Southern Arc Minerals has received encouraging assay results from a further four diamond drill holes of its phase two drilling program at the Lemonga Prospect located on Sumbawa Island, Indonesia.

The holes LDG-31 to LDG-34 were drilled to test lateral extensions of high-grade gold-silver shoots intersected in an earlier drilling program, along with CSAMT ("resistivity") linear targets interpreted as extensions of known veins and breccia zones.

Drill holes LDG-31 and LDG-33 which were drilled in the first fourteen holes of the phase two drill program were targeted to test extensions and continuity of gold-silver intercepts from the southern extremes of the Amy Vein.

Drill hole LDG-32 targeted continuity of gold-silver grades from previous hole LDG-11 (7.9 m @ 5.81 grams per tonne gold and 37 grams per tonne silver) a further 30 metres north along the Dessy Vein.

Drill hole LDG-34 was drilled to test central portions of the Evi Vein, along with inferred splays of the vein structures that were suggested by CSMAT results.

All holes were drilled at right angles to the strike of the vein at -45º inclinations.

Highlights of drill hole intercepts are:

Intercepts in the Dessy Vein continue to show promise with a potential 550+ metres of strike length as supported by vein outcrops and linear CSMAT resistively zones. This zone will be tested with forthcoming drill holes.

Drill hole LDG-31 4.00 m @ 2.20 g/t Au & 2 g/t Ag from 84.15 m (including 2m @ 3.21 grams per tonne gold & 2 grams per tonne silver)

Drill hole LDG-32 0.95 m @ 2.16 grams per tonne gold & 1 gram per tonne silver from 91.55 m 4.85 m @ 5.49 grams per tonne gold & 25 grams per tonne silver from 101.85 m (including 2 m @ 7.12 grams per tonne gold & 17 grams per tonne silver) 2m @ 1.94 grams per tonne gold and 3 grams per tonne silver from 133.25 m 0.90 m @ 2.94 grams per tonne gold & 5 grams per tonne silver from 136.75 m Drill hole LDG-33 - no significant assays.

Drill hole LDG-34 1.30 m @ 2 grams per tonne gold & 192 gram per tonne silver from 45.20 m 9.95 m @ 3.82 grams per tonne gold & 29 grams per tonne silver from 92.10 m ( including 1.00 m @ 5.86 grams per tonne gold and 57 grams per tonne silve;r1.00 m @ 23.05 grams per tonne gold and 20 grams per tonne silver)

The LDG-34 intercept located approximately 120 metres south of previous hole LDG-12 is part of a 350 m to 400+ m linear CSMAT anomaly with coincident quartz vein outcrops, which again will tested with upcoming drill holes.

Results from the southern extremes of the Amy Vein continue to be somewhat enigmatic, with the main vein dissipating in places to a series of narrow (1.0-2.5 m width) sheet veins with a predominance of amethystic quartz and coarse-grained base metal sulfides which grade at less than 1 gram per tonne gold equivalent. In other places the vein coalesces into widths greater than 8 metres, with a significant component of finely-banded sulfide-quartz, which typically grades in excess of 5 grams per tonne to 6 grams per tonne gold equivalent. Upcoming drill holes are expected to provide more information about this structurally complex area.

The Lemonga Prospect is a low-sulfidation epithermal quartz vein system over which surface mapping by Southern Arc has confirmed argillic alteration dominant within an hydrothermal upflow area approximately 1km east-west by 1.5 km north-south. Five auriferous quartz vein targets, named Amy, Betty, Cici, Dessy and Evi, have been identified within the alteration zone.

The best exposed vein, the Amy Vein, has a mapped strike extent of at least 950m.