chairmans address to shareholders

MONARCH GOLD MINING COMPANY LIMITED
CHAIRMAN’S ADDRESS
GENERAL MEETING
2 MAY 2008 AT 3.00 P.M.
Corporate
· Post the March 2008 quarter, the Company undertook a Rights Issue raising of
$8.98 million. The balance of 10,000,000 shares for $4.5million will be placed by
the Board in the next 3 months.
· The Company has agreed, as outlined in Quarterly Report, to sell the Minjar Project
for $11.0 million, consisting of $7.5 million cash and $3.5 million in shares in Group
to be listed in second-half of this year.
· The Board is pleased that Territory Resources is now the Company’s major
shareholder (just under 20%).
· The Board is most disappointed that the current share price has fallen significantly
and is obviously a reflection of the lack of confidence in the company going forward.
· The Board’s prime focus is to ensure production initially reaches a break-even level
and then ultimately reaches production targets to ensure a reasonable margin and
return.
· Our staff have completed the first phase of a Resource review for the Mt Magnet
Project and have identified several significantly prospective open pit targets. A more
complete report will be released to the market in about a fortnight.
· The Company has had an approach to sell the Bellevue Project and discussion are
currently underway.
· Going forward the Company will focus on the Davyhurst and Mt Magnet Gold
Projects which, at full production, will produce a budgeted target of 250,000 ounces
per year.
Production
· Production for the Quarter ended March 2008 has been disappointing.
· Development has been 3 to 4 months behind schedule.
· Production to-date has been less than targeted.
· The production target for May 2008 is 7,200 ounces which is marginally above
break-even point and therefore the Company should become cash neutral during
the month.
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· The production target for June is 8000 ounces and the target for the first 6 months
of the next financial year is on average just under 10,000 per month.
· Should the company reach its targets, the average production cash cost will range
between $650-700 AUD/oz and thereby produce a reasonable margin.
Davyhurst
· Grades from the recently commenced Missuouri and Sand King deposits are in
line with expectations being combined marginally above 2.5 g/t and will be
augmented by Riverina ore which is expected to be 2.6g/t.
Mt Ida
· Development of Mt Ida has been slower than hoped for, but nevertheless it is
starting to hit its straps and we expect May & June to produce 2,500 ounces
each month (anticipated grade 15g/t) increasing to an average of over 4,000
ounces per month for the first 6 months of the next financial year (with a
projected grade of 18g/t).
Michael Kiernan
Chairman
Monarch Gold Mining Company Limited

a sinking ship does not look in such a way

hain