelago Resources has over 50 workers already on site preparing
for the construction phase of its targeted 160,000 ounce per annum Toka Tindung
open pit gold mine project in North Sulawesi, Indonesia.  The company is
confident that due diligence studies will be completed by prospective project
financiers in coming months with pre-strip mining operations beginning in
February next year leading to production in November 2005, said chief executive
Mr Colin Loosemore addressing shareholders at the annual meeting at which all
resolutions were passed.

Processing plant, including primary crusher and ball mills, has been acquired
from Barrick Gold's El Tambo operation in Chile and was now ready for shipment,
he said. Recently completed non-destructive testwork confirmed the equipment to
be in "excellent mechanical condition."  Altogether, equipment totalling 1,200
tonnes has been moved from El Tambo.

Archipelago is currently engaged in ongoing talks with a syndicate of banks who
have expressed interest in financing the project.  Mr Loosemore stated that the
company felt confident regarding the project's $US46m. capital cost estimate.

Toka Tindung has a total resource of 1.75m ounces of gold equivalent of which
961,000 ounces are mineable at a grade of 3.9g/t. Mr Loosemore told shareholders
he expected cash operating costs to be US$234 per ounce, giving a post-tax
surplus of US$23m per annum and pay-back over two years at a gold price of
US$390/oz. An initial mine life of five years has been placed on the project,
excluding exploration potential.

A development camp and laboratory have already been constructed.

The excellent exploration potential of the project area will be quickly tested,
Mr. Loosemore stated.  A prime target is Sinter Barat, 3kms away of the Toka
Tindung open pit, which looked very promising with high gold grades already
recovered from outcrop. "Drilling will tell us if mineralisation continues below
the vein outcrop."

Archipelago has recently broadened its exploration base with applications for
two exploration licenses in North Vietnam covering two large fold structures
with strong gold anomalies characteristic of Carlin and possible Telfer type
deposits.  The outcome of these applications would not be known for six months,
said Mr Loosemore.  "The area was previously targeted by a major and should we
get the ground, the least we have is a very exciting exploration play indeed",
he added.

Further Info:    Colin Loosemore, Managing Director, Archipelago Resources Plc. 
                 Tel: [phone]

                 Ron Marshman/John Greenhalgh, City of London PR Limited.
                 Tel: [phone]


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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