Monarch Resources Limited Further Drill Results San Agustin Property, Durango, Mexico.

PRINCETON, N.J.--(BUSINESS WIRE)--Sept. 25, 1997--(TSE, LSE:MRE.) CORE DRILLING CONFIRMS WIDE ZONES OF PRECIOUS AND BASE METAL MINERALIZATION IDENTIFIED FROM PREVIOUS REVERSE CIRCULATION DRILLING.

MINERALIZATION EXTENDED TO AT LEAST 250 METRES DEPTH.

BEST CORE HOLE CUTS 244 METRES OF 0.88 G/T GOLD, 13 G/T SILVER AND .25 PERCENT ZINC, INCLUDING 47 METRES OF 2.06 G/T GOLD AND 30 G/T SILVER.

FURTHER RC DRILLING TO COMMENCE SHORTLY.

Monarch Resources Limited ("Monarch") - (TSE/LSE - MRE) is pleased to announce results from a recently completed 1,000 metre, 4 hole diamond drilling program at its 4,800 hectare, 100 percent controlled San Agustin property located 85 km north of the city of Durango, Mexico.

Four HQ sized diamond core holes, numbered SA-36 through SA-39, were drilled to twin selected reverse circulation (RC) holes completed in June, 1997. These core holes were drilled primarily to confirm widespread disseminated and veinlet hosted precious and base metal mineralization identified from RC drilling. In addition, core drilling was done to a depth of approximately 250 metres to investigate the continuity of precious and base metal mineralization to depths which would approximate a potential open pit bottom.

The core drilling essentially confirmed previously identified mineralization, and extended sulphide mineralization to a depth of 250 metres. Three core holes bottomed in mineralized dacite whilst the fourth was stopped in well mineralized siltstone.

Core hole SA-36 was twinned with RC hole SA-34 and returned values of 2.06 g/t gold and 30 g/t silver over 47.4 metres in the oxide zone compared with 4.21 g/t gold and 46.6 g/t silver over 50 metres in RC hole SA-34. The reduced values are most likely due to the washing away of soft powdery alunite, with which gold is closely associated, by drilling fluids used in the coring process. Locally, up to 25 percent core loss was experienced during drilling in the oxide zone. In the deeper, more competent sulphide zone, precious metal values show a better correlation, as seen in the following table:

HOLE     *   FROM  TO      Au-   Au-   Ag-   Ag-    Zn-    Zn-
Core/RC                    Core  RC    Core  RC     Core   RC
             (m)   (m)    (g/t) (g/t) (g/t) (g/t)  (per-  (per-
                                                    cent)  cent)

SA-36/34 1   3.55  248.30  0.88        13.28        0.250
         2   3.55  187.21  1.02  1.70  15.35 18.04  0.269  0.276
         3 187.21  248.30  0.49         7.49        0.204
         4   3.55   50.93  2.06  4.21  29.99 46.60  0.003  0.010
         5  50.93  187.21  0.66  0.76  10.26  7.39  0.362  0.375
SA-37/13 1   0.00  250.10  0.45         4.38        0.306
         2   0.00  100.45  0.32  0.41   5.12  9.80  0.395  0.224
         3 100.45  250.10  0.48         3.88        0.246
         4   0.00   32.85  0.40  0.26  10.61  6.24  0.059  0.022
         5  32.85  100.45  0.29  0.49   2.45 11.64  0.558  0.329
SA-38/35 1   0.00  251.00  0.60         1.61        0.116
         2   0.00  171.15  0.79  0.78   1.56  2.37  0.119  0.061
         3 171.15  251.00  0.19         1.72        0.110
         4   0.00   63.55  0.93  0.53   1.19  2.06  0.081  0.030
         5  63.55  171.15  0.71  0.96   1.78  2.59  0.142  0.082
SA-39/04 1   0.00  251.65  0.21         6.28        0.415
         2   0.00  100.05  0.23  0.36  10.27  9.06  0.754  0.697
         3 100.05  251.65  0.20         3.65        0.191
         4   0.00   34.80  0.33  0.35  16.83 16.38  0.013  0.022
         5  34.80  100.05  0.17  0.36   6.66  5.29  1.166  1.044

*    1    Complete core hole values.
     2    Core/RC hole direct comparison done by cutting off core
          hole at the same depth as the bottom of the
          corresponding RC hole.
     3    Core hole values at depths greater than bottom of
          corresponding RC hole.
     4    Core/RC hole comparison - oxide zone only.
     5    Core/RC hole comparison - sulphide zone only.

Core hole SA-37 has higher gold and silver values in the oxidized zone than its corresponding RC hole, SA-13. In addition, zinc values throughout the hole are almost double those recorded during RC drilling.

Gold and silver values in core hole SA-38 are similar overall to those in corresponding RC hole SA-35, but values in the oxides are significantly higher in the core hole. Overall, zinc values are also significantly higher in the core hole.

Core hole SA-39 shows very similar oxide values to corresponding RC hole SA-04, but sulphide gold and silver values are lower. Once again, zinc values are slightly higher in the core hole.

Vice President of Exploration, Dr. Paul Rose commented: "We are pleased that the short coring program has confirmed the widespread nature of mineralization at San Agustin, and has extended that mineralization to considerable depth. Variations in grade between the core and RC holes, especially in a bulk tonnage, low grade system such as this, confirms that considerable amounts of future drilling will be required to increase our confidence in the potential of the project."

Monarch Resources Limited is engaged in the acquisition exploration, development and operation of gold properties in Latin America. Monarch has acquired significant mineral property interests in Mexico which are actively being explored and are the focus of the Company's exploration program. The Company is pursuing a strategy of growth through the development of natural resources within the Americas.

CONTACT: Monarch Resources Limited

Dr. P.A. Rose, 303/274-4582