ORA BANDA MINING LTD — Capital/Financing Update 2008

Feb 3, 2008

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4 February 2008

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

Dear Sir/Madam

Monarch finalizes Mt Magnet Purchase Agreement

Attached is a Media Release in regard to the above.

Yours sincerely

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Patrick McCole Company Secretary

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4 FEBRUARY 2008

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ASX / MEDIA RELEASE

MONARCH FINALIZES MT MAGNET PURCHASE AGREEMENT

Monarch Gold Mining Company (ASX /DIFX:MON) is pleased to announce the company has finalised and signed the share sale agreement for the purchase of the Mount Magnet Gold Operations which includes the historic Hill 50 gold project and Big Bell gold operations near Mt Magnet.

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

The Hill 50 project represents a significant and strategic acquisition for Monarch, delivering known gold reserves, modern processing facilities and one of the largest landholdings in the Mount Magnet region.

Monarch Chairman Michael Kiernan said the company is well advanced on raising capital to complete the share sale agreement.

“Despite capital and credit markets changing substantially in recent times, we are confident of raising $35 million to complete the conditions precedents attached to the purchase process,” Mr Kiernan said.

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

Monarch intends to put the Hill 50 mine on care-and-maintenance for up to two years, while it focussed on exploration activities across landholdings.

Monarch will launch a substantial drilling program on the landholding to extend the current 2.7 million ounce gold resource base.

A budget of $10 million per year for the next two years has been allocated for exploration on the extensive Mt Magnet tenement.

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

“Monarch shareholders will continue to gain exposure to the largest Australian-controlled landholding in the Kalgoorlie region and a ramp up in production from Monarch’s Davyhurst and Mt Ida assets.

For further information, please contact:

Michael Kiernan

Chairman - Monarch Gold Tel: 08 9481 6422

Warrick Hazeldine

Purple Communications 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, two state-of-the-art gold treatment plants, 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 1.5m oz within a 2,000 sq km tenement package and 1.2mtpa gold processing facility (+1.2Moz historic production)

Riverina Project - indicated and inferred gold resources totalling 1.64 million tonnes @ 3.8 g/t Au for 200,000oz.

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 2.7m ounces, ground package of 330 tenements covering approximately 1,100 square kilometres and a 2.7mtpa capacity gold processing facility.

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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