Vancouver, BC. Canada, January 3, 2006 - Southern Arc Minerals Inc. (TSX.V: SA) is pleased to announce the completion of a private placement of 4,000,000 units at a price of $0.35 per unit for gross proceeds of $1,400,000. Each unit consists of one common share and a one-half non-transferable share purchase warrant. Each whole warrant may be exercised to acquire an additional common share for a period of two (2) years at $0.50 per share.

The securities are subject to hold periods expiring April 30, 2006.

On behalf of the Board of
Southern Arc Minerals Inc.

"John Proust"

Per: John G. Proust
President and CEO

Southern Arc Minerals Inc.
Suite 1500, Box 1078, 885 West Georgia Street, Vancouver, BC V6C 3E8 Canada
Telephone: (604) 676-5241 Fax: (604) 676-5246

"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release."