Arco Resources Corp.

Arco Resources Corp.

November 22, 2011 16:52 ET

Arco Signs 10 Year Access Agreement at Tres Hermanas Property in Oaxaca, Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 22, 2011) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") announces that its Mexican subsidiary, Arco Exploraciones S.A. de C.V. ("Arco Mexico"), has signed a ten year development access agreement with the community of San Sebastian Rio Dulce ("Rio Dulce") for Arco's Tres Hermanas claims package. Rio Dulce approved the execution of this agreement under the articles of the National Agrarian Registry in Mexico. The claims included under the agreement are the Tres Hermanas 1 and 2 claims and the Khulan claim totaling 3671 hectares, all 100% staked and owned by Arco Mexico. Under this agreement, Arco will receive access to communal lands to allow exploration, drilling and mining exploitation in the Rio Dulce jurisdiction according to the laws of the Federal Government.

"This is a precedent-setting agreement for the future of mining in Oaxaca," said Arco's President Warren McIntyre. "It is key to the future success of all of our exploration efforts in Oaxaca. While we had prioritized our projects based on infrastructure and potential, we needed long-term access in order to realize on our investment at Tres Hermanas thus far. This agreement fulfills that need and is a win-win agreement for both Arco and the community of Rio Dulce. Over the term of the agreement, Arco has committed to environmental-impact studies, providing medical and dental services for the local community, funding of a pharmacy and ambulance service, the extension and reconstruction of existing classrooms, and the installation of communication antennas. We have also committed to the hiring of personnel from Rio Dulce for our exploration efforts, and the purchase of forest products from the community. We will provide up to MXP500,000 (approx. US$40,000) over the next few years for the construction of the community church. Additionally, a committee will be formed to facilitate the disposition of all funds and to ensure that the commitments on both sides are followed."

"Arco's community relations team worked for over 18 months to realize this agreement and it represents a real success story," McIntyre added, acknowledging the skill and effort put forth by Arco's team of Tito Jimenez and Don Miguel Cormick, under the leadership and guidance of Juan Lopez, Arco's Country Manger and Director General.

The Tres Hermanas claims are subject to a Letter of Intent with Zodiac Capital Ltd., an Australian company, under which Arco will grant Zodiac the right to acquire up to a 100% interest in these claims.

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 properties (to Silex Ventures Ltd.) and in its Tres Hermanas property (to Zodiac Capital Ltd.). For further information on the Company please go to Follow Arco on Facebook.

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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