Southern Arc Minerals Inc.

Southern Arc Minerals Inc.

April 29, 2008 08:30 ET

Commencement of Contract of Work Negotiations on Southern Arc's Taliwang Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - Southern Arc Minerals Inc. (the "Company") (TSX VENTURE:SA) is pleased to announce that Contract of Work ("CoW") negotiations on its Taliwang, West Sumbawa, property commenced on April 28, 2008. The first formal meeting between the joint government team and the Company took place in the administrative city of Taliwang, West Sumbawa, Indonesia. The joint government negotiating team comprises representatives from the central, provincial and regency levels of government. A draft CoW document was submitted previously by the Company to both the central and local regulating authorities.

Members of the central government negotiating team, who have participated in all previous and current generation CoW negotiations, indicated to the Company that they have taken only three to four meetings to finalize similar CoW documents with other mining companies, and that in general there is little or no difference between the submitted draft and the final CoW document. Exploration companies that have recently completed or are currently negotiating their CoW agreements include Barrick Gold Corporation, Rio Tinto, East Asia Minerals, BHP-Antam and Indomines Ltd.

Under the Indonesian Mining Law, the conduct of foreign companies involved in mineral exploration, development and production in Indonesia is regulated by the Contract of Work (CoW), which is a comprehensive contract between the Government of Indonesia and an Indonesian-foreign mining company.

The CoW system for regulating mining operations has played a key role in the success of Indonesia's contemporary mining industry. The CoW system, which was introduced in 1967, has been gradually refined and modernized over the past forty years to reflect changing conditions in Indonesia and abroad. Southern Arc Minerals and the Government of Indonesia have entered into negotiations for the 8th generation of CoW for mining operations. The CoW sets out the company's rights and obligations with respect to all phases of a mining operation, including exploration, pre-production development, production, and mine closure. A CoW applies to a specifically defined geographic area known as the "Contract Area", which for these current negotiations is the Company's Taliwang Property.

The Taliwang Property is a 31,204-hectare mineral concession granted to the Company under a Contract of Work application. It is located on west Sumbawa Island, immediately north of the CoW that hosts Newmont's world-class Batu Hijau porphyry copper-gold mine. The Taliwang property holds a number of prospects, including the Lemonga epithermal vein complex on which a two-phase, 56-hole diamond drilling program has been completed by the Company.

On behalf of the Board of Southern Arc Minerals Inc.

John Proust, President and CEO

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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