Release: Archipelago: Update on bank finance for the Toka Tindung gold project

March 06, 2006 ? Archipelago Resources plc ("the Company") is pleased to announce that good progress continues to be made regarding the provision of debt finance for the Company's 85% owned Toka Tindung Gold Project in Sulawesi, Indonesia in accordance with the exclusive financing mandate granted to N.M. Rothschild & Sons (Australia) Limited ("Rothschild"). Three of the four banks required to complete the loan facility have now achieved credit committee approval and discussions are at an advanced stage regarding the fourth position. Accordingly the Company expects to announce completion of the syndication process in coming weeks.

The project site is already cleared for construction and a workshop/warehouse recently constructed with an administration office well advanced. Other construction activities will commence as soon as contracts are finalised.

Shipment of the containerised portion of the El Tambo processing plant previously purchased by Archipelago from Barrick last year is expected to take place early this year with the remainder to follow soon after.

The Toka Tindung Gold Project has a resource of 1.75M ounces (ozs) of gold equivalent, of which at least 0.9M ozs will initially be mineable by open pit. The project is targeted to produce an average 160,000 ozs per annum for the initial 5 years of the current 6 year mine life commencing in early 2007.

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 option holder over a 100% interest in the Corplex tenements). (end of release)