ORA BANDA MINING LTD — Capital/Financing Update 2008

Feb 20, 2008

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21 February 2008

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

Dear Sir/Madam

MEDIA RELEASE – MONARCH REVAMPS PRODUCTION PLAN

Attached is a Media Release in regard to the above.

Yours sincerely

Patrick McCole Company Secretary

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ASX / MEDIA RELEASE

21 February 2008

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MONARCH REVAMPS PRODUCTION PLAN

Monarch Gold Mining Company’s (ASX/DIFX:MON) Davyhurst Gold Project is expecting to be cash positive in April 2008, following completion of a revised mine plan to deliver steady increases in production.

In addition, the Directors of Monarch are pleased to confirm shares from last week’s $10 million (20 million shares at 50 cents per share) placement have been settled today. The funds raised from institutional and sophisticated investors will be used to bring forward the commencement of mining at the Missouri, Sand King and Riverina prospects.

Monarch Chairman Michael Kiernan said the Company had re-optimised its mine plan, following confirmatory drilling at its Goldfields-based projects.

He said Monarch was forecasting a projected production target of 60,000 ounces for the first half of FY2008/09.

“The revised mine plans are based on optimisations carried out by Monarch staff to steadily increase production, and at the same time reduce unit costs,” he said.

“This production plan projects estimated cash costs will reduce to just below A$700 per ounce by December 2008 and combined with a strong gold price will generate value for our shareholders,” he said.

Mr Kiernan said the Company forecasts were for the gold price to remain above AUD$1,000 per ounce, which provided sound economics for the Davyhurst operation.

“The Company is carrying no bank debt and remains in an unhedged gold position and based on the revised mine plan expects to be become cash positive at Davyhurst during April,” Mr Kiernan said.

“With increasing production from higher grade deposits, we remain committed to a target of 125,000 ounces per annum at Davyhurst,” Mr Kiernan said

The company’s high grade Mt Ida asset is projected to reach full ramp up capacity of 4,000 ounces per month during July 2008.

For further information, please contact:

Michael Kiernan Warrick Hazeldine Chairman - Monarch Gold Purple Communications Tel: +61 (0)8 9481 6422 Tel: +61 (0)8 9485 1254 Mob: 0417 944 616

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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 four potential production centres in Western Australia:

Davyhurst - 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.

Riverina Project - indicated and inferred gold resources totalling 200,000oz. A new resource estimate is currently being developed following extensive confirmatory and extentional drilling done by Monarch over the last six months.

Mt Ida - 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.

Minjar - gold resources of over 400,000oz within a 1,722 sq km tenement package and 600,000tpa gold processing facility (+120,000oz historic production)

Bellevue - gold resources of 120,000oz associated with the historic Bellevue Gold Mine, one of WA’s premier gold operations (750,000oz historic production)

Mt Magnet – 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.

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Monarch Gold Mining Company Projects

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