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Company Statement
Monarch Resources Ltd (Monarch) is an aggressive and well funded gold exploration company listed on the Australian Stock Exchange (MRS) and one of the largest Australian controlled tenement holders in the Kalgoorlie region of Western Australia with over 2,000sq. km of highly prospective gold tenure and containing more than 2 million ounces in gold resources.

The Company is focussed on progressing near term gold production at its 100% owned 1.2 million tonne per annum Davyhurst gold treatment plant.

Current Operations
Monarch holds interests in a portfolio of mining tenements in West Australian, focussing on gold exploration and development and has recently added two significant projects to the company's asset base.

Davyhurst Gold Project
The Davyhurst gold project was acquired by Monarch during December 2005 and is located 120 km north-west of Kalgoorlie in Western Australia and comprises an 841 sq. km tenement package.

The project currently includes an 808,000 ounce gold resource inventory, a 1.2 mtpa CIL gold processing facility (operational until November 2005, currently on care and maintenance), a 120 person camp and associated infrastructure, with numerous high-quality, prospective exploration targets.

The Davyhurst goldfield has produced some 1.15 million ounces of gold since 1897 from over 60km of strike of different styles of mineralisation, and still has significant potential for further discoveries in an area that is under-explored, with 80% of drilling to date to less than 50 metres in depth.

Siberia Gold Project
The Siberia gold project was acquired by Monarch in January 2006 and is contiguous to the south with the Davyhurst project, and comprises a 1,250 sq. km tenement package.

The project currently includes a 1.2 million ounce gold resource inventory, associated infrastructure and with numerous high-quality exploration targets which are within close proximity to the Davyhurst processing facility.

The combined Davyhurst-Siberia land package of over 2,000 sq. km represents one of the largest Australian controlled holdings in the Kalgoorlie region and has significant potential for further new discoveries.

Monarch proposes to focus on exploration and resource development over the next 12 to 24 months with a significant exploration budget to build a minimum 3 year production position prior to re-commissioning the Davyhurst mill.

A review of the combined +2 million ounce resource base at Davyhurst and Siberia, utilising the current gold price is likely to have a significant impact on the gold resource/reserve base.

Other Projects



Lake Johnston Project
Monarch controls interests in a portfolio of mining tenements in the Lake Johnston Greenstone Belt of Western Australia. The tenements are located approximately 540 km east of Perth and approximately 150 km south-west of Kalgoorlie.

Monarch's Lake Johnston project is located in proximity to the Lion Ore Maggie Hayes and Emily Anne nickel projects and comprises a number of prospects with potential for nickel and gold resources.

Mt Day Nickel Project (80%)
The Mt Day tenements are located at the northern end of the Lake Johnston Greenstone Belt, approximately 6 kilometres north of the Emily Ann and Maggie Hayes nickel mines. The Greenstone consists of a sequence of amphibolite altered mafic rocks that contain narrow bands of sulphide-rich ultramafics and sediments.

Mt Gordon Gold Project
The Mt Gordon prospect is located 30 kilometres south-east of the Maggie Hayes nickel mine and 50 kilometres south-east of Mt Day.

A large semicircular auger soil geochemical anomaly is defined by a 10 parts per billion gold contour in the southern part of the tenement. The anomaly is approximately 5 kilometres by 4 kilometres in area and has multiple peaks up to a maximum value of 369 parts per billion of gold.

Plover Rock Gold Project (80%-100%)
The Plover Rock tenements cover the north-east extremity of the Lake Johnston Greenstone Belt and are centred approximately 12 kilometres east of Mt Day.

Previous exploration outlined a number of gold anomalies rimming a granite pluton called "The Lord of the Rings" granite. The previous best drilling result was 4 metres @ 2.3 grams per tonne of gold from 8.0 metres at the Bilbo prospect, on the north-western side of the granite.

A large, 4 kilometres by 1.5 kilometres bulk leach extractable gold soil anomaly with a peak value of 120 parts per billion of gold, had been defined by previous broad spaced sampling along the western margin of the pluton. This anomaly has previously been drilled with a best result of 1 metre @ 2.48 grams per tonne of gold from 32 meters.

Lake Hope Nickel Project (100%)
The Lake Hope tenements are located on the western margin of the Lake Johnston Greenstone Belt. They occur around 20 kilometres south-east of the Emily Ann and Maggie Hayes nickel mines.

Monarch compiled all geophysical and geochemical data available for the tenements. Of particular interest are two airborne magnetic anomalies located on the eastern side of Monarch's tenements. The larger anomaly (Frederick) has a complex shape measuring approximately 2.5 kilometres by 2.5 kilometres, while the smaller anomaly (Louis) is linear and trends south-southeast over approximately 3 kilometres. The anomalies are separated by approximately 4 kilometres.

Londonderry Gold Project (100%)
Monarch own six prospecting licences covering an area of 10 square kilometres near Coolgardie in Western Australia. The tenements are located 10 kilometres south of the Coolgardie and 12 kilometres north of the old Nepean nickel mine. They cover a ultramafic/mafic sequences of the Coolgardie-Nepean Greenstone Belt that hosts past gold mines at Bayleys, Three Mile Hill and Tyndals and the newly discovered gold resource at Burbanks. The sequence also hosts a significant nickel deposit at Nepean and several other smaller nickel deposits such as Miriam.

Geographical Spread

Board of Directors and Key Management
Michael Kiernan, Chairman
John Davis, Managing Director
Colin Smith, Non-Executive Director
David Macoboy, Non-Executive Director
Phillip Botsis, Non-Executive Director
Company Address
28 Ventnor Avenue
West Perth
Western Australia 6005

PO Box 870
West Perth
Western Australia 6872

Telephone (+61 8) 9481 6422
Facsimile (+61 8) 9481 6433


Email: [email protected]
Website: www.mrl.net.au

Nominated Brokers Nominated Adviser
Bell Potter Securities Limited, Perth (08) 9326 7666 Brad Shallard, Bell Potter Securities Limited, Perth
Latest Broker’s report


Major Shareholders
Top 10 as at 30 Dec 05

Rank
Name
No Shares
%

1
Crawley Investments Pty Ltd
17,165,002
27.58

2
Laurence James Kiernan
5,000,000
8.03

3
AMP Life Limited
2,800,000
4.50

4
Methuen Nominees Pty Ltd
2,800,000
4.50

5
ANZ Nominees Limited
2,186,929
3.51

6
RBC Global Services
1,666,666
2.68

7
Adrienne Smith
1,546,875
2.49

8
Diamond Stone Limited
1,500,000
2.41

9
Wintrue Pty Ltd
1,231,250
1.98

10
Gimont Pty Ltd
1,131,250
1.82


Capital
62,246,877 as at 12/01/2006
Listing Symbol (Click in Symbol to get Live Share Price)

Year End Annual General Meeting
30 June November
Most Recent Statement
20/12/05 - Monarch declares Siberia offer unconditional
17/11/05 - Monarch announces merger with Siberia
08/11/05 - Monarch acquires Davyhurst gold mine
05/07/05 - Appointment of Managing Director
01/03/05 - Exploration results at Mt Gordon project
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