AR. Archipelago Res

RNS Number:2192Q
Archipelago Resources PLC
17 March 2008

                                  ANNOUNCEMENT





                           ARCHIPELAGO RESOURCES PLC



                         GOVERNMENT APPROVAL TO DEVELOP



                                      THE



                           TOKA TINDUNG GOLD PROJECT





Archipelago Resources plc ("Archipelago" or the "Company") is pleased to advise
that on 13th March 2008 the Director General of Mineral, Coal and Geothermal on
behalf of the Minister of Energy & Mineral Resources in his capacity as
representative of the Government of Indonesia, issued Decrees approving
development of the Toka Tindung Gold Project ("Project").  These Decrees accept
the operating companies revised Environmental Management Plans (AMDALs) and
entitlement to re-commence construction activities under the Construction phase
of the Project.



The Company welcomes these approvals from the authority responsible for
administration of Contracts of Work following completion of due process and
confirmation of support from bona fide stakeholders.



The Director General has requested that construction activities be recommenced
as soon as possible to ensure an early start to production for the benefit of
all stakeholders.



The Company has immediately implemented plans to recommence construction
activities and finalise its loan financing facility.  The Lender's Engineer
visited site at the beginning of March to commence the loan facility
pre-drawdown review including satisfaction that renewable operating permits and
licences will be forthcoming during the life of the project.



The Company is seeking to increase its loan facility to meet additional costs
arising from the delay to avoid or minimise the need for any additional equity
raising. Hedging requirements are also being reviewed to ensure that forward
sales are minimised.



The strong increase in the price of gold during the period of Project delay has
substantially strengthened Project economics and the Company is confident that
it will achieve the above objectives thereby maximising benefit for
shareholders.



The Company wishes to express its thanks to shareholders and stakeholders for
their patience in allowing management to work with government authorities to
achieve the awaited outcome.  The Managing Director will be meeting with major
U.K. shareholders this week to update them on the revised development schedule
which now targets completion of construction by the end of this year 2008. This
forms part of a program to raise awareness and achieve a market value for
shareholders commensurate with the economics of the Project.



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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