Argos Resources Ltd reports its conditional placing of 70,967,742 new ordinary shares in the capital of the Company (Placing Shares) with institutional investors (the "Placing") to raise gross proceeds of £22.0 million. The Placing has been underwritten by Evolution Securities Limited. Argos also announces that admission of all of its share capital (including the Placing Shares) to trading on the AIM market of the London Stock Exchange plc ("Admission") is expected to take place on 29 July 2010.

Key point summary • The placing price has been set at 31 pence per Placing Share. • Based on the Placing Price, the market capitalisation of Argos Resources immediately following Admission will be approximately £67.0 million. • The gross proceeds of the Placing are approximately £22.0 million. • The Placing Shares will represent approximately 32.8% of the total issued ordinary share capital of the Company immediately following Admission. • Argos will use the net proceeds of the Placing, totalling approximately £20.6 million, principally to finance a 3D seismic programme, further details of which are contained in the Company's AIM admission document. • Admission of the ordinary shares to AIM and commencement of dealings under the symbol "ARG.L', are expected to take place on 29 July 2010. • Evolution Securities Limited acts as nominated adviser and broker to Argos.

Ian Thomson, Chairman of Argos Resources, commented today: 'I am delighted with the success of our equity fund raising to date and I will be pleased to welcome the many new shareholders to Argos following Admission and thank them for their support.'

'The potential for significant oil & gas reserves in the Falkland Islands region has been the subject of speculation for some considerable time. Recent discoveries in the North Falkland Basin, where Argos has its licence, have not only conclusively proven a working petroleum system and indicated potential significant reserves upside, but have also de-risked further exploration drilling within this northern basin. Investor interest in the Falkland Islands is strong and Argos, with its seven identified prospects and five leads, believes now is a good time to raise the funds to support its own 3D seismic programme.'

'I look forward to updating shareholders and the market as the Company progresses its work programme.'

Tags: Argos Resources Ltd