Southern Arc Minerals Inc.
TSX VENTURE : SA

Southern Arc Minerals Inc.

April 04, 2007 20:22 ET

Southern Arc Announces Completion of $2,100,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 4, 2007) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

SOUTHERN ARC MINERALS INC. (TSX VENTURE:SA) is pleased to announce that it has closed its previously announced non-brokered private placement financing of 7,000,000 units (the "Units") of the Company at a price of $0.30 per unit, for gross proceeds of $2,100,000. Each Unit consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one (1) common share of the Company at a price of $0.45 per share for a period of twenty four (24) months from the closing date (increased from 12 months). If the weighted daily average trading price of the Company's common shares on the TSX Venture Exchange exceeds $0.70 for 10 consecutive trading days, the Company may give 30 days written notice to the holders of warrants that the warrants will expire.

The Company has agreed to pay finders' fees in connection with this financing by way of a total $77,703 cash commission and issuance of a total of 259,010 warrants, which warrants are exercisable on the same terms as the warrants forming part of the Units.

All of the securities are subject to a hold period expiring July 29, 2007.

The Company plans to use the net proceeds of the Offering to advance its' Indonesian mineral properties and for general corporate purposes.

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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