MEDIA RELEASE                                                                         

4 SEPTEMBER 2007

MONARCH INTERSECTS HIGH GRADE GOLD

Monarch Gold Mining Company (ASX/DIXF: MON), the largest independent landholder in the Kalgoorlie region, has intersected high grade gold ore at its Mount Ida project, with the intersection of the promising Baldock lode.

“The intersection contains coarse free gold and is well mineralised. The ore width is double what had been expected, with the ore exposed in the drive varying from a minimum of 1.4 metres up to a potential maximum of about 3.4 metres,” Monarch Chairman Michael Kiernan said.

“With the intersection of the Baldock lode at Mount Ida means we are now into the high grade gold section and this will be treated at our Davyhurst mill later this month” Mr Kiernan said.

Monarch’s recently commenced an $11 million drilling programme for 2007/08 and has identified some promising early results, which will drive long term value for shareholders.

“We have a well-funded and aggressive exploration programme in regions where there are identified targets to expand our resource base, and this approach is being vindicated by promising results from the Davyhurst tenements,” he said.

At Davyhurst, exploration drilling has intersected high grade mineralisation at the Walhalla North and Iguana prospects, and has outlined a potential new gold discovery at the Coronation prospect.

Davyhurst highlights:

• At Walhalla North, high grade gold intersected in RC drilling over 200m of strike and open at depth including 2m @ 58.3 g/t Au and 4m @ 20.5 g/t Au.
• High grade gold intercepts in infill RC drilling at the Iguana prospect including 1m @ 50.3 g/t Au and 3m @ 78.0 g/t Au.
• A new zone of mineralisation intersected in RAB drilling over 700m of strike, including 13m @ 2.0 g/t Au from 8 metres at the Coronation prospect, located only 4km NW of the Davyhurst mill.
• At the Walhalla North prospect, approximately 1km north of the current Walhalla open pit mine and only 10km from the Davyhurst mill, significant high grade gold mineralisation has been intersected in a number of holes over 200m of strike and is open. Results are tabulated.

The developments mark another milestone of progression for Monarch, which in the past month has poured its first gold, added the Riverina Gold Project to its Goldfield tenement holdings, and appointed Matthew Gill as Managing Director.

For further information, please contact:

Michael Kiernan                                                         Warrick Hazeldine

Chairman - Monarch Gold                                         Purple Communications

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

Mob: 0417 944 616    

Walhalla North results

Iguana Results

Infill drilling to support the current resource model has intersected high grade gold zones which are currently being interpreted within the current model. Better results include:

• Hole IGRC 003, 2m @ 10.2 g/t Au from 42m and 1m @ 50.3 g/t Au from 52m.
• Hole IGRC 004, 6m @ 48.5 g/t Au from 33m including 3m @ 78.0 g/t Au.
• Hole IGRC 008, 2m @ 14.1 g/t Au from 26m.

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.

Bellevue Gold Mine near Leinster, together with the Siberia Mining Corporation Limited merger, 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 and Mt Ida projects with supporting infrastructure already in place. First gold has been poured at the refurbished Davyhurst Mill. Monarch’s production at Davyhurst has an average head grade of 5.3g/t Au.

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).

Riverina Project - indicated and inferred gold resources totalling 1.64 million tonnes @ 3.8 g/t Au for 200,000oz.

Mt Ida - resources are stated as 143,000t at 24.0 g/t containing 110,650oz of gold within four areas - the Baldock, Whinnen, Meteor and Timoni deposits. 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 Gold Mining Company

Projects

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