Southern Arc Minerals Inc.: Update on Contract of Work applications status

(VANCOUVER, BRITISH COLUMBIA, Dec. 19, 2008) - Southern Arc Minerals Inc. (TSX VENTURE:SA) (the "Company") provides the following update regarding the status of its two Contract of Work applications located in the southern parts of Lombok and western Sumbawa Islands.

The Indonesian Federal House of Representatives on December 16, 2008 has enacted a new mining law to replace the incumbent Law No. 11 of 1967. Law 11 was the basis for all of the seven generations of Contract of Work ("CoW") mineral agreements.

With the enactment of the new mining law the current CoW scheme will be replaced by a permit licensing system. The implications of the new mining law are currently being studied in detail by Southern Arc in order to assess the impact on its current CoW applications and KPs. (end of release)