Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the granting of two new exploration licenses (Kuasa Pertambangan"KP") to the company, through its locally-controlled Indonesian entity, over parts of west Flores Island, East Nusa Tenggara Province. The KP areas Tebedo(1,291 ha) and Dalong (613 ha) were previously explored by CSR-Billiton (1986-1993) and Aberfoyle Resources (1997-2001) under fourth and seventh generation Contract of Works. The KP licenses, issued by the West Manggarai regency, are valid for twelve months and can be extended for a further 12 months as part of the General Survey conditions of the license.

Previous exploration at Tebedo reported drill intersections of 13.4 metres @ 7.6 g/t Au and 3 g/t Ag, 5.3 metres at 1.6 g/t Au and 106 g/t Ag and 1.0 metre @ 18.0% Zn from structurally-controlled submarine exhalative and replacement Au-base metal mineralization. At Dalong, prospecting of jasperoidal-hosted Au mineralization returned from a limited scout drilling program an intersection of 36 metres at 1.54 g/t Au. These results have not yet been verified by the Southern Arc. Both KP areas are highly accessible and the company anticipates that it will take only 3 to 4 months of field exploration to define further drill targets. 

Another two KP applications are currently being processed in the same general locality. The company anticipates that the additional applications will be granted by mid-September. 

Southern Arc exploration properties now extend across Lombok Island, Sumbawa Island and Flores Island. These recent acquisitions form part of the Company strategy, which is to be an active junior mineral exploration company throughout the south-central Indonesia Sunda Banda magmatic arc.

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

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