Our Vision: The Unique Opportunities of Indonesia

Understanding that Indonesia offers a unique window of opportunity for mineral exploration, we believe that a management group with particular expertise in the country’s environment, geology, mineralization, the mining industry, the local culture, language and government offers shareholders an outstanding opportunity for investment growth.

Objectives

Southern Arc operates under three key objectives:

1. To become the premier mineral exploration and development company in Indonesia.
2. To enhance shareholder value by actively focusing on the acquisition, exploration and resource definition phases of the mining project cycle.
3. Exploring for "best of breed" deposits on properties with favourable locations.

The company's goals include continuing to drill-test its projects with the aim of defining resources, utilize competitive advantages to aggressively target and acquire additional gold and precious metal assets, create continuing additional shareholder value by delivering strong exploration results and sound, regionally-grounded business practices. Value will be unlocked by methods that maximize returns to Southern Arc shareholders, including farming out project equity to major mining companies once resources have been defined. The majors will then finance, develop and construct the mines while Southern Arc will retain significant minority equity positions to provide ongoing income to finance further exploration of new projects and possible dividends.

To meet these objectives, the company's management team continues to work diligently and pro-actively in its dealing with the various levels of the Indonesian government from the central level to the village level, statutory organizations and other stakeholders in the jurisdications within which the company operates. Furthermore, the company has already entered into joint venture agreements with Vale on its Sabalong and East Elang projects and with Newcrest on its Taliwang project.

Focus on the Sunda-Banda Mineral Arc

The company is actively exploring four properties along Indonesia's southern arc of islands [see Sunda-Banda Arc map], one of the most prospective areas in the world for high-grade porphyry and epithermal vein deposits. This island arc belt, one of the richest mineral trends in the world, stretches across the islands of southern Indonesia. Employing a systematic approach to the evaluation of mineral targets, particularly on the islands of Sumatra, Java, Lombok, and Sumbawa, the company will identifies, acquires and advances world-class mineral targets.

Island arc terrains throughout the Pacific Rim host some of the most significant copper-gold porphyry-related deposits and epithermal gold deposits. Deposits with very high grades are the basis for very profitable operations in a region where infrastructure is well established and permitting for exploration and development is favourable. More specifically, within the Miocene-aged island chain of Indonesia is Freeport’s massive Grasberg copper-gold deposit and the Newmont-Sumitomo Batu Hijau copper-gold deposit. In addition to copper-gold, the geological region is prospective for low and high sulphidation epithermal mineralization.

A key part of Southern Arc's strategy is acquiring and exploring areas that have had some previous preliminary and up-to-advanced exploration work. Of significance has been the company’s acquisition of highly prospective ground that Newmont Mining was obliged to relinquish when it began developing its huge Batu Hijau Mine on the island of Sumbawa.

See quick project overview and objectives.