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ARCO RESOURCES
Gold and Silver in Mexico




March 2012 Corporate Presentation   TSX-V: ARR
Disclaimer

Some statements contained in this presentation or in documents referred to in it are
or maybe forward-looking statements. Actual results may differ from those
expressed in such statements, depending on a variety of factors.

Any forward-looking information contained in this presentation has been prepared
on the basis of a number of assumptions which may prove to be incorrect, and
accordingly, actual results may vary.

Past performance of the Company cannot be relied on as a guide to future
performance. This presentation does not constitute, or form part of or contain any
invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or
dispose of any shares in Arco Resources Corporation or advise persons to do so
in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any
connection with or act as a inducement to enter into any contract or commitment
therefore. No reliance may be placed for any purpose whatsoever on the
information or opinions contained in this document or on its completeness and no
liability whatsoever is accepted for any loss howsoever arising from any use of this
document or its contents otherwise in connection therewith.


                                          TSX-V: ARR                                      2
Highlights

• Portfolio of 6 Silver / Gold projects, 100% owned with long term
   community agreements

• Joint Venture with Argentum Silver Corp. (TSX-V: ASL)

• Current 43-101 reports on Tres Hermanas, Taviche & Predilecta

• Well established historic and current gold / silver producing region

• Adjacent to a working mine owned by Gold Resource Corp.

• Established infrastructure and management team

• Successful local geological and technical teams with proactive
   community relations


                                 TSX-V: ARR                              3
Officers & Directors

                   OFFICERS

 Warren McIntyre       President & CEO
 Simon Anderson        CFO
 Jeff Sheremeta        VP, Corporate Secretary
 Juan Lopez            Country Manger

                   DIRECTORS
 Anthony Dutton        Director
 John Sutherland       Director
 Ben Whiting           Director

                     TSX-V: ARR                  4
Corporate Profile

February 27, 2012                          Head Office:
Shares O/S                   75.2m         Arco Resources Corporation
                                           Suite 906, 595 Howe Street
Options, Warrants O/S        43.0m         Vancouver, BC V6C 2T5
Fully Diluted               123.5m         Canada

Market Cap                    3.0m
                                           Tel: +1 (604) 639 2866
3 Mo. Avg. Daily Vol.       160,310        Website: www.arcoresources.com
3 Mo. High – Low
         Daily Close    $0.35 - $0.15

Inception                March 13, 2006


TSX-V: ARR


                              TSX-V: ARR                                5
Why Oaxaca?

Mining Friendly
• Safe and many past and present producers
• Very good infrastructure, easily accessible
• Experienced and skilled local labour force
• Historic and government data available
• Close proximity to Canada and USA

Proven Value
• Significant recent discoveries and mines
• San Jose Mine (Fortuna Silver)
• Cobre Grande (Linear Metals) - pending
• High value, low operating cost jurisdiction
• Favourable exchange with strong CAD $


                             TSX-V: ARR         6
Arco Projects: Overview
       Significant Mine Investment
       1 Fortuna Silver
       2 Gold Resource
       3 Linear Metals




Cuatro Venados

                                              3
                                     1            2

   Tres Hermanas


                 Predilecta                           Taviche




                                         TSX-V: ARR             7
Arco Projects: Tres Hermanas

•   3,710 hectares covering a silver-lead-
    zinc-bearing vein system that has
    historic underground workings along a
    400 metre strikelength.                     Tres Hermanas

•   Five levels of underground workings.

•   Underground sampling shows local
    values >500 g/t Ag.

•   The Company has taken underground
    channel samples including 764.5 g/t Ag,
    2% Zn and 10.4% Pb across 1.5 metres.

•   Grid based soil sampling has indicated
    the vein system continues along strike in
    both directions.

                                 TSX-V: ARR                     8
Arco Projects: Tres Hermanas
5 UG Levels – High grade Ag-Pb-Zn




                                    Ag Soil Anomaly extends beyond historic workings



                                       TSX-V: ARR                                  9
Arco Projects: Tres Hermanas




                 TSX-V: ARR    10
Arco Projects: Taviche

•   421 hectares covering silver-gold-bearing
    epithermal quartz vein.

•   Vein exposed over two km strikelength.
                                                    Taviche
•   250 m strikelength averaging 173 g/t Ag,
    1.5 g/t Au.

•   Historic (Spanish and recent ) underground
    production with 500 m underground
    strikelength.

•   Excellent access, approx 1.5 hours drive from
    city of Oaxaca.

•   Gold Resource Corp. and Fortuna Silver
    investing in significant mine development in
    the Taviche district.


                                    TSX-V: ARR                11
Arco Projects: Taviche




Headframe from old mine
Mining prior to 1998 over 20,000 tonnes
with average grade over 180 g /t Ag       Quartz vein identified over 2 km & up to 5 m in width



                                          TSX-V: ARR                                              12
Arco Projects: Taviche


           Longitudinal Section of Underground




                                     Quartz Vein




                                            1 Km
                   Taviche Property Map
      250m strikelength average width 1.4 m average grade
      173 g/t Ag, 1.5 g/t Au (267 g/t Ag Eq)


                             TSX-V: ARR                     13
Taviche – Long Section




                  TSX-V: ARR   14
Taviche – Long Section




                  TSX-V: ARR   15
Arco Projects: Taviche – Drill Results Hole 1

Hole BDT   From    To      WIDTH           Ag       Au     Ag eq
             m     m         m            g/ton    g/ton    g/ton


 2         61.10   69.0    7.90           191      1.27    267.20
 Inc.      66.00   68.00   2.00           375      1.75    480.00

  3        58.00   60.00    2.0            88.20   0.59    123.60
  4        80.70   82.40    1.7           172.50   0.61    209.10
  5        74.00   76.00    2.0            90.85   0.37    113.05
  6        50.20   51.10    0.9           113.00   0.75    158.00

  7        85.20   88.30    3.10          279.03   0.924   334.47
 Inc.      87.35   88.30    0.95          450.00   1.63    547.80

  8        89.20   93.00    3.70          306.31   1.02    367.51
 Inc.      92.30   93.00    0.70          583.00   2.59    738.40


                             TSX-V: ARR                             16
Arco Projects – Predilecta

•   3,181 hectares located 68 km SSE of
    Oaxaca City.
•   Multiple mesothermal gold-bearing
    quartz veins.
•   High gold values, previously worked
    property close to infrastructure and
    transportation.
                                            Predilecta
•   Previous sampling indicated 143 g / t
    Au over 0.45 m.
•   Underground sampling average 19.26
    g/t Au along 95 m with average
    width of 0.57m.


                             TSX-V: ARR                  17
Arco Projects: Prediclecta

                    95 m strikelength
                    averaging 19.26 g/t Au



            Predilecta Mine




                    La Cruz Mine
                                             Predilecta Property
                                               High Grade Au




                        TSX-V: ARR                                 18
Arco Projects – Predilecta




    Predilecta Adit with Arco’s Country Manager Juan Lopez, Property vendor
    and prospector Don Miguel Cormick, President Warren McIntyre and
    General Manger Tito Jimenez. The rock had grades of over 145 gpt Au.



                                   TSX-V: ARR                                 19
Arco Projects: Cuatro Venados

•   3,631 hectares covering 5 kilometre strike length
    of a gold-bearing mesothermal quartz vein.

•   Historic mining took place in the northern and
    southern parts of the vein. The vein is generally one   Cuatro Venados
    metre wide with grades up to 12.6 g/t gold but
    appear to average 4-8 g/t gold.

•   Vein untested below water table.

•   Little prospecting and sampling has been done on
    the vein between the underground workings.




                                         TSX-V: ARR                          20
Arco Projects: Cuatro Venados


             Zavaleta Mine average
             historic grade
             8 g/t Au, 100 g/t Ag

                           Mine




                            Mine




                Mine

                     1km


                        TSX-V: ARR   21
Arco Projects: Cuatro Venados




Warren McIntyre, Paul Cowley, Juan Lopez,         Warren McIntyre with Jeff Sheremeta and
discussing rock samples at adit entrance          Geological consultant Dale Schultz at the
                                                  entrance to the Zavaleta mine




                                            TSX-V: ARR                                        22
Increased Value

• Optimize value through JVs and/or sales
• Prove up prospective properties through drilling
  and sampling
• Encourage local community involvement via
  solid community relations
• Cost containment through risk mitigation and
  economy of scale. Shared offices and
  exploration teams.


                       TSX-V: ARR                23
Muchas Gracias!

Historic & Current Mining District
Excellent grades and access
Drill Ready Projects
Community support
Solid Exploration team


                                                  Arco Resources Corp.
                                                  Suite 906 - 595 Howe St.
                                                  Vancouver, BC, V6C 2T5
                                                  604 - 639 - 2866




                                     TSX-V: ARR                        24

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Arco presentation

  • 1. ARCO RESOURCES Gold and Silver in Mexico March 2012 Corporate Presentation TSX-V: ARR
  • 2. Disclaimer Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Arco Resources Corporation or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. TSX-V: ARR 2
  • 3. Highlights • Portfolio of 6 Silver / Gold projects, 100% owned with long term community agreements • Joint Venture with Argentum Silver Corp. (TSX-V: ASL) • Current 43-101 reports on Tres Hermanas, Taviche & Predilecta • Well established historic and current gold / silver producing region • Adjacent to a working mine owned by Gold Resource Corp. • Established infrastructure and management team • Successful local geological and technical teams with proactive community relations TSX-V: ARR 3
  • 4. Officers & Directors OFFICERS Warren McIntyre President & CEO Simon Anderson CFO Jeff Sheremeta VP, Corporate Secretary Juan Lopez Country Manger DIRECTORS Anthony Dutton Director John Sutherland Director Ben Whiting Director TSX-V: ARR 4
  • 5. Corporate Profile February 27, 2012 Head Office: Shares O/S 75.2m Arco Resources Corporation Suite 906, 595 Howe Street Options, Warrants O/S 43.0m Vancouver, BC V6C 2T5 Fully Diluted 123.5m Canada Market Cap 3.0m Tel: +1 (604) 639 2866 3 Mo. Avg. Daily Vol. 160,310 Website: www.arcoresources.com 3 Mo. High – Low Daily Close $0.35 - $0.15 Inception March 13, 2006 TSX-V: ARR TSX-V: ARR 5
  • 6. Why Oaxaca? Mining Friendly • Safe and many past and present producers • Very good infrastructure, easily accessible • Experienced and skilled local labour force • Historic and government data available • Close proximity to Canada and USA Proven Value • Significant recent discoveries and mines • San Jose Mine (Fortuna Silver) • Cobre Grande (Linear Metals) - pending • High value, low operating cost jurisdiction • Favourable exchange with strong CAD $ TSX-V: ARR 6
  • 7. Arco Projects: Overview Significant Mine Investment 1 Fortuna Silver 2 Gold Resource 3 Linear Metals Cuatro Venados 3 1 2 Tres Hermanas Predilecta Taviche TSX-V: ARR 7
  • 8. Arco Projects: Tres Hermanas • 3,710 hectares covering a silver-lead- zinc-bearing vein system that has historic underground workings along a 400 metre strikelength. Tres Hermanas • Five levels of underground workings. • Underground sampling shows local values >500 g/t Ag. • The Company has taken underground channel samples including 764.5 g/t Ag, 2% Zn and 10.4% Pb across 1.5 metres. • Grid based soil sampling has indicated the vein system continues along strike in both directions. TSX-V: ARR 8
  • 9. Arco Projects: Tres Hermanas 5 UG Levels – High grade Ag-Pb-Zn Ag Soil Anomaly extends beyond historic workings TSX-V: ARR 9
  • 10. Arco Projects: Tres Hermanas TSX-V: ARR 10
  • 11. Arco Projects: Taviche • 421 hectares covering silver-gold-bearing epithermal quartz vein. • Vein exposed over two km strikelength. Taviche • 250 m strikelength averaging 173 g/t Ag, 1.5 g/t Au. • Historic (Spanish and recent ) underground production with 500 m underground strikelength. • Excellent access, approx 1.5 hours drive from city of Oaxaca. • Gold Resource Corp. and Fortuna Silver investing in significant mine development in the Taviche district. TSX-V: ARR 11
  • 12. Arco Projects: Taviche Headframe from old mine Mining prior to 1998 over 20,000 tonnes with average grade over 180 g /t Ag Quartz vein identified over 2 km & up to 5 m in width TSX-V: ARR 12
  • 13. Arco Projects: Taviche Longitudinal Section of Underground Quartz Vein 1 Km Taviche Property Map 250m strikelength average width 1.4 m average grade 173 g/t Ag, 1.5 g/t Au (267 g/t Ag Eq) TSX-V: ARR 13
  • 14. Taviche – Long Section TSX-V: ARR 14
  • 15. Taviche – Long Section TSX-V: ARR 15
  • 16. Arco Projects: Taviche – Drill Results Hole 1 Hole BDT From To WIDTH Ag Au Ag eq m m m g/ton g/ton g/ton 2 61.10 69.0 7.90 191 1.27 267.20 Inc. 66.00 68.00 2.00 375 1.75 480.00 3 58.00 60.00 2.0 88.20 0.59 123.60 4 80.70 82.40 1.7 172.50 0.61 209.10 5 74.00 76.00 2.0 90.85 0.37 113.05 6 50.20 51.10 0.9 113.00 0.75 158.00 7 85.20 88.30 3.10 279.03 0.924 334.47 Inc. 87.35 88.30 0.95 450.00 1.63 547.80 8 89.20 93.00 3.70 306.31 1.02 367.51 Inc. 92.30 93.00 0.70 583.00 2.59 738.40 TSX-V: ARR 16
  • 17. Arco Projects – Predilecta • 3,181 hectares located 68 km SSE of Oaxaca City. • Multiple mesothermal gold-bearing quartz veins. • High gold values, previously worked property close to infrastructure and transportation. Predilecta • Previous sampling indicated 143 g / t Au over 0.45 m. • Underground sampling average 19.26 g/t Au along 95 m with average width of 0.57m. TSX-V: ARR 17
  • 18. Arco Projects: Prediclecta 95 m strikelength averaging 19.26 g/t Au Predilecta Mine La Cruz Mine Predilecta Property High Grade Au TSX-V: ARR 18
  • 19. Arco Projects – Predilecta Predilecta Adit with Arco’s Country Manager Juan Lopez, Property vendor and prospector Don Miguel Cormick, President Warren McIntyre and General Manger Tito Jimenez. The rock had grades of over 145 gpt Au. TSX-V: ARR 19
  • 20. Arco Projects: Cuatro Venados • 3,631 hectares covering 5 kilometre strike length of a gold-bearing mesothermal quartz vein. • Historic mining took place in the northern and southern parts of the vein. The vein is generally one Cuatro Venados metre wide with grades up to 12.6 g/t gold but appear to average 4-8 g/t gold. • Vein untested below water table. • Little prospecting and sampling has been done on the vein between the underground workings. TSX-V: ARR 20
  • 21. Arco Projects: Cuatro Venados Zavaleta Mine average historic grade 8 g/t Au, 100 g/t Ag Mine Mine Mine 1km TSX-V: ARR 21
  • 22. Arco Projects: Cuatro Venados Warren McIntyre, Paul Cowley, Juan Lopez, Warren McIntyre with Jeff Sheremeta and discussing rock samples at adit entrance Geological consultant Dale Schultz at the entrance to the Zavaleta mine TSX-V: ARR 22
  • 23. Increased Value • Optimize value through JVs and/or sales • Prove up prospective properties through drilling and sampling • Encourage local community involvement via solid community relations • Cost containment through risk mitigation and economy of scale. Shared offices and exploration teams. TSX-V: ARR 23
  • 24. Muchas Gracias! Historic & Current Mining District Excellent grades and access Drill Ready Projects Community support Solid Exploration team Arco Resources Corp. Suite 906 - 595 Howe St. Vancouver, BC, V6C 2T5 604 - 639 - 2866 TSX-V: ARR 24