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REMOTE SENSING AND GEOPHYSICAL STUDIES SUGGEST THE POTENTIAL FOR PORPHYRY CU-AU TARGETS ON EAST ELANG PROPERTY ADJACENT TO NEWMONT'S ELANG DISCOVERY

Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the results of remote sensing and aeromagnetic studies over its "East Elang" exploration license (Kuasa Pertambangan "KP") situated in southwest Sumbawa Island, West Nusa Tenggara Province, Indonesia. The KP comprises 9,670 hectares located between PT. Newmont Nusa Tenggara's ("NNT", a subsidiary of Newmont Mining Corporation) Contract of Work (CoW) area to the west and a CoW expansion application by NNT to the east. SA's KP is valid for twelve months and can be extended for a further 12 months as part of its General Survey conditions.

The western boundary of SA's KP lies approximately 3.5 km east from NNT's Elang porphyry copper-gold discovery (Figure 1). Elang is located within a 7 km NNE trending mineralized structural corridor, 60 km due east of Newmont's Batu Hijau mine which has stated reserves of 12.55 Moz ounces of gold and 11.47 billion pounds of copper as of December 31, 2005 (Newmont 2005 Annual Report). The geology of the Elang area consists of mid Tertiary intermediate volcanic rocks intruded by multi-phase felsic to intermediate intrusives which have generated multiple mineralized porphyry centres (Elang, Gergang, Kuning and Sepekat) along a NNE trending structural corridor Porphyry Cu-Au mineralization within this structural corridor are controlled by secondary - NW oriented extensional fractures. Rock geochemistry of surface and drill hole samples demonstrates a NE-SW elongate copper zone of approximately >0.3% Cu more than 1.5 km long by 0.8 km wide (Maryono, 2005). Published drill intercepts from the Elang deposit (Newmont 2005 Information Handbook) include:

  • 395.9 metres (1,299 feet) grading 0.62% copper and 0.81 g/t (0.026 oz) gold.
  • 75.9 metres (249 feet) grading 0.41% copper and 0.53 g/t (0.017 oz) gold.
  • 166.4 metres (546 feet) grading 0.55% copper and 0.40 g/t (0.013 oz) gold.
  • 168.6 metres (553 feet) grading 0.52% copper and 0.44 g/t (0.014 oz) gold.
  • 611.4 metres (2,006 feet) grading 0.41% copper and 0.59 g/t (0.019 oz) gold.

Supergene copper enrichment in the form of chalcocite blankets is reported from drill holes up to a maximum thickness of 91.8m (average 40 metres grading 0.69% Cu).

SA commissioned lithostructural consultant Peter Pieters to undertake a remote sensing/photogeological study of SA's KP and surrounding areas including the Elang discovery. Pieters has suggested that the intersection of NNW trending fault/fractures and a major 4-6 km wide WNW trending structural corridor, together along with secondary NNW to N tensional structures play a role in localizing hydrothermal alteration and mineralization. All these structural components that influence the distribution of mineralization at the Elang discovery are also found on SA's property (Figure 2). In the northern extreme of the KP previous explorers BLEG gold anomalies correspond with an interpreted remnant Miocene volcanic centre. The anomalous gold values maybe related to low sulfidation epithermal vein deposits linked to concealed intrusives.

Airborne geophysical data recently provided to SA by NNT was analyzed by consultant geophysicist Nigel Hungerford, FAusIMM, ASEG to establish whether similar geophysical responses from the Elang discovery are repeated on SA's property. NNT flew two generations of aeromagnetic surveys over the property and adjacent ground including Elang in 1991 (400-1000 m N-S flight lines) and 1993 (200 m E-W flight lines). Hungerford noted that the Elang discovery sits at the intersection of obvious NNW and NNE magnetic lineaments. Similar linear directions extend through the SA property. Circular magnetic features with subdued magnetic responses (about 600nT) derived from secondary magnetite alteration as at Elang were noted in two locations within SA's property (Figure 3). One in the SW corner lies at the intersection of NNW and NE linears Another broader magnetic anomaly occurs on the eastern property boundary and is inferred to be an alteration aureole to a large intrusive body.

Previous exploration within the KP area by NNT identified a series of low-sulfidation quartz-base metal sulfide epithermal veins within a large argillic alteration system ("Air Panas Anomaly"). Veins are hosted in a bedded sequence of predominantly polymictic pebble and boulder conglomerates, thin sandstone and siltstone units with minor andesitic lavas and airfall pyroclastics. Initial rock chip sampling of quartz-sulfide veins returned assay values of 0.1-3.6 g/t Au and 6-310 g/t Ag, whereas later channel sampling produced erratic values including 1.0 m @ 7.0 g/t Au.

Ground truthing of the structural interpretation, along with a regional stream sediment sampling program at a density of one sample per km2 are anticipated to commence early 2007, upon the issuing of the mandatory Forestry access permit.

Qualified Person and Quality Control and Assurance

The information in this release has been compiled under the supervision of Southern Arc's Vice President of Exploration Hamish Campbell B.Sc.Geology, MAusIMM. Mr. Campbell has over 22 years of international mineral exploration experience including 20 years in Indonesia during which he has held such positions as Exploration Manager, Senior Geologist and Consulting Geologist. Mr. Campbell has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined in terms of NI 43-101.

On behalf of the Board of
Southern Arc Minerals Inc.


"John 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 Website: www.southernarcminerals.com

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

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