Mr. John Proust reports

SOUTHERN ARC COMPLETES PURCHASE OF EXISTING SHARES IN TETHYAN RESOURCES PLC

Further to its news release dated Nov. 21, 2016, Southern Arc Minerals Inc. has completed the purchase of 14,653,966 existing ordinary shares in Tethyan Resources PLC from Newmont Ventures Ltd. for 3.6 cents per share, as part of the company's strategy to become a strategic investor in Tethyan. Tethyan is an Alternative Investment Market-quoted junior exploration company exploring for copper and gold within the Western Tethyan orogenic belt in the European Balkan region. Southern Arc currently owns 29.15 per cent of Tethyan's issued and outstanding ordinary shares.

As previously announced, Southern Arc has agreed to subscribe for an additional 12.5 million new ordinary shares in Tethyan at a price of 3.6 cents per share. The closing of the additional subscription remains subject to Tethyan obtaining shareholder approval at a meeting of its shareholders scheduled for Dec. 12, 2016. On closing of the additional subscription, Southern Arc will own 29.9 per cent of Tethyan's issued and outstanding ordinary shares.

About Southern Arc

Southern Arc holds an interest in the West Lombok project in Indonesia, a resource-stage property with several gold-rich copper porphyry and epithermal gold vein prospects. In addition, the company holds a 42.9-per-cent interest in Japan Gold Corp., which has applied for 80 prospecting rights licences in Japan in an area with known gold occurrences and a history of mining. Southern Arc also holds an investment in Osisko Mining Inc., which is advancing a number of gold projects in Canada's Abitibi gold belt, including the high-grade Windfall Lake gold project in Quebec, Canada.

We seek Safe Harbor.