Monarca Announces Upsize to Previously Announced Private Placement to C$3.0 Million

Toronto, Ontario--(Newsfile Corp. - July 27, 2020) - Monarca Minerals Inc. (TSXV: MMN) ("Monarca" or the "Company") is pleased to announce that the Company will be increasing their previously announced non-brokered private placement to up to 60,000,000 units of the Company (the "Units") at a price of C$0.05 per Unit for gross proceeds of up to C$3,000,000 (the "Offering"). Each Unit shall consist of one common share of the Company (each a "Common Share") and one common share purchase warrant (each a "Warrant"). Each Warrant will be exercisable by the holder thereof to acquire one Common Share at a price of C$0.075 at any time on or before the date which is 24 months after the closing of the Offering. Red Cloud Securities Inc. will be acting as finder for the Company under the Offering.

The Offering is scheduled to close on or about August 20, 2020, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The common shares to be issued under the Offering will have a hold period of four months and one day from the closing. The Company intends to use the net proceeds of the Offering for the exploration of its San Jose Project and for general corporate and working capital purposes.

The issuance of Units to insiders pursuant to the Offering will be considered a related party transaction under Multilateral Instrument 61-101. The Company will be relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the Offering by insiders does not exceed 25% of the fair market value of the Company's market capitalization.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

About Monarca Minerals Inc.

Monarca is a Canadian mining company listed on the TSX Venture Exchange (TSXV: MMN) and focused on the exploration and development of silver projects along a highly productive mineralized belt in Mexico. The Company has a portfolio of silver projects including the San Jose Project in Chihuahua, Mexico near the U.S. border and the Tejamen Project in Durango, Mexico, which hosts an inferred mineral resource estimate of 19.8 million tonnes at 45.0 g/t Ag (28.7 million ounces of contained silver).

For further information, please contact:

Carlos Espinosa
President, CEO & Director
Monarca Minerals Inc.
E: cespinosa@slgmexico.com

Cautionary Note Regarding Forward-Looking Statements Forward-Looking Statements:

The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include statements regarding future exploration programs, operation plans, geological interpretations, mineral tenure issues and mineral recovery processes. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance, or achievements.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

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