Southern Arc Announces Inferred Resource Estimate for the West Lombok Property with 1.49 Million Ounces of Gold and 397 Million Pounds of Copper

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 11, 2013) - Southern Arc Minerals Inc. (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the Company") is pleased to announce the results of an initial National Instrument 43-101 ("NI 43-101") compliant resource estimate for its West Lombok property. SRK Consulting (Canada) Inc. ("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. The Raja, Bising and Tibu Serai epithermal gold deposits are estimated to contain 11,783,000 tonnes averaging 1.5 g/t gold for contained metal of 567,820 ounces of gold, with an additional 1.82 million ounces of silver in the Raja deposit. The Selodong porphyry copper mineralization is estimated to contain 66,750,000 tonnes averaging 0.43 g/t gold and 0.27% copper for contained metal of 922,800 ounces of gold and 397,324,000 pounds of copper within two zones: Montong Botek and Blongas. All the resources reported have been constrained by Whittle optimized open pit shells.

SRK has reviewed and authorized this press release and is preparing an NI 43-101 technical report outlining the resource estimate that will be filed within 45 days on SEDAR at www.SEDAR.com.

Details of the resource estimate are summarized below, with the resource locations shown in Figures 1 and 2 (http://media3.marketwire.com/docs/sa711_F1-2.pdf).

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.

"This maiden resource estimate for West Lombok confirms Southern Arc's model for a multi-pit project on a number of epithermal gold deposits on the property and enhances the area's potential for bulk tonnage porphyry copper-gold mineralization," said Dr. Mike Andrews, Southern Arc's President and Chief Operating Officer. "The mineral estimate reported here is based on drilling at only four locations in the 13 km by 7 km mineralized belt. Both Southern Arc and SRK feel the resource estimate could be expanded and upgraded with additional exploration."

Beginning in 1996, Southern Arc and the previous operator, Newmont, have completed a total of 55,706 metres of diamond core drilling (291 drill holes) on the three main prospects within the West Lombok property: Pelangan, Mencanggah and Selodong. Ninety-nine drill holes were included in the current resource estimation, while the remaining holes were either first phase exploratory holes or focused on different targets across the property. The reported resources cover three discreet epithermal gold targets: the Raja target in the Pelangan prospect (36 resource definition drill holes, for 5,787 m) and the Bising and Tibu Serai targets in the Mencanggah prospect (32 resource definition drill holes, for 5,200 m), as well as the two near-contiguous Montong Botek and Blongas porphyry targets within the Selodong copper-gold prospect (31 resource definition drill holes, for 11,012 m).

The resource estimation was completed by Dr. Gilles Arseneau, P.Geo. (APEGBC) of SRK, an "independent qualified person" as defined in NI 43-101. Gemcom GEMs software was used to construct geological solids, verify the database, prepare assay data for geostatistical analysis, construct 3D block models, estimate metal grades and tabulate mineral resources. Geostatistical Software SAGE2001 was used for geostatistical analysis and variography.

Geological modelling was completed by SRK for Raja, Bising and Tibu Serai with wireframes constructed on 20-m spaced sections using a 1.5-m minimum horizontal thickness and a 0.15 g/t gold nominal cut off, whereas at Selodong wireframes were constructed on 50-m spaced sections using a 0.2% copper equivalent cut off. Block model estimates were calculated using 10m by 10m by 5m blocks for Raja, Bising and Tibu Serai, and 10m by 10m by 10m blocks for Selodong. Block grades for gold, and where appropriate silver or copper, were estimated using Ordinary Kriging methodology. The resources reported were constrained by Whittle optimized open pit shells.

The Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves (2005) require that there be "reasonable prospects for economic extraction" and selection of appropriate cut-off grades for mineral resource estimates. To determine the quantities of material offering "reasonable prospects for economic extraction" by open pit, SRK used a Whittle pit optimizer and reasonable mining assumptions to evaluate the proportions of the block models that could be reasonably expected to be mined. Only these blocks were included in the stated resource estimate.

The drill results database used to estimate the West Lombok Project mineral resources was audited by SRK. SRK 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.

West Lombok Mineral District

Southern Arc's property is centred on the West Lombok Mineral Belt, a 13 km long by 7 km wide northwest trending zone that has been shown to host extensive development of linear structures hosting epithermal gold mineralization and exposed and blind porphyritic intermediate intrusives with associated porphyry-style copper-gold mineralization.

Epithermal Gold Mineralization

Epithermal gold mineralization occurs within the West Lombok Property as linear, steeply-dipping, tabular silica-rich bodies that are associated with advanced-argillic alteration of the host Tertiary volcanic rocks. The field term mineralized structural breccia ("MSB") has been applied by Southern Arc geologists to describe the property's style of mineralization. Two main centres of such gold mineralization have been defined: the Pelangan and Mencanggah prospects. The breccia bodies at Pelangan can be up to 30 metres wide and can extend more than 1,000 metres along strike. At Mencanggah, the breccia bodies are up to 100 metres wide and form zones in which some of the breccia bodies extend more than 1,000 metres along strike. Drilling has shown that the down-dip of these breccias extends beyond 300 metres in depth. In total more than 30 km of aggregate strike length of MSBs have been mapped in West Lombok.

Close-spaced drilling of the MSBs to depths of 300 metres has been undertaken at only four locations within the Pelangan and Mencanggah prospects. Three of these locations - Raja, Bising and Tibu Serai - showed continuity of mineralization adequate to yield Inferred Resource estimates. Figure 1 shows the locations of the resources defined to date as well as the full extent of MSBs outcropping within the West Lombok Mineral Belt.

Porphyry Copper-Gold Mineralization

Within the West Lombok Mineral Belt a number of outcropping centres of diorite hosted stockwork porphyry-type copper-gold mineralization have been identified, and numerous "blind" targets have also been defined. Figure 2 highlights the 23 porphyry copper-gold targets generated by airborne geophysics, structural interpretation, geochemistry and alteration mapping during Southern Arc's prospectivity analysis (refer to Southern Arc news release dated February 9, 2012).

Moderate to high prospectivity porphyry targets have been identified at Montong Botek, Blongas, Mahoni, Belikat and Makam Kedaro in the Selodong prospect; at Bising and Telekur in the Mencanggah prospect; and beneath Batu Sendi and Lala in the Pelangan prospect. A number of the targets have already had a limited amount of drill testing; however, most of the drilling has been focused on the Montong Botek and Blongas targets, which host the copper-gold resource reported here.

SRK's Recommendations for Further Exploration

SRK's report states that: "The West Lombok Property hosts at least four separate mineral deposits within a 10-km strike length. Both epithermal gold and porphyry copper-gold deposits have been identified and a large portion of the property still remains to be explored in detail. All deposits identified so far are still open along strike and at depth and further drilling could discover additional mineralization, especially at Raja where the possibility of finding mineralization that could be amenable to underground mining seems very good."

SRK has recommended that the following programs are warranted to advance the West Lombok Property. The locations outlined below are shown in Figure 1.

• At Raja, further drilling is required to upgrade the resource status to infill intercepts to nominal 25 metre centres, and to extend resources down-plunge of open high-grade shoots.
• Scout drilling to test the Lala structure located some 350 metres east of, and parallel to, the Raja deposit. Here numerous high-grade rock chip samples have been collected along an 800 metre strike zone.
• At Tibu Serai, where the current resource zone is only drilled on a 250 metre long zone of MSB, further drilling is required to test open extensions down dip and along strike.
• Scout drilling is warranted at several other targets with high-grade rock chip sampling at Mencanggah, including the 2-km long Mahoni zone.
• Further drilling is required on Bising to infill the upper high-grade parts of the structure and test open extensions along strike and down dip.
• Selective ground IP geophysics is recommended to focus porphyry drill testing on the higher priority porphyry targets.

The West Lombok Property contains several other mineral occurrences and only a small portion of the favourable ground has been drill tested to date. SRK have expressed their opinion that the untested mineral occurrences represent a great opportunity to locate additional mineralization on the West Lombok Property.

"This resource estimate represents a major milestone for Southern Arc and demonstrates that the West Lombok property holds significant potential on both the epithermal and porphyry fronts," said John Proust, Chairman and Chief Executive Officer of Southern Arc. "With this resource estimate in hand, we are now in a position to advance substantive conversation with potential partners to fund and advance the West Lombok property."

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 info@southernarcminerals.com.

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.

The drill program and sampling protocol is managed by Southern Arc under the supervision of Andrew Rowe B. App. Sc. Geology, MAusIMM, Southern Arc's Executive Vice President,. Mr. Rowe has over 20 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 diamond drill holes are drilled at PQ, HQ and NQ sizes depending on hole depth and core recovery to date has averaged better than 97.5%. 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, 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.

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.