N🟁N

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 26, 2010) - Arco Resources Corp. (TSX VENTURE:ARR) ("Arco" or the "Company") is very pleased to announce the signing of an agreement between Arco's Mexican subsidiary ("Arco Mexico"), the State of Oaxaca and the community of San Baltazar Chichicapam (the "Community") in Oaxaca, Mexico, regarding Arco's Taviche property. The agreement provides Arco Mexico with the right to access and carry out long-term exploration and drilling on the Taviche property in exchange for monthly payments to the Community. These payments start at 5000 Mexican pesos per month and increase according to the Bank of Mexico's annual inflation index, for a period of five years. In the sixth year, the agreement will continue based on the annual inflation index as the Company focuses on a potential feasibility study. At any time prior to the seventh year, the Company may elect to commence production on the property and at that time will commence payments to the Community of 35,000 pesos per month upon actual production. The agreement has been registered with the National Agrarian Registry in Mexico.

Warren McIntyre, President and CEO of Arco, said "This is an historic agreement. We have the full support of the community and local ejidas for Arco's exploration efforts on the Viridiana properties in Taviche, which will be the focus of our summer exploration program. We will also be able to access needed personnel and infrastructure from the Community itself. This is a key milestone in our long-term vision and commitment to the State of Oaxaca and to our shareholders.

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.).

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.

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.