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Archipelago Resource (AR.)

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Wednesday 17 January, 2007

Archipelago Resource

Plant update/CFO appointment

Archipelago Resources PLC
17 January 2007



                                  ANNOUNCEMENT

                         ARRIVAL of PROCESSING PLANT,
                             CONSTRUCTION PROGRESS
                                      and
                             APPOINTMENT OF NEW CFO


Archipelago Resources plc ('Archipelago' or 'the Company') is pleased to
announce that the processing equipment purchased from Barrick in Chile has now
arrived on site at its Toka Tindung Gold Project in Sulawesi, Indonesia.  The
plant totalling 2,080 tonnes was shipped to Indonesia in part on a specialised
carrier and also in containers.  Containerised items were transported to site by
road and heavier equipment trans-shipped to barges before off-loading at the
project's purpose built jetty located some 7.5 kms from the plant site.
Electrical control equipment is being re-wired in Perth to suit the layout of
plant at site.

Civil earth-works were completed late last year and will re-commence together
with pre-strip mining operations in April 2007.  Construction of concrete
foundations continues on schedule and on the 30th November a single pour of 270
cubic metres of concrete was undertaken for the ball mill foundations.
Foundation works will continue into February.


Steel fabrication contracts have been let for much of the plant and fabricated
components will arrive progressively at site in the first half of this year.


The Toka Tindung Gold Project has a resource of 1.7M ounces (ozs) of gold, of
which at least 0.9M ozs will initially be mineable by open pit.  The project is
targeted to commence production at the rate of 150,000 ozs per annum increasing
to a target of 160,000 ozs per annum in subsequent years.  Subject to continuing
construction progress, production remains on schedule to commence in the third
quarter of 2007.


Mr Jeff Dawkins has joined the Company as Chief Financial Officer, replacing Mr
Bryan Dixon who has resigned for personal and business reasons.  Mr Dawkins is a
Chartered Accountant and member of the Securities Institute of Australia with 14
years experience including managing financial aspects of project financing,
development and operation of the successful Paraburdoo gold mine in Western
Australia.  As part of the handover process Mr Dixon will continue to provide
consulting services to the Company in coming months.  The Board wishes to thank
Mr Dixon for his valuable contribution to the Company and the Toka Tindung Gold
Project during their formative years.


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
Vimico 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