Monarch Energy Signs Letter of Intent for Mineral Property Acquisition

Monarch Energy Limited (TSX VENTURE:MNL) (the "Company" or "Monarch") is pleased
to announce that the Company has entered into a Letter of Intent with Tectonics
Inc., of Calgary, Alberta, for the acquisition of an interest in mineral
properties located on and offshore Long Point, on the Port au Port Peninsula,
Newfoundland and Labrador.


Acquisition

Monarch will purchase a 60% working interest (subject to a 2% NSR) in Mineral
License 016508M, comprising 68 claims (approx. 1700 hectares, 4352 acres);
Mineral License 018019M, comprising 121 claims (approx. 3025 hectares, 7744
acres); Mineral License 018035M, comprising 121 claims (approx. 3025 hectares,
7744 acres); and Mineral License 018387M comprising 3 claims (approx. 75
hectares, 290 acres) (collectively, the "licensed area"). Monarch will agree to
enter into a joint venture with the holder of the remaining 40% interest for the
exploration, development and exploitation of the licensed area. The
consideration payable by Monarch will be the issuance to Tectonics or its
assigns of 39,450,000 shares, following a 1.75:1 consolidation, at a deemed
price of $0.05 per share.


Approvals

The acquisition and related matters will be subject to approval by the TSX
Venture Exchange. The acquisition will be a Related Party transaction, as the
principal of Tectonics is George S. Langdon, who is the President and a director
of Monarch. Accordingly the acquisition will also be subject to approval by the
disinterested shareholders of Monarch.


Focus of Exploration

The focus of the mineral exploration on the licensed area is a feature known as
the "Odd Twins Magnetic Anomaly". This feature has been identified on magnetic
surveys, covers a license area of 19840 acres and includes two prospective
sandstone units with a gross thickness of up to 506 meters. The possibility of
low cost energy from the production of oil and gas in west Newfoundland raises
the potential of commercial extraction of iron, titanium and chromium oxides.
Preliminary estimates from limited outcrop indicate a concentration of heavy
metals (magnetite, ilmenite and chromite) at approximately 5% of the total rock.


Geological Setting and Heavy Mineral Potential

The upper Ordovician Long Point Group lies stratigraphically and structurally
above both the upper Cambrian to middle Ordovician carbonate platform rocks, and
their deepwater equivalents, the Cow Head Group/Green Point Formation
petroliferous shales of the Humber Arm Allochthon, on the northern Port au Port
Peninsula. As such, the Long Point Group includes clastic sediments derived from
uplift of crystalline massifs lying to the east of the ancient Port au Port area
at the end of the middle Ordovician Taconian Orogeny, and therefore represents
the initiation of a foreland basin at this time. These massifs contained suites
of heavy minerals which were eroded, transported westward, and deposited and
distributed along a shoreline along the ancestral west coast of Newfoundland.
Such bodies of sands with concentrations of heavy minerals are commonly found
along shorelines in the modern environment ("black sands"). When they are found
within lithified rock units they are known as "paleoplacers" and often bear
significant quantities of heavy minerals, concentrated in the sandstone by the
action of ancient winds, currents and tides, generally along shorelines, and
within deltas and rivers. Such units have been identified in the upper part of
the Long Point Group, which outcrops on Long Point, north of the village of
Lourdes, and has been documented by Waldron et al. (2002, Can. Jour. Earth
Sciences, p.1675). Modelling of the geophysical data and field observation
suggest the gross thickness of the unit ranges from 294 to 506 metres, with a
net magnetic sandstone thickness of 134 metres.


Petrography of the sandstones from Long Point shows the occurrence of three
principal detrital heavy minerals: magnetite, ilmenite, and chromite, which are
interpreted to have had their provenance principally in rocks of the Bay of
Islands Ophiolite Complex. A preliminary estimate of the concentration of these
three minerals from the very limited outcrop is placed at around 5% of the total
rock. Other opaque minerals occur in the rock and have not yet been investigated
for their economic potential.


Structural Attitude of the Long Point Group

The Long Point Group lies within the foreland basin succession above and west of
the east- verging roof thrust of the "triangle zone" which encloses the deformed
sediments of the Humber Arm Allochthon, including oil-bearing units of the Green
Point Formation. As such, the group is a relatively undeformed unit which dips
uniformly north-westward about 34 degrees, for about 4 km offshore, where it is
seen to flatten to horizontal on offshore seismic profiles at a depth of about
1200 metres.


Magnetic Signature of the Paleoplacers

Two magnetic linear traces seen on magnetic surveys from the offshore north of
the Port au Port Peninsula come onshore near Misty Point and continue into the
paleoplacer units onshore. This feature was originally termed the "Odd Twins
Magnetic Anomaly" by Ruffman and Woodside (Can. J. Earth Sci., 1970, p. 326).
Tectonics Inc. has completed a hand-held magnetometer survey in three traverses
across the strike of the beds and these data will be used to site the locations
of drilling. The magnetite in the sandstones, therefore, may not only have
economic value in its own right, but acts as a tracer mineral for the other
minerals in the paleoplacer units.


Work Program

A 2010 work program conducted by Canadian Imperial Venture Corp. (CIVC) included
the drilling of three core holes with orientations both normal and parallel to
the dip of the sandstone units. The former will help establish the attitude and
thickness of the units, while the latter will explore lateral changes in facies,
and therefore, clast and heavy mineral composition, in a direction perpendicular
to the ancient shoreline, which in general shows the most rapid facies
transitions. Currently, an evaluation is underway which will consist of core
examination, petrographic studies, field sampling and possibly trenching for
bulk sample separation analysis, and other germane studies, directed toward an
early assessment of potential commerciality. The results of this evaluation are
expected to be released in February 2011.


The cost of the initial work program ($200,000) was paid 100% by CIVC to earn a
40% interest in ML 016508M and ML 018387M. CIVC has the option to earn a 40%
stake in ML 018019M and 018035M by issuing 5 million shares per licence and
spending $200,000 per licence.


Economic Climate for Strategic Metals

Recently there has been a worldwide thrust to accumulate strategic metals, and
indeed commodities in general, by emerging, particularly Asian, economies. Iron,
titanium and chromium in particular have participated in dramatic price run-up
in the last several years.


Technical Report

Monarch has undertaken to pay the cost of obtaining an NI 43-101 compliant
Technical Report.


Dr. Ulrich Kretschmar PhD., P.Geo (APGO #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

This release includes certain forward looking statements which reflect beliefs,
expectations, objectives and goals which are believed to be reasonable at the
time such statements are made. Actual results could differ materially from
anticipated results and may be impacted upon by such factors as commodity
prices, political developments, legal decisions, market and economic conditions,
industry competition, the weather, changes in financial markets and changing
legislation.