Southern Arc Provides Update on Forestry Permitting Status of its West Lombok Project and Modifies Exploration Plans

Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the
Company") would like to provide the following update regarding the status of
exploration activities on its West Lombok project.


Following issuance of its mining business license (IUP) in January 2011,
Southern Arc initiated the forestry permit process to allow for advanced
exploration activities on its West Lombok project. As described in the press
release issued on August 26, 2010, approximately 1.1% of the West Lombok
property is designated Protected Forest (no open-pit mining allowed; underground
mining allowed with the appropriate forestry permit), 55.1% is designated
Production Forest (open-pit and underground mining allowed with the appropriate
forestry permit) and 43.8% has no forestry designation (no restriction on mining
activities). 


Since the property had been clear-cut logged in the 1990s, Southern Arc decided
to proceed with exploration activities, with strong local government support and
encouragement, while waiting for issuance of its forestry borrow/use permit,
known as a Pinjam/Pakai permit. The Company has recently been advised to adopt a
more conservative approach to its activities within areas designated as
Production Forest, regardless of the fact that there are no longer any forested
areas on the West Lombok property. As a result, the Company's near-term drilling
activities will be focused on targets within areas without forestry designation
until the Company receives the Pinjam/Pakai permit. 


Southern Arc has relocated two rigs to the Jati and Tanjung targets on the
Pelangan prospect, where previous exploration identified a continuous 1.5km-long
mineralized epithermal breccia hosting at least one high-grade lode structure.
Previous drilling intersections include 10.05m @ 13.4 g/t gold and 8 g/t silver
(TGD-02), 9.2m @ 5.9 g/t gold and 11 g/t silver (JDG-03) and 26.2m @ 4.2 g/t
gold (including 3.45m @ 12.3 g/t gold: PLD-027). 


"We have a strong relationship with the West Lombok Regency, which holds a ten
percent stake in the West Lombok project. We are the number one employer in the
district, providing significant economic and social benefits to local
communities," said John Proust, Chairman & CEO of Southern Arc. "All of our
exploration activities have been implemented based on extensive consultation
with the local authorities. 


"Ongoing engagement with the Ministry of Forestry is a top priority for the
Company's in-country team. We have the support of the local authorities and
communities and are confident that discussions with the Ministry of Forestry
will be productive. We will work diligently to expedite permitting in order to
resume full-scale exploration of the West Lombok project. With regard to the
Company's stated goal of completing two NI 43-101 resource estimates by June 30,
2012, the timing of those resource estimates is contingent upon receipt of the
Pinjam/Pakai permit." 


Results from the remaining 16 holes drilled on the Waterfall target on the
Mencanggah prospect are expected to be released in early January. Southern Arc
has recently completed eight holes on the Bising target on the Mencanggah
prospect, with results expected by late January. 


About Southern Arc

Southern Arc Minerals Inc. is a 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 and on the OTCQX under
the symbol SOACF. More information is available at www.southernarcminerals.com
or by emailing [e-mail]. 


On behalf of the Board of Southern Arc Minerals Inc.

John Proust, Chairman & Chief Executive Officer

Qualified Person 

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.


The drill program and sampling protocol is managed by Southern Arc under the
supervision of Andrew Rowe, Chief Geologist. 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 

Certain statements contained in this news release constitute forward-looking
information and forward-looking statements within the meaning of applicable
securities legislation (collectively "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. The use of any of the words "would be", "will
be", "will", "expected" and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements. The
Company believes that the expectations reflected in those forward-looking
statements are reasonable, but no assurance can be given that these expectations
will prove to be correct. Such forward-looking statements should not be unduly
relied upon. These statements speak only as of the date of this news release.
With respect to forward-looking statements contained in this news release,
assumptions have been made regarding the regulatory framework regarding the
issuance of permits and future development plans for the Company's assets
unfolding as currently envisioned. Actual results could differ materially from
those anticipated in these forward-looking statements as a result of numerous
known and unknown risks, uncertainties and other factors, such as regulatory,
market, business, technical, political and general economic risks. 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. The
forward-looking statements contained in this news release are expressly
qualified by this cautionary statement. Except as required under applicable
securities laws, the Company does not undertake or assume any obligation to
publicly update or revise any forward-looking statements. 




Table 1 - Select Drill Holes From Pelangan Prospect                         
                                                                            
----------------------------------------------------------------------------
                                                                 Significant
                      From        To                                 Results
Hole ID  Target        (m)       (m)    Interval               (Au / Ag g/t)
----------------------------------------------------------------------------
TDG02    Tanjung     32.85     42.90       10.05           10.05m @ 13.4 / 8
                     35.35     37.65        2.30      incl. 2.3m @ 47.9 / 24
                     39.90     41.80        1.90          and 1.9m @ 7.1 / 2
----------------------------------------------------------------------------
JDG03    Jati        52.90     62.10        9.20             9.2m @ 5.9 / 11
                     55.30     56.55        1.25      incl. 1.25m @ 24.9 / 7
----------------------------------------------------------------------------
PLD027   Tanjung    167.20    193.40       26.20                 26.2m @ 4.2
                    167.20    168.50        1.30           incl. 1.3m @ 30.1
                    189.15    192.60        3.45          incl. 3.45m @ 12.3
----------------------------------------------------------------------------