Vancouver, BC. Canada, January 3, 2006 - Southern Arc Minerals Inc. (TSX.V: SA) is pleased to announce the completion of a private placement of 4,000,000 units at a price of $0.35 per unit for gross proceeds of $1,400,000. Each unit consists of one common share and a one-half non-transferable share purchase warrant. Each whole warrant may be exercised to acquire an additional common share for a period of two (2) years at $0.50 per share.

The securities are subject to hold periods expiring April 30, 2006.

On behalf of the Board of
Southern Arc Minerals Inc.

"John Proust"

Per: John G. 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