Monarch Gulf Exploration Announces Investment Banking Agreement Termination

  
    
  
  
    
      Monarch Gulf Exploration Inc. (Pink Sheets:MGFX) announced today that it 
      has received a Termination of Engagement letter from Securities Network, 
      LLC, dba, ForeRunner Financial of Norcross Georgia. This letter 
      effectively cancels the Financial Advisory and Investment Banking 
      Agreement between them and Monarch Gulf Exploration Inc. (The Company). 
      As a consequence of this action, no funds have been raised for the 
      Monarch Drilling Fund #2, which was scheduled to close escrow on March 
      30, 2008, to raise funds for the drilling of 34 wells in Young County 
      Texas. This action by Securities Network LLC, combined with the earlier 
      failure of Securities Network’s, ForeRunner 
      Financial affiliate, of Austin, Texas, to raise funds for the 2007 
      Monarch Drilling fund #1, has had a material adverse effect on our 
      company and its financial position. The Board of Directors is at this 
      time evaluating all options available to the company, including its 
      future corporate strategy, and potential business plans for moving 
      forward.