Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce further information on its recently granted exploration licenses (Kuasa Pertambangan, "KP") over parts of west Flores Island, East Nusa Tenggara Province following assessment of historic data recently acquired by SA. Further review of this data may result in the acquisition of additional properties on Flores. The four KP areas (Figure 1) were previously explored by CSR (1986-1989), Billiton (1989-1993) and Aberfoyle Resources (1997-2001) under fourth and seventh generation Contract of Works. The KP licenses issued by regency authorities are valid for twelve months and can be extended for a further 12 months as part of the General Survey conditions of the license.

The Tebedo KP covers an area of 1,291 ha and is easily accessed by road from the regional port of Labuhanbajo. Exploration by the previous operators defined a large area (450 m by 400 m) of clay alteration, brecciation and silica-barite-base metal veining proximal to the margin of a flow banded dacite. Soil sampling over the area outlined elevated Au-Ag-As-Sb-Ba±Cu±Pb±Zn soil geochemistry coincident with clay alteration and brecciation. Follow-up costean channel sampling returned maximum gold grades of:

16 m @ 4.54 g/t Au
20 m @ 2.29 g/t Au
27 m @ 2.18 g/t Au
and
46 m @ 1.59 g/t Au

Fifteen scout diamond holes, totaling 1,087.9 m, were initially drilled by CSR/Billiton to test the shallow, subsurface continuity of mineralization. Selected intervals from these drill holes are tabulated below:

Three diamond drill holes, totaling 830.3 m, were later drilled by Aberfoyle Resources to test the continuity of mineralisation at depth. Results were disappointing, returning a best intersection of:

0.5 m @ 0.13 g/t Au, 20 g/t Ag, 3.6% Cu, 2.3% Pb and 3.2% Zn from 22.8 m 

Aberfoyle Resources suggested they may have intersected "feeder structure" base metal mineralisation under a shallow dipping zone of gold-silver-silica-barite mineralisation, consistent with earlier interpretations by previous operators of exhalative style mineralisation at a dacite-lava contact. For reason of budgetary constraints no further drilling was carried out by Aberfoyle over the area to test this interpretation. 

The Dalong KP covers an area of 613 ha and is also easily accessed by road from Labuhanbajo. Previous exploration by CSR and later by Aberfoyle Resources delineated a 700 m by 200 m zone of Au-As-Sb-Mo soil anomaly spatially related to silica-pyrite-Sb-Pb-Zn mineralisation within altered volcanic and limestone lithologies. A maximum of 6.32 g/t Au was returned in rock. Follow-up costean channel sampling returned maximum gold intervals of:

15 m @ 2.2 g/t Au
and
73 m @ 0.98 g/t Au

Four diamond drill holes, totaling 237.6 m, were drilled by CSR, returning a best intersection of:

36 m @ 1.54 g/t Au from 28.0 m

Conjecture exists as to a stratigraphic and/or structural control of the mineralisation. For reason of budgetary constraints, no further drilling was carried out over the area to resolve this question.

The Longgo KP covers an area of 1,207 ha and is easily accessed by road from either Bajawa or Ruteng. The area was first identified by Aberfoyle Resources as a regional low-order Au-Cu-Pb-Zn drainage anomaly within an intercalated volcanic-sedimentary sequence. Soil sampling delineated a number of Cu-Pb-Zn-(As-Mo) soil anomalies within a 2.5 km by 0.5 km NW trending zone of clay-pyrite-silica alteration and silica-gypsum gossan outcrop. Sampling of rock float and outcrop has returned up to 2.9 g/t Au, 456 g/t Ag, 4.1% Cu, 3.7% Pb and 35.1% Zn. Soil anomalism remains open to the south, while both minor quartz-base metal veining and K-silicate altered diorite have been reported to the north. Mineralisation is interpreted to be structurally and stratigraphically controlled.

Trenching and drill testing of the area was recommended by Aberfoyle geologists but was not carried out due to budgetary constraints.

The Bolol KP covers an area of 1,015 ha and is easily accessed by road from either Labuhanbajo or Ruteng. The area was first identified by Aberfoyle Resources as a number of low-order Au-Ag drainage anomalies within a sequence of silicified andesitic volcanics, diorite and limestone. Soil sampling delineated a 1,500 m by 200 m zone of Au-Ag anomalism associated with silica-clay-pyrite alteration, fracturing and veining within volcanics. Rock float assayed up to 8.98 g/t Au and 47 g/t Ag. In addition, a 500 m by 800 m zone of strong silicification with relict sinter lies above and along strike from the main Au-Ag soil anomaly. This zone displays strong As-Sb-Mo rock and soil geochemistry, and is interpreted as a silica cap/outflow zone. Follow-up costean channel sampling across the two zones returned maximum gold grades of:

10 m @ 0.31 g/t Au

Trenching and drill testing of the area was recommended by Aberfoyle geologists, howver was not carried out due to budgetary constraints. Whilst this target is conceptual in nature, Southern Arc believes that based on surface mapping and geochemistry the entire paleo-geothermal system is intact and with this there is the potential for bonanza Au-Ag veins and/or bulk tonnage quartz Au-Ag stockworks.

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

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

Three diamond drill holes, totaling 830.3 m, were later drilled by Aberfoyle Resources to test the continuity of mineralisation at depth. Results were disappointing, returning a best intersection of:0.5 m @ 0.13 g/t Au, 20 g/t Ag, 3.6% Cu, 2.3% Pb and 3.2% Zn from 22.8 m Aberfoyle Resources suggested they may have intersected "feeder structure" base metal mineralisation under a shallow dipping zone of gold-silver-silica-barite mineralisation, consistent with earlier interpretations by previous operators of exhalative style mineralisation at a dacite-lava contact. For reason of budgetary constraints no further drilling was carried out by Aberfoyle over the area to test this interpretation. The Dalong KP covers an area of 613 ha and is also easily accessed by road from Labuhanbajo. Previous exploration by CSR and later by Aberfoyle Resources delineated a 700 m by 200 m zone of Au-As-Sb-Mo soil anomaly spatially related to silica-pyrite-Sb-Pb-Zn mineralisation within altered volcanic and limestone lithologies. A maximum of 6.32 g/t Au was returned in rock. Follow-up costean channel sampling returned maximum gold intervals of:15 m @ 2.2 g/t Auand73 m @ 0.98 g/t AuFour diamond drill holes, totaling 237.6 m, were drilled by CSR, returning a best intersection of:36 m @ 1.54 g/t Au from 28.0 mConjecture exists as to a stratigraphic and/or structural control of the mineralisation. For reason of budgetary constraints, no further drilling was carried out over the area to resolve this question.The Longgo KP covers an area of 1,207 ha and is easily accessed by road from either Bajawa or Ruteng. The area was first identified by Aberfoyle Resources as a regional low-order Au-Cu-Pb-Zn drainage anomaly within an intercalated volcanic-sedimentary sequence. Soil sampling delineated a number of Cu-Pb-Zn-(As-Mo) soil anomalies within a 2.5 km by 0.5 km NW trending zone of clay-pyrite-silica alteration and silica-gypsum gossan outcrop. Sampling of rock float and outcrop has returned up to 2.9 g/t Au, 456 g/t Ag, 4.1% Cu, 3.7% Pb and 35.1% Zn. Soil anomalism remains open to the south, while both minor quartz-base metal veining and K-silicate altered diorite have been reported to the north. Mineralisation is interpreted to be structurally and stratigraphically controlled.Trenching and drill testing of the area was recommended by Aberfoyle geologists but was not carried out due to budgetary constraints.The Bolol KP covers an area of 1,015 ha and is easily accessed by road from either Labuhanbajo or Ruteng. The area was first identified by Aberfoyle Resources as a number of low-order Au-Ag drainage anomalies within a sequence of silicified andesitic volcanics, diorite and limestone. Soil sampling delineated a 1,500 m by 200 m zone of Au-Ag anomalism associated with silica-clay-pyrite alteration, fracturing and veining within volcanics. Rock float assayed up to 8.98 g/t Au and 47 g/t Ag. In addition, a 500 m by 800 m zone of strong silicification with relict sinter lies above and along strike from the main Au-Ag soil anomaly. This zone displays strong As-Sb-Mo rock and soil geochemistry, and is interpreted as a silica cap/outflow zone. Follow-up costean channel sampling across the two zones returned maximum gold grades of:10 m @ 0.31 g/t AuTrenching and drill testing of the area was recommended by Aberfoyle geologists, howver was not carried out due to budgetary constraints. Whilst this target is conceptual in nature, Southern Arc believes that based on surface mapping and geochemistry the entire paleo-geothermal system is intact and with this there is the potential for bonanza Au-Ag veins and/or bulk tonnage quartz Au-Ag stockworks."John Proust"President and CEOSouthern Arc Minerals Inc.Suite 1500, Box 1078, 885 West Georgia Street, Vancouver, BC V6C 3E8 CanadaTelephone: (604) 676-5241 Fax: (604) 676-5246