Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that the company has completed and received assay results from the 16 diamond drill holes comprising the Phase 1 scout drilling program for the Lemonga Prospect located on Sumbawa Island in south-central Indonesia. This drilling has intersected high grade gold mineralization in at least two of the five quartz vein targets tested. The map ("Figure 1") accompanying this news release is posted on SEDAR and at Southern Arc's website, www.southernarcminerals.com.

The Lemonga Prospect is focused on a low-sulphidation epithermal system over which surface mapping by Southern Arc and previous operators has confirmed hydrothermal argillic alteration within an area approximately 1 km east-west by 1.5 km north-south. Five quartz vein targets, named Amy, Betty, Cici, Dessy and Evi, have been identified within the alteration zone. Results from the first 9 drill holes were discussed in a previous news release (No. 05-02, dated 11th July 2005). The prospect geology and alteration as well as drill hole locations are shown in Figure 1 and all drill hole results are summarized in Table 1, below.

The best exposed vein, the Amy Vein, has a mapped strike extent of at least 950 meters. Southern Arc has completed one further diamond drill hole (LDG-16) in the Amy Vein, in addition to the 7 drill holes previously reported. Drill hole LDG-16 was located 100 meters along strike to the south of LDG-01.

Highlights of drill hole intervals returned from the Amy Vein are:

Drill hole LDG-16 also returned wide lower-grade but anomalous quartz vein intervals as follows:

The program to date has confirmed the extensive strike length of the Amy Vein and the presence of high grade shoots within the southern area of the vein. It should be noted that the three drill holes returning these high grade intersections cover a strike extent of at least 300 meters. Drill hole LDG-11 targeted the Dessy Vein which had previously returned surface channel sampling of 3.8 m @ 9.17 g/t Au and 116 g/t Ag and 2.8 m @ 4.70 g/t Au and 72 g/t Ag. This drill hole returned a quartz vein intersection of:

Drill holes LDG-10, LDG-14 and LDG-15 targeted the Cici Vein, LDG-12 targeted the Evi Vein, and LDG-13 targeted a zone of hydrothermal breccia mineralisation located to the east of the vein targets. All of these drill holes returned anomalous, but low grade gold mineralisation.

Ground geophysical surveys using CSAMT resistivity mapping techniques are in progress, in addition to petrographic and fluid inclusion studies on the drill core samples. Following assimilation of the results of these studies a second phase of drilling will be planned to infill the higher grade zones and establish extensions both down dip and along strike.

The immediate conclusions of this program are that high grade shoots have been detected in the southern portion of the Amy Vein and in the Dessy Vein. It should also be noted that the widely spaced drill holes into the other targets all intersected quartz veins carrying anomalous levels of gold and silver.

TABLE 1. WEST SUMBAWA PROJECT - LEMONGA PROSPECT

SIGNIFICANT DRILL INTERSECTIONS:

 (*) - previously reported

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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 20 years of international mineral exploration experience including 17 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.

All drilling was diamond core drilling and samples for assay were half-core, cut by diamond rock saw. Sample analysis was carried out by Intertek Testing Services (an affiliate of Bondar Clegg) at its Jakarta laboratory. Gold was determined by 50 g fire assay using an atomic absorption finish giving a detection limit of 0.01 g/t Au. Silver was determined by atomic absorption spectrophometry. Southern Arc employs a rigorous quality control program which includes insertion of blanks and certified reference materials in the assay stream one to two samples in every 25 or fewer samples. This is in addition to internal quality control measures undertaken by the contracted analytical facilities.

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, B.C. V6C 3E8 Canada
Telephone: (604) 676-5241 Fax: (604) 676-5246

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