Monarca Minerals Reports Progress in Moving Toward Drilling at San Jose Project

Toronto, Ontario--(Newsfile Corp. - December 15, 2020) - Monarca Minerals, Inc. (TSXV: MMN) ("Monarca" or the "Company"), is pleased to announce that it is advancing toward an initial approximately 5,000m drilling program at San Jose.

Due to Covid, Mexican Agrarian governmental offices have been closed, delaying the permitting process. The federal offices related to surface land ownership have, in the last week, re-opened and resumed operations. There are now plans to consummate a meeting with all parties to finalize a contract between Monarca and the Colonia and Ejido, who own the surface in the planned drilling area. The contract would allow temporary occupation and surface use in the area of planned drilling, which is a critical step in obtaining a drilling permit.

Monarca has retained the services of a Mexican consulting company to conduct a required environment assessment of the drilling area and produce a report. This report is a critical step in obtaining a drilling permit.

A Canadian consulting company with local team in Mexico has been retained and has sent personnel to San Jose and the nearby pueblo of Guadalupe de Victoria, to begin a Corporate Social Responsibility campaign to solidify the existing positive relationship.

Drilling contractors are being contacted to solicit a request for quotation on the initial drilling program.

An initial 10 drill holes have been planned to be drilled, to depths of up to 500m, as seen below superimposed on a plan view of the geophysical Induced Polarization (IP) survey results:

Figure 1

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The drill holes are planned to intersect the strong IP anomalies, as illustrated in the cross section below:

Figure 2

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Quality Assurance and Quality Control Statement

Procedures were implemented by Monarca to assure Quality Assurance Quality Control (QAQC) of all assaying done at ALS Global, which is an ISO Accredited laboratory. All grab samples taken in the field were placed in plastic bags closed with zip ties and stored in a secure location until shipment by Monarca personnel to the ALS sample preparation facility in Chihuahua, Mexico. A sterile blank sample (unmineralized rhyolite) and a mineralized reference standard (used by Monarca since 2009) were alternately placed in the sample sequence every 15th sample. The assays received for the QAQC samples were reviewed for acceptable values by Monarca's Qualified Person, who determined in all cases that results were satisfactory, resulting in a high level of confidence in the assays reported for the San Jose Project. The sterile (blank) QAQC samples all reported low or nil values for the metals of interest. The mineralized reference standard samples all reported gold assays within 2 standard deviations of the accepted value (1.15ppm) and the silver assays reported within 3 standard deviations of the accepted value (83.9ppm).

Qualified Person Statement

Michael R. Smith is the Qualified Person (QP) who has reviewed and approved the scientific and technical information disclosed in this news release. Mr. Smith is a Registered Member (#04167376 - Geology) of the Society for Mining, Metallurgy & Exploration (SME) and the Executive Vice President, Exploration for Monarca Minerals Inc.

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 an Inferred Mineral Resource of 19.8 million tonnes at 45.0 g/t Ag (28.7 million ounces of contained silver) at its Tejamen deposit in Durango, Mexico.

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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