GlobeNewswire Inc | Jul 7, 2021 07:35AM EDT

July 07, 2021

-- Near-mine underground exploration drilling yields multiple high-grade gold intersections. -- High-grade results include 119.0 g/t Au over 0.5m, 56.1 g/t Au over 0.8 m and 45.6 g/t Au over 0.75m. -- The 42,500-metre drilling program is ongoing, with four drills underground and one on surface. -- Monarch has initiated exploration drilling testing the area below the lower most level of the mine. -- First-ever Beaufor mine block model mineral resource estimate under way.

MONTREAL, July 07, 2021 (GLOBE NEWSWIRE) -- MONARCH MINING CORPORATION (Monarch or theCorporation) (TSX: GBAR) (OTCQX: GBARF)is pleased to announce additional results from its 20202021 42,500-metre exploration diamond drilling program on its wholly-owned Beaufor Mine gold project, located 20 kilometres east of Val-dOr, Qubec. The results include several high-grade assays, including 119.0 g/t Au over 0.5m within a wider zone of 18.93 g/t Au over 3.5 m, 56.1 g/t Au over 0.8 m within a wider zone of 29.53 g/t Au over 1.78 m and 45.6 g/t Au over 0.75 m within a wider zone of 27.60 g/t Au over 1.65 m, as Monarch continues to test for potential resources in proximity to the historical mine.

The Beaufor Mine initially began commercial production in the early 1930s and over the years has produced over 1.1 million ounces of gold. The mine is currently on care and maintenance, which has given Monarch an opportunity to drill-test targets throughout the mine area. In June 2020, the Corporation initiated a 42,500-metre diamond drilling program to test two types of targets: the areas around historical high-grade intersections near the existing underground infrastructure, and isolated resource blocks, which are typically defined by a single drill intersection. Both of these near-mine targets can often be tested from the existing underground workings, generally by holes less than 200 metres long. Currently, 275 holes are planned or are already being drilled at 25metre centres. If positive results are received, additional holes will be drilled to allow the zones in question to be converted into reserves and included in a future mine plan.

Assay results have been received for a total of 162 holes (19,394 m), representing roughly 46% of the planned metres of drilling. High-grade results previously reported from the program included 783 g/t Au over 0.2 m and 293 g/t Au over 0.5 m (see press release dated October 1, 2020), 35.87 g/t Au over 9.8 m (see press release dated January 19, 2021) and 187 g/t Au over 0.5 m and 151.5 g/t Au over 0.5 m (see press release dated April 29, 2021).

Since the last reported results, the Corporation has drilled 42 additional underground exploration holes (4,928m). The best results are shown in Table 2 below and illustrated in the attached figures. Several of the holes have multiple intersections due to the stacked nature of the mineralization. The intersection widths reported are core lengths and high-grade intersections have not been capped, as the vein interpretation and statistics have not been finalized for the zones.

Figure 1: Beaufor property recent assay results (longitudinal view looking N)Figure 2: Beaufor property recent assay results (sectional view looking NW)

Near-mine exploration drilling is ongoing, with four drill rigs underground and one on surface. The focus remains high-grade composites that are open along strike and existing resource blocks that contain sufficient room for expansion. The Corporation is also pleased to report that the exploration drift at the lower-most level of the mine is progressing well and the first drill station has been established. An underground drill has been mobilized to the first station and will start drill-testing the continuity of the mineralization below the lower-most level of the mine this month.

The BBA Inc. mineral resource estimate (MRE) for the Beaufor mine is in progress. This new resource estimate will incorporate much of the current 2020-2021 drilling program and will represent the first block model resource estimate for the Beaufor mine.

The drill results continue to meet and even beat our expectations, said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. All the pieces of the puzzle put in place since we purchased the Beaufor mine back in 2017, starting with our initial 3D modelling and targeting, followed by a significant near-mine exploration drilling program with consistent high-grade results and our upcoming block model mineral resource estimate, are starting to come together.

Sampling consists of sawing the drill core into equal halves along its main axis and shipping one of the halves to ALS Canada in Val-dOr, Quebec, and AGAT Laboratories in Mississauga, Ontario, for assaying. The samples are crushed, pulverized and assayed by fire assay, with atomic absorption finish. Samples exceeding 10.0 g/t Au are re-assayed using the gravity method and samples containing visible gold are assayed using the metallic screen method. Monarch uses a comprehensive QA/QC protocol, including the insertion of standards, blanks and duplicates.

The technical and scientific content of this press release has been reviewed and approved by Christian Tessier, P.Geo., the Corporations qualified person under National Instrument 43-101.

About BeauforThe Beaufor Mine is located within the Bourlamaque Pluton at the eastern contact with the Dubuisson Formation. The Bourlamaque Batholith, a synvolcanic intrusion, is a major geological feature of the Val-dOr mining camp. It is a quartziferous granodiorite cut by fine-grained diorite dykes. Gold mineralization occurs in veins associated with shear zones dipping moderately south. Mineralization is associated with quartz-tourmaline-pyrite veins resulting from the filling of shear and extension fractures. Gold-bearing veins show a close association with mafic dykes intruding the granodiorite. A National Instrument 43-101 resource estimate for the Beaufor Mine property was prepared for Monarch Mining in December 2020 by Carl Pelletier, P. Geo., InnovExplo Inc., and John Langton, P. Geo., JPL GeoServices Inc. The mineral resource estimate is listed in the table below.

Table 1: 2020 mineral resource estimate for the Beaufor Mine

Category Tonnes Grade (g/t Au) Gold (ounces)Measured 121,000 5.62 21,900Indicated 310,100 7.10 70,800Total M+I 431,100 6.68 92,700Inferred 134,600 6.96 30,100

Mineral Resource Estimate notes:

-- The independent and qualified person for the 2020 MRE, as defined by NI 43-101, is Carl Pelletier, P.Geo. (InnovExplo Inc.), and the effective date is December 18, 2020. -- These mineral resources are not mineral reserves as they do not have demonstrated economic viability. The mineral resource estimates follow CIM Definition Standards and Guidelines. -- A capping of 68.5g/tAu on assays was applied for zones 8, B, M, M1 and Q, and 34.25 g/t for all other zones. The DDH intercepts (min. 2.4 m) were capped at 16.5g/t. -- The estimate method was polygonal on cross-sections with a minimum width of 2.4 m using a density of 2.75 t/m3 for the 63 mineralized zones. -- Measured resource polygons extend 8m above and below development and up to 10m laterally. Indicated resource polygons extend up to 20m from DDH intercepts, along dip and along strike and a minimum of 2 polygons need to be in contact. Inferred resource polygons extend up to 40m from DDH intercepts, along dip and along strike where a drill spacing ranges from 20m to 40m and/or in areas of isolated drill holes where mineralization is known. -- The reasonable prospect for an eventual economical extraction is met by having a reasonable minimum width for the polygons, a cut-off grade of 3.20g/tAu, application of constraining volumes on the blocks (potential underground scenario) below a 30 m crown pillar. The cut-off grades inputs are: a gold price of USD1,612/oz, a CAD:USD exchange rate of 1.34; a mining cost of $100/t for the long hole method and $145/t for the room and pillar method; a processing cost of $50/t; and G&A and environment of $13/t and includes the royalty of 1.0% and a refinery charge of $5/t. The cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rate, mining cost, etc.). -- Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348. The number of tonnes and ounces was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations as per NI 43-101. -- InnovExplo Inc. is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the mineral resource estimate.

About MonarchMonarch Mining Corporation (TSX: GBAR) is a fully integrated mining company that owns four advanced projects, including the fully permitted past-producing Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarchs wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,725 hectares (287km2) of mining assets in the prolific Abitibi mining camp that host 588,482 ounces of combined measured and indicated gold resources and 329,393 ounces of combined inferred resources.

Forward-Looking Statements The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarchs actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

FOR MORE INFORMATION:

Jean-Marc Lacoste 1-888-994-4465 President and Chief Executive Officer jm.lacoste@monarchmining.com Mathieu Sguin 1-888-994-4465Vice President, Corporate Development m.seguin@monarchmining.com Elisabeth Tremblay 1-888-994-4465Senior Geologist ? Communications Specialist e.tremblay@monarchmining.com www.monarchmining.com

Table 2: Beaufor Mine significant assay results

Hole From (m) To (m) Width* (m) Au (g/t)20-125-69 102.7 105 2.30 8.05Incl. 103.7 104.35 0.65 24.6020-133-72 33.9 34.4 0.50 22.30BEU-20-15-007 53.75 54.5 0.75 23.80BEU-20-30-002 60.6 61.1 0.50 19.70BEU-20-30-003 53.55 55.2 1.65 27.60Incl. 54.45 55.2 0.75 45.60BEU-21-10-005 100.95 103.8 2.85 5.57BEU-21-10-011 82.0 83.78 1.78 29.53Incl. 82.0 82.8 0.80 56.10BEU-21-10-012 108.6 109.1 0.50 15.10BEU-21-10-014 17.7 19.2 1.50 29.70BEU-21-10-014 36.7 37.2 0.50 55.80BEU-21-10-015 26.1 26.6 0.50 38.20BEU-21-10-015 36.05 36.55 0.50 25.00BEU-21-12-001 25.8 26.3 0.50 17.90BEU-21-12-003 147.5 150.65 3.15 5.52Incl. 147.5 148.7 1.20 12.00BEU-21-12-004 132.0 133.0 1.00 8.75Incl. 132.0 132.5 0.50 13.60BEU-21-12-004 142.0 145.5 3.50 18.93Incl. 144.0 144.5 0.50 119.00BEU-21-15-014 3.4 4.8 1.40 18.70BEU-21-15-014 12.0 12.5 0.50 14.70BEU-21-15-014 20.4 20.9 0.50 18.20BEU-21-15-014 27.3 28.8 1.50 8.27Incl. 28.3 28.8 0.50 15.80BEU-21-15-014 38.8 39.4 0.60 31.80BEU-21-20-011 6.85 7.35 0.50 13.10BEU-21-30-005 54.6 56.4 1.80 24.15BEU-21-30-006 65.35 65.85 0.50 13.60BEU-21-30-013 83.6 84.6 1.00 9.46BEU-21-30-029 91.75 92.75 1.00 11.40

*The width shown is the core length. True width is unknown at this time.

Table 3: Beaufor Mine drill hole location

Hole Easting Northing Elevation Az Dip Length (Mine Grid) (Mine Grid) (m) (deg.) (deg.) (m)20-116-125A 2048.279 3253.518 2256.27 29 -18 82.420-125-69 2117.114 3202.596 2739.927 220 -3 174.920-133-72 2184.8 3166.768 2739.214 72 -60 131.5BEU-20-15-007 2362.249 3051.656 2596.228 211 -76 214.3BEU-20-17-009 1811.965 3474.44 2519.488 261 8 210.2BEU-20-17-010 1811.339 3474.667 2519.882 258 4 205BEU-20-17-011 1921.716 3318.44 2517.905 74 -57 102.1BEU-20-30-002 2032.256 3229.841 2251.44 325 -61 88.2BEU-20-30-003 2036.404 3228.737 2251.055 50 -59 91BEU-21-08-002 2049 3648 2798 128 15 100.7BEU-21-10-005 2116.982 3202.788 2739.538 223 -17 144.6BEU-21-10-009 2209.071 3474.529 2740.371 22 40 215BEU-21-10-010 2209.062 3474.585 2740.249 20 38 202.5BEU-21-10-011 2149 3504 2740 213 22 156.1BEU-21-10-012 2149 3504 2740 219 37 151.5BEU-21-10-013 2110.05 3618.359 2737.238 333 -36 54BEU-21-10-014 2124.144 3654.079 2736.531 333 -46 55.5BEU-21-10-015 2123.955 3654.503 2737.377 333 -17 57.7BEU-21-12-001 2237 3194 2673 142 50 212.5BEU-21-12-003 2025.347 3327.479 2672.85 182 31 183BEU-21-12-004 2025.329 3327.774 2673.084 181 41 181.8BEU-21-15-009 2362.013 3052.04 2596.274 268 -79 161BEU-21-15-011 2028.128 3255.221 2595.719 13 -10 82.1BEU-21-15-012 2028.247 3255.047 2595.004 19 -40 128.3BEU-21-15-013 2028.653 3255.093 2595.763 19 -40 94.8BEU-21-15-014 2104.718 3293.553 2594.458 13 -57 46.6BEU-21-15-015 2128.971 3347.104 2593.948 325 -40 35.5BEU-21-15-016 2129.951 3346.995 2593.891 20 62 31BEU-21-15-017 2199.086 3598.054 2592.662 61 -8 66.3BEU-21-15-019 2176.669 3635.192 2592.529 335 -11 61.1BEU-21-15-020 2177.6 3635.182 2592.559 6 -10 43.2BEU-21-15-021 2177.753 3635.086 2592.118 12 -28 159BEU-21-20-011 1991.852 3323.38 2444.051 196 22 31.8BEU-21-30-005 2050.383 3223.386 2248.147 8 -34 80.2BEU-21-30-006 2050.561 3222.519 2248.241 26 -53 69.6BEU-21-30-010 2159.058 3381.587 2223.175 237 31 46.5BEU-21-30-012 2156.736 3382.424 2220.618 228 0 59BEU-21-30-013 2106.127 3382.927 2200.114 296 -36 109.2BEU-21-30-028 2315.912 3255.547 2200.884 210 -11 147.9BEU-21-30-029 2315.988 3255.565 2201.201 208 -1 117.4BEU-21-30-030 2316.278 3255.275 2200.736 197 -14 165.5BEU-21-30-031 2316.722 3255.158 2200.98 184 -7 177.4

Table 4: Monarch combined gold resources

Tonnes Grade Ounces (metric) (g/t Au)Croinor Gold^1 Measured Resources 80,100 8.44 21,700 Indicated Resources 724,500 9.20 214,300 Total Measured and Indicated 804,600 9.12 236,000 Total Inferred 160,800 7.42 38,400 Beaufor Mine^2 Measured Resources 121,000 5.62 21,900 Indicated Resources 310,100 7.10 70,800 Total Measured and Indicated 431,100 6.68 92,700 Total Inferred 134,600 6.96 30,100 McKenzie Break^3 In-pit Total Indicated 1,441,377 1.80 83,305 Total Inferred 2,243,562 1.44 104,038 Underground Total Indicated 387,720 5.03 62,677 Total Inferred 1,083,503 4.21 146,555 Swanson^4 In-pit Total Indicated 1,864,000 1.76 105,400 Total Inferred 29,000 2.46 2,300 Underground Total Indicated 91,000 2.86 8,400 Total Inferred 87,000 2.87 8,000 TOTAL COMBINED^5 588,482Measured and Indicated Resources 329,393 Inferred Resources

^1 Source: Monarch Gold prefeasibility study (January 19, 2018) and resourceestimate (January 8, 2016). This resource estimate was prepared for MonarchGold and has not been reviewed by a qualified person for Monarch Mining asrequired under National Instrument 43-101 and is thus considered as anhistorical estimate.^2 Source: NI 43-101 Technical Report and Mineral Resource Estimate for theBeaufor Mine, December 18, 2020, Val-d?Or, Qubec, Canada, Carl Pelletier, P.Geo., InnovExplo Inc. and John Langton, P. Geo., JPL GeoServices Inc.^3 Source: NI 43-101 Technical Evaluation Report on the McKenzie BreakProperty, February 1, 2021, Val-d?Or, Qubec, Canada, Alain-Jean Beauregard,P.Geo., Daniel Gaudreault, P.Eng., Geologica Groupe-Conseil Inc., and MerouaneRachidi, P.Geo., Claude Duplessis, P.Eng., GoldMinds GeoServices Inc.^4 Source: NI 43-101 Technical Report and Mineral Resource Estimate for theSwanson Project, January 22, 2021, Val-d?Or, Qubec, Canada, ChristineBeausoleil, P. Geo. and Alain Carrier, P. Geo., InnovExplo Inc.^5 Numbers may not add up due to rounding.