Detailed geological mapping, geochemical sampling, scout drilling and new studies by independent geophysical consultants have defined 15 porphyry copper-gold drill target areas within Southern Arc Minerals" Selodong Intrusive Complex (SIC) in Indonesia.

Southern Arc has completed four drill holes and all have intersected broad zones of significant copper-gold mineralization. Within these intervals significant widths of high grade copper-gold values were intersected, which classify the SIC porphyry system in the 'Gold-Rich' category of porphyry copper mineralization.

Due to the strong spatial correlation of elevated copper-gold grades and secondary magnetite alteration recognized in drill holes, Southern Arc has commissioned geophysical consultants GRS of Brisbane, Australia, to undertake modeling of ground magnetic data from the SIC area. Preliminary images from 3D geological/geomagnetic models by GRS confirm the potential for significant depth and size of the 15 targets.

Based on the encouraging drilling results to date and the large number of porphyry drill targets, management intends to drill test each target to better understand the geometry, grade, and size potential with the objective of prioritizing the targets for future work.