August 5, 2010 -- Vancouver, B.C. -- Arco Resources Corp. (TSX-V: ARR) ("Arco" or the "Company") reports that it has now completed 760 meters of drilling at its Predilecta Property located in the State of Oaxaca, Mexico. Arco had contracted Alta Drilling International S. de R.L. de C.V. ("Alta") to commence an initial program of 625 meters over ten holes ranging in depth from 40 - 80 meters using diamond core drills (HQ3). Upon reviewing the drill core and continuity of the drilling, Arco decided to have Alta drill an additional hole to a depth of 150 meters to investigate the idea of a parallel structure at further depth. All drill core has been split, boxed and shipped to Acme Labs in Vancouver, B.C. for assaying. Results will be released once received and reviewed by Arco's geological team.

The Company also reports that it has now commenced drilling at its 100% owned Taviche Property, also located in the State of Oaxaca. Arco is planning a 1,200 meter diamond drill program with ten holes ranging from 100 metres to 150 metres in depth. Currently, Alta Drilling has completed the first hole to a depth of 150m.

During the last week of July, Warren McIntyre, President and CEO of Arco, hosted a site visit in Oaxaca for a contingent that included mining analysts, investment bankers, a hedge fund manager, mining industry writers and financiers. The group toured both the Predilecta and Taviche properties, and viewed underground past workings at Predilecta. Mr. McIntyre commented, "We were excited to have this group join us in Oaxaca. It allowed us to showcase what has been accomplished in preparation for a busy drilling and exploration season. Arco's Oaxaca team, led by geologist Juan Luque Lopez, were fantastic hosts and were able to get the entire group underground at Predilecta where they saw why and how we are planning future drilling and exploration. Additionally, they were able to watch drilling in progress and view core and samples. The excitement was high and we are looking forward to the assay results."

Predilecta Property

The Predilecta property contains a number of high grade gold bearing mesothermal quartz veins, hosted in shears within a Precambrian gneiss complex. The Predilecta Vein has been traced continuously for 95 meters underground and has been sampled by a prior owner every 3 metres. The vein width varies between 0.20m and 1.55m and averaged 0.56m. Grades vary between 0.4g/t Au and 180.9 g/t Au, and averaged 19.67g/t Au. The Predilecta Vein has been the focus of the first phase of drilling that was just completed on the property. At the La Crus claim, old workings occur along a strikelength of over a kilometre and roughly divided into the Pochotle, Hormiguero and Infernillo sectors. The vein or veins appear to pinch and swell considerably and be offset by faults. The Federal department Consejo de Recursos Minerales also examined this area, and on the basis of limited sampling found an average grade of 19.59 g/t Au and 63 g/t Ag in a vein averaging 0.82 m width from the Infernillo sector.

Paul Cowley, P.Geo. and Chief Geologist for Arco Resources Corp., is the Qualified Person, as defined in National Instrument 43-101, who has reviewed and approved the technical content of this news release.

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

"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

www.arcoresources.com

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.