AR. Archipelago Res

RNS Number:2058M
Archipelago Resources PLC
12 May 2005


ARCHIPELAGO RESOURCES PLC

PLACEMENT OF 23,216,560 SHARES AT 34P PER SHARE TO RAISE #7,893,630


Archipelago Resources plc is pleased to announce that it has received
acceptances for 23,216,560 Ordinary Shares of 1p each in the capital of the
Company ("Ordinary Shares") at an issue price of 34 pence per share to the value
of GBP7,893,630.  These shares when issued will rank pari passu with current
issued shares in the Company.  The shares have been placed principally with
north American and UK funds.  Application will be made for the shares to be
traded on AIM and admission is expected on 20 May 2005.

The shares have been placed under the authority granted by shareholders at an
EGM held on 20 April 2005.  Placing commissions are payable to parties unrelated
to the directors amounting to 5% of the value of shares placed by those parties.

The funds raised will be used to meet the equity contribution required by debt
financiers to allow development of the Toka Tindung Gold Project in Sulawesi and
for corporate working capital.

The Toka Tindung Gold Project has a resource of 1.75M ounces ("ozs") of gold
equivalent, of which at least 0.9M ozs will initially be mineable by open pit.
The project is targeted to produce 160,000 ozs per annum for an initial 6 year
mine life commencing in mid 2006.

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 85% owner of the Toka Tindung Gold Project in Sulawesi), Vietnam
(as majority party in the Cam Thuy / Ba Thuoc joint venture with Vimico a
Vietnamese Government mining company) and the Philippines (as option holders
over a 100% interest in the Corplex tenements).


Further Info:

Colin Loosemore, Managing Director, Archipelago Resources Plc.
Tel:  00-618-9364-8301

Ron Marshman/John Greenhalgh, City of London PR Limited.
Tel:  020-7628-5518

www.mining-investor.com/arch


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