December 2011 Quarter Activities Report ABOUT ARC EXPLORATION LIMITED

Arc Exploration Limited (ASX Code: ARX) is an Australian listed gold company focused on exploration in Indonesia.

The Company has a joint venture interest in two projects with PT Sumber Mineral Nusantara. These are the Trenggalek tenement in East Java and the Bima tenement in East Sumbawa. Both projects lie on the Sunda-Banda magmatic arc and are prospective for high-grade epithermal gold-silver vein deposits and porphyry copper-gold deposits.

In association with the Anglo American Group, the Company is also exploring for large porphyry copper/gold deposits in Papua.

Arc Exploration Limited

ABN 48 002 678 640
Suite 1502, Level 15
Tower B
799 Pacific Highway
Chatswood NSW 2067
AUSTRALIA
Tel: + 61 2 9419 8044
Email: info@arx.net.au
www.arcexploration.com.au

Exploration - Indonesia

Trenggalek