Southern Arc Minerals Inc.
TSX VENTURE : SA

Southern Arc Minerals Inc.

September 21, 2011 11:45 ET

Southern Arc Announces Drill Results From Mencanggah and Pelangan Prospects, West Lombok Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2011) - Southern Arc Minerals (TSX VENTURE:SA) ("Southern Arc") has received assay results from the first two holes drilled on the Mencanggah Prospect on its West Lombok Project in Indonesia. Drill holes MCG001 and MCG002 drilled at the Waterfall target (Figure 1) failed to reach their target depth; however, both holes intersected parallel subsidiary epithermal quartz vein and breccia structures (Figure 2) that returned the following encouraging intervals:

MCG001 2.30m @ 3.96 g/t Au from 257.50m
including 0.80m @ 7.60 g/t Au from 259.00m
MCG002 2.00m @ 5.15 g/t Au from 118.70m
including 0.20m @ 9.80 g/t Au from 118.70m

Based on surface mapping, the Waterfall target comprises a 1,200 metre long zone of mineralized epithermal breccias and veins, with two main parallel structures (15m average width) that are interpreted to coalesce at depth based on structural data (Figure 2).

Dr. Mike Andrews, Southern Arc's President and Chief Operating Officer, commented: "The first drill holes at the Mencanggah prospect have returned encouraging intercepts and confirm gold mineralization at depth, albeit in splays peripheral to the main target zones. Further drilling at Waterfall is a high priority and we look forward to reporting results as the drill program advances."

Holes MCG001 and MCG002 were halted in August following local unrest. Southern Arc has increased security at site and expects to resume drilling at Mencanggah by month end to test gold-bearing epithermal breccias with a program of approximately 30 holes to an average depth of 300 metres to complete a total of 10,000 metres by year end (Figure 1). Follow-up drilling with the objective of completing a National Instrument 43-101 compliant resource estimate for Mencanggah will continue through the first half of 2012.

Pelangan Drill Results

Southern Arc has also received assays for holes PDL028 to PDL033 drilled at the Pelangan Prospect.

PLD028 (Central Raja) 1.35m @ 1.0 g/t Au and 6.2 g/t Ag from 251.05m
PLD031 (South Raja) 3.90m @ 3.9 g/t Au from 154.70m
including 0.85m @ 11.5 g/t Au from 156.40m
PLD032 (South Raja) 13.15m @ 1.4 g/t Au from 87.20m
including 3.30m @ 2.3 g/t Au from 97.05m
PLD033 (Tanjung) 0.65m @ 1.04 g/t Au from 114.95m

Drill holes PLD029 and PLD030 at North Raja did not intersect any significant mineralization.

Southern Arc has drilled more than 7,000 metres at Pelangan as part of its Phase 2 exploration program. Drilling will resume at Pelangan in late Q4-2011 with approximately 13,000 metres with the objective of completing a National Instrument 43-101 compliant resource estimate for the Pelangan Prospect in the first half of 2012.

On behalf of the Board of Directors

John Proust, Chairman and CEO

About Southern Arc

Southern Arc Minerals Inc. is an Indonesia-based Canadian mineral exploration company with an aggressive exploration, acquisition and growth strategy. The Company's portfolio includes four exploration projects with epithermal gold and gold-copper porphyry prospects on the Lombok and Sumbawa islands in Indonesia, three of which are being advanced in partnership with major mining companies Vale and Newcrest. 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. More information is available at www.southernarcminerals.com or by emailing info@southernarcminerals.com.

Qualified Person and Quality Control and Assurance

The information in this release has been compiled under the supervision of Southern Arc's Chief Geologist, 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 Chief Geologist – Feasibility Studies, Senior Geologist and Consulting Geologist. Mr. Rowe 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 98.0%. Half core is cut by rock saw and is generally sampled using nominal 1-metre intervals; however, sample intervals are varied according to geological contacts and have ranged 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 analysed by fire assay with AAS finish and a four-acid digestion with ICP-MS finish is used to analyse a full suite of elements including silver and base metals. 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.

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.

To view the figures accompanying this release please click on the following link: http://media3.marketwire.com/docs/0921sa.pdf

Table 1 – Mencanggah Prospect, Phase 1 Drilling, Diamond Drill Hole Statistics

HOLE ID COORDINATE
UTM
EL.
(m
above
MSL)
AZI-
MUTH
(N…°E)
INCL
(~°)
FINAL
DEPTH
(m)
INTER-
VAL
SIGNIF-
ICANT
INTER-
SECTIONS
(Au g/t)
E N
MCG001* 388177.0 9022741.0 277 210 -50 288.30 257.50-
259.80m
2.30m @
3.96g/t Au
MCG002* 388026.6 9022819.6 309 210 -55 138.30 118.70-
120.70m
2.00m @
5.15g/t Au

* Silver results pending.

Table 2 – Pelangan Prospect, Phase 2 Drilling, Diamond Drill Hole Statistics

HOLE ID COORDINATE
UTM
EL.
(m
above
MSL)
AZI-
MUTH
(N…°E)
INCL
(~°)
FINAL
DEPTH
(m)
INTER-
VAL
SIGNIF-
ICANT
INTER
SECTIONS
(Au/Ag g/t)
E N
PLD001 384577.0 9028692.0 144.8 59 -50 150.00 56.55-
61.4m
4.85m @
7.11/18.5
incl. 56.55-
57.9m
1.35m @
16.7/17.0
PLD002 384577.0 9028692.0 144.8 59 -75 221.80 120.15-
137.4m
17.25m @
5.73/11.7
incl. 121.6-
130.35m
8.75m @
10.51/20.7
PLD003 384530.9 9028672.1 120.4 65 -65 300.30 232.95-
249.50m
16.55m @
5.5/3.7
incl. 237.50-
245.20m
7.70m @
10.9/6.1
incl. 240.70-
245.20m
4.50m @
17.6/8.0
PLD004 384656.2 9028587.2 186.8 70 -50 150.00 79.25-
90.20m
10.95m @
2.00/34.0
incl. 88.70-
90.20m
1.5m @
5.6/166.0
PLD005 384463.8 9028885.9 71.6 100 -50 149.20 72.70-
74.45m
17.5m @
1.15/4.9
and 92.90-
94.85m
1.95m @
1.16/13.7
PLD006 384656.2 9028587.2 186.8 70 -68 149.00 110.05-
126.20m
16.15m @
1.4/12.0
incl. 110.05-
112.50m
2.45m @
4.7/34.0
PLD007 384490.0 9028777.6 77.6 62 -45 158.75 78.80-
118.50m
39.7m @
9.4/15.7
incl. 78.50-
96.20m
17.40m @
19.4/28.3
incl. 88.10-
94.25m
6.15m @
37.7/26.0
127.70-
128.45m
0.75m @
22.1/15.4
PLD008 384615.3 9028682.7 161.2 75 -45 156.00 70.35-
81.90m
11.55m @
9.80/31.1
incl. 70.35-
81.90m
3.5m @
26.1/96.5
93.70-
105.50m
11.8m @
1.40/9.2
incl. 100.2-
102.2m
2.00m @
3.70/22.6
PLD009 384530.9 9028672.1 120.4 32 -60 295.00 217.30-
225.50m
8.20m @
4.4/2.7
incl. 217.30-
221.60m
4.30m @
7.5/3.9
PLD010 384615.3 9028682.7 161.2 72 -70 195.00 127.35-
149.40m
22.05m @
2.7/2.8
incl. 140.40-
149.40m
9.0m @
4.6/1.6
incl. 140.80-
142.20m
1.4m @
11.5/2.3
PLD011 384529.0 9028670.0 117.0 65 -60 282.35 210.20-
226.70m
16.5m @
3.2/16.4
incl. 211.50-
216.25m
4.75m @
8.2/41.9
PLD012 384490.0 9028777.6 77.6 55 -70 310.10 108.80-
11.60m
2.8m @
0.5/5.4
188.50-
194.50m
6.0m @
0.5/2.0
PLD013 384631.4 9028649.5 184.3 82 -65 201.00 110.40-
134.90m
24.5m @
1.3/5.9
incl. 117.80-
126.75m
8.95m @
2.3/11.8
PLD014 384711.1 9028441.1 191.7 50 -65 159.00 74.60-
111.80m
37.2m @
2.5/14.2
incl. 90.70-
99.90m
9.2m @
4.1/24.0
PLD015 384591.5 9028646.3 168.1 84.6 -70 341.50 No significant result
PLD016 384566.9 9028767.9 106.6 63 -70 157.90 91.90-
102.90m
11.0m @
2.17/8.6
incl. 93.50-
95.80m
2.30m @
4.00/14.5
and 98.50-
99.20m
0.7m @
4.50 /4.0
PLD017 384709.1 9028440.0 191.6 15 -65 195.35 132.40-
138.40m
6.0m @
2.2/13.1
incl. 132.40-
133.70m
1.30m @
4.9/11
PLD018 384388.5 9029050.0 69.9 65 -47 162.90 79.30-
80.00m
0.70m @
2.4/2.7
PLD019 384663.3 9028360.5 221.6 70 -46 228.10 147.10-
152.30m
5.2m @
4.1/10.3
incl. 147.70-
148.45m
0.75m @
14.0/43.7
and 151.75-
152.30m
0.55m @
14.5/5.2
160.80-
174.75m
13.95m @
2.7/19.4
incl. 160.80-
163.20m
2.4m @
7.1/34.8
and 173.75-
174.75m
1.0m @
4.7/40.9
PLD020 384309.8 9028698.1 183.9 215 -50 187.00 66.95-
68.00m
1.05m @
1.3/1.5
78.65-
80.35m
1.7m @
2.5/0.8
110.05-
111.00m
0.95m @
1.4/3.3
PLD021 384640.2 9028566.2 171.1 65 -70 296.70 No significant result
PLD022 384783.9 9028193.0 269.9 80 -55 182.20 101.80-
117.60m
15.8m @
3.6/19.7
incl. 111.40-
117.00m
5.6m @
7.0/12.6
incl. 115.60-
117.00m
1.4m @
18.2/10.9
PLD023 384245.7 9028742.7 183.1 210 -50 164.25 No significant result
PLD024* 384663.3 9028360.5 221.6 65 -67 280.45 223.85-
225.80m
1.95m @
3.3
PLD025* 384783.1 9028193.0 271.1 44 -65 214.35 145.55-
160.55m
15m @
1.0
165.30-
175.35m
10.05m @
1.1
189.80-
191.10m
1.3m @
4.1
PLD026 384374.6 9029164.6 44.2 65 -55 77.60 Abandoned due to water
PLD027* 384120.8 9028807.5 190.2 210 -50 247.25 167.20-
193.40m
26.2m @
4.2
incl. 167.20-
168.50m
1.3m @
30.1
incl. 189.15-
192.60m
3.45m @
12.3
PLD028 384375.2 9028828.0 121.1 70 -61 334.20 251.05-
252.40m
1.35m @
1.0/6.2
PLD029 384313.1 9029257.0 53.3 65 -50 154.15 No significant result
PLD030 384158.7 9029448.0 32.4 65 -50 154.20 No significant result
PLD031* 384728.4 9028268.0 266.1 70 -50 213.15 154.70-
158.60m
incl. 156.40-
157.25m
3.90m @
3.9
0.85m @
11.5
PLD032* 384809.5 9028103.0 267.3 65 -45 191.40 87.20-
100.35m
incl. 97.05-
100.35m
13.15m @
1.4
3.30m @
2.3
PLD033* 384003.4 9028878.0 219.0 210 -50 187.95 114.95-
115.6m
0.65m @
1.04
PLD034 383794.0 9029010.4 230.1 210 -50 100.00
PLD036 383897.1 9028942.8 228.1 210 -50 15.20
PLD037 384809.5 9028103.0 267.3 65 -75 39.45
PLD038 384728.4 9028268.0 266.1 70 -70 11.75
Total Drilled Length 7,014.50

* Silver results pending.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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