Company Information for Archipelago Resources Plc

AIM-AR.

http://www.archipelagoresources.co.uk

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AIM; AR.

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Company Statement

Archipelago Resources Plc (Archipelago) is a UK incorporated company formed in 2002 to acquire, explore, develop and mine gold and other metal deposits in south east Asia. Archipelago was listed on AIM in September 2003 and as a result of a number of capital raisings has 201,149,334 shares in issue.

Archipelago’s registered office is in London but the Company is managed from Perth, Western Australia and all project development personnel are located at the Company’s principal project at Toka Tindung in North Sulawesi, Indonesia.

Current Operations

Projects Overview

Toka Tindung Gold Project
The Toka Tindung Gold Project is the Company’s principle asset and comprises a system of epithermal veins containing a resource of 1.75m ounces of gold defined by 158 kms of drilling of which 0.9m ounces will initially be mineable by open pit.

The project, was acquired from Aurora Gold in February 2002 and Archipelago was floated on the London AIM market in September 2003. The project is located approximately 35kms north east of Manado, the provincial capital of North Sulawesi. Title to the Toka Tindung Gold Project is via two Contracts of Work covering 400kms² of well mineralised and only partially explored ground in addition to the defined resource.

The Company holds an 85% interest in the project but is entitled to the benefit of 100% of proceeds until such time as debts owing by the free carried parties are repaid in full. A syndicated loan facility of US$42.5m has been arranged together with a US$4.0m cost overrun facility, by Investec Bank (Australia) Limited.

The Company has acquired little used and very good quality processing plant from Barrick’s El Tambo project in Chile and construction is already well advanced at site. Production is scheduled to commence in 3rd qtr 2008 at an average annualised rate of approximately 160,000 oz/annum for the first 5 years of an initial 6 year mine life.

Preliminary indications from the financial model reviewed by prospective project financiers, indicates that at a gold price of US$600/oz the project has an after tax NPV of US$160m, a before tax IRR of 107% and EBITDA of US$51m per annum.

Other Projects
Archipelago also holds an exploration licence together with applications for two additional exploration licences in northern Vietnam, a well mineralised country that has to date received little attention from western exploration companies and current exploration technology.

The approved licence covers the old Pac Lang Gold Mine comprising a group of gold mineralised quartz veins initially exploited by the French early in the last century which became the site of a major gold rush in 1990-91 following discovery of a large high grade quartz vein. At least 15 gold mineralised mesothermal quartz veins generally less than 2m wide have been identified with a combined outcropping and inferred strike length of 3,300m.

The two applications cover the Cam Thuy – Ba Thuoc gold district located on the Ma River fault system, a structure parallel to the major Red River suture, a fault structure which hosts several known areas of gold – copper mineralisation in Vietnam and southern China. The main targets covered by the licence applications are two large fold structures within clastic and calcareous sediments which are considered prospective for large gold deposits of the Carlin and possibly Telfer style. Outcropping gold mineralisation and substantial unsourced occurrences of alluvial gold occur within the Company’s application areas.

The licence applications have been lodged in the name of Archipelago Resources and the Vietnam National Minerals Corporation (VIMICO), an entity authorised by the Vietnamese Government to assist with foreign investment within Vietnam’s resource industry.

Archipelago also had the right to acquire 100% of the Corplex projects in the gold-copper rich Surigao peninsula of NE Mindanao, Philippines, host to the high-grade Boyongan copper-gold porphyry discovered by Philex Mining and Anglo American.

Geographical Spread

Indonesia, Vietnam, Philippines.

Board of Directors and Key Management

John Colin Loosemore (Managing Director)

B.Sc.Hons (Geology), M.Sc., DIC. (Mineral Exploration)

Mr Loosemore (Age 59) is a geologist with over 36 years experience in multi-commodity exploration within Australia and overseas, having graduated from London University in 1970 and the Royal School of Mines in 1977. Mr Loosemore is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Loosemore was previously a Director of AIM listed Brancote Holdings Plc, the first mining company to list on AIM and Managing Director of ASX listed Carr Boyd Minerals Ltd and Hill Minerals N.L.

Michael N Arnett (Non-Executive Director)

LLB. B.Comm

Mr Arnett (Age 45) holds Bachelor of Commerce and Bachelor of Law degrees from the University of New South Wales, Sydney, Australia. Mr Arnett is a partner and formerly Chief Operating Officer of international law firm Deacons with over 500 lawyers and has in the past 16 years practised as a lawyer in the areas of corporate, mining and commercial law. Mr Arnett has advised a number of companies in relation to their corporate and mining activities and has assisted in the listing of a number of exploration companies.

Barry J Casson (Non-Executive Director)

Mr Casson (Age 56) is a chartered accountant and has been involved in the corporate finance area for approximately 30 years. For the last 20 years has been employed within the resource industry with respect to gold and nickel. Mr Casson has held senior positions in Australia and overseas (including New York and London) with various resource companies.

Yoost Mengko (President Commissioner)

Michael Arnett (Commissioner)

Barry Casson (Commissioner)

John Colin Loosemore (President Director)

Terkelin Purba (Director)

Peter Brown (Director)

Company Address

17 Strome Road
Applecross, Western Australia, Australia 6153


Telephone:	+61 8 9364 8301
Facsimile:	+ 61 8 9316 3819
Email:	cloosemore[at]iinet.net.au
Website:	http://www.archipelagoresources.co.uk

Additional Address/Key Contact

Registered office:

22 Melton Street
London NW1 2BW
United Kingdom

Capital

Issued Capital 201,149,334
Total Shares if Options Exercised 218,649,334

Annual General Meeting

July

Year End

31 December

Nominated Brokers

Ambrian Partners

Nominated Advisors

Grant Thornton Corporate Finance

Broker/Analyst Reports

27/08/08 - SITE VISIT AND FINANCE
09/04/08 - AMDAL Approved
17/11/06 - VSA Resources (December 2004)

Major Shareholders

Abacus Capital Fund	32,496,310	16.2%
Asia Image Ltd, Hong Kong	19,290,000	9.6%
Baker Steel Capital Managers LLP	19,266,000	9.6%
Millenium Investments	14,130,000	7.0%
JP Morgan Asset Management (UK) Limited	12,882,888	6.4%
Pershing Keen Nominees Limited	10,760,000	5.3%
Jennison Natural Resources Fund, Inc. (Prudential Financial, Inc.)	8,000,000	4.0%
New Star Asset Management	7,468,264	3.7%
El Oro & Exploration Company	7,015,000	3.5%
Lando Pty Ltd	6,807,500	3.4%
Michael Norman Arnett	6,088,225	3.0%

Most Recent Statement

26/11/08 - Investment in Company
23/10/08 - Agreement with Abacus Capital
24/09/08 - Placing and General Meeting
03/09/08 - INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2008
29/07/08 - TOKA TINDUNG GOLD PROJECT PROPOSED PROJECT FINANCING by CREDIT SUISSE (SINGAPORE)
30/06/08 - FINAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2007

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