Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the
Company") is pleased to provide an update on activities at its Sabalong
property. 


Southern Arc and Vale S.A. ("Vale") completed three diamond drill holes at the
Sabalong property (totalling 1,811 metres) to test potential porphyry intrusive
targets that had been defined by geophysical surveys. Drilling intersected
weakly altered intrusions and volcanics with no significant porphyry copper
mineralization. With Phase 1 exploration complete, Vale has elected not to
proceed to Phase 2 and has withdrawn from the Sabalong project. 


Southern Arc now holds a 100% economic interest in the Sabalong project and is
proceeding with a drill program to test epithermal gold vein targets in the
Toyang prospect as defined by historical Newmont (1986-92), Rio Tinto Zinc
("RTZ") (1993-98) and Company (2007-present) exploration work. 


On July 16 the Company commenced a drill program of up to 2,000 meters to test
the upper parts of the Toyang quartz vein system. The Toyang prospect comprises
a 2.5+ km northeast trending structural zone with three main mineralised zones
including the Gempang Budi, Olat Toyang and Labangkang targets. Mineralization
comprises areas of strong argillic and advanced argillic altered volcanics
hosting low-sulfidation auriferous quartz veining and breccia zones up to 20m
wide. Shallow scout drilling by RTZ in 1997 reported encouraging drill
intersections including 8m @ 11.50 g/t Au (SL22), 32m @ 3.50 g/t Au (SL18) and
28m @ 1.49 g/t Au (SL28) (Figure 1). These drill intersections all lie within a
1.0 km long greater than 0.1 g/t gold soil anomaly as defined by RTZ grid soil
sampling. While management does not have all of the information required to
confirm the QA/QC process for the RTZ drilling, Southern Arc believes the RTZ
drill intersections are indicative of the potential in the area. More recent
surface channel sampling by Southern Arc has confirmed the levels of
mineralization discovered by RTZ, with surface channel sampling results
including 4m @ 7.23 g/t Au, 4m @ 6.79 g/t Au and 10m @ 5.91 g/t Au.


East Elang Project

Vale remains a committed partner at the East Elang project. Under the terms of
the October 2010 Option and Joint Venture Agreement, Vale can earn a 75%
interest in the East Elang property by advancing the property to bankable
feasibility study, with a minimum Phase 1 expenditure of US$1.2 million within
one year from the date on which Southern Arc receives a Minister of Forestry
Pinjam Pakai permit for the property. Southern Arc was granted a mining business
license (IUP) for East Elang in December 2009. While the property is considered
highly prospective due to its location and results from aerial surveys,
exploration of the East Elang property has been deferred pending
reclassification of the property's forestry status. Application has been made to
the Regency authorities for suspension (back-dated for two years) of the IUP
license until the reclassification process has been completed, ensuring that
Southern Arc and Vale have adequate time to evaluate the property once
exploration commences.


Issuing of Stock Options

In recognition of their added responsibilities and duties, Southern Arc has
issued 300,000 stock options to each of an officer and a director of the
Company, exercisable at $0.25 per share and expiring five years after the date
of grant. The stock options vest over 24 months, with 25% to vest on the
six-month anniversary of the date of grant and 25% every six months thereafter.


On behalf of the Board of Southern Arc Minerals Inc. 

John Proust, Chairman & Chief Executive Officer

About Southern Arc

Southern Arc Minerals Inc. is a Canadian mineral exploration company with an
aggressive exploration, acquisition and growth strategy. The Company's portfolio
includes four exploration projects with epithermal gold and copper-gold porphyry
prospects on the Lombok and Sumbawa islands in Indonesia, one of which is being
advanced in partnership with Vale S.A. The Company's key exploration property is
its West Lombok project, with several gold-rich copper porphyry and epithermal
gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under
the symbol SA and on the OTCQX International under the symbol SOACF. More
information is available at www.southernarcminerals.com or by emailing
info@southernarcminerals.com. 


Forward-looking Statements 

This news release contains forward-looking statements relating to expected or
anticipated future events and operations, timing of projects and anticipated
results that are forward-looking in nature and, as a result, are subject to
certain risks and uncertainties, such as general economic, market and business
conditions, the regulatory process and actions, technical issues, new
legislation, competitive and general economic factors and conditions, the
uncertainties resulting from potential delays or changes in plans, the
occurrence of unexpected events, and the company's capability to execute and
implement future plans. Actual results achieved may vary from the information
provided herein as a result of numerous known and unknown risks and
uncertainties and other factors. There is no representation by the company that
actual results achieved during the forecast period will be the same in whole or
in part as that forecast. 


Qualified Person Statement

The technical information in this document has been reviewed by Southern Arc's
Executive Vice President, Andrew Rowe, B. App. Sc. Geology, MAusIMM. Mr. Rowe
has over 18 years of international mineral exploration experience throughout
Southeast and Central Asia and Australia. During this time he has held such
positions as Principal Geologist - Feasibility Studies, Senior Geologist and
Consulting Geologist. The technical information in this document has also been
reviewed by Southern Arc's President & Chief Operating Officer, Dr. Mike
Andrews, PhD, FAusIMM, who has sufficient experience relevant to the style of
mineralization under consideration and qualifies as a Qualified Person as
defined by National Instrument 43-101. 


The drill program and sampling protocol is managed by Southern Arc under the
supervision of Andrew Rowe. The diamond drill holes are drilled at PQ, HQ and NQ
sizes depending on hole depth and core recovery to date has averaged 98.5%. Half
core is cut by rock saw and is generally sampled according to geological
contacts ranging between 0.2 to 2.5 metres in length. Three quality control
samples (one blank and two standards) are inserted into each batch of 40
samples. The half core samples are securely transported from the project site to
the Intertek Testing Services ("ITS") sample preparation laboratory in Sumbawa
Besar via private truck hired by Southern Arc. Sample pulps are then sent to the
ITS Jakarta laboratory by ITS. Gold is analyzed by fire assay with AAS finish
and a four-acid digestion with ICP-MS finish is used to analyze a full suite of
elements including silver and base metals. 


For surface rock samples, standard sampling procedures involved removal of any
obvious surface weathering and/or organic matter, followed by the collection of
a representative sample of the inferred mineralized rock material. Continuous
1-3 metre outcrop channel samples were oriented perpendicular to any obvious
mineralized structure and a continuous channel of HQ/NQ core proportions using
either a rock chisel and hammer or Stihl TS50 rock saw was collected. Emphasis
was placed on collecting a uniform representative sample over the channel width
to avoid sample bias. Sample intervals were selected using geological
boundaries. Standard reference check samples along with blanks were submitted
into the sample stream to approximate one check sample per 25 rock samples. The
rock samples were securely transported from the project site to the ITS sample
preparation laboratory in Sumbawa Besar via a Southern Arc vehicle. Sample pulps
were sent to the ITS Jakarta laboratory by ITS. Gold was analyzed by fire assay
with AAS finish and a four-acid digestion with AAS finish to analyze a full
suite of elements including silver and base metal. 


ITS is one of the world's largest product and commodity testing, inspection and
certification organizations. The Jakarta laboratory is ISO 17025 accredited and
employs a Laboratory Information Management System for sample tracking, quality
control and reporting. 


To view Figure 1, click on the following link:
http://media3.marketwire.com/docs/sa718m.pdf


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