Southern Arc Files Technical Report for Windfall Lake Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 17, 2014) - Southern Arc Minerals (TSX-VENTURE:SA)(OTCQX:SOACF) ("Southern Arc" or "the Company") today filed a technical report related to the Windfall Lake Gold Project ("Windfall Lake"). Southern Arc is required to file a technical report for Windfall Lake since Southern Arc holds a substantial interest in the project through the Company's investment in Eagle Hill Exploration Corp., making the Windfall Lake project material to Southern Arc pursuant to National Instrument 43-101. The technical report outlines the work completed at Windfall Lake up to the date of Southern Arc's investment in the project, restating the July 25, 2012 mineral resource estimate and documenting the exploration and development activities completed on the property until April 25, 2013. The technical report was completed by SRK Consulting (Canada) Inc. ("SRK") and has been filed on SEDAR at www.sedar.com and on Southern Arc's website.

Windfall Lake is owned by Eagle Hill Exploration Corporation ("Eagle Hill"). In August 2013 Southern Arc invested $7,324,050 to acquire 97,654,000 units of Eagle Hill by way of private placement at a price of $0.075 per unit. Each unit comprised one common share of Eagle Hill and one half share purchase warrant, with each whole warrant entitling Southern Arc to acquire a further common share of Eagle Hill at a price of $0.10 per share for a period of four years. Southern Arc currently holds a 24.9% interest in Eagle Hill.

About the Windfall Lake Gold Project

Windfall Lake is located 190 km northeast of Val d'Or, Quebec, a highly favourable jurisdiction for exploration and mining. The greenstone belts of the Abitibi region constitute one of the most prolific gold-producing regions in the world, having produced over 170 million ounces of gold to date. The project is easily accessible by paved highways and all-weather gravel roads.

A resource estimate completed for Windfall Lake in July 2012 by SRK outlined a mineral resource of 538,000 ounces @ 10.05 g/t gold in the indicated category and 822,000 ounces @ 8.76 g/t gold in the inferred category (see Eagle Hill press release dated July 25, 2012). Eagle Hill owns 100% of the Main Zone, which hosts the majority of the mineral resource, and has the right to earn up to 100% of the surrounding claims. With grades averaging 10.05 g/t gold in the indicated category, Windfall Lake is one of the highest-grade development-stage gold projects in the world.

On December 19, 2013, Eagle Hill announced that it had completed its fall 2013 drill program, which commenced in September 2013 with the objective of expanding the existing mineral resource. The drill program was completed on time and on budget, with a total of approximately 28,000 metres completed in 65 diamond drill holes. Eagle Hill released results from the drill program on November 5 and December 19. Eagle Hill will release the remaining assay results in January 2014, along with a detailed interpretation of how the fall 2013 drill program has advanced its understanding of the Windfall Lake gold deposit.

Eagle Hill will release an updated mineral resource estimate in Q1-2014. Eagle Hill has more than 57,000 metres of new drilling to incorporate into the updated resource estimate, with 28,000 metres from the current drill program, and 106 holes totalling 29,208 metres that were drilled after the 2012 resource estimate and prior to the current program.

On behalf of the Board of Southern Arc Minerals Inc.

John Proust, Chairman & CEO, Director

About Southern Arc

Southern Arc Minerals Inc. is a Canadian mineral exploration company focused on gold and copper-gold exploration. The Company's key exploration property is its West Lombok project, with several gold-rich copper porphyry and epithermal gold vein prospects. Southern Arc is listed on the TSX Venture Exchange under the symbol SA and on the OTCQX International under the symbol SOACF. More information is available at www.southernarcminerals.com or by emailing info@southernarcminerals.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains forward-looking statements relating to expected or anticipated future events and operations, timing of projects and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the company's capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the company that actual results achieved during the forecast period will be the same in whole or in part as that forecast.

Qualified Person

The technical information in this document has 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 43-101. The technical information in this document has also been reviewed by Eagle Hill's Vice President Exploration, Jean-Philippe Desrochers, PhD, PGeo, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 43-101. The drill program and sampling protocol is managed by Eagle Hill under the supervision of Jean-Philippe Desrochers. The diamond drill holes are drilled at NQ sizes and core recovery to date has averaged better than 95.0%. Half core is cut by rock saw and is generally sampled using nominal 1-metre intervals; however, sample intervals vary according to geological contacts and have ranged between 0.3 to 1.5 metres in length. Two quality control samples (one blank and one certified reference material) are inserted into each batch of 20 samples. All assays were performed by ALS Chemex Laboratory Group, in Val d'Or, Quebec. The half core samples are securely transported from the project site to the ALS Chemex laboratory by Eagle Hill personnel. Gold analyses reported in this release were performed by standard fire assay using a 50-gram charge with atomic absorption finish and a gravimetric finish for assays greater than 10 grams per tonne and by metallic sieve method for samples containing significant amounts of pyrite or visible gold. In addition, an Aqua regia digestion with ICP-AES finish is used to analyse a full suite of elements including silver and base metals.

Southern Arc Minerals Inc.Rhylin BailieVice President, Communications & Investor Relations604-676-5241info@southernarcminerals.comwww.southernarcminerals.com

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