Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the granting of a new exploration license (Kuasa Pertambangan "KP") to the company, through its locally-controlled Indonesian entity, over parts of southwest Sumbawa Island, West Nusa Tenggara Province. The KP area comprises 9,670 ha and is located immediately east of PT. Newmont Nusa Tenggara's ("NNT", a subsidiary of Newmont Mining Corporation) Block IV Contract of Work (CoW) area. The KP area was previously explored by NNT during 1986-1999 under its 4th generation CoW license. The KP license, issued by the Sumbawa regency, is valid for twelve months and can be extended for a further 12 months as part of the General Survey conditions of the license.

The KP's western property boundary is contiguous with the eastern property boundary of NNT's Block IV CoW area. Remote sensing studies (Landsat imagery and aerial photography) show the controlling NNE trending mineralized structural corridor extends onto the newly acquired KP property.

The Company plans, in the next 12 months and following an initial routine socialization program, to undertake an exploration program of regional drainage sampling and geological mapping, helicopter-borne geophysical surveys (magnetics, radiometrics and EM) and lithostructural studies.

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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