Suspension of Shares

ANNOUNCEMENT BY ARAKAN RESOURCES LIMITED                    

"The Board of Arakan Resources Limited has resolved to consider a restructuring
of the Company's assets and subsidiaries. This restructuring has been discussed
at board level and until the Board consults with legal counsel, advisors and
stakeholders and reviews that advice the Board has sought a suspension of its
shares on the GXG. The GXG has been requested to suspend the Company's shares
immediately to allow this process to be undertaken, after which the Company
will make a further announcement to stakeholders."

Contact: George E Edwards, Chairman, [e-mail].

         Paul Devine, Managing Director, [e-mail].