| Date of Report: | April 22 | |||||
| Company Name: | Southern Arc Minerals inc. | |||||
| Stock Symbol: | SA | |||||
| Exchange: | Venture | |||||
| Company Website: | www.southernarcminerals.com | |||||
| Section A. Financial | ||||||
| 1. When was the Company incorporated? | 2004 | |||||
| 2. Nature of current operations: | Exploration | |||||
| 3. Shares outstanding: | 71,410,906 | |||||
| 4. Shares fully diluted: | 84,386,726 | |||||
| 5. Options outstanding (grouped in reverse order by date): | ||||||
1 |
2 | 3 | 4 | |||
| Number | 400,000 | 3,215,000 | 125,000 | 675,000 | ||
| Price | $1.56 | $1.56 | $0.70 | $0.56 | ||
| Expiry | 10/2012 | 9/2012 | 4/2011 | 1/2011 | ||
| 6. Warrants outstanding, excluding brokers' warrants (in reverse order by date): | ||||||
1 (most recent) |
2 | 3 | 4 | |||
| Number | 86,250 | 4,630,168 | 2,329,480 | |||
| Price | $1.75 | $1.75 | $0.45 | |||
| Expiry | 1/2010 | 12/2009 | 4/2009 | |||
| 7. Financings in the past 24 months: | ||||||
1 (most recent) |
2 | 3 | 4 | |||
| Number of shares | 9,432,836 | 7,000,000 | 4,000,000 | 4,328,571 | ||
| Price of shares | $1.20 | $0.30 | $0.35 | $0.70 | ||
| Number of warrants (excluding brokers' warrants) | 4,716,418 | 3,500,000 | 2,000,000 | 2,328,571 | ||
| Exercise price of warrants | $1.75 | $0.45 | $0.50 | $1.00 | ||
| 8. Total number of shareholders: | ||||||
| 9. Insider holdings: | ||||||
| Number of shares | 9,558,194 | |||||
| Number of options | 4,740,000 | |||||
| Number of warrants | 1,044,417 | |||||
| 10. Is there a share-based incentive plan? | Yes | |||||
| 11. If yes, detail: | rolling stock option plan for 10% of the issued and outstanding shares | |||||
| 12. Is there a Shareholders' Rights Plan in place? | No | |||||
| 13. Does a larger unrelated mining company hold greater than 5% of common shares, or is a joint venture with a larger company now in place? | No | |||||
| 14. Cash and short-term investments on hand ($): | $11,000,000 | |||||
| 15. Book value of ABCP ($): | $1-2.49m | |||||
| 16. How many geologists (full-time equivalent) are engaged | 10+ | |||||
| by the company? | ||||||
| Page 1 | ||||||
| Section B. On the subject of the lead geologist: | ||||||
| 1. Name: | Hamish Campbell | |||||
| 2. Is this a Qualified person as defined in terms of NI 43-101? | Yes | |||||
| 3. Years of experience in the field: | 20+ | |||||
| 4. Has this person played a key role in advancing a project from early exploration to: | ||||||
| a) historic (non-compliant) resource, pre-NI 43-101 | Yes | |||||
| If yes, detail: | various projects in Indonesia | |||||
| b) NI 43-101 resource estimate | Yes | |||||
| If yes, detail, if different from above: | various projects in Indonesia | |||||
| c) joint venture with or buyout by a larger mining company | ||||||
| If yes, detail, if different from above: | ||||||
| d) an operating mine | ||||||
| If yes, detail, if different from above: | ||||||
| Section C. On the subject of the lead executive responsible for financing: | ||||||
| 1. Name: | John Proust | |||||
| 2. Years of experience in the field: | 20+ | |||||
| 3. Total funds ($CAD) raised for this company: | 20m-49.9m | |||||
| 4. Total funds ($CAD) raised in the mining sector: | 20m-49.9m | |||||
| Section D. Property #1 | ||||||
| 1. Name of the property: | West Lombok | |||||
| 2. Location: | Indonesia | |||||
| 3. Key resource targets (up to four): | Copper | Gold | ||||
| 4. Is there paved road access to the property? | Yes | |||||
| 5. Distance to the nearest major city: | 10-19.9km. | |||||
| 6. Distance to the nearest adequate power grid: | 5-9.9 km. | |||||
| 7. Distance to the nearest adequate water supply: | <5 km. | |||||
| 8. Distance to the nearest adequate labour supply: | <5 km. | |||||
| 9. Distance to the nearest rail suitable for transport: | 50 km.+ | |||||
| 10. Distance to the nearest port suitable for transport: | 10-19.9km. | |||||
| 11. Distance to the nearest protected wildlife refuge: | 50 km.+ | |||||
| 12. Distance to the nearest tourist resort: | 20-49.9 km. | |||||
| 13. What is the mean elevation (msl) of the property? | 200-499m. | |||||
| 14. Has this property been meaningfully mined before? | No | |||||
| 15. If yes, please describe any remaining usable infrastructure: | ||||||
| 16. Is this property currently an operating mine? | No | |||||
| 17. If no, distance to the nearest mine for target metals: | 50 km.+ | |||||
| 18. Name of that mine and operator: | Batu Hijau, PT. NNT | |||||
| 19. Is there a NI 43-101 compliant resource report for the property? | No | |||||
| 20. If yes, please describe the key report estimates: | ||||||
| 21. If no, distance to nearest property with NI 43-101 | 50 km.+ | |||||
| compliant resource report. | ||||||
| 22. Name of that property and operator: | Batu Hijau, PT. NNT | |||||
| Page 2 | ||||||
| 23. Is the property owned outright by the company? | Partially | |||||
| 24. If no, has the company secured mineral rights? | No | |||||
| 25. If no, has the company secured surface rights? | Partially | |||||
| 26. Does the company have permitting to explore the property? | Yes | |||||
| 27. Does the company have permitting to mine the property? | No | |||||
| 28. Total metres of drilling now completed: | 10,000-19,999 | |||||
| 29. Total metres of drilling planned for next 12 months: | ||||||
| 30. Number of drilling rigs now on the property: | 3 | |||||
| 31. Number of new rigs planned for next 12 months: | 1 | |||||
| 32. Number of months/yr. this property is open to exploration: | 12 | |||||
| 33. Number of months/yr. this property is open to mining: | 12 | |||||
| 34. Exploration budget on this property for next 12 months: | $12 million | |||||
| 35. Has metallurgical testing been completed in support of the case for successful recovery of target metals for this deposit? | No | |||||
| For this property, describe up to the three best drilling results: | ||||||
| Hole number 1 | ||||||
| 36. Name | SLD001 | |||||
| Mineralized Metres | Metal | Grade | Measure | |||
| 37. - 40. | 442 | Copper | 0.28 | % | ||
| Gold | 0.42 | gpt | ||||
| Hole number 2 | ||||||
| 41. Name | SLD002 | |||||
| Mineralized Metres | Metal | Grade | Measure | |||
| 42. - 45. | 385 | Copper | 0.30 | % | ||
| Gold | 0.40 | gpt | ||||
| Hole number 3 | ||||||
| 46. Name | SLD003 | |||||
| Mineralized Metres | Metal | Grade | Measure | |||
| 47. - 50. | 364 | Copper | 0.30 | % | ||
| Gold | 0.51 | gpt | ||||
| 51. Website link to detailed drilling results: | http://www.southernarcminerals.com/_resources/Selodong-Drill_Hole_Stats.pdf | |||||
| Page 3 | ||||||
| Section E. Property #2 | ||||||
| 1. Name of the property: | Taliwang | |||||
| 2. Location: | Indonesia | |||||
| 3. Key resource targets (up to four): | Gold | Silver | ||||
| 4. Is there paved road access to the property? | Yes | |||||
| 5. Distance to the nearest major city: | 5-9.9 km. | |||||
| 6. Distance to the nearest adequate power grid: | 5-9.9 km. | |||||
| 7. Distance to the nearest adequate water supply: | 5-9.9 km. | |||||
| 8. Distance to the nearest adequate labour supply: | <5 km. | |||||
| 9. Distance to the nearest rail suitable for transport: | 50 km.+ | |||||
| 10. Distance to the nearest port suitable for transport: | 5-9.9 km. | |||||
| 11. Distance to the nearest protected wildlife refuge: | 50 km.+ | |||||
| 12. Distance to the nearest tourist resort: | 50 km.+ | |||||
| 13. What is the mean elevation (msl) of the property? | 200-499m. | |||||
| 14. Has this property been meaningfully mined before? | No | |||||
| 15. If yes, please describe any remaining usable infrastructure: | ||||||
| 16. Is this property currently an operating mine? | No | |||||
| 17. If no, distance to the nearest mine for target metals: | 10-19.9km. | |||||
| 18. Name of that mine and operator: | Batu Hijau, PT. NNT | |||||
| 19. Is there a NI 43-101 compliant resource report for the property? | No | |||||
| 20. If yes, please describe the key report estimates: | ||||||
| 21. If no, distance to nearest property with NI 43-101 | 10-19.9km. | |||||
| compliant resource report: | ||||||
| 22. Name of that property and operator: | Batu Hijau, PT. NNT | |||||
| 23. Is the property owned outright by the company? | Partially | |||||
| 24. If no, has the company secured mineral rights? | Partially | |||||
| 25. If no, has the company secured surface rights? | Yes | |||||
| 26. Does the company have permitting to explore the property? | Yes | |||||
| 27. Does the company have permitting to mine the property? | No | |||||
| 28. Total metres of drilling now completed: | 5,000-9,999 | |||||
| 29. Total metres of drilling planned for next 12 months: | 0 | |||||
| 30. Number of drilling rigs now on the property: | ||||||
| 31. Number of new rigs planned for next 12 months: | ||||||
| 32. Number of months/yr. this property is open to exploration: | 12 | |||||
| 33. Number of months/yr. this property is open to mining: | 12 | |||||
| 34. Exploration budget on this property for next 12 months: | ||||||
| 35. Has metallurgical testing been completed in support of the case for successful recovery of target metals for this deposit? | No | |||||
| Page 4 | ||||||
| For this property, describe up to the three best drilling results: | ||||||
| Hole number 1 | ||||||
| 36. Name | LDG-30 | |||||
| 37. - 40. | Mineralized Metres | Metal | Grade | Measure | ||
| 10.0 | Gold | av 8.4 | gpt | |||
| Silver | av 21 | gpt | ||||
| Hole number 2 | ||||||
| 41. Name | LDG-22 | |||||
| 42. - 45. | Mineralized Metres | Metal | Grade | Measure | ||
| 2.0+ | Gold | 11.75 | gpt | |||
| Silver | 694.00 | gpt | ||||
| Hole number 3 | ||||||
| 46. Name | LDG-03 | |||||
| 47. - 50. | Mineralized Metres | Metal | Grade | Measure | ||
| 15 | Gold | 6.67 | gpt | |||
| Silver | 36.00 | gpt | ||||
| 51. Website link to detailed drilling results: | various at www.southernarcminerals.com | |||||
| Additional comments provided by the Company | ||||||
| Page 5 | ||||||
| For a PDF version of this report, click here. | ||||||