Archipelago Resources PLC : Updated resource and reserve estimates for Archipelago

Archipelago is pleased to announce a material increase in mineral resource and ore reserve estimates at its Toka Tindung Mine in North Sulawesi, Indonesia. The Company also provides an update on operations.

HIGHLIGHTS

Highlights include the following:

Resource & reserve upgrade for Toka Tindung Mine

· The resource has increased to 52.6Mt @ 1.53 g/t Au for 2.58M contained oz Au (and 3.7 g/t Ag for 6.14M contained oz Ag) from 15Mt @ 3.4g/t Au for 1.7M contained oz Au (and 8 g/t Ag for 4M contained oz Ag);

· the proven and probable ore reserve has increased to 27.6Mt @ 1.7g/t Au for 1.47M contained oz Au (and 4.3 g/t Ag for 3.79M contained oz Ag) from 7.62Mt @ 3.7g/t Au for 920k contained oz Au (and 8.9 g/t Ag for 2.18M contained oz Ag);

· excluding silver as gold equivalent ounces, contained gold resources have increased by 52%; with ore reserves increasing by 60%;

· the increase in ore reserves supports extending the mine life from six to nine years (with additional stockpile processing extended from two to seven years);

· 'life of mine' planning indicates average production of circa 160,000 Au Eq oz for the next six years at a head grade of no less than 2.89 g/t Au; and

· drilling and modelling continues, with further increases to resource estimates likely.

Operational update

· In line with Q4 guidance for the 2011 calendar year, the Toka Tindung Mine produced 61,191 contained Au Eq oz at a cost of US$579 per oz; and

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