Southern Arc Minerals Inc.
TSX VENTURE : SA
OTCQX : SOACF

Southern Arc Minerals Inc.

August 23, 2013 14:44 ET

Southern Arc Files West Lombok Technical Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 23, 2013) - Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the Company") has filed a National Instrument 43-101 Technical Report regarding the resource estimate for its West Lombok property. The resource estimate and technical report were completed by SRK Consulting (Canada) Inc. ("SRK"). The technical report has been filed on SEDAR at www.sedar.com and on Southern Arc's website.

As previously announced on July 11, 2013, SRK has estimated an Inferred Resource totalling 1.49 million ounces of gold, 1.82 million ounces of silver and 397.3 million pounds of copper from three open-pittable epithermal gold deposits and one porphyry copper deposit. Details of the resource estimate are summarized below and in Figure 1.

West Lombok Property Mineral Resource Estimate Effective Date June 29, 2013
Grade Contained Metal
Prospect Tonnage (tonnes) Gold (g/t) Silver (g/t) Copper (%) Gold (oz) Silver (oz) Copper
(lb)
Epithermal Style 1
Raja 3,898,000 2.63 14.0 - 329,700 1,821,000 -
Bising 6,908,000 0.88 ns - 195,550 ns -
Tibu Serai 977,000 1.36 ns - 42,570 ns -
Total 11,783,000 1.50 14.0 - 567,820 1,821,000 -
Porphyry Style 2
Selodong 66,750,000 0.43 ns 0.27 922,800 ns 397,324,000

Notes:

ns not significant

  1. Resources for the Raja epithermal deposit are reported at a 0.5 g/t gold equivalent cut-off using the long-term consensus price forecasts for gold and silver of US$1500 and US$25 per ounce, respectively, and assumed 100% metal recoveries for both metals. Bising and Tibu Serai epithermal deposits are reported at a cut-off grade of 0.5 g/t gold. All resources were constrained inside a Whittle open pit shell. Gold grades were capped at 30 g/t for Raja, 5 g/t for Bising and 5 g/t for Tibu Serai.
  2. The resource for the Selodong porphyry copper-gold deposit is reported for a 0.25% copper equivalent cut-off grade inside a Whittle open pit shell. Copper equivalent is calculated using the long-term consensus metal forecast prices for gold and copper of US$1500 per ounce and US$3.56 per pound, respectively, and assumed 100% metal recoveries for both metals. Gold was capped at 4 g/t for Selodong. No capping was applied to copper.
  3. All numbers have been rounded to reflect the relative accuracy of the estimates.
  4. The mineral resources have been estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserves Best Practices" guidelines. Mineral resources are not mineral reserves and do not have demonstrated economic viability.

To view Figure 1 - West Lombok Geological Map and Resource Areas, please visit the following link: http://media3.marketwire.com/docs/823SA-Figure1.pdf.

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 focused on gold and copper-gold exploration. The Company's key exploration property is its West Lombok project in Indonesia, with several gold-rich copper porphyry and epithermal gold vein prospects. In August 2013, Southern Arc acquired a 26.14% interest in Eagle Hill Exploration, which owns the high-grade Windfall Lake Gold Project in Quebec, Canada. 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.

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.

Cautionary Note Regarding Resource Estimates

This press release uses the term "resources", "indicated resources" and "inferred resources". United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the "SEC") does not recognize them. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of "contained ounces" is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report "resources" as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this release may not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.

National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. All resource estimates contained in this circular have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.

Qualified Person

The resource estimation described in this document was completed by Dr. Gilles Arseneau, P.Geo (APEGBC) of SRK, an appropriate "independent qualified person" as this term is defined in National Instrument 43-101 ("NI 43-101"). SRK has audited the drill results database used to estimate the West Lombok Project mineral resource, and is of the opinion that the current drilling information is sufficiently reliable to interpret with confidence the boundaries for epithermal gold and porphyry copper mineralization and that the assay data are sufficiently reliable to support mineral resource estimation. Dr. Arseneau has completed a site visit to the West Lombok Project and has reviewed Southern Arc's drill program and sampling protocol, and is of the opinion that the QA/QC data and sampling programs are acceptable for the purpose of resource estimation.

The technical information in this document has 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.

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, the need to obtain permits, the need to work with local communities and authorities to advance the properties, 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 ability 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, including uncertainty related to drill results and the inclusion of drill results in future resource estimates for the property. 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.

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