May 10, 2012 -- Vancouver, B.C. -- Arco Resources Corp. (TSX-V: ARR) ("Arco" or the "Company") announces that it has entered into a settlement and purchase agreement (the "Purchase Agreement") with Argentum Silver Corp. ("Argentum") to accelerate the amended and restated option agreement between the parties dated February 1, 2011 (the "Option Agreement").

Under the Option Agreement (see Arco's news release dated February 22, 2011), Arco granted Argentum an option to acquire a 100% interest in the Lachiguiri and Silacayoapan properties (the "Properties"). As at the date of this news release, Argentum has paid a total of $150,000 and issued 2,500,000 of its common shares to Arco. Of the 2,500,000 common shares issued to Arco under the Option Agreement, 1,500,000 common shares are currently held in escrow pursuant to an escrow agreement dated February 15, 2011 (the "Escrowed Shares").

Under the terms of the Purchase Agreement, Argentum has agreed to acquire a 100% interest in the Properties (the "Transaction") in consideration for the payment of $285,000 in cash. Arco has in turn agreed to the cancellation of the Escrowed Shares. The Option Agreement will be terminated upon completion of the Transaction.

The Purchase Agreement represents a Non-Arm's Length transaction under the policies of the TSX Venture Exchange (the "Exchange"), as Arco and Argentum have a common director and officers. The completion of the Transaction is subject to the approval of the Exchange.

About Arco Resources
About Arco Resources Arco holds a 100% interest in six 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 and Silacayoapan properties to Argentum Silver Corp. 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"
Warren McIntyre
President and Chief Executive Officer
Arco Resources Corp.

For further information:
Ian Tootill, Director of Investor Relations
Phone: 604.639.2866 ext. 110
Email: ian@arcoresources.com
Website: www.arcoresources.com