Mr. Warren McIntyre reports

ARCO ANNOUNCES SHARE CONSOLIDATION

Arco Resources Corp.'s board of directors has approved the proposed implementation of a consolidation of the company's common shares, which was approved by shareholders at the last annual general meeting of the company held on Jan. 16, 2013, subject to approval of the TSX Venture Exchange.

The share consolidation proposal would authorize the board to consolidate the common shares on the basis of one postconsolidated common share for every 10 preconsolidated common shares. Following the consolidation, the number of outstanding common shares in the capital of the company will change from 75,207,671 to 7,520,767. There will be no name change in conjunction with the consolidation. Management and the board believe that approval for the consolidation is in the best interests of the company and its shareholders. Management believes that a successful completion of the consolidation would allow the company important flexibility to complete future financings and transactions. The consolidation will not change a shareholder's proportionate ownership in the company or the rights of holders of common shares. Each common share outstanding after the consolidation will be entitled to one vote and will be fully paid and non-assessable.

Any fractional common share resulting from the consolidation that is less than one-half of one common share will be cancelled, and each fractional common share that is at least one-half of one common share will be changed to one whole common share.