Additional 10% Interest in Toka Tindung Project (2487Z)

TIDMAR.

RNS Number : 2487Z

Archipelago Resources PLC

11 January 2011

ANNOUNCEMENT

ARCHIPELAGO RESOURCES PLC

ACQUISITION

of an

ADDITIONAL 10% INTEREST

in the

TOKA TINDUNG GOLD PROJECT

Archipelago Resosurces Plc ("Archipelago" or "the Company") is pleased to announce that it has today acquired an additional 10% interest in the Toka Tindung Gold Project ("Project") from the 15% Indonesian minority interest holders PT Austindo Nusantara Jaya ("ANJ") and The Estate of Mr Julius Tahija ("Tahija"), taking Archipelago's total interest in the project from 85% to 95%, with the remaining 5% interest purchased by Archipelago's major shareholder Rajawali Corpora in accordance with Indonesian local ownership regulations. The acquisition of the 10% and 5% interests have been approved by Indonesian Government authorities.

The 15% interest was free carried and has been purchased for the sum of US$6.8m, of which US$4.53m approx will be paid by Archipelago for its 10% interest and US$2.27m approx will be paid by Rajawali for its 5% interest.

The Company is very pleased with this timely pre-production acquisition which will simplify management procedures for the Indonesian operating companies and ensure that Archipelago together with its major shareholder have full control over the Project and its revenues. Production is targeted for the end of March 2011.

Archipelago is a mining company listed on the AIM market of the London Stock Exchange. The Company's principal activities are gold mining and exploration in Indonesia (as 95% owner of the near production Toka Tindung Gold Project in Sulawesi), Vietnam (as majority party in the Pac Lang and Cam Thuy/Ba Thuoc joint ventures with VINACOMIN a Vietnamese Government mining company) and the Philippines (via entitlement to not less than an 80% interest in exploration company Corplex).

Further Info: Colin Loosemore, Managing Director, Archipelago Resources Plc.

Tel: [phone]

Shaun Whyte, Ambrian Partners Ltd

Tel: [phone]

Katharine Sutton, Buchanan Communications

Tel: [phone]

Gerry Beaney / Fiona Kindness, Grant Thornton Corporate Finance

Tel: [phone]

www.archipelagoresources.com.uk

This information is provided by RNS

The company news service from the London Stock Exchange

END

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