AR. Archipelago Res

RNS Number:5548L
Archipelago Resources PLC
11 January 2008



                                  ANNOUNCEMENT

                           ARCHIPELAGO RESOURCES Plc

                           Sponsorship of New Company



Introduction

Having regard to the geographic spread of the assets of Archipelago Resources
Plc ("Archipelago" or the "Company") in Indonesia, Vietnam and The Philippines,
Archipelago has over recent years been approached to consider assets in the
natural resource sector with a focus on non-precious metals.  Archipelago was
established to focus on precious metal natural resource projects.  The devotion
of Archipelago's resources towards the non-precious metal opportunities is
inconsistent with the current and future objectives of Archipelago.

Consequently, to take advantage of the opportunities as they present themselves,
Archipelago has established a separate entity, Archipelago Metals Limited, which
will pursue those opportunities.


Reason for the Offer

Having established Archipelago Metals and provided its initial funding,
Archipelago has been issued with 45 million Ordinary Shares and 22.5 million
Options. Directors of the Company also hold 1.5 million Options.

Your directors wish to separate the activities of Archipelago and Archipelago
Metals and to that end Archipelago proposes to dispose of its interests in
Archipelago Metals to Qualifying Shareholders of Archipelago so that those
shareholders may continue to participate in the non-precious metals
opportunities as well as the precious metal assets of Archipelago.

As previously advised by the Company one project which would be relevant for
Archipelago Metals to pursue would be that which the Vietnamese Deputy Prime
Minister has asked the Company to pursue in cooperation with national minerals
company Vietnam National Coal - Minerals Industries Group ("VINACOMIN") and
provincial enterprises in a chromite project in Vietnam.  Chromite is a major
and fundamental constituent of stainless steel and the project's Asian location
is considered strategically important.

The Company and Archipelago Metals will be working with VINACOMIN to finalise a
joint venture to further investigate the commercial potential of this early
stage but large resource project and looks forward to making further
announcements in due course concerning this project.


The Offer

Archipelago is seeking to dispose of all of the issued share capital of the
Company, being 45 million Ordinary Shares, which are initially being offered to
Qualifying Shareholders at 1p per Ordinary Share together with Options on a one
for two basis.  The pro rata entitlement of each Qualifying Shareholder is:


       1 Ordinary Share and half an Option for every 4 Archipelago Shares
                            held on the Record Date


Qualifying Shareholders may, in addition, apply for further Ordinary Shares and
Options in excess of their pro rata entitlement.

The Offer will be conditional upon valid applications being received for over 50
per cent of the Ordinary Shares.

In the event that valid applications are received for 50 per cent or less, the
Offer will lapse and application monies will be returned to shareholders.

If all the Ordinary Shares and Options are not applied for pursuant to the
Offer, it is the intention of Archipelago, following completion of the Offer, to
dispose of any residual holding of Ordinary Shares and Options to third parties.

The directors of Archipelago have indicated that they intend to apply for their
pro rata entitlements under the Offer (representing 5,873,956 Ordinary Shares
and 2,936,978 Options).


Proceeds of Sale and Expenses

The total proceeds which it is expected will be raised by Archipelago from the
Offer are approximately �450,000 and, after the deduction of expenses
(detailed below), the expected net proceeds of the Offer are �440,000.
The expenses of the Offer are estimated to be �10,000 and are payable by
Archipelago.


Record Date for Determining Entitlements and Action to be Taken


The Record Date for determining Entitlements will be 14 January 2008.
Qualifying Shareholders will be sent an offer document in a few days which will
outline the procedure for shareholders to take in relation to the proposed
offer. No action needs to be taken by shareholders until that time.

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 Pac Lang and Cam Thuy/Ba Thuoc joint ventures with
VINACOMIN a Vietnamese Government mining company) and the Philippines (as option
holder over a 100% interest in the Corplex tenements).




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

                 Richard Chase, Ambrian Partners Ltd
                 Tel:  020-7776-6461

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

                 Gerry Beaney / Fiona Kindness, Grant Thornton Corporate Finance
                 Tel:  020 7383 5100


                       www.archipelagoresources.com.au




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