MEDIA RELEASE                                                                                     8 June 2007

MONARCH EXTENDS RICH MT IDA ACQUISITION

Monarch Gold Mining Company Limited (ASX:MON) has reached an agreement to extend its tenement stake surrounding the rich Mt Ida Gold Mine, located approximately 200km north-west of Kalgoorlie.

Monarch has an agreement with International Goldfield Limited (ASX: IGC) for the purchase of IGC’s remaining Mt Ida tenements for $5 million. The agreement provides Monarch a tenement package at Mt Ida incorporating a Farm-in and Joint Venture agreement with La Mancha Resources Pty Ltd. La Mancha can earn a 51% farm in right, following its expenditure of A$7.5 million on gold exploration by January 2010.

The acquisition secures the down plunge extensions of the Baldock, Meteor and Whinnen resources and access to the Timoni mine and extensions, which historically produced 265,000 ounces of gold. In addition, Monarch will secure 500 square kilometres of the highly prospective Mt Ida/Ularring Greenstone Belt.

The acquisition is conditional upon La Mancha signing a waiver of its pre-emptive rights under the Farm-in and Joint Venture agreement by 30 June 2007. Settlement of $2.5 million in cash is expected in July 2007 with the balance payable in cash on 31 December 2007.

On 26 February 2007, Monarch announced it had reached an agreement with IGC to acquire the mining rights to the high grade Mt Ida Mine and associated infrastructure, plant and equipment including a 30 man camp at Mt Ida.

Monarch Chairman Michael Kiernan said the agreement to acquire IGC’s remaining Mt Ida tenements further increased Monarch’s already substantial tenement holding in the region.

“Increasing Monarch’s strategic landholding is important for long-term shareholder value as the company advances to achieve the gold production target of 500,000oz per annum by 2009,” Mr Kiernan said.

Monarch confirms mining has also commenced today at Davyhurst.

“With the Davyhurst Mill refurbishment virtually complete and mining commencing today, Monarch is on track for gold production next month at an average head-grade of 5.3g/t.

“With the current gold price hovering around US$670 per ounce, Mt Ida Mine is on track to deliver significant returns for shareholders and over the next 12 months, Monarch expects to generate A$25 million in after tax profit,” Mr Kiernan said.

The Mt Ida tenement acquisition will be funded from existing cash reserves.

For more information please contact:

Michael Kiernan                                                         Warrick Hazeldine

Chairman - Monarch Gold                                         Purple Communications

Tel: 08 9481 6422                                                       Tel: +61 (0)8 9485 1254                                                                                                                                                                        Mob: +61 (0) 417 944 616

                                                                                    whazeldine@purplecom.com.au

Background

The Company has a resource base of more than 2.4 million ounces, two state-of-the-art gold treatment plants, and has dominant ground positions in the prolific gold mining region to the north-west of Kalgoorlie.

Monarch now has the largest Australian-controlled ground position in the Kalgoorlie region.

The company has laid the foundations for its growth as a mid-tier Australian gold production company. Key assets include the Davyhurst Gold project, the Minjar Gold project, the ground package surrounding the historic Bellevue Gold Mine near Leinster, together with the Siberia Mining Corporation Limited merger, which provided access to Siberia 1.2 million ounce resource base.

Monarch remains firmly on track with its production targets, with mining commenced at the Davyhurst project and mining of the first ore at Monarch’s Mt Ida project expected in late July. Refurbishment of the Davyhurst Mill is on schedule, with supporting infrastructure already in place.

Monarch is on the cusp of production at Davyhurst with the mill to start-up in mid-July with head grade of 5.3g/t Au and. the first gold to be poured in late July.

Growth Strategy

Monarch’s growth strategy is focused on four potential production centres in Western Australia:

Davyhurst - gold resources of over 2m oz within a 2,000 sq km tenement package and 1.2mtpa gold processing facility (+1.2Moz historic production).

Mt Ida - resources are stated as 143,000t at 24.0 g/t containing 110,650 ounces of gold within three areas - the Baldock, Whinnen and Meteor deposits, adjacent to the historic Timoni underground gold mine which produced 265,000oz of gold. Monarch will commence mining gold in July 2007.

Minjar - gold resources of over 400,000oz within a 1,722 sq km tenement package and 600,000tpa gold processing facility (+120,000oz historic production).

Bellevue - gold resources of 120,000oz associated with the historic Bellevue Gold Mine, one of WA’ premier gold operations (750,000oz historic production).

Monarch’s strategy has been to capture opportunities for the consolidation of gold development assets which have not in the past realised their full potential, either due to a lack of capital or to limited exploration.

Monarch is focussed on gold production, with a target to be producing 500,000oz per annum by December 2009.

For further information visit: www.monarchgold.com.au

So far as it relates to ore and mineralisation, this report is based on information compiled by John Davis, who is a Member of the Australian Institute of Mining and Metallurgy and the Australian Institute of Geoscientist. Mr Davis has sufficient experience which is relevant to the style of the mineralisation and type of deposit under consideration and to the activity which he is undertaking, to quality as a Competent Persons as defined in the 2004 Edition of the Australasian Code for Reporting for Exploration Results, Minerals Resources and Ore Reserves. Mr Davis is a full time employee of the Company. This report accurately reflects the information complied by Mr Davis. Mr Davis has consented to the inclusion of this information in the form and context in which is appears in this report.

Monarch’s Project locations:

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