ORA BANDA MINING LTD — M&A Activity 2007

Nov 7, 2007

MEDIA RELEASE

8 NOVEMBER 2007

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MONARCH ACQUIRES HILL 50 GOLD

Monarch Gold Mining Company (ASX / DIFX:MON) has boosted its golden footprint with the $65 million acquisition of the Mount Magnet Gold Operations project which includes the historic Hill 50 mine.

Monarch has acquired the project from South African based Harmony Gold Mining Company (JSE/HAR), and includes the Hill 50, Great Fingall, St George, Star and Big Bell mines.

Consideration for the acquisition is $65 million which is made up of cash, equity and convertible notes.

The 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.

The resource inventory of 2.7m ounces of gold are comprised as Measured Resource 1.1 million tonnes @ 3.1 g/t Au for 0.1 million ozs, Indicated Resource 16.0 million tonnes @ 3.4 g/t Au for 1.7 million ozs and Inferred Resource 9.0 million tonnes @ 3.0 g/t Au for 0.9 million ozs.

Monarch Chairman Michael Kiernan said the acquisition was a defining step for the Company and its shareholders.

“This is a world class mining project, with one of the largest landholding packages in the area,” Mr Kiernan said.

“This is a significant step toward achieving our goal of becoming a 500,000 ounce per annum gold producer by 2009, and this project will provide a substantial contribution to profit for Monarch shareholders,” Mr Kiernan said.

The acquisition will complement Monarch’s current projects in the WA Goldfields region, where it is the largest independent landholder. Following the acquisition, Monarch will have total JORC compliant resources of 5.0m ounces.

“Monarch now has two world class gold mining projects – Davyhurst/Mt Ida and Hill 50 – and with the gold price now surpassing US$800 per ounce, we are well positioned to capitalise on the potential of these historic projects,” Mr Kiernan said.

Harmony’s acting Chief Executive Graham Briggs said the company had divested the project as part of a global corporate reorganisation of its assets.

“Harmony views Monarch as being the best-placed gold mining company to drive this project forward, and with a significant equity interest in the development of the project, we have confidence that there is long term value in the project under the Monarch umbrella,” he said.

Mr Kiernan said Monarch intended 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.

“We will allocate $10 million per year for the next two years into exploration on the extensive Mt Magnet tenements, with a dedicated explorative team to review and re-optimise existing resources,” he said.

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Mr Kiernan said the Company aimed to recommence mining within 18 – 24 months, and had an initial production target of 150,000 ounces per annum.

The acquisition would be partly funded through capital raised in Monarch’s listing on the Toronto Stock Exchange (TSX) in early 2008. In preparation for the TSX listing, Monarch will consolidate its capital on a one-for-three basis.

Terms

Total consideration for the acquisition is A$65 million, including:

• Cash A$30 million

• • Monarch shares (issued at 7 day VWAP) A$20 million • Convertible note A$15 million

• 3 yr term

• 5% per annum interest

• 30% premium for conversion to issue price

• o Secured by the asset

A$5 million deposit on signing of contract with Harmony (50% non-refundable). The Monarch shares to be issued will be subject to shareholder approval.

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 5.0 million ounces, three 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. Monarch’s production at Davyhurst has an average head grade of 5.3g/t Au.

Growth Strategy

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

Davyhurst - gold resources of 1.5M ozs 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 resources of 2.7M ounces, ground package of 330 tenements covering approximately 1,100 square kilometres. 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.

Monarch is focussed on gold production, with a target to be producing 500,000oz per annum by December 2009.

For further information visit: www.monarchgold.com.au

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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