Mr. Jean-Marc Lacoste reports

MONARCH GOLD ANNOUNCES ITS SECOND QUARTER RESULTS

Monarch Gold Corp. has released its results for the second quarter ended Dec. 31, 2018. Amounts are in Canadian dollars unless otherwise indicated.

Highlights:

• Second quarter revenues of $11.4-million from the sale of 5,169 ounces of gold combined with revenue from custom milling, which were up 2 per cent from the first quarter of the year and 71 per cent from last year;
• Net earnings of $2.2-million or 0.9 cent per share, diluted, compared with $700,000 or 0.3 cent per share, diluted, last year;
• Strong financial position with $9.3-million in cash;
• Production activities at the Beaufor mine are extended to April, 2019, to be carried out in accessible stopes using a smaller work force;
• Final results for the 2018 drilling program on Croinor Gold are received and show a larger deposit that remains open in all directions (see news release);
• The corporation successfully completed a positive feasibility study on its Wasamac gold deposit (see feasibility study), which can be summarized as follows:
  • Forecast average production of 142,000 ounces of gold per year for 11 years;
  • Pretax net present value of $522-million;
  • Pretax internal rate of return of 23.6 per cent;
  • Cash production cost of $550 (U.S.) per ounce.
• Continuing discussions with several parties to explore financing, partnership and other opportunities to advance the Wasamac project.

"These better-than-expected results are the result of good operational planning and the stellar work of our employees at the Beaufor mine and Camflo mill," said Jean-Marc Lacoste, president and chief executive officer of Monarch. "We also expect strong results for the current quarter provided gold prices hold at current levels.

"Needless to say, the future of the Wasamac deposit is currently our highest priority, as the results of the feasibility study show that Wasamac has the potential to become a major low-cost gold mine. Discussions are continuing with several parties for financing or a joint venture. In addition, Mathieu Seguin, who has just joined Monarch, will apply his expertise in corporate financing and mergers and acquisitions to helping us structure the best possible transaction to realize Wasamac's full value for our shareholders," added Mr. Lacoste.

                                   SUMMARY OF FINANCIAL RESULTS 
                                 (dollars, except per-share data) 
  
                                                   Quarter ended Dec. 31,       Six months ended Dec. 31,
                                                   2018             2017            2018            2017

Revenues                                    $11,411,996      $10,297,924     $19,189,360     $10,297,924
Gross margin                                  2,895,749        1,456,487       2,389,936       1,456,487
Net earnings                                  2,175,702          665,591         325,157         166,837
Earnings per share, basic and diluted             0.009            0.003           0.001           0.001
Cash flow used in operating activities        2,319,106        2,507,554      (2,965,322)      1,594,751
EBITDA                                        3,500,614          466,541       2,669,746         137,585

                                      KEY OPERATING STATISTICS
  
                                               Quarter ended Dec. 31,      Six months ended Dec. 31,
                                                  2018          2017            2018           2017    
       
Ounces of gold sold                              5,169         5,444           8,441          5,444
Ounces of gold produced                          4,417         5,444           8,325          5,444
Grade                                              5.4           4.9             4.8            4.9
Recovery                                         98.5%         98.7%           98.3%          98.7%
Key data per ounce of gold ($)                                                                 
Average market price                            $1,621        $1,629          $1,603         $1,629
Average selling price (1)                        1,656         1,583           1,605          1,583
Production cash cost (Beaufor/Camflo)            1,150         1,338           1,383          1,338
All-in sustaining cost (Beaufor/Camflo)          1,266         1,705           1,499          1,705
Average exchange rate (Canadian $/U.S. $)         1.32          1.27             131           1.27
Key data per ounce of gold (U.S. $)                                                                  
Average market price                             1,228         1,275           1,220          1,275
Average selling price (1)                        1,254         1,245           1,222          1,245
Production cash cost (Beaufor/Camflo)              878         1,052           1,053          1,052
All-in sustaining cost (Beaufor/Camflo)            966         1,341           1,141          1,341

(1) The average selling prices for the six-month period ended Dec. 31, 2018, would be $16 higher 
($23 higher for the same period ended Dec. 31, 2017) if gold deliveries (861 ounces for the quarter) 
to Auramet International LLC in connection with deferred revenues for the periods had been 
recognized at market price on the date the agreement was entered into on Oct. 2, 2017, instead of at 
the recorded price, representing the amounts received from future gold production divided by the 
ounces to be delivered.

The technical and scientific content of this press release has been reviewed and approved by Marc-Andre Lavergne, PEng, the corporation's qualified person under National Instrument 43-101.

About Monarch Gold Corp.

Monarch Gold is an emerging gold mining company focused on pursuing growth through its large portfolio of high-quality projects in the Abitibi mining camp in Quebec, Canada. The corporation currently owns close to 300 square kilometres of gold properties, including the Wasamac deposit (measured and indicated resource of 2.6 million ounces of gold), the Beaufor mine, the Croinor Gold, McKenzie Break and Swanson advanced projects, and the Camflo and Beacon mills, as well as other promising exploration projects. It also offers custom milling services out of its 1,600-tonne-per-day Camflo mill.

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