monarch a strong year, page-27

The Board intends to continue Monarch's strategic growth path during 2008, and the funds raised from the issue will be
used to support the Company's exploration and development objectives.
Our goal includes a steady increase in production at Davyhurst, with our re-optimised mine plan that will focus on high
grade gold at the Missouri, Sand King and Riverina pits during early 2008.
Monarch has a projected production target of 60,000 ounces for the first half of FY2008/09, with a longer term target of
125,000 ounces per annum at Davyhurst. As production increases, costs will also come down, and the Company is
anticipating estimated cash costs to fall below A$700 per ounce by December 2008.
We expect that our Davyhurst operations will be cash positive by April/May and, with a gold price above A$1,000 per
ounce, and Monarch's unhedged position, we believe this represents a compelling value proposition for shareholders.
Importantly, Monarch has no bank debt and a number of very supportive major shareholders.
Monarch is also continuing its extensive exploration program across it Kalgoorlie tenements, as well as on the recently
acquired landholding at Mount Magnet, which includes the Hill 50 project. The project is a natural fit under the
Monarch umbrella, adding known gold reserves, a modern processing plant, and one of the largest land tenement
packages in the region. The Company