Arco Resources Corp.

Arco Resources Corp.

September 03, 2010 10:00 ET

Arco Announces Preliminary Drill Results at Predilecta

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 3, 2010) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is pleased to announce the results from the drilling program on its 100% owned Predilecta property. The Predilecta property covers 3,181 hectares and is located approximately 68 kilometers from Oaxaca City, Mexico.

Predilecta Property

The Predilecta property contains a number of high grade mesothermal gold bearing quartz veins hosted in shears within a Precambrian gneiss complex. Of these, the best known vein is the Predilecta Vein, which has been mined underground for a length of 120 metres and sampled with an average grade of 19.67g/t Au over an average width of 0.56 metres.

The diamond drilling campaign totaled 760 metres over 12 holes and focused on the downdip projection from the underground, historic workings of the moderately dipping Predilecta Vein. The first line of six holes tested a 25 metre downdip projection of the quartz vein and were drilled laterally every 25 metres. The second line of five holes targeted a 50 metre downdip projection from the workings. One deeper test hole, BDP-12, also checked for parallel structures at depth. BDT-5 intercepted a zone 1.20 metres wide grading 5.83 g/t Au, and BDP-12 cut 1.10 meters of 3.24 g/t Au. Below are highlights from the drill program.

NUMBER (m) (m) (m) g/t
BDP-1 34.55 35.55 1.00 1.78
BDP-3 31.50 32.30 0.80 2.55
BDP-4 28.55 31.00 2.45 1.14
BDP-5 22.95 24.15 1.20 5.83
BDP-6 19.30 19.50 0.20 4.61
BDP-7 32.90 33.60 0.70 2.02
BDP-9 40.65 41.05 0.40 1.98
BDP-12 49.90 51.00 1.10 3.24

Standard, blank, and duplicate samples were inserted throughout the sample sequence as quality control checks. Samples were analyzed by Acme Analytical Labs. Paul Cowley, P.Geo. and Chief Geologist for Arco Resources Corp., is the Qualified Person, as defined in National Instrument 43-101, for the drilling campaign, and has reviewed and approved the technical content of this news release.

"It was encouraging that gold mineralization was encountered in each of the 12 holes assayed, however, the narrow widths and lower grades are not consistent with the numbers found underground," stated Warren McIntyre, President of Arco Resources. "The Company is currently evaluating the results from this initial reconnaissance drilling to reasonably assess where and how the structure or structures may lie. Further exploration and drilling will be required to better understand the mineralization. The Company's geological team is now working on the phase two drill program based on these initial results."

Drilling is currently ongoing at the Company's silver/gold targets located on its Taviche Property. Results of the drilling will be provided upon completion of this first phase, consisting of 14 holes totaling 1600 metres.

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.).

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

Warren McIntyre, President and Chief Executive Officer

Arco Resources Corp.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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