Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that it has entered into an arms length letter agreement pursuant to which it can acquire a 75% interest in an Indonesian mineral property (the "Property"). The Company can acquire its interest in the Property by: (i) advancing US$25,000; (ii) paying US$100,000 and issuing 100,000 common shares, upon execution of a formal agreement; and (iii) paying US$200,000 and issuing 200,000 common shares, upon completion of the first 3,000 metres of drilling on the Property. In addition, monthly payments of US$6,000 are required to commence upon the signing of a formal agreement, increasing after one year to US$10,000 per month. An advance payment of US$3,000,000, less previous advances, is required prior to commencement of commercial production.

Southern Arc Minerals Inc. is not able to make further disclosures at this time due to the sensitive nature of the location of the potential acquisition. The acquisition of the Company's interest in the Property is subject to a number of conditions, including the approval of governmental authorities in Indonesia. The Company intends to execute the formal agreement concurrently with the receipt of such governmental approvals, expected later this year.

The acquisition of the Property is subject to TSX Venture Exchange acceptance.

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."

Head Office
Southern Arc Minerals Inc.
Suite 650
669 Howe St
Vancouver, BC Canada V6C 0B4
Telephone: +1-778-725-1490
Fax: +1-604-428-1124


Investor Relations
John Proust,
Chairman & CEO
Telephone: +1-778-725-1482