Monarch Acquires Quebec Gold Project

Monarch Energy (TSX VENTURE:MNL)(FRANKFURT:EIY) is pleased to announce it has
entered into an option agreement with Golden Valley Mines Ltd. (TSX VENTURE:GZZ)
of Val-d'Or, Quebec to earn up to a 70% interest in the Centremaque Prospect,
situated in Bourlamaque Township, Quebec. 


Terms of the acquisition include a work commitment of $2,250,000 over three
years ($250,000 in year-1; $500,000 in year-2 and $1,500,000 in year-3). In
addition, Monarch has to complete a Definitive Feasibility Study ("DFS") for the
Property at its sole cost, within 10 years of signing, to earn a 70% interest,
leaving Golden Valley Mines Ltd. with a free carried interest of 30%. Monarch
must also issue to Golden Valley such number of shares in the capital of Monarch
as is equal to 9.9% of its issued capital on the later of TSX-V approval or
August 31, 2011, together with a $35,000 cash payment and reimbursement of its
legal expenses due within 6-months of signing. Golden Valley will be operator
during the option phase.


The Centremaque Gold Property is comprised of six mining claims, located
approximately 6-km southeast of the town of Val-d'Or, Quebec along the highly
prolific Cadillac-Larder Fault Zone of the Abitibi Greenstone Belt. At least
twenty-seven (27) diamond drill core holes (5,865 m) are reported to be drilled
on the property between 1940 and 1994 with the majority of the historical
drilling taking place in 1947 and 1987-1988. The drill holes encountered
numerous intersections assaying gold grades greater than 1.0 g/t Au and
including an intersection grading 15.87 g/t Au over 0.31 m (Ministere de
l'Energie et des Ressources naturelles, Documentation technique GM 04715, GM
06851-A, GM 06851-B, GM 36084, GM 46225, GM 47483, GM 52639, GM 58144).


The Property is strategically located within the prolific Val-d'Or gold mining
camp, located approximately 6 km to the south (of the Sigma and Lamaque Mines
where from 1937 to 2000, the Sigma Underground Mine continuously operated and
produced 24.8 Mt grading 5.48 g/t Au totaling of 4.4 million oz Au. The adjacent
Lamaque underground mine, which is part of the same vein system as Sigma,
produced 24.2Mt grading 5.81 g/t Au totaling of 4.55 million oz Au was closed
due to low gold prices - Century Mining Website, August 2011).


Recent geophysical surveying conducted by Golden Valley Mines over the claims
(magnetic and Induced Polarization surveys) along lines spaced 50 meters apart,
have outlined several anomalies warranting further drill testing based on an
initial interpretation of the data.


The first years' work program will include a compilation of pre-existing
exploration data and completion of a 3-D model of the historical drill data and
the drilling of approximately 1,400 meters of new drill core to confirm previous
assays and evaluate the new geophysical targets.


Dr. Ulrich Kretschmar, PhD., PGeo (APGO No. 1160), is the qualified person and
has approved the wording of the technical descriptions in this news release. 


ON BEHALF OF THE BOARD

MONARCH ENERGY LIMITED

Michael Turko, Director