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UPDATE ON SOUTHERN ARC MINERALS' EXPLORATION ACTIVITIES ON SUMBAWA AND FLORES ISLANDS PROPERTIES

Southern Arc Minerals Inc. (TSX Venture: SA) is pleased to present the following exploration update on its Indonesian properties located on Sumbawa Island in West Nusa Tenggara Province, and on Flores Island in East Nusa Tenggara Province, Indonesia.

Taliwang (West Sumbawa) SIPP

The West Sumbawa (Taliwang) property is currently in its second one-year extension period of the SIPP (Preliminary General Survey) license. The latest extension was granted by the West Sumbawa regent on April 22, 2006. The Company expects the preliminary round of negotiations on the new 7+ generation CoW agreement for the Taliwang property to commence late this month. Accordingly, the joint central government-provincial government CoW negotiating team has been appointed. It is hoped that the CoW can be finalized before the end of the year.

Lemonga Prospect

The second phase of drilling at the Lemonga Prospect is scheduled to be completed by late June. Once drilling is completed, the drill rigs will be placed on standby while final analytical results are received and all data are processed into a form whereby resource potential may be indicated.

News releases 06-04 (January 31, 2006), 06-05 (February 21, 2006), 06-08 (April 4, 2006), 06-11 (April 20, 2006), 06-12 (May 9, 2006) and 06-13 (May 24, 2006) reported on the first 28 drill holes (LDG-17 to LDG-44) of the Phase 2 drilling program.

Ramit Prospect

Following the identification of two structurally-controlled, high sulfidation epithermal vein prospects (Semoan & Raboya) and their apparent genetic association with a large helimag anomaly (interpreted as an intrusive or sub-volcanic body) coincident with an extensive chargeability high (based on IP/resistivity results), a porphyry high-sulfidation model was conceived and drill tested. A total of four holes totaling 1,218.75 m were drilled to explore the conceptual porphyry and porphyry shoulder target beneath a 750-m east-west IP chargeability zone. Although extensive porphyry-style alteration and mineralization was intersected, reported gold and copper grades were of low tenor. Further petrological work, a ground magnetic survey, and subsequent data interpretation are required to be able to vector further drill holes.

Air Panas KP (Southwest Sumbawa)

Southern Arc, through its locally controlled Indonesian entity, on March 13, 2006 was issued an exploration license (Kuasa Pertambangan, "KP") for an area of 9,670 ha adjoining Newmont's Elang porphyry discovery. The license is valid for 12 months and can be extended for a further 12 months as part of the General Survey conditions of the license.

SA currently has consultant Peter Pieters undertaking a lithostructural study of the property using remote sensing imagery including aerial photographs and Landsat 7EM imagery. An initial interpretation is expected by the end of the month. It will be field truthed in early July. At this time field crews will undertake a regional drainage sampling program using flocculated BLEG and stream sediment sampling techniques at a density of one sample per 1 to 1.5 km². Follow-up sampling will be carried out later in the quarter, along with structural mapping to investigate the Elang porphyry mineralization trend, which is interpreted as extending onto SA's property. An airborne geophysical survey utilizing VHEM, magnetic and radiometric techniques is planned for the fourth quarter of 2006, depending on the availability of equipment.

Flores Island

All of SA's properties on Flores are held under KP exploration licenses granted through SA's locally controlled Indonesian entity. The KP licenses were issued by the relevant regency authorities. The licenses are valid for 12 months and can be extended for a further 12 months as part of the General Survey conditions of the license.

Tebedo KP

The Tebedo KP covers an area of 1,291 ha and is easily accessed by road from the regional port of Labuanbajo on west Flores. Possible structurally-controlled exhalative and replacement Au-Ag base metal mineralization has been mapped over an area of 450 m by 400 m, within brecciated flow-banded dacites, which are covered to the west and north by post-mineral epiclastics and limestones. Two parallel north-northeast trending zones of silica-barite-base metal veining of widths up to 36 m and 200+ m strike length host the majority of mineralization. These appear to lens out to the south and are inferred to be down-faulted to the north and masked by epiclastic cover. Channel sampling of historical costeans and newly-discovered exposures has returned significant intersections of:

TR-01: 11 m @ 4.72 g/t Au & 445 g/t Ag
TR-02: 25 m @ 2.01 g/t Au & 234 g/t Ag
TR-03: 5 m @ 2.76 g/t Au & 348 g/t Ag
TR-04: 28 m @ 3.39 g/t Au & 126 g/t Ag
TR-06: 36 m @ 3.20 g/t Au & 183 g/t Ag (including 10 m @ 5.02 g/t Au & 339 g/t Ag)

Scattered rock chip highs to a maximum of 5.43 g/t Au and 704 g/t Ag suggest the potential for sub-parallel mineralized zones. Interpretation of results to date suggests that the mineralized zones may form the limbs of a shallow plunging, NNE trending syncline. This concept, along with potentially hidden mineralized zones below the cover rock, will be tested in an upcoming ground IP-resistivity survey scheduled for mid-July. If results warrant, targets will be drill-tested late in the third quarter using a small man-portable rig.

Bolol KP

The Bolol KP covers an area of 1,015 ha and is viewed as a conceptual high-level epithermal vein target.

The majority of the paleo-geothermal system is intact and displays low-level Au-Ag rock and soil anomalism, along with suggestions of fluid outflow zones consistent with hot spring silica Au-Ag models. Exploration by SA field crews has confirmed the presence of an extensive (500 m by 800 m) zone of strong silicification with highly anomalous As-Sb-Mo rock geochemistry lying immediately to the NNW of the down-faulted Au-Ag stockwork veined zone. Peak values from outcrop channel sampling were 1.03 g/t Au & 106 g/t Ag and 0.88 g/t Au & 173 g/t Ag.

Recent geologic mapping shows that an extensive veneer of colluvium and talus scree (1 to 5 m thickness) covers a large portion of the prospect area, thereby casting some doubt on the extensive linear Au-Ag soil anomaly reported by previous operators. A small motorized spiral auger drill will be mobilized by mid-July to undertake a grid-based bedrock sampling program on selected areas of the prospect. In addition, a number of rock samples will selected for petrological studies with particular emphasis on refining the model for up-flow fluid zones (potential higher grade Au>>Ag grades) through fluid inclusion studies. Again, if warranted, the prospect is planned to be drill-tested in the third quarter with a program of shallow 80 to 125 m or deeper diamond drill holes.

Longgo KP

Previous exploration at the Longgo KP (1,207 ha) reported highly anomalous Cu-Zn-±Pb soil and rock geochemistry over an area of 2,500 m by 500 m. Early workers suggested that base metal anomalism was related to structurally and stratigraphically controlled epithermal mineralization. Following initial evaluation work, a decision was made to undertake a ground EM geophysical survey (scheduled for August 2006) and, if warranted, targets will subsequently be drill tested.

Dalong KP

Previously described silica-pyrite-Au-Ag-As-Sb mineralization at the Dalong KP (613 ha) appears to be hosted by limited erosional remnants of a jasperoidal host. Small, apparently rootless pods of silicified limestone were mapped in dacitic volcanics at levels below the remnant hill and ridge-forming jasperoids. A number of historical trenches and soil anomalies appear to have been generated through sampling of talus scree slopes. Limited tonnage potential downgrades the prospect and no further work is warranted.

Exploration Opportunities

Apart from the above ongoing and planned activities, SA is also aggressively pursuing other mineral opportunities within Indonesia. Along with research of the potential of historical reported mineral occurrences, negotiations are continually being conducted with various governmental and private entities with the aim of acquiring stakeholds, whether in the form of JVs, farm-in, or contract exploration agreements, in greenfields through to more advanced projects.

Qualified Person and Quality Control and Assurance

The information in this release has been compiled under the supervision of Southern Arc's Vice President of Exploration Hamish Campbell B.Sc.Geology, MAusIMM. Mr. Campbell has over 21 years of international mineral exploration experience including 19 years in Indonesia during which he has held such positions as Exploration Manager, Senior Geologist and Consulting Geologist. Mr. Campbell has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined in terms of NI 43-101.

All assaying of samples was undertaken by the ITS laboratory in Jakarta. 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 (LIMS) for sample tracking, quality control and reporting.

On behalf of the Board of
Southern Arc Minerals Inc.


"John Proust"

President and CEO

Southern Arc Minerals Inc.
Suite 1500, Box 1078, 885 West Georgia Street, Vancouver, BC V6C 3E8 Canada
Telephone: (604) 676-5241 Fax: (604) 676-5246

"The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release"

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