Southern Arc Minerals Inc.
TSX VENTURE : SA

Southern Arc Minerals Inc.

December 16, 2009 08:30 ET

Southern Arc Granted IUP License for Its East Elang Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 16, 2009) - Southern Arc Minerals Inc. ("Southern Arc" or the "Company") (TSX VENTURE:SA) is pleased to announce that it has been granted a Mining Business License ("IUP") for the East Elang Property.

Issued by the Regent of Sumbawa in the Indonesian province of West Nusa Tenggara, this IUP is comprised of two stages, each with potential extensions. Over a period of 6 years, the exploration stage permits the Company to pursue exploration activities through to the conclusion of a feasibility study. Upon the conclusion of the exploration stage, the IUP automatically converts to a second stage, permitting the Company to conduct commercial production on this property for a minimum of 20 years, with the potential for two further 10 year extension periods.

Covering 9,670 hectares, the East Elang Property adjoins immediately to the east of Newmont's Elang-Dodo property, host to a porphyry copper-gold discovery of size greater than one billion tonnes (with yet undisclosed grades). Sumitomo Corporation, a 35% partner in Newmont's Elang-Dodo property, reported in 2006 that it had allocated funds up to US$2.5 billion for development of this project.

Newmont acquired the East Elang Property (currently held by Southern Arc) in 1986, explored it up to 1993, and then relinquished it back to the government in 1999 under the requirements of its license. It was only subsequent to this relinquishment that Newmont discovered the large extent of the copper-gold porphyry deposit in its Elang-Dodo area.

Mineralization on the Newmont property comprises a complex of polyphased felsic to intermediate intrusives which generated multiple mineralized porphyry centres (Elang, Gergang, Kuning, and Sepekat) along a NNE trending structural corridor. Rock geochemistry of surface and drill hole samples demonstrate a NE-SW elongate copper zone more than 1.5 km long by 0.8 km wide (Maryono, 2005).

Remote sensing studies together with modeling of airborne magnetic data indicate that the controlling NNE trending mineralized structural corridor (present on the Newmont property) extends on to Southern Arc's property. Limited surface evaluation work and aerial sorties by the Company support this finding.

Previous exploration by Newmont on the East Elang Property identified a series of epithermal gold-silver-bearing quartz veins within a large argillic alteration system. Such alteration systems are often surface expressions ("lithocaps") of upper or distal portions of mineralized porphyry Cu-Au systems.

With the issuing of the IUP license, planned field activities will include regional mapping and geochemistry surveys, airborne EM surveys and early-stage CSR activities.

For more information about the East Elang Property, please refer to the page on the Company website at: http://www.southernarcminerals.com/projects/sumbawa/east_elang/

For a map of the East Elang Property location, please refer to the page on the Company website at:
http://www.southernarcminerals.com/projects/sumbawa/east_elang/maps/index.php?mode=image&imageurl=/_resources/maps/east_elang/070810-KP-C-OverallE-WLombo.jpg

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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