UPDATE ON CONTRACT OF WORK APPLICATIONS STATUS

Vancouver, B.C.:   Southern Arc Minerals Inc. (TSX Venture: SA, the "Company") provides the following update regarding the status of its two Contract of Work applications located in the southern parts of Lombok and western Sumbawa Islands.

The Indonesian Federal House of Representatives on December 16, 2008 has enacted a new mining law to replace the incumbent Law No. 11 of 1967. Law 11 was the basis for all of the seven generations of Contract of Work (“CoW’) mineral agreements.

With the enactment of the new mining law the current CoW scheme will be replaced by a permit licensing system. The implications of the new mining law are currently being studied in detail by Southern Arc in order to assess the impact on its current CoW applications and KPs.

On behalf of the Board of
Southern Arc Minerals Inc.
“John Proust”
President and CEO
For more information please contact:

Southern Arc Minerals Inc.
c/o John G. Proust, CEO
Telephone: (604) 676-5241   Fax: (604) 676-5246      
Email:  info@southernarcminerals.com
Website: www.southernarcminerals.com
     
“The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release”