VANCOUVER, July 15 /CNW/ - Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that the Governor of the Indonesian province of West Nusa Tenggara has granted the Company an extended and expanded Preliminary General Survey License ("SIPP") for its Lombok property for a period of one year. The original Lombok SIPP was granted in December, 2002. The extension and expansion gives the Company an additional one year, until February 16, 2006, to continue its exploration program on the Lombok property prior to negotiating a Contract of Work ("CoW") or seeking a further extension of the SIPP. The SIPP allows the Company to conduct survey work over the property in order to better identify areas of interest prior to entering into a CoW.

An extension and expansion of the Sumbawa property SIPP was received from the Regent of West Sumbawa on April 19, 2005 for one year. As a result, the Sumbawa SIPP now expires on April 19, 2006.

The 2 percent net smelter return royalty on the Lombok and Sumbawa properties only applies to the property area defined by the respective SIPPs as at July 21, 2004, and not to any expanded property for which the Company has subsequently received rights.

On behalf of the Board of
Southern Arc Minerals Inc.

"John Proust"

President and CEO

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