Southern Arc Minerals (TSX VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the
Company") today announced the results of its first quarter ended September 30,
2012, along with an update on its portfolio of projects. Details of the
Company's financial results are described in the unaudited condensed
consolidated interim financial statements and Management's Discussion and
Analysis ("MD&A"), which will be available on the Company's website at
www.southernarcminerals.com and on SEDAR at www.sedar.com. All amounts are in
Canadian dollars unless otherwise stated.




HIGHLIGHTS

--  $18.0 million in working capital 
--  Pinjam Pakai Ministry of Forestry permit received for West Lombok
    property 
--  Board of Directors conducting a strategic review of the Company's
    properties and corporate strategy 

FINANCIAL SNAPSHOT

---------------------------------------------------------------------------
                                     September 30, 2012       June 30, 2012
                                     --------------------------------------
Total assets                               $ 60,231,920        $ 60,884,512
Exploration properties                       38,808,405          37,430,624
Working capital                              19,027,865          21,035,112
Comprehensive loss                             (757,053)         (4,312,411)
Basic and diluted loss per share                  (0.01)              (0.04)
---------------------------------------------------------------------------



EXPLORATION UPDATE AND OUTLOOK

Strategic Review

The Company's Board of Directors is conducting a strategic review of all of the
Company's properties in Indonesia and has delayed further exploration pending
completion of this review, which is expected to be completed by December 14,
2012.


West Lombok Property (Lombok Island)

The West Lombok Project covers a 13 km by 7 km structural corridor of
mineralization and alteration hosting porphyry copper-gold and epithermal gold
deposits. The two main epithermal prospects on the property, Pelangan and
Mencanggah, cover broad areas of 4 km by 5 km and 6.5 km by 4.5 km,
respectively, that host numerous structurally-controlled silica ledges variably
overprinted by high-grade quartz veins and breccias. Individual tabular ledge
bodies range in thickness from 2 to 66 metres, with a strike length of up to
1,000 metres and a vertical extent of greater than 300 metres. Southern Arc has
completed 22,243.3 metres of drilling to date on epithermal gold mineralization,
confirming high-grade events typical of epithermal boiling zones and identifying
several high-grade shoots. In addition, the Company has completed an airborne
geophysical survey of the West Lombok project at 50-metre spacings to define
both near-surface and buried copper-gold porphyry targets. Industry experts
including Dr. Steve Garwin, Southern Arc's Senior Technical Advisor, modelled
and interpreted the results of the survey in conjunction with the Company's
geological and geochemistry database, and identified 17 porphyry targets on the
property. A number of the targets have already had a limited amount of drill
testing that demonstrated host zones of high-grade gold-rich porphyry copper
mineralization, supporting the outcome of the prospectivity analysis.


On November 20, 2012, Southern Arc announced that the required forestry permit,
known as a Pinjam Pakai (borrow to use) permit, has been received. While
awaiting receipt of the permit Southern Arc has continued to work closely with
SRK Consulting (Canada) Inc., an internationally renowned, independent
consulting service to major, intermediate and junior mining and exploration
companies, and has prepared a detailed drill program for epithermal gold targets
within the Pelangan and Mencanggah prospects. The Company has postponed any
further exploration at the West Lombok property, however, pending completion of
the Board of Directors' strategic review.


During calendar 2012, prior to receipt of the Pinjam Pakai permit, Southern Arc
drilled a total of 3,501.5 metres in areas with no forestry designation that did
not require Ministry of Forestry approval, completing 14 drill holes in the
northwest section of the property focused on epithermal gold mineralization and
two holes in the southeast section of the property focused on porphyry
copper-gold mineralization. Surface mapping and channel sampling continued on
the West Lombok property throughout the year. Encouraging assay results from
continuous rock chip channels collected across the strike of mineralized
structural breccias have been received from a number of Pelangan and Mencanggah
prospect localities.


Sabalong Property (Sumbawa Island)

Southern Arc is the operator of the Sabalong property, which has until recently
been advanced with a wholly-owned subsidiary of Vale under an option and joint
venture agreement. In July 2012, the Company and Vale announced that they had
completed Phase 1 exploration work on the Sabalong property. Southern Arc and
Vale completed three diamond drill holes at the Sabalong property (totaling
1,811 metres) to test potential porphyry intrusive targets that had been defined
by geophysical surveys. Drilling intersected weakly altered intrusions and
volcanics with no significant porphyry copper mineralization. With Phase 1
exploration complete, Vale elected not to proceed to Phase 2 and withdrew from
the Sabalong project.


Southern Arc now holds a 100% economic interest in the Sabalong project and
between July and September 2012 completed a six-hole drill program totaling
1,035.6 metres to test epithermal gold vein targets in the Toyang prospect as
defined by historical Newmont (1986-92), Rio Tinto Zinc ("RTZ") (1993-98) and
Company (2007-present) exploration work. While a number of the holes revealed
mineralized intervals similar in scale and tenor to historical RTZ results,
Southern Arc's drilling failed to demonstrate any increase in grade or width
with depth, and did not establish lateral extension of the mineralization. The
Company has not planned any follow-up drilling at this time, and is considering
future options for the Sabalong property.


East Elang Property (Sumbawa Island)

Vale remains a committed partner at the East Elang project. Under the terms of
the October 2010 Option and Joint Venture Agreement, Vale can earn a 75%
interest in the East Elang property by advancing the property to bankable
feasibility study, with a minimum Phase 1 expenditure of US$1.2 million within
one year from the date on which Southern Arc receives a Ministry of Forestry
Pinjam Pakai permit for the property.


The East Elang property is located adjacent to Newmont's Elang copper-gold
deposit. Aerial photography and lithographical studies suggest that the Elang
mineralized structure extends onto Southern Arc's East Elang property. While the
property is considered highly prospective due to its location and results from
aerial surveys, exploration of this property has been deferred pending
reclassification of the property's forestry status. Application has been made to
the Regency authorities for suspension (back-dated for two years) of the mining
business license ("IUP") license until the reclassification process has been
completed, ensuring that Southern Arc and Vale have adequate time to evaluate
the property once exploration commences.


Taliwang Property (Sumbawa Island)

Located adjacent to Newmont's world-class Batu Hijau copper-gold mine, the
Taliwang property covers 31,200 hectares prospective for gold, silver and copper
mineralization. Exploration to date has identified a gold-silver bearing
epithermal vein system in which 56 drill holes have confirmed both lateral and
vertical persistence of the mineralized structures, near-surface porphyry
copper-gold targets with associated surface high-sulphidation epithermal
signatures, and sedimentary gold-hosted targets. Surface exploration activities
during 2011 focused on detailed lithological and alteration mapping of
epithermal and porphyry prospect areas, as well as clay spectral analysis
studies.


The Company does not have any exploration activities planned for Taliwang at
this time and is assessing its options for the property, including whether to
sell or joint venture the property.


Other properties

Southern Arc is actively pursuing a number of acquisition and partnership
opportunities with the objective of adding value for shareholders by expanding
the Company's project portfolio.


RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2012

During the three-month period ended September 30, 2012, the Company had a loss
of $757,053 compared to a loss of $285,270 for the three-month period ended
September 30, 2011. Significant fluctuations occurred in the following
categories:




a.  Share-based compensation of $93,491 (2011: $98,270) decreased due to
    lower calculated cost for options granted during the period. Share-based
    compensation expense is accounted for at fair value as determined by the
    Black-Scholes Option Pricing Model using estimates that are believed to
    approximate the volatility of the trading price of the Company's stock,
    the expected lives of awards of stock-based compensation, the fair value
    of the Company's stock and the risk-free interest rate. 
b.  Consulting fees of $nil (2011: $36,963) decreased due to a lower level
    of exploration activity; more consultants were engaged during the
    previous period. 
c.  Foreign exchange loss of $128,524 was realized during the three-month
    period ended September 30, 2012 (2011: $341,642 gain) primarily due to
    the effect the fluctuation of the US$/CDN$ exchange rate had on the
    Canadian equivalent of the Company's holdings and transactions in its
    US$ bank balance and US$ payables balance. 
d.  Management fees increased to $216,000 compared to $141,000 in 2011 and
    are discussed in detail in the Related Parties section. 
e.  Professional fees of $47,977 (2011: $66,778) decreased due to lower
    corporate activity in the period. 
f.  Travel expenses of $nil (2011: $48,700) decreased as a result of a
    reduction in executive travel during the period. 
g.  Interest income of $56,327 (2011: $91,339) decreased during the period
    as a result of lower cash balances. 
h.  During the three-month period ended September 30, 2012, the Company
    invested $1,563,999 (2011: $3,322,226) on exploration properties and
    $nil on property, plant and equipment (2011: $82,281). 



On behalf of the Board of Southern Arc Minerals Inc.

John Proust, Chairman & CEO, Director

About Southern Arc

Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on
gold and copper-gold exploration. The Company's portfolio includes four
exploration projects with epithermal gold and copper-gold porphyry prospects on
the Lombok and Sumbawa islands in Indonesia, one of which is being advanced in
partnership with Vale S.A. 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.


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
info@southernarcminerals.com
www.southernarcminerals.com
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