Archipelago Resources PLC : Dividend Policy

Archipelago Resources PLC

4 March 2013

AIM: AR.

Archipelago Resources plc

("Archipelago" or "the Company")

Dividend Policy

Dividend Policy

Archipelago is pleased to announce the adoption of a formal dividend policy.

The Company intends to pay shareholders interim and final dividends, which in total will be at least 10% of operating cash flows for a given period. 

From time to time when deemed appropriate, the Board of Directors will also consider the payment of a one-off special dividend.

In recognition of a strong first full year of production, the Company intends to apply this policy in respect of the 2012 financial year, with the Company's annual results and specific dividend details to be released on 11 March 2013. 

In accordance with the Company's constitution, Archipelago will seek shareholder approval for the payment of dividends at the Company's Annual General Meeting. 

The Board of Directors will also review Archipelago's ability to pay a dividend on an annual basis, having regard to the Company's cash reserves, forecast cash generation and capital needs, and investment opportunities at that time. 

Mr Marcus Engelbrecht, CEO and Managing Director, commented:

"The adoption of this dividend policy is a demonstration of the transformation of Archipelago over the last 12 months to become a stable cash flow generating gold producer.  This policy reflects not only management's focus on delivering significant value, but recognises the need to provide a real return for our shareholders." 

Release of 2012 Financial Results

Archipelago will release its 2012 Financial Results on 11 March 2013. 

A presentation will be held for analysts and investors at 9:30am (London time) at the office of Buchanan, 107 Cheapside, London, EC2V 6DN. 

The presentation will be webcasted and can be viewed at the above time via the following link:

http://mediaserve.buchanan.uk.com/2013/archipelago110313/registration.asp

Participation by way of conference call will be possible. Participant dial-in numbers are as follows:

UK:                           0800 694 5728 

Alternative number:    [phone]

Conference ID#          16508434

A recording of the webcast will also be made available on the Company's website later on the same day.

FURTHER INFORMATION

Archipelago Resources plc Vice President - Corporate Affairs Matthew Salthouse	[phone]	Canaccord Genuity Limited Joint Broker Andrew Chubb Christopher Fincken	[phone]
Grant Thornton Corporate Finance NOMAD Gerry Beaney David Hignell	[phone]
		Liberum Capital Limited Joint Broker Michael Rawlinson Christopher Kololian	[phone]
Buchanan Corporate Communication Bobby Morse Gordon Poole	[phone]

ABOUT ARCHIPELAGO

Archipelago is a producing mining company listed on the AIM market of the London Stock Exchange.  Archipelago's vision is to grow into a respected and regionally dominant mid-cap gold producer, managing a portfolio of gold mines and delivering significant value and returns for our shareholders.  Archipelago's principal activities are gold mining and exploration in Indonesia (as the 95% owner of the producing Toka Tindung Gold Mine in North Sulawesi, Indonesia).  For the year to 31 December 2013, Archipelago expects to produce between 140,000 and 155,000 Au Eq oz at a cash cost of between $620 and $680 per Au oz. 

This information is provided by RNS

The company news service from the London Stock Exchange

RNS news service provided by Hemscott Group Limited.