ORA BANDA MINING LTD — Capital/Financing Update 2008

Mar 19, 2008

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20 March 2008

Manager Announcements Company Announcements Office ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000

Dear Sir/Madam

RENOUNCEABLE ENTITLEMENT ISSUE

Attached is a letter to shareholders that will be despatched today.

Yours sincerely

Patrick McCole

Company Secretary

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20 March 2008

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Dear Shareholder,

RENOUNCEABLE ENTITLEMENT ISSUE

Monarch Gold Mining Company Limited ( Company ) has announced to the Australian Securities Exchange Limited ( ASX ) a renounceable entitlement issue on the basis of one (1) new fully paid ordinary share ( Share ) for every six (6) Shares held by shareholders of the Company as at 5.00 pm WST on 1 April 2008 at an issue price of $0.45 per Share ( Offer ).

The entitlement issue will result in the issue of approximately 29,950,760 new Shares in the Company. The entitlement issue is renounceable and as such, shareholders will be entitled to trade their rights on ASX. Details of the process of trading of your rights will be outlined in the Prospectus.

The Prospectus relating to this issue has been lodged with the Australian Securities and Investments Commission and ASX and is available on the ASX website at www.asx.com.au for inspection. The timetable and important dates of the issue are set out below:

Lodgement of Prospectus with ASIC and ASX	18 March 2008
Last date to acquire shares on ASX to participate in Offer	25 March 2008
Ex date – rights trading commences	26 March 2008
Record Date for determining Shareholder entitlements	1 April 2008
Opening Date and Prospectus despatched to Shareholders	7 April 2008
Rights trading ends	14 April 2008
Closing date	5pm (WST) on 21 April 2008
Despatch date and Shares entered into Shareholders’security holdings	30 April 2008

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The purpose of the issue is to raise approximately $13,477,842 and the funds raised will be used to provide general working capital to enable the Company to continue with its stated exploration and development objectives at its current projects.

The capital structure of the Company on completion of the issue will be as follows:

Shares

Shares
	Number
Share currently on issue	179,704,557
Shares offered pursuant to the Offer	29,950,760
Total Shares on issue	209,655,317*

• Assumes the offer is fully subscribed.

Options

Options
	Number
Options currently on issue	14,883,337
Options offered pursuant to the Offer	Nil
Total Options on issue	14,883,337*

• Assumes the offer is fully subscribed.

In calculating entitlements under the entitlement issue fractions will be rounded up to the nearest whole number.

The offer under the Prospectus is made to Shareholders with registered addresses in Australia and New Zealand. Overseas shareholders should contact the Company Secretary with any queries. The Company has appointed Euroz Securities Ltd to deal with the rights of nonqualifying shareholders. Details of the obligations of Euroz Securities Ltd in acting as the nominee will be outlined in the Prospectus.

Full detail of the issue will be contained in the Prospectus that will be mailed to all shareholders who are registered on the record date. Shareholders eligible to participate should read the Prospectus carefully.

Yours faithfully

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Michael Kiernan Chairman