09/01/1999- Commences Drilling, Powder River Basin

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GOLDEN ARCH RESOURCES LTD.
8930 OAK STREET, VANCOUVER, B.C. V6P 4B7 [phone] 1-800-661-0091 FAX: [phone]
E-mail: [e-mail]

NEWS RELEASE
Symbol: GAI (VSE Exemption 12g3 - 2(b)
O.T.C. GARC-F SEC File # 82-659

Golden Arch Commences Drilling, Powder River Basin, Wyoming

Vancouver BC - Sept. 1, 1999 Golden Arch Resources Ltd. is pleased to announce a drill rig is on location and a 5,700' test known as the F24-5 BELTCH will be drilling this week on the company's newly acquired ALKALI DRAW PROSPECT located in the Powder River Basin of Wyoming. The Company has a 10% working interest in the play, and the target is Channel Sand oil and gas in the Fall River (Dakota) horizon. The 2,300 acre Alkali Draw Prospect is thought to be similar to Coyote Creek, which lies seven miles away on the same Fall River Trend. To date Coyote Creek, an oil and gas field discovered in 1958, has produced over 21 Million Barrels of Oil and 25 Billion cubic feet of gas from the Dakota formation.

The Alkali Draw Prospect was developed by a group of highly successful Wyoming geologists specializing in Dakota Formation Channel Sands. Additionally, a 3-D Micro-Gravity survey was conducted on the prospect by Electro-Seise Inc. (ESI) of Fort Worth Texas. ESI's data was used to develop the Camp Colorado Prospect in Texas, where Golden Arch recently announced a successful discovery well. After completing a 3D-Airborne Micro-Gravity Survey on the Alkali Draw Prospect, ESI also acquired a working interest in the play. The ESI technology in Wyoming's Powder River Basin has an exceptional track record. In the past two years, ESI's success rate is 87%, and, out of the last ten wells ESI has surveyed, all ten wells (100%) were successful completions. Golden Arch is drawing on its experience from the years 1993 to 1996 when the company participated in over 40 successful Channel Sand completions in West Texas. Management is optimistic the ESI technology will dramatically improve the economics of Channel Sand drill targets.

Subject to regulatory approval and further to the Company's News release of August 3, 1999 financing of current operations has been finalized with D. R. McKay & Associates. A production loan of $250,000C has been secured, bearing interest at a rate of !0% with principal to be retired from future production revenues. A finders fee will be paid in accordance with exchange guidelines, and, for loan guarantees, a bonus of shares will be paid at a deemed price of $ .15C.
Loan proceeds will utilized to pay for a recently acquired 25% working interest in the 3,000 acre Old World field located in Parker County Texas. This field has 6 producing wells and potential for 15 to 20 additional locations. Proceeds will also be applied to the recently acquired a 10 % working interest in the Camp Colorado field in Coleman county Texas. On this prospect the Warren / Thurmond #1 well was drilled and completed in early July, 1999. It is now on line and a development program is planned for this new discovery. The Camp Colorado Prospect size should allow for an additional 15-20 wells to be drilled.

For further information on this news release please contact Richard J. Watson 1-800-661-0091,

On behalf of the Board of Directors of Golden Arch Resources Ltd.

"D.K. Greenlaw", Director
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The Vancouver Stock Exchange assumes no responsibility for the accuracy of this Release and neither approves nor disapproves thereof.