Listed on the AIM of the London Stock Exchange and with executive leadership headquartered in Singapore, Archipelago is a dynamic and growing mid-cap gold producer. Our key asset is the Toka Tindung Gold Mine, located in North Sulawesi, Indonesia, which currently has a nine-year mine life (plus seven years of stockpile). We are also pursuing exploration initiatives in Vietnam and the Philippines.

Recent highlights in Archipelago's continuing growth story include:
•successful commissioning of the Toka Tindung Gold Mine, with the first gold pour having occurred on 1 April 2011;
•successful completion of construction and ramp up, with nameplate production being achieved in November 2011;
•production for 2011 of 61,191 Au Eq oz at a cash cost of US$579 per oz; and
•publication of a revised JORC compliant resource and reserve statement, supporting an increase in the life of mine to nine years, with seven years of subsequent stockpiles.

We are continuing to increase our profile, operational scale and output, with a view to supporting growth initiatives by leveraging off our production base and relative low per ounce cost status. Our transition from explorer to producer is compelling in the South East Asian context, especially given the range of social licence and geo-political issues that we have successfully navigated to achieve this.

Our principal activities are gold mining and exploration in Indonesia as the 95% owner of the producing Toka Tindung Gold Mine in North Sulawesi. Following the successful commissioning of Toka Tindung, Archipelago has created a significant value proposition for investors: a quality, low cost South East Asian gold producer with excellent growth potential. We now have optionality to grow through resource expansion, ongoing exploration and leverage to consolidation opportunities.

Key Asset summary

The Toka Tindung Gold Mine is located about 34km north-east of Manado, the provincial capital of North Sulawesi. Toka Tindung comprises a system of epithermal veins containing a resource of 3.10 million gold equivalent ounces. In 2012, Archipelago expects to produce between 135,000 and 145,000 gold equivalent ounces at a cash cost of between US$580 and US$640 per ounce.

Title to the Toka Tindung Gold Mine is via two Contracts of Work arrangements and exploration permits covering 400km² of well mineralised - and only partially explored - ground in addition to the defined resource.

Other Projects

We are also advancing exploration initiatives in Vietnam and the Philippines.

Archipelago maintains an exploration team in Hanoi, Vietnam, which is responsible for pursuing and reviewing opportunities in Vietnam and across Indo-China. Team members have strong and effective relationships with Government and business leaders across the region.

Archipelago has the right to acquire not less than an 80% interest in a number of exploration projects (currently held by Corplex Resources, Inc.) located in the Phillipines, including in the gold-copper rich Surigao peninsula of North East Mindanao, host to the high-grade Boyongan copper-gold porphyry.

Corporate

Archipelago is the only significant gold producer with a head office in Singapore. We take an active role in building our profile, and that of the mining sector, in the high growth South East Asian region.


http://www.archipelagoresources.co.uk/

Archipelago Resources (LON:AR.) gave hope to AIM’s gold companies on Friday as it agreed to a takeover by Indonesia’s PT Rajawali Corporation, which already owns 53% of the company.

The 58 pence-a-share bid values Archipelago, which produces gold in the South East Asian country, at £338mln.

The unconditional offer is an 18% premium to yesterday’s closing market price of 49 pence, which sparked life into the shares on Friday, rising 17% to 57.5 pence each.

Junior gold companies have felt the heat of falling commodities prices, putting the livelihoods of many under threat. But Archipelago has proved that investors can still find value in the embattled sector.

Chief executive Colin Sutherland said: “Archipelago has provided shareholders with strong growth over the last four years.

“The offer is priced at a level that represents an opportunity for minority shareholders to realise their investment at an attractive cash premium to the prevailing market price, in view of the strategic move by Rajawali to restructure Archipelago into an Indonesian listed entity.”