MEDIA RELEASE

7 AUGUST 2007

MONARCH POURS FIRST GOLD

Monarch Gold Mining Company (ASX / DIFX: MON) has celebrated the first gold pour at its Davyhurst Mill in the Goldfields.

The first pour is a significant milestone for Monarch, which is targeting annual gold production of 500,000 ounces by the end of 2009.

Monarch is expecting to produce 5,000 ounces per month for the next quarter. In November, ore from the company’s Mt Ida project is expected to come on stream, and increase production to 9,000 – 10,000 ounces per month.

Monarch Chairman Michael Kiernan said the first gold pour was a significant milestone for shareholders, and the result of the hard work and dedication from the Monarch team.

“The team at GR Engineering, which worked to refurbish the Davyhurst Mill, have successfully commissioned the plant on time and on budget,” Mr Kiernan said.

“Moving into production is a major step forward for Monarch and its shareholders and keeps us firmly on track to meet our production targets and continue to create shareholder wealth through capital growth and dividend distributions.”

For further information, please contact:

Michael Kiernan                                   Warrick Hazeldine

Chairman - Monarch Gold                    Purple Communications

Tel: 08 9481 6422                                 Tel: +61 (0)8 9485 1254

Mob: 0417 944 616

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 mid August. 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 started-up in July, head grade of 5.3g/t Au and the first gold to be poured in early August.

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 four areas - the Baldock, Whinnen, Meteor and Timoni deposits. Monarch will commence mining gold in August 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’s 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 Gold Mining Company

Projects

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Issued by

Purple Communications

Level 3, 28 Kings Park Road, WEST PERTH WA 6005

Ph: 08 9485 1254     Fax: 08 6263 0455

purple@purplecom.com.au