Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce that the company has received assay results from the first three diamond drill holes of phase two drilling at its Lemonga Prospect located on Sumbawa Island, Indonesia. The holes LDG-17 to LDG-19 were drilled to test down-dip and along lateral extensions of high-grade gold-silver shoots intersected in the southern Amy Vein in an earlier scout drilling program.

The Lemonga Prospect is focused on a low-sulphidation epithermal quartz vein 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. The best exposed vein, the Amy Vein, has a mapped strike extent of at least 950 meters. In 2005 the company completed eight drill holes along the strike of the Amy Vein, with high grade shoots intersected in the southern portion over a 300+ m strike extent.

Drill hole LDG-17 was targeted to test continuity of gold-silver grades down-dip (50 m vertically) of drill hole LDG-01 which intersected 16.05 m @ 5.30 g/t Au & 51 g/t Ag (including 3.00 m @ 19.1 g/t Au & 228 g/t Ag). LDG-18 and LDG-19 were aimed to test lateral extensions of intercepts from hole LDG-01 at 35 m and 70 m intervals northwards, as part of the infill program towards drill hole LDG-03 (15.40 m @ 6.67 g/t Au & 36 g/t Ag including 2.00 m @ 25.67 g/t Au & 25 g/t Ag). All holes were drilled at right angles to the vein strike at -45º inclinations.

In all three drill holes significant widths of quartz veining were intersected and confirm the near vertical dip and pinch and swell nature of veining. Higher grades tend to be associated with a finer grained, base-metal sulfide rich quartz phase, one of at least four veining phases.

Highlights of drill hole intercepts (Figure 1) in the vicinity of LDG-01 returned:

Drill hole LDG-18

13.30 m @ 4.64 g/t Au & 21 g/t Ag from 63.15 m
(including 2.15 m @ 19.44 g/t Au & 18 g/t Ag)
Drill hole LDG-17


20.80 m @ 2.02 g/t Au & 15 g/t Ag from 107.6 m
(including 3.10 m @ 5.76 g/t Au & 11 g/t Ag
3.15 m @ 5.62 g/t Au & 59 g/t Ag)
Drill hole LDG-19

21.90 m @ 1.02 g/t Au & 10 g/t Ag from 130.65 m
(including 3.10 m @ 4.70 g/t Au & 19 g/t Ag 

Interpretation of data from the recently completed CSAMT ("resistivity') ground area has been received from consultant geophysicist Dr Peter Elliott of Elliott Geophysics International Pty Ltd. Initial findings indicate moderate to strongly resistive linear targets more or less correspond to the position and strike of the known veins and breccia zones, along with possible significant lateral extensions at depth. Additional blind targets masked by talus scree have also been interpreted in the Northwest section of the prospect area.

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 21 years of international mineral exploration experience including 19 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.

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"

2006 01 31 NRM

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