Arco Resources Corp. announces that it has terminated its option agreement with Zodiac Capital Ltd. (Zodiac) on the Tres Hermanas claims dated March 22nd, 2011 (the Option). Zodiac was not able to complete its financing efforts in time to meet the extended payment deadline agreed to between the companies.

Zodiac has advised the Company that it has reached agreement with a UK funds management group and have funds in escrow, however at this stage, formal closing is subject to continued due diligence by the financing group. The respective parties are continuing a non-binding informal relationship, and may consider a new arrangement on the Tres Hermanas property in the future should Zodiac complete its financing efforts.

Arco President and CEO Warren McIntyre commented, Management understands the challenges in the current capital markets, however we need to press forward with the exploration and development of our prospective properties.

About Arco Resources

Arco holds a 100% interest in seven mineral claim blocks, all located in the State of Oaxaca, Mexico. The Company is focusing its efforts on its Taviche and Predilecta claim blocks, each of which has had historical production of gold and silver. The Company has optioned its Lachiguiri, Silacayoapan and Nino Perdido properties to Argentum Silver Corp. For further information on the Company please go to www.arcoresources.com. Follow Arco on Facebook.

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

Warren McIntyre
Warren McIntyre
President and Chief Executive Officer
Arco Resources Corp.
For further information:
Ian Tootill, Director of Investor Relations
Phone: 604.639.2866 begin_of_the_skype_highlighting 604.639.2866 end_of_the_skype_highlighting
Email: ian@arcoresources.com
www.arcoresources.com

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