AR. Archipelago Res

RNS Number:2838E
Archipelago Resources PLC
24 September 2007


                                  ANNOUNCEMENT

                           ARCHIPELAGO RESOURCES PLC

                                ISSUE OF SHARES
                                      and
                         EXTENSION OF RMB LOAN FACILITY


Archipelago Resources plc ("the Company") is pleased to announce that it has
placed 22,000,000 Ordinary Shares of 1p each in the capital of the Company at an
issue price of 25 pence per share to raise #5,500,000 for the Company.  These
shares have been issued to institutions and high net worth individuals and
collectively are referred to as the Placement Shares.  The placing has been made
under authority granted by shareholders at an Extraordinary General Meeting held
on 15th June 2007.


A capital raising, including the use of US$2m of the funds raised to reduce the
US$10m Rand Merchant Bank (RMB) loan facility put in place in March of this
year, was a condition of RMB agreeing to extend the repayment date of the US$8m
balance of the facility from 24th September 2007 to 31st January 2008.  The
remainder of the proceeds are to be used for general working capital purposes.


Another condition of extending the repayment date of the RMB loan facility is
the issue of 5m options to RMB' exercisable within 3 years from the date of
issue at a price determined by the terms of the extension agreement but
considered likely to be close to, but not greater than, 30 pence per share.


Following settlement, allotment and registration, Placement Shares will be
admitted to AIM.  Following the issue of the Placement Shares the Company will
have 171,759,334 Ordinary Shares of 1p each in issue, each carrying one voting
right.


The Company's focus remains on obtaining environmental approval for; and
recommencement of construction at, the Toka Tindung Gold Project.  While the
Company would have preferred to have had its approval in place prior to this
capital raising, the requirement to raise capital before 24th September
precluded this preference.


While the delay to environmental approval is very frustrating given the
Company's full compliance with due process and increasing expectation of a
favourable outcome, the delay has resulted in the Company remaining unhedged and
fully exposed to the gold price until at least January 2008.  The Company is
targeting gold production of 160,000 ozs/annum gold equivalent for at least 6
years commencing mid-year 2008.


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
END

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