Monarch unveils accelerated gold plans

Emerging Western Australian gold player Monarch Resources Ltd has unveiled an accelerated growth strategy to become a mid-tier Australian gold producer.

Monarch has announced plans to list on the London Stock Exchange's Alternative Investment Market ahead of the earlycommencement of gold production.

In addition, the company announced that Michael Kiernan would become executive chairman, effective from July 1.

Monarch also updated recent progress at its Davyhurst and Minjar gold projects in WA, including good results from drilling and re-optimisation studies which support the potential for early production from both hubs.

These results are key to its strategy to build a 500,000oz per annum gold production company.

Monarch managing director John Davis said the results confirmed the continuity of mineralisation along strike and at depth, highlighting the potential for an expanded resource.

"These results have confirmed the potential to define a substantial gold resource with further drilling at Sunraysia, which we would expect to become a key future ore source for the Davyhurst mill," he said.

Monarch is systematically re-evaluating all existing deposits within the 2 million ounce resource inventory at the Davyhurst Project. Optimisation studies have commenced at the Walhalla, Federal Flag, Iguana, Lizard and Black Rabbit deposits with first results expected during the June quarter 2006.

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MONARCH UNFOLDS GOLD STRATEGY

Monarch Resources Limited (ASX: MRS) today unveiled plans to accelerate its growth strategy to become a leading mid-tier Australian gold producer, announcing that Michael Kiernan would assume the role of Executive Chairman from 1 July 2006 ahead of a planned listing on the Alternative Investment Market (AIM) of the London Stock Exchange and early commencement of gold production.

Monarch also updated recent progress at both its Davyhurst and Minjar gold projects in Western Australia, including good results from drilling and re-optimisation studies which support the potential for early production from both hubs as part of the Company's strategy to build a 500,000oz per annum gold production company.

Monarch's first major drilling program at the Davyhurst Project has delivered excellent results from the Sunraysia Prospect, where it is targeting extensions to the existing 65,000oz resource. Preliminary 4-metre composite sample results include 4m @ 5.14g/t from 76m, 4m @ 4.07g/t from 32m, 12m @ 2.28g/t from 52m, 4m @3.60g/t from 75m, 4m @ 2.43g/t from 44m and 4m @ 2.39g/t from 64m.

Monarch's Managing Director, John Davis, said the results confirmed the continuity of mineralization along strike and at depth, highlighting the potential for an expanded resource. The deposit has now been outlined over 400m of strike and remains open for at least 400m within a defined shear zone of at least 5km in length, which offers the potential for additional discoveries.

"These results have confirmed the potential to define a substantial gold resource with further drilling at Sunraysia, which we would expect to become a key future ore source for the Davyhurst mill," he added. "Drilling is also scheduled to commence at the 90,000oz Lady Bountiful prospect this week to test area immediately west of the current pit to extend the cut-back potential and enhance project economics."

Monarch is systematically re-evaluating all existing deposits within the 2 million ounce resource inventory at the Davyhurst Project. Optimisation studies have commenced at the Walhalla, Federal Flag, Iguana, Lizard and Black Rabbit deposits with first results expected during the June quarter 2006.

Davis said Monarch was well advanced in its objective of building a minimum 3-year production position for the Davyhurst mill, which would enable the operation to be planned for re-commissioning at an initial production rate of approximately 100,000oz per annum. Davyhurst has at least 11 potential ore sources to provide resources for the ongoing project.

Monarch also announced today that substantial progress has been made towards satisfying the conditions precedent of its agreement to acquire the 400,000oz Minjar Gold Project, including a 600,000tpa treatment facility, with the acquisition to be finalised shortly. This will form the basis for Monarch's second gold production hub.

A 6,000m RC drilling program scheduled to commence July 2006 at Minjar in four highly prospective targets where Monarch is targeting additional ore reserves to underpin plans for an early recommencement of gold production also during 2007. Monarch has already commenced mining re-optimisation studies on the existing Minjar resource inventory, with preliminary results due in the June 2006 Quarter. Its objective is to establish a minimum 3-year production position which would enable re-commissioning and production of approximately 50,000 ounces per annum.

AIM LISTING

Monarch plans to appoint a Nominated Adviser shortly as a prelude to its application for listing on AIM during September or October this year.

Monarch's Chairman, Michael Kiernan, said the proposed AIM listing was designed to introduce new long-term investors to the Company to support our objective to build a 500,000oz per annum gold production company. "The strategy is to capitalise as rapidly as possible on the quality assets assembled through the merger with Siberia Mining Corporation Limited and the acquisition of the Minjar Project, to underpin our move to the next level of growth," Kiernan said.

Newly appointed Monarch non-executive director, Andrew Forrest, said he was pleased with the progress achieved to date and the excellent drilling results from the Davyhurst Project. "Monarch has a unique opportunity following the consolidation of these projects under a unified management team headed by Michael Kiernan to capitalise on the current strong environment for gold companies. The results achieved to date indicate that Monarch is well on its way to achieving early gold production and realising its vision of becoming a significant new Australian gold producer."

BACKGROUND INFORMATION

Monarch acquired the Davyhurst Gold Project for $5 million in November 2005, comprising an 808,000oz resource base, 841sq km tenement package and a 1.2mtpa gold processing facility. The Davyhurst Project is located within the Davyhurst-Mt Ida greenstone belt, which hosts the Zuleika Shear and Ida Fault - structures which reportedly control signifcant gold endowment. Historically, the Davyhurst field has produced some 1.15 million ounces since 1897.

Subsequently, in early 2006, it completed a merger with Siberia Mining Corporation Limited, resulting in the strategic consolidation of the nearby Siberia and Ida Gold Camp deposits within the enlarged Monarch.

Siberia's assets included a 1.2 million ounce resource base, a 1,250sq km exploration portfolio representing the largest Australian-controlled ground position in the Kalgoorlie region, and several projects with near-term production potential. The 35km long Siberia Gold Belt is a geological contact that hosts the high-grade Siberia Gold Camp deposits (comprising resources in excess of 750,000oz at Missouri, Sand King, Invincible and Black Rabbit). Much of this gold belt is obscured by thin cover and remains untested.

In April 2006, Monarch announced that it had reached agreement with Gindalbie Metals Ltd to acquire the Minjar Gold Project, located 500km north-east of Perth, as the basis for a second production hub. The Minjar Project has JORC compliant resources of 406,400oz and includes a fully permitted 600,000tpa gold production facility.

Monarch also has the ground package surrounding the historic Bellevue Gold Mine, located 40km north of Leinster close to Jubilee Mines' Cosmos Nickel Operations. Previously owned and operated by Homestake, Bellevue was one of Western Australia's premier gold mines with total historic production of 750,000oz and remaining JORC classified resources of approximately 120,000oz.

The Bellevue ground package, which includes the more recently discovered Southern Belle deposit, offers significant development potential and will be a focus of Monarch's exploration and development activities as a potential third production hub.

Monarch's focus is to build a significant independent Australian gold exploration and production company with an annual production of 500,000 ounces by advancing these Northeastern Goldfields assets towards production as rapidly as possible, with the initial focus over the next 12 months on a comprehensive exploration program to build a minimum 3-year reserve position prior to re-commissioning the Davyhurst mill.

In addition, Monarch will draw on its depth of technical, financial and corporate expertise to target additional growth opportunities in the current strong environment for gold companies.