MONARCH MINING CORPORATION (TSX: GBAR) (OTCQX: GBARF) is pleased to announce that it has closed its previously announced private placement for aggregate gross proceeds of C$14,400,000. The Offering was conducted on a “best efforts” private placement basis pursuant to the terms and conditions of an agency agreement entered into among the Corporation, and Stifel GMP and Sprott Capital Partners LP, as co-lead agents and joint bookrunners and Desjardins Securities Inc. and Laurentian Bank Securities Inc. The Offering includes the exercise by the Agents of their over-allotment option for additional gross proceeds of C$2,400,000. The Offering consisted of the issuance of 24,000,000 units of the Corporation at a price of C$0.60 per Unit.

Each Unit consists of one common share in the capital of the Corporation  and one transferable common share purchase warrant of the Corporation. Each Warrant entitles the holder thereof to acquire one Common Share at a price of C$0.95 per Warrant Share for a period of 60 months following the date of issuance thereof.

The net proceeds of the Offering are expected to be used by the Corporation to fund development expenditures at the Corporation’s Beaufor Mine and Beacon Mill, and for general corporate purposes, including working capital purposes.

All securities issued pursuant to this Offering are subject to a restricted period of four months and a day, ending on August 7, 2022, under applicable Canadian securities legislation. The Offering remains subject to the final approval of the Toronto Stock Exchange.

Alamos Gold Inc. has agreed to participate in the Offering with a subscription for 1,666,667 Units, for aggregate consideration of C$1,000,000.20. Prior to the closing of the Offering, Alamos held 8,793,640 Common Shares and no common share purchase warrants of the Corporation, being 10.36% of the issued and outstanding securities on a non-diluted basis at that time. Following the closing of the Offering, Alamos holds, as of the date hereof, 10,460,307 Common Shares and 1,666,667 Warrants, for a security holding percentage of 10.97% on a partially diluted basis, which represents an increase of 0.61%. Alamos acquired the Units for investment purposes, which will be evaluated and may be increased or decreased from time to time at Alamos’ discretion. A copy of Alamos’ early warning report is available on the SEDAR website at www.sedar.com or can be requested by contacting Scott Parsons, Vice-President, Investor Relations, at SParsons@alamosgold.com, 416-368-9932 (ext. 5439) or by mail at Brookfield Place, 181 Bay Street, Suite 3910, Toronto, Ontario M51 2T3.

Insiders of the Corporation, including Alamos, have subscribed for an aggregate of 1,866,667 Units under the Offering, representing 7.78% of the Units issued under this Offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act and may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. “United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.

About Monarch

Monarch Mining Corporation is a fully integrated mining company that owns four projects, including the Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch’s wholly owned 750 tpd Beacon Mill. Monarch owns 29,504 hectares (295 km²) of mining assets in the prolific Abitibi mining camp that host a combined measured and indicated gold resource of 478,982 ounces and a combined inferred resource of 383,393 ounces.