Vancouver, B.C.: Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to announce the results of preliminary geologic mapping and sampling at the Mencanggah Prospect located in its West Lombok Property in Indonesia. Eleven targets displaying epithermal vein/breccia and/or porphyry Cu-Au mineralization styles were evaluated. Five anomalies have been selected for further detailed prospect-scale work, including scout diamond drilling where warranted.

The Mencanggah Prospect is located at the centre of a 13 km long northwest trending structural corridor of mineralization and alteration along which also lie the Pelangan Epithermal-Gold Prospect immediately to the northwest (see previous Company news release no. 07-05 Company) and the Selodong Copper-Gold Porphyry Prospect immediately to the southeast (see previous Company news release no. 07-08). 

The first-pass evaluation program comprised geologic mapping and the collection of 2,189 channel and rock-chip samples over a 50 km² area (Figure 1). The five selected targets scheduled for follow up include Tibu Serai and Bising, which host gold-mineralised structural breccias ("MSBs"), along with Mahoni, Kedaro and Lepangan Geres, which are located on the margins of the Selodong Intrusive Complex ("SIC") and exhibit both porphyry-style stockwork veins and MSBs. 

Tibu Serai is located within the northern part of the Mencanggah Prospect, comprising an area of 1,800 m by 700 m and hosts six discrete (T1 to T6) northwest trending MSBs with maximum dimensions to 840 m by 20 m. 151 chip-channel samples between 1 m to 5 m lengths were collected across the strike at nominal 20 m intervals along the MSBs. Significant surface gold intersections include:

TS1: 2 m @ 95 g/t; 2 m @ 9.83 g/t; 2.5 m @ 6.12 g/t; & 6 m @ 2.25 g/t.
TS2: 2 m @ 8.2 g/t; 2 m @ 3.59 g/t; & 2 m @ 2.77 g/t.
TS3: 3 m @ 1.83 g/t.
TS4: 2 m @ 5.84 g/t.
TS5: 2 m @ 2.71 g/t.

The composite weighted average for all channel samples reported a tenor of 1.98 g/t Au.

The Bising MSB target is located centrally within the Mencanggah Prospect and comprises two major east-west trending MSB zones (B1 & B2) up to 700 m in strike length and 100 m wide. From 93 chip-channel samples of 1m to 5 m lengths an overall average grade of 2.27 g/t Au was reported. 

Higher grade gold intercepts include:

B1: 66 m @ 1.1 g/t (incl. 12 m @ 3.54 g/t & 4 m @ 6.26 g/t)
22 m @ 1.13 g/t (incl. 2 m @ 2.11 g/t).
B2: 8 m @ 1.9 g/t (incl. 2 m @ 3.95 g/t)
2 m @ 6.81 g/t; 4 m @ 1.92 g/t; & 2 m @ 3.19 g/t.

Mahoni lies at the extreme south of the prospect and represents one of three targets exhibiting porphyry-style mineralization along the margins of the SIC. Mineralization and alteration have been identified within a 2.0 km by 1.0 km north-south corridor comprising MSBs in the western and northern portions, whilst porphyry style stockwork veining, with locally overprinting MSBs, is found in the south-eastern portion. 

MSB mineralization comprises several north-south trending discontinuous lenses up to 5 m wide and having a maximum length of 500 m. From 205 rock-chip samples assayed the average gold tenor reported was 1.02 g/t, to a peak value of 54.0 g/t. 

Porphyry stockworks are coincident with ground-magnetic "highs". Sampling of weathered leached exposures reported an average tenor of 0.07 g/t Au, to a maximum of 1.75 g/t Au and 1.4% Cu. In general, copper values are very subdued as a result of near surface oxidation.

Porphyry-style stockwork mineralization hosted within altered diorite at Kedaro has been identified over a 300 m by 300 m area centred on the northeast end of a strong ground magnetic anomaly. Twenty-two rock chip samples collected from the quartz-limonite stockworks reported an average grade of 0.30 g/t Au, to a maximum tenor of 2.2 g/t Au. 

Lepangan Geres is located at the northeast margin of the prospect, comprising a 1.0 km by 1.5 km area of hydrothermal alteration on the margins of a large magnetic anomaly. Mineralized outcrops of altered diorite and diatreme-style breccias have been sampled in the northeast and southwest corners of the target. These outcrops display gold anomalism equivalent to porphyry style grades. Assay highlights include:

• Southwest zone: Twenty six channel samples of up to 10 m in length within a 200 m by 150 m area returned a weighted average grade of 0.19 g/t Au, including 10 m @ 0.89 g/t Au. Copper is anomalous with a peak value of 0.17 %.
• Northeast zone: Five channel samples of up to 5 m lengths along a 20 m outcrop reported a weighted average grade of 0.37 g/t Au and a peak copper value of 0.20%.

All five targets exhibit significant mineralization and alteration based on first-pass investigations. 

Further detailed work will seek to quantify and clarify the mineralization styles to identify potential drill targets. The Mencanggah Prospect represents a significantly large, highly prospective, and under-explored area within SA's 13 km long epithermal and porphyry mineralized belt. 

Southern Arc's web site at http://www.southernarcminerals.com provides further details of the Mencanggah Prospect as well as a number of maps that complement Figure 1 included as part of this news release.

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 23 years of international mineral exploration experience, including 21 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 Website: www.southernarcminerals.com

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