AR. Archipelago Res

RNS Number:7231F
Archipelago Resources PLC
29 November 2004


                   ARCHIPELAGO RESOURCES PLC ("Archipelago")

                                 ARCHIPELAGO'S

                           TOKA TINDUNG GOLD PROJECT

                            FEASIBILITY STUDY REVIEW

                                   INDICATES

                                ROBUST ECONOMICS
                                      and
                          SUBSTANTIAL GOLD PRODUCTION


Archipelago Resources plc is pleased to announce that as part of the Technical
Due Diligence Review being undertaken by AMC Consultants for a syndicate of
Australian banks contemplating the provision of debt finance for the Company's
Toka Tindung Gold Project, Archipelago has updated its financial model for
presentation to the banks.

The financial model is based on a resource of 1.75M ozs AuEq defined by 158kms
of drilling as reported in Snowden's Competent Persons Report in the Company's
Admission Document. All capital and operating costs have been reviewed and where
appropriate are based on acquisition costs, recent quotes and tender prices.

Subject to project financing and the project proceeding to development, the
financial model indicates the following parameters based on a gold price of
US$420/oz:-

Resource                                              1.75M ozs AuEq
Capital Cost                                          US$49m
Mine Life                                             6 years
Throughput                                            1.5 to 1.7M t/yr
Production (average for first 5 years)                162,000 ozs AuEq/yr
Total ounces recovered                                900,000 ozs AuEq
Net Present Value (8% discount after tax)             US$62m
Internal Rate of Return (after tax)                   40%
Cash Operating Cost                                   US$267/oz
Annual Operating Surplus (after tax average 
over first 5 years)                                   US$25.5m
Earnings Per Share (indicative)                       16 pence per share
(fully diluted for project development capital raising)

These numbers are considered preliminary but indicate a financially robust
project and are based on all data currently available. Subject to favourable
review by the banks, the Company looks forward to receipt of a conditional term
sheet for the provision of debt finance. The Company anticipates raising the
balance of project development capital by way of a placement early in the New
Year. There is also great exploration potential, likely leading to extensions of
mine life.

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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