Southern Arc Announces Completion of Strategic Review, Commencement of West Lombok Drilling and Sale of the Taliwang Project

Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the
Company") today announced results from its recent strategic review and the
commencement of West Lombok drilling. Southern Arc also announced that the
Company has accepted an offer for its Taliwang project in West Sumbawa,
Indonesia, subject to certain conditions being met by the purchaser. 




       Southern Arc will host an investor webcast and conference call       
               December 13, 2012 at 1:30 pm PST (4:30 pm EST)               
                  North American toll-free 1-800-319-4610                   
                     International callers 604-638-5340                     
                     Webcast www.southernarcminerals.com                    



Prior to Southern Arc's Annual General Meeting, held in Vancouver on November
23, 2012, the Board of Directors met to consider recent and ongoing developments
at the Company's properties and in Indonesia, and to consider the best path
forward for the Company. The Executive was instructed to prepare a review of all
Southern Arc properties and to recommend a clear and compelling strategy to the
Board by which to protect and promote shareholder value. This review was
presented to the Board at a special meeting on December 6, 2012. Primary
considerations in this review were:




--  Priority ranking of projects; 
--  Focus on core assets; 
--  Best opportunities to advance projects; 
--  Capital markets for exploration companies; and 
--  Best approach to risk management. 



Southern Arc's Board has approved the recommended strategy, which includes:



--  Proceeding with staged execution of the drilling program for West Lombok
    as announced on November 20, 2012, with periodic review at the Board
    level; 
--  Retaining the Company's no-cost joint venture interest in the highly
    prospective East Elang project; 
--  Conditional acceptance of an offer to buy the Taliwang project, with
    details to be announced when the sale is finalized; 
--  Relinquishing the Sabalong project; and 
--  Remaining open to considering new gold-focused opportunities within
    Indonesia and advanced-stage projects in other countries. 



West Lombok Project

West Lombok is the Company's flagship property, spanning a 13 km by 7 km
corridor of mineralization. The Company has commenced the previously announced
drilling program, starting with Phase A exploration at the Bising target. Upon
conclusion of Phase A drilling at Bising and Tibu Serai, results will be
presented to the Board along with an updated strategy for further drilling.
Southern Arc reiterates its objective of producing a National Instrument 43-101
compliant resource estimate for portions of the property by mid-2013.


While exploration activities on West Lombok are currently focused on epithermal
gold-bearing structural breccias, previous work has identified excellent
potential for porphyry copper-gold mineralization on this property. Over the
coming months, the Company will consider joint venture options for advancing
potentially large-scale porphyry mineralization on West Lombok. 


Activities at West Lombok continue to be directed by Andrew Rowe, Southern Arc's
Executive Vice President, who has managed on-site exploration of this property
since 2009, and overseen by Dr. Mike Andrews, Southern Arc's President and Chief
Operating Officer.


East Elang Project

The East Elang property is located immediately adjacent to Newmont's Elang
copper-gold porphyry deposit, reported by Newmont to contain an estimated 25
million ounces of gold and 16 billion pounds of copper. Airborne geophysics and
lithographical studies suggest that structures controlling the Elang porphyry
trend may extend onto Southern Arc's East Elang property. 


The East Elang property will be advanced under the terms of an option and joint
venture agreement with Vale S.A., whereby Vale must fund all costs through to
completion of a bankable feasibility study to earn a 75% interest in the
property. 


"This narrowing of strategy enables Southern Arc to dedicate resources in the
near-term to advancement of our flagship West Lombok property," said John
Proust, Chairman and CEO of Southern Arc. "At the same time, with streamlined
operations we can conserve the Company's treasury, a key asset currently
standing at $18 million, while also considering other options to broaden the
Company's portfolio, both inside and outside of Indonesia."


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, with several gold-rich copper porphyry and epithermal gold
vein prospects. 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
[e-mail]. 


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. 


Qualified Person 

The technical information in this document has been reviewed by Southern Arc's
Executive Vice President, 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 Principal Geologist - Feasibility Studies, Senior Geologist and
Consulting Geologist. The technical information in this document has also 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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Southern Arc Minerals Inc.
Rhylin Bailie
Vice President, Communications & Investor Relations
604-676-5241
[e-mail]
www.southernarcminerals.com