Monarch Mining Announces 136% Increase in Measured and Indicated Gold Resource at the Beaufor Mine

• Beaufor Mine now contains an estimated Measured Mineral Resource of 328,500 tonnes grading at 5.7 g/t Au for a total of 59,900 ounces of gold and an estimated Indicated Mineral Resource of 956,400 tonnes grading at 5.2 g/t Au for a total of 159,300 ounces, a significant increase compared to the previous mineral resource estimate (see press release dated January 28, 2021).
• Inferred resource estimated at 818,900 tonnes grading 4.7 g/t Au for a total of 122,500 ounces, a 307% increase (+92,400 ounces) versus the resource estimate announced in January 2021.
• Mineral resource estimate (MRE) developed for an underground scenario using cut-off grades of 2.8 g/t Au (>=45 degree dip) and 3.2 g/t Au (<45 degree dip). The cut-off grades were calculated using a gold price of US$1,550 per ounce.
• The new MRE includes 166 mineralized zones with a minimum true thickness of 2.4 m.
• Compared to the previous MRE, the new MRE incorporates a part of the 2020?2021 drill results (+ 5,066.6 m of drilling in 22 surface diamond drillholes (DDH), and + 12,729.3 m in 131 underground DDH) and uses a block modelling methodology with the interpretation and 3D modelling of 166 mineralized zones. In the previous MRE, the mineral resource was estimated using the polygonal methodology in 2D with a total of 63 mineralized zones.
• Approximately 24,700 metres of the ongoing 42,500-metre diamond drilling program are not included in the current MRE.

MONTREAL, July 28, 2021 - Monarch Mining Corp. ("Monarch" or the "Corporation") (TSX:GBAR)(OTCQX:GBARF) is pleased to announce a new mineral resource estimate (MRE) for its advanced, wholly-owned Beaufor Mine gold project, 20 kilometres northeast of Val-d'Or. The new MRE was developed by engineering consulting group BBA Inc. and has an effective date of July 23, 2021.

The current MRE represents the first block-model-type resource estimate for the property, whereas previous MREs used the polygon method. It includes much of the historical information, as well as results from the 2020?2021 drilling program up to May 18, 2021. This work is in line with Monarch's vision and its approach of using new, more advanced technologies to treat vast amounts of historical data that had previously been worked with and viewed in a predominantly 2D format.

The 2020?2021 drill results included in the updated MRE are for 153 holes (~17,800 metres of drilling). Significant results include 783 g/t Au over 0.2 m and 293 g/t Au over 0.5 m (see press release dated October 1, 2020); 35.87 g/t Au over 9.8 m (see press release dated January 19, 2021); and 187.0 g/t Au over 0.5 m, 151.5 g/t Au over 0.5 m and 147.5 g/t Au over 0.3 m (see press release dated April 29, 2021).

Table 1: 2021 mineral resource estimate for the Beaufor Mine

Mineral resource estimate notes:

1. The independent qualified person for the 2021 MRE, as defined by National Instrument ("NI") 43-101 guidelines, is Charlotte Athurion, P.Geo., of BBA Inc. The effective date of this MRE is July 23, 2021.
2. These mineral resources are not mineral reserves as they do not have demonstrated economic viability.
3. The mineral resource estimate follows CIM definitions (2014) for mineral resources.
4. Results are presented diluted and considered to have reasonable prospects for economic extraction. Isolated and discontinuous blocks above the stated cut-off grades are excluded from the mineral resource estimate. Must-take material, i.e. isolated blocks below cut-off grade located within a potentially mineable volume, was included in the mineral resource statement.
5. The resources include 166 mineralized zones with a minimum true thickness of 2.4 m using the grade of the adjacent material when assayed or a value of 0.00025 when not assayed. High-grade capping varies from 20 to 65 g/t Au (when required) and was applied to composited assay grades for interpolation using an Ordinary Kriging interpolation method (ID2 for 96_01, 96_02, 20 zones, 21_01, 140, 367 and 350 zones) based on 1.5 m composite and block size of 5 m x 5 m x 5 m, with bulk density values of 2.75 (g/cm ³ ). A second capping was applied for the second and third passes in order to restrict high-grade impact at greater distance.
6. Inferred Mineral Resources were defined for blocks within the units that have been informed by a minimum of two drillholes within 50 m of a drillhole (100 m of drill spacing); Indicated Mineral Resources were defined for blocks within the units that have been informed by a minimum of three drillholes within 12.5 m of a drillhole (25 m of drill spacing); Measured Mineral Resources were defined for blocks within the units that have been informed by a minimum of three drillholes within 5 m of a drillholes (10 m of drill spacing) or 3 m around voids. Measured Mineral Resources were only defined for zones with a good reliability of the geological continuity or supported by underground workings.
7. The estimate is reported for potential underground scenario at cut-off grades of 2.8 g/t Au (>=45 degree dip) and 3.2 g/t Au (<45 degree dip). The cut-off grades were calculated using a gold price of US$1,550 per ounce, a USD:CAD exchange rate of 1.32 (resulting in C$1,914 per ounce gold price); mining cost C$125/t (>=45 degree dip); C$150/t (<45 degree dip); processing cost C$35/t; G&A C$16/t; metallurgical recovery of 97%; royalties of US$37.52 per ounce; and refining and transport cost of US$1.50 per ounce.
8. The number of metric tonnes and ounces were rounded to the nearest hundred and the metal contents are presented in troy ounces (tonne x grade/31.10348). Rounding may result in apparent summation differences between tonnes, grades and contained metals content.
9. BBA Inc. is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other relevant issues not reported in this Report that could materially affect the mineral resource estimate.

"This significant increase in the mineral resource at the Beaufor Mine, which is the outcome of excellent drilling program planning by our technical team, vindicates our decision to restart production at Beaufor," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarch. "Increasing our resource continues to be the focus of our current 42,500-metre drilling program, which is still under way, with four drills underground."

The technical and scientific content of this press release has been reviewed and approved by Christian Tessier, P.Geo., the Corporation's qualified person under National Instrument 43-101.

About Beaufor
The Beaufor Mine began commercial production in the early 1930s and over the years has produced over 1.1 million ounces of gold. The mine is currently on care and maintenance, which has given Monarch an opportunity to complete a 3D compilation and targeting program to identify, define and drill exploration targets throughout the mine area. In June 2020, the Corporation initiated a 42,500-metre diamond drilling program to test two types of targets: the areas around historical high-grade intersections near the existing underground infrastructure, and isolated resource blocks, which are typically defined by a single drill intersection. These "near-mine" exploration targets can be tested from the existing underground workings or by shallow holes drilled from the surface. Currently, 275 exploration holes are in the process of being drilled or are planned, and if they produce positive results, additional holes will be drilled to allow the zones in question to be converted into resources and ultimately reserves, for inclusion in a future mine plan. On June 3, 2021, the Corporation announced its decision to reopen the Beaufor Mine and Beacon Mill by June 2022.

About BBA Inc.
BBA Inc. has been providing a wide range of consulting engineering services for over 40 years. Today, its engineering, environmental and commissioning experts team up to quickly and accurately pinpoint the needs of industrial and institutional clients. The firm's expertise is recognized in the fields of energy, mining and metals, biofuels and oil and gas. With 14 offices across Canada to provide clients with local support and field presence, BBA Inc. is recognized for providing some of the industry's most innovative, sustainable and reliable solutions. www.bba.ca

About Monarch
Monarch Mining Corp. (TSX:GBAR) is a fully integrated mining company that owns four advanced projects, including the fully permitted past-producing Beaufor Mine, which has produced more than 1 million ounces of gold over the last 30 years. Other advanced assets include the Croinor Gold, McKenzie Break and Swanson properties, all located near Monarch's wholly owned and fully permitted Beacon 750 tpd mill. Monarch owns 28,702 hectares (287 km ² ) of mining assets in the prolific Abitibi mining camp that host 714,982 ounces of combined measured and indicated gold resources and 421,793 ounces of combined inferred resources.

Forward-Looking Statements
The forward-looking statements in this press release involve known and unknown risks, uncertainties and other factors that may cause Monarch's actual results, performance and achievements to be materially different from the results, performance or achievements expressed or implied therein. Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.

FOR MORE INFORMATION:

Jean-Marc Lacoste 1-888-994-4465
President and Chief Executive Officer
jm.lacoste@monarchmining.com

Mathieu Séguin 1-888-994-4465
Vice President, Corporate Development
m.seguin@monarchmining.com

Elisabeth Tremblay 1-888-994-4465
Senior Geologist - Communications Specialist
e.tremblay@monarchmining.com

www.monarchmining.com

Table 2: Monarch combined gold resources

SOURCE: Monarch Mining Corp.