AR. Archipelago Res

RNS Number:4539F
Archipelago Resources PLC
22 November 2004



                   ARCHIPELAGO RESOURCES PLC (the "Company")


                                  ACQUISITION
                                   of further
                          PROCESSING PLANT & EQUIPMENT
                                    for the
                           TOKA TINDUNG GOLD PROJECT


Archipelago Resources plc is pleased to announce that it has reached agreement
with Barrick's Chilean subsidiary Compania Minera El Indio (CMEI) to acquire
further gold processing plant including Thickener, Leach, Carbon stripping and
Gold Room equipment from CMEI's El Tambo Gold Project in Chile (Phase II
Purchase). This equipment will compliment crushing and grinding equipment
purchased earlier this year from the same operation (Phase I Purchase) and
together will constitute the core items of a complete processing plant suitable
for operation at the Company's Toka Tindung Gold Project in Sulawesi.

Dismantling and transportation contracts are finalised and work has begun with
the target of completing the dismantling by the end of this year.  The machinery
will be cleaned and packaged in the Port town of Coquimbo where together with
Phase I equipment acquired from El Tambo earlier this year, it will await
shipment to the Company's project in Indonesia.

The total cost of the acquisition, dismantling and transportation to Coquimbo
will be approximately GBP 1.0M which will be financed in part by way of a GBP
0.5M short term loan facility currently being documented, with the balance to be
financed by way of a small placing now in progress.

The Company is currently completing due diligence studies as a necessary
pre-requisite for project financing of its Toka Tindung Gold Project in
Sulawesi.  The project has a resource of 1.75M oz of gold equivalent of which at
least 0.9M oz will initially be mineable by open pit.  The project is targeted
to produce at least 160,000 oz per annum for an initial 6 year mine life
commencing in early 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 100% option
holders over 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


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