Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is very pleased
to announce the signing of an agreement between Arco's Mexican subsidiary ("Arco
Mexico"), the State of Oaxaca and the community of San Baltazar Chichicapam (the
"Community") in Oaxaca, Mexico, regarding Arco's Taviche property. The agreement
provides Arco Mexico with the right to access and carry out long-term
exploration and drilling on the Taviche property in exchange for monthly
payments to the Community. These payments start at 5000 Mexican pesos per month
and increase according to the Bank of Mexico's annual inflation index, for a
period of five years. In the sixth year, the agreement will continue based on
the annual inflation index as the Company focuses on a potential feasibility
study. At any time prior to the seventh year, the Company may elect to commence
production on the property and at that time will commence payments to the
Community of 35,000 pesos per month upon actual production. The agreement has
been registered with the National Agrarian Registry in Mexico.


Warren McIntyre, President and CEO of Arco, said "This is an historic agreement.
We have the full support of the community and local ejidas for Arco's
exploration efforts on the Viridiana properties in Taviche, which will be the
focus of our summer exploration program. We will also be able to access needed
personnel and infrastructure from the Community itself. This is a key milestone
in our long-term vision and commitment to the State of Oaxaca and to our
shareholders.


About Arco Resources 

Arco holds a 100% interest in seven mineral claim blocks, all located in the
State of Oaxaca, Mexico. The Company has begun to focus its efforts on its
Taviche and Predilecta claim blocks, each of which has had historical production
of gold and silver. The Company currently has agreements in principle to option
100% interests in its Lachiguiri, Silacayoapan and Nino Perdido Property (to
Silex Ventures Ltd.) and in its Tres Hermanas Property (to Zodiac Capital Ltd.).


For further information on the Company please go to www.arcoresources.com.

On behalf of the Board of Directors of Arco Resources Corp.

Warren McIntyre, President and Chief Executive Officer

Arco Resources Corp.

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