The Toka Tindung Gold Project is the Company’s principal asset and comprises a system of epithermal veins containing a resource of 1.75m ounces of gold defined by 158 kms of drilling of which 1.1m ounces will initially be mineable by open pit.

The project, was acquired from Aurora Gold in February 2002 and Archipelago was floated on the London AIM market in September 2003. The project is located approximately 35kms east north east of Manado, the provincial capital of North Sulawesi. Title to the Toka Tindung Gold Project is via two Contracts of Work covering 400kms² of well mineralised and only partially explored ground in addition to the defined resource.

The Company holds an 95% interest in the project but is entitled to the benefit of 100% of proceeds until such time as debts owing by the free carried parties are repaid in full.

The Company has acquired little used and very good quality processing plant from Barrick’s El Tambo project in Chile and construction is already well advanced with first gold production targeted for end March 2011.   Production for 2011 will be 120,000 ozs gold equivalent with an average rate of approximately 160,000 oz of gold equivalent per annum for the first 6 years of an initial 8 year mine life.

Preliminary indications from the Company's financial model indicates that at a gold price of US$1100/oz the project has a pre tax NPV of US$404m and EBITDA of US$100m per annum.