Cautionary Note. Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment. March SouthernArcMinerals.

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1 March 2012 Bringing Exceptional Management and Exploration Expertise to a Proven Mineral Environment SouthernArcMinerals.com TSX-V: SA OTCQX: SOACF Cautionary Note Some of the statements contained in this presentation are forward-looking statements, such as estimates and statements that describe future plans, objectives or goals, including words to the effect that Southern Arc Minerals Inc. implies a stated condition or that it forecasts certain results could occur. Because forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, reserves, resources, results of exploration, reclamation and other post-closure costs, capital costs and mine production costs could differ materially from those currently forecast in such statements by reason of factors such as changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals, litigation, legislative, environmental and other judicial, regulatory, technological and operational difficulties encountered in connection with mining activities, labour relations matters, costs and changing foreign exchange rates. This list is not exhaustive of the factors that may affect any of forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Southern Arc Minerals Inc. statements. Drilling information in this presentation has been compiled under the supervision of Southern Arc s Chief Geologist, Andrew Rowe B. App. Sc. Geology, MAusIMM. Mr. Rowe has over 18 years of international mineral exploration experience throughout SE and Central Asia and Australia. During this time he has held such positions as Chief Geologist Feasibility Studies, Senior Geologist and Consulting Geologist. The technical information in this document has also been reviewed by Southern Arc s President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 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 accredited and employs a Laboratory Information Management System (LIMS) for sample tracking, quality control and reporting. 2

2 Investment Highlights Properties Exploring one of the most prospective regions in the world Flagship property shows district-scale potential for gold, potential porphyries Two additional properties with porphyry potential are in JV with Vale People Management, directors and advisors with the Indonesian experience and connections to successfully advance properties Partnerships Strategic shareholders, partnerships with Vale and Newcrest Capital Fully funded, no debt Exploration Actively drilling on two properties 3 Share Structure Shares Options Warrants Fully Diluted 106,964,510 7,700,000 1,704, ,369,081 Directors, management and insiders control ~20% 52-week trading range $0.47 $2.08 Average trading volume (3 months): ~155,000 shares/day Financings in 2011 at $1.60 and $1.70 Cash on hand ~$31 million (Q financial statements) 4

3 Why Indonesia? Underexplored region with highly prospective geology Fraser Institute ranked Indonesia among top six countries in the world for geological prospectivity Numerous high-quality gold and copper-gold deposits and producing mines Cost-effective environment with good infrastructure, climate, terrain New mining regulations in 2010 encourage mineral development and foreign investment 5 Indonesia s Main Deposits & Mines 6

4 Southern Arc s Properties 7 Exploration Strategy Four highly prospective properties Exploring for two styles of mineralization Epithermal gold-silver Copper-gold porphyry Sumbawa properties Copper-gold porphyry is primary target Joint venture properties with a major West Lombok Underpin value of property by drilling epithermals Continue to search for porphyries Continue to review high-quality acquisitions and partnerships 8

5 West Lombok 85% Southern Arc 10% Indonesian Regency Government 5% Indonesian Partner 9 West Lombok Project Deforested grassland, accessible by road Newmont identified epithermal gold and coppergold porphyry mineralization Completed airborne geophysical survey to further define porphyry targets 13km by 7km structural corridor of mineralization West Lombok property 10

6 Pelangan Prospect 5km cumulative strike length of Aubearing mineralization outcropping at surface 4,130m Phase 1 drilling included 13.4 g/t Au and 5.73 g/t Au 1 11,867m of Phase 2 drilling completed, significant-grade intersections including 19.4 g/t Au 1 Additional drilling in 2012 testing strike length and depth of Au-Ag mineralization, high-grade shoots 1. See Significant Drill Results and Cautionary Note. 11 Pelangan Prospect, Raja Target, Long-section Projection of Drill Hole Mineralized Intervals 12

7 Mencanggah Prospect 19km cumulative strike length of Aubearing epithermal breccias with indications of near-surface porphyry Cu-Au mineralization Rock channel samples include 53.3 g/t Au, 12.2 g/t Au and 1.1 g/t Au 1 Phase 1 drilling started October 2011, completed 8,920m in 35 holes Significant-grade intersections include 15.6 g/t Au (including 36.1 g/t Au and 11.0 g/t Au), and 1.8 g/t Au (including 89.0 g/t Au) 1. See Significant Drill Results and Cautionary Note. 13 Selodong Prospect Multiple Cu-Au targets defined by geochemistry, geophysics and alteration mapping Seven targets tested in Phase 1 exploration (17,859 m) with significant near-surface Cu-Au porphyry mineralization 0.52% Cu and 0.85 g/t Au % Cu and 1.05 g/t Au 1 Indications of porphyry Cu-Au district-scale mineralization Currently drilling new targets identified by porphyry prospectivity study 1. See Significant Drill Results and Cautionary Note. 14

8 Sumbawa Joint Ventures Sabalong Southern Arc / Vale S.A. East Elang Southern Arc / Vale S.A. Taliwang Southern Arc 15 Southern Arc s Properties 16

9 Sabalong Project Southern Arc / Vale S.A. Agreement 75km NE of Batu Hijau mine, 30km NNE of Elang deposit (25 M oz Au / 16 B lb Cu) 1 Vale must fund through to bankable feasibility study to earn 75% interest 2 Ground geophysical surveys (magnetic and IP) have identified potential sulfide zones, possibly related to nearsurface porphyry mineralization Phase 1 porphyry target exploration underway 1. Newmont press release February 24, 2011 references independent JORC estimate from June 2010 for Elang deposit. Proximity to the Batu Hijau mine and Elang deposit does not guarantee that Southern Arc will have similar mineralization on its properties. 2. See Joint Venture Agreements. 17 East Elang Project Southern Arc / Vale S.A. Agreement Adjacent to Newmont s Elang deposit (25 M oz Au/16 B lb Cu) 1 Vale must fund through to bankable feasibility study to earn 75% interest 2 Structure and alteration suggest that Elang mineralized trend may continue onto Southern Arc s East Elang property Regional exploration to identify targets for detailed prospect follow up in 2012, upon receipt of forestry permit 1. Newmont press release February 24, 2011 references independent JORC estimate from June 2010 for Elang deposit. Proximity to the Batu Hijau mine and Elang deposit does not guarantee that Southern Arc will have similar mineralization on its properties. 2. See Joint Venture Agreements. 18

10 Taliwang Project Adjacent to Newmont s world-class Batu Hijau Cu-Au mine (17.2 M oz Au/14.1 B lb Cu) 1 31,200 hectares highly prospective for Au, Ag, Cu with three main prospects: 1km x 1.5km Au-Ag bearing epithermal vein system confirmed by 56 drill holes 5km-long NE trending highsulphidation alteration zone, paralleling the Batu Hijau mineralized trend Sedimentary Au-hosted targets 1. Proximity to the Batu Hijau mine and Elang deposit does not guarantee that Southern Arc will have similar mineralization on its properties. 19 Experienced Team Cumulative 65 years of Indonesian exploration experience 20

11 Key Management John Proust Chairman & Chief Executive Officer One of the original founders of Southern Arc. Certified Director. Resource sector expert in financing, mergers and acquisitions, corporate restructuring and corporate governance. Dr. Mike Andrews President & Chief Operating Officer Geologist with more than 30 years of research and exploration experience in Indonesia and Australasia. Principal in the discovery, exploration and development of the Way Linggo goldsilver mine in Indonesia. Hamish Campbell Executive Vice President Geologist with more than 25 years of Indonesian exploration experience, including senior positions with Freeport McMoran and Ashton Mining. Andrew Rowe Chief Geologist Geologist with more than 20 years of exploration and project management experience, including senior positions with Phelps Dodge, Ivanhoe Mines, Aurora Gold and Pan Australian Mining. Peter Cranfield Project Manager, West Lombok More than 30 years of experience with exploration, development and operating mines. Based in Lombok since Directors and Advisors Bob Gallagher Director President & CEO of NewGold with 32 years of mining experience, including as Vice President of Newmont s Asia-Pacific operations, including development of the Batu Hijau mine. Dr. David Stone Director Doctorate in Civil Engineering with 25 years of mining experience and broad expertise in mining technology and advanced project development. Mohammed Al-Shahwani Director CEO of Qatar Mining Company. Involved in major resource projects internationally, with extensive corporate development experience. Dr. Steve Garwin Senior Technical Advisor Leading authority on Cu-Au mineralization in Southeast Asia, doctorate based on Batu Hijau deposit. More than 22 years of exploration experience, including as Newmont s Chief Geologist. 22

12 Directors and Advisors Malcolm Baillie Commissioner Metallurgical engineer with 30 years of experience in the Indonesian mining sector. Leader in government negotiations, including as Director of Indonesian Mining Association. Robert Parsons Advisor Chartered Accountant, former partner of PricewaterhouseCoopers. Serves on Advisory Board of Indonesian Mining Association and International Affairs Committee of PDAC. Dr. Alwi Shihab Commissioner Involved with many public companies operating in Indonesia. Currently Vice Chairman, Presidential Task Force for Labour Management. Previously Foreign Minister for Indonesia and Special Envoy to Indonesian President for Middle East investments. Bryan Disher Security Advisor Indonesia security and government relations expert since 1996, with extensive network of connections with Indonesian officials. 23 Why Invest in Southern Arc? Properties Exploring one of the most prospective regions in the world People Management, directors and advisors with Indonesian experience and connections to successfully advance properties Partnerships Strategic shareholders, partnership with Vale Capital Fully funded, no debt Attractive entry point Near-term catalysts Actively drilling on two properties Regular news flow from exploration activities 24

13 Appendix 25 Exploration Budget West Lombok ~$13.1 million for exploration to end of 2012 (Southern Arc spend) Sumbawa East Elang committed budget of $1.2M 1 for first 12 months (Vale spend) Sabalong committed budget of $2.0M 1,2 for next 24 months (Vale spend) Total Exploration Expenditures: $16.3M 1 Guaranteed minimum expenditure commitments for the Sumbawa properties by the joint venture partner Vale 2 Vale has completed US$1M Phase 1 funding commitment (US$1.7M advanced to date) and can opt in to Phase 2 program with a minimum US$2M commitment 26

14 West Lombok Mineralization 21km Cumulative Strike of Mineralized Structural Breccia (MSB) Further 9.6km of structural breccias identified Pelangan Epithermal Au-Ag quartz vein MSB mineralization 5km cumulative strike of MSBs, plus 4.6km identified Mencanggah Epithermal Au-Ag quartz vein MSB and porphyry Cu-Au mineralization 16km of MSBs, plus 5km identified Selodong Porphyry Cu-Au mineralization 27 Pelangan Prospect, Raja Target, Long-section Projection of Drill Hole Mineralized Intervals 28

15 Mencanggah Prospect, Waterfall Target 29 Mencanggah Prospect, Bising Target 30

16 Significant Drill Results Selodong Phase 1 HOLE ID PROSPECT From To (m) Interval Intersection(Cu % / Au g/t) /0.42 SLD001 MONTONG BOTEK incl. 0.52/ incl. 0.60/1.04 SLD002 MONTONG BOTEK / incl. 0.56/ /0.51 SLD003 MONTONG BOTEK incl. 0.35/ incl. 0.39/ /0.3 SLD004 BLONGAS II / incl. 0.36/ incl. 0.5/ /0.26 SLD005 BLONGAS II incl. 0.38/ incl. 0.39/ incl. 0.19/ /0.30 SLD006 BLONGAS II incl. 0.22/ incl. 0.32/ incl. 0.30/ /0.22 SLD007 BLONGAS I incl. 0.22/ incl. 0.26/0.26 SLD011 NORTH M BOTEK / incl. 0.24/ /0.25 SLD013 M BOTEK incl. 0.06/ incl. 0.18/ incl. 0.15/0.45 SLD014 BELIKAT / /0.22 SLD017 MONTONG BOTEK incl. 0.38/ / /0.13 SLD019 KEDARO / incl. 0.22/ /0.22 SLD023 MONTONG BOTEK incl. 0.18/ / /0.31 SLD026 BLONGAS II incl. 0.23/ incl. 0.29/0.29 SLD027 KEDARO / incl. 0.18/ /0.16 SLD029 MONTONG BOTEK incl. 0.14/ incl. 0.16/ /0.28 SLD030 BLONGAS II incl. 0.20/ incl. 0.28/ incl. 0.34/ Pelangan Phase 1 HOLE ID Target From (m) To (m) Interval (m) Intersection ( Au / Ag g/t ) KDG02 Kayu Putih incl & KDG03 Kayu Putih incl / 47 KDG04 Kayu Putih incl / 217 RDG05 RDG06 RDG07 Raja Raja Raja / incl / and / / incl / / incl / and / 22 KDG12 KDG013 Kayu Putih Kayu Putih incl / / incl / / incl / / incl / 21 TDG01 TDG02 Tanjung Tanjung and / / incl / and / / incl / 24 QDG06 Ratu / and / 2 RDG01 RDG03 RDG04 Raja Raja Raja / incl / / incl / / incl / / incl / / incl / 61 TDG03 TDG06 JDG03 KDG16 Tanjung Tanjung Jati Kayu Putih / / / incl. 5.5 / / incl / incl /

17 Pelangan Phase 2 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) PLD001 Raja / incl /17.0 PLD002 Raja / incl / /3.7 PLD003 Raja incl / incl /8.0 PLD006 Raja / incl / /15.7 PLD007 Raja incl / incl / / /31.1 PLD008 Raja incl / / incl /22.6 PLD009 Raja / incl / / 2.8 PLD010 Raja incl / incl / 2.3 PLD011 Raja / incl / 41.9 PLD014 PLD017 PLD019 Raja Raja Raja / incl / / incl / / incl / and / / incl / and 4.7/ /19.7 PLD022 Raja incl. 7.0/ incl. 18.2/10.9 PLD024* Raja PLD027* Tanjung incl incl PLD028 Raja /6.2 PLD031 Raja incl PLD032 Raja incl PLD033 Tanjung Mencanggah Phase /1.3 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) MCG001 Waterfall / incl /412.0 MCG002 Waterfall / incl /3.0 MCG003 Waterfall /1.0 MCG015 Waterfall m 1.5/ / / / /15.1 MCG004 Waterfall / /2.5 MCG005 Waterfall / /3.3 MCG006 Waterfall / / /3.1 MCG009 Waterfall / / / /9.2 MCG010 Waterfall / / /2.0 MCG011 Waterfall / /7.9 MCG014 Waterfall / / incl / /7.1 MCG016 Waterfall / / / / /7.6 MCG017 Waterfall /34.2 MCG020 Waterfall / /4.4 MCG021 Waterfall /35.6 MCG024 Waterfall / /4.1 MCG026 Waterfall /7.0 34

18 Mencanggah Phase /1.4 HOLE ID Target From (m) To (m) Interval (m) Intersection (Au/Ag g/t) / incl /0.9 MCG032 Bising incl / incl / incl / incl / / incl / /1.8 MCG028 Bising incl / / incl incl / incl incl MCG033 Bising / incl / incl /0.5 MCG029 Bising / incl / incl / incl / m 0.5/ incl / incl / incl /4.0 MCG034 Bising / / / / incl / /2.7 MCG030 Bising incl / incl / / / incl / / incl /5.0 MCG031 Bising /1.4 MCG035 Bising incl / / incl / / incl / / incl / /13.2 West Lombok Permitting Status Forest Types 1.1% Protected Forest % Production Forest % No Forest Designation 3 Requirements MOF permit required for exploration activities within protected and production designated areas Status IUP license issued Acquiring the relevant MOF permit 1. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 2. Open-pit and underground mining allowed with appropriate forestry permit. 3. No restriction on mining activities. 36

19 Sabalong Permitting Status IUP License IUP license issued by the Sumbawa Regent on December 17, 2009 for a period of seven years Forest Types 36.3% Protected Forest % Production Forest % No Forest Designation 3 Status Area of focus is outside of designated forest classification 1. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 2. Open-pit and underground mining allowed with appropriate forestry permit. 3. No restriction on mining activities. 37 East Elang Permitting Status IUP License IUP license issued by the Sumbawa Regent on December 17, 2010 for a period of seven years Forest Types 60.3% Protected Forest % Limited Production Forest 2 5.5% No Forest Designation 3 Requirements MOF permit required for exploration activities within both Protected and Production designated areas Status MOF permit issuance in process 1. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 2. Open-pit and underground mining allowed with appropriate forestry permit. 3. No restriction on mining activities. 38

20 Taliwang Permitting Status IUP License IUP license issued by the West Sumbawa Regent on July 9, 2010 for a period of six years Forest Types 3.7% Conservation Forest % Protected Forest % Production Forest % No Forest Designation 4 Requirements MOF permit required for exploration activities within protected and production designated areas Status Previous MOF permit being extended Area of proposed drilling is outside of forest classification 1. No mining activities allowed. 2. No open-pit mining allowed. Underground mining allowed with appropriate forestry permit. 3. Open-pit and underground mining allowed with appropriate forestry permit. 4. No restriction on mining activities. 39 Joint Venture Agreement Vale International S.A. Option & Joint Venture Agreement Southern Arc and Vale are exploring the Sabalong and East Elang Projects under an option and joint venture agreement whereby Vale can earn a 75% interest (Southern Arc retaining 25%) by funding project expenditures through to completion of a bankable feasibility study. To exercise its option, Vale must fully fund the advancement of either the Sabalong or East Elang projects (adjacent to Newmont s Elang deposit), through to completion of a bankable feasibility study. Should Vale choose not to exercise its option, Southern Arc will retain its 100% ownership of both projects at no cost. More information is available in the Southern Arc press release announcing the agreement, dated August 4,

21 Contact Us Canadian Office Rhylin Bailie Vice President Communications & Investor Relations NA Toll-free: Tel: Indonesian Office Mike Andrews President & Chief Operating Officer Hamish Campbell Executive Vice President SouthernArcMinerals.com TSX-V: SA, OTCQX: SOACF 41