ORA BANDA MINING LTD — Capital/Financing Update 2008

Mar 18, 2008

==> picture [483 x 43] intentionally omitted <==

19 March 2008

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

Dear Sir/Madam

MONARCH MOVING FORWARD WITH MOUNT MAGNET

Attached is a Media Release in regard to the above.

Yours sincerely

Patrick McCole Company Secretary

19 March 2008

==> picture [483 x 43] intentionally omitted <==

MEDIA RELEASE

MONARCH MOVING FORWARD WITH MOUNT MAGNET

Monarch Gold Mining Company (ASX /DIFX:MON) is well advanced with arrangements for the recently announced the acquisition of the Mount Magnet Gold Operations project, and will hit the ground running with its exploration and optimization activity when it takes possession next month.

Monarch announced the acquisition of the project, which includes the historic Hill 50 mine, from Harmony Gold Mining in November last year and will take possession on 1 April 2008. The purchase process is due for settlement on 30 June 2008.

The $65 million purchase price included a $30 million cash component, with $5 million already paid on signing, and $11 million to be funded through Environmental bonds . The balance as previously announced will be equity ($20m) and convertible note ($15m).

Mount Magnet funding status

Cash component (A$30 million): $19 million cash $11 million Environmental bonds (to be bank funded) Current Position: $5 million paid $14 million (outstanding) Mt Magnet surplus asset sales $5 million (expected) Balance cash due 30 June 2008 $9 million

“We expect to yield A$5 million cash from the sale of surplus assets including a surplus ball mill, excess housing infrastructure, motor vehicles and non-core plant and spares. This will leave Monarch to raise less than $10 million in equity to complete the Mount Magnet acquisition in June,” Mr Kiernan said.

“Despite capital and credit markets changing substantially in recent times, we believe the fundamentals of the project, including the strength in the gold market, make a compelling investment case,” Mr Kiernan said.

The Mt Magnet asset package comprises of a resource inventory of 2.7M ounces of gold, tenements covering approximately 1,100 square kilometres, along with a 2.7mtpa capacity plant.

It is intended to put the Hill 50 mine on care-and-maintenance for up to two years, while the focus is on exploration activities.

“We have budgeted for a full year exploration program of $10 million,” he said. “Drilling is due to commence in May on the most prospective advanced projects including the Galaxy ‘Big Pit’ concept.” The higher gold prices will have a significant impact on resource modelling.

Monarch also intends to investigate the economic iron ore potential in the Mount Magnet area. A high level review including detailed magnetics and ground knowledge indicates potential for significant tonnages of iron formation. Further work is required to determine the economic potential.

“The Monarch Board is confident 2008 will be a strong year for an unhedged gold and bank debt free producer with exposure to the robust gold price.”

For further information, please contact:

Michael Kiernan Chairman - Monarch Gold Tel: +61 (0)8 9481 6422

Warrick Hazeldine Purple Communications Tel: +61 (0)8 9485 1254 Mob: +61 (0) 417 944 616

==> picture [483 x 43] intentionally omitted <==

Background

The Company has a resource base of more than five million ounces, three state-of-the-art gold treatment plants (Davyhurst, Minjar and Mt Magnet), 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 and an expanded footprint in the Mount Magnet region.

Monarch remains firmly on track with its production targets, with mining commenced at the Davyhurst and Mt Ida projects.

Growth Strategy

Monarch’s growth strategy is focused on two major potential production centres in Western Australia:

Davyhurst Gold Project – Davyhurst Project gold resources of over 1.5 million ounces within a 2,000 sq km tenement package and 1.2mtpa gold processing facility (+1.2Moz historic production). First bullion was poured in August 2007. Davyhurst Gold Project incorporates the Riverina Project - indicated and inferred gold resources totalling 1.64 million tonnes @ 3.8 g/t Au for 200,000oz and also the Mt Ida Project - 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 commenced mining gold in July 2007.

Mt Magnet Gold Project – gold resource of 2.7 million ounces, a ground package of 330 tenements covering approximately 1,100 square kilometres and a 2.7mtpa capacity gold processing facility (+10 million ounces of current resources and past 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.

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.

==> picture [483 x 43] intentionally omitted <==

Monarch Gold Mining Company Projects

==> picture [445 x 189] intentionally omitted <==

==> picture [445 x 190] intentionally omitted <==

==> picture [445 x 189] intentionally omitted <==