Monarca Minerals completes two holes at San Jose

Mr. Carlos Espinosa reports

MONARCA MINERALS REPORTS COMPLETION OF TWO ADDITIONAL DRILL HOLES AT ITS SAN JOSE PROJECT - SJ07 AND SJ120

Monarca Minerals Inc. has completed an additional two drill holes at its San Jose project.

Michael R. Smith (Monarca Minerals Senior VP Exploration) states, "We are pleased to report that two more drill holes, SJ07 and SJ12, have been completed, with significant intersection of skarn mineralization in limestone and intrusives rocks."

With the completion of two additional holes, a total of 2,089.4 m have been drilled. The average drilling rate is now about 90 m/day, drilling one shift/day. The drilling contractor, Layne Mexico, was on break during the last ten days of September.

Drill holes SJ07 and SJ12 have been successfully completed - the two drill holes intersected exoskarn and/or endoskarn mineralization with sulfide minerals (Figure 1: Field Log Summary & Figure 2: Map of the Property and Primary Exploration and Geophysical Survey Area). The sulfide minerals observed were dominantly pyrite, with very fine grained dark sulfide minerals, which appear to be sphalerite and galena in some cases. Chalcopyrite was locally observed. The samples will be delivered to the laboratory sample preparation facility in Chihuahua, Mexico.

SJ07:Drill hole SJ07, angled westerly at -60o, was drilled to 317.0 m. (Figure 3: Drilling IP Geophysical Targets). The drill hole intersected 134.1 m of endoskarn and four pyrite-rich (3-5%) silicified monzonite zones from 3.0 m to 12.2m long. The bottom 29.0 m intersected silicified granodiorite with strong potassic alteration (pink Kspar) and <1% molybdenite.

SJ12: Drill hole SJ12, angled westerly at -60o, was drilled to a total depth of 342.9 m, targeting a strong IP anomaly in an area of altered monzonite and limestone outcrops, near the Shakira mine. The drill hole intersected 76.2 m of marble and exoskarn and 155.4 m of endoskarn. The skarn intercepts have about 1% pyrite and locally up to 1% galena, sphalerite and chalcopyrite.