monarch a strong year, page-35

From section 6.5 of prospectus

Requirement for working capital
As outlined in the Company's Half Year Financial Report as at 31 December 2007, the Company, as at 31
December 2007, had a working capital deficiency of $13,125,006. In the event that less than the full amount is
raised under the Offer, there can be no assurances that the Company will have sufficient working capital
resources to meet its stated objectives once the net funds raised from the Offer have been fully utilised. Further
funding may be required by the Company to support its ongoing activities. There can be no assurance that such
funding will be on terms acceptable to the Company or at all. An inability to raise additional capital if and when
needed could delay or suspend the Company's stated objectives and could have a material adverse effect on the
Company's activities