Monarques Gold Announces its Third Quarter Results

MONTREAL, May 25, 2018

• Revenues of $9.8 million, a 4.6% decrease compared to the second quarter due to a planned shutdown for maintenance work at Camflo and the breakdown of equipment at Beaufor
• Normal production resumed in April 2018
• 17% increase in revenue from custom milling activities
• Monarques initiated several promising projects during the quarter

/PRNewswire/ - MONARQUES GOLD CORPORATION ("Monarques" or the "Corporation") (TSX.V:MQR) (OTCMKTS:MRQRF) (FRANKFURT:MR7)is pleased to report its results for the third quarter ended March 31, 2018. Amounts are in Canadian dollars unless otherwise indicated.

Highlights

Beaufor Mine

• Production of 4,932 ounces in the third quarter, down 9% from 5,444 ounces the previous quarter due mainly to a planned shutdown for maintenance at the Camflo mill and to the breakdown of ore haulage equipment at the Beaufor Mine. The equipment was repaired and production resumed at the same pace as in the previous quarter.
  
  
• A new ore haulage truck will be added on the Zone Q ramp towards the end of June. A Caterpillar AD-30 truck (see truck photo) will be lowered underground and reassembled at the Zone Q garage to increase haulage capacity in this area of the mine. This addition will strengthen Monarques' truck fleet and avoid situations like the one that occurred in the quarter ended March 31.
  
  
• Average selling price of $1,624 (US $1,284) per ounce sold ($1,602 or US $1,263 since the acquisition on October 2, 2017).
  
  
• Production cash cost of $1,642 (US $1,298) per ounce sold ($1,490 or US $1,175 since the acquisition on October 2, 2017).
  
  
• All-in sustaining cost of $1,782 (US $1,409) per ounce sold ($1,616 or US $1,274 since the acquisition on October 2, 2017) for Beaufor/Camflo.
  
  

Financial results

• Revenues of $9.8 million in the third quarter from the sale of 4,823 ounces of gold combined with revenue from custom milling, which was up 17% for the quarter.
  
   
• Net loss of $2.2 million or $0.010 per share, diluted, compared to a net loss of $0.7 million or $0.005 per share, diluted, last year.
  
  
• Strong financial position, with cash of $18.1 million.

"Although our results for the quarter were below our expectations, they are the result of temporary issues that have been solved since," said Jean-Marc Lacoste, President and Chief Executive Officer of Monarques. "Our production activities have been back to normal since April, and we foresee continued growth in our custom milling operations."

"Furthermore, we are continuing to make progress on our other advanced projects, including Wasamac, Croinor Gold, McKenzie Break and Swanson, which are undergoing exploration work and technical studies, and for which we should have news in the coming weeks. We also expect to restart the Beacon plant at the end of 2018, which will enable us to increase our total production capacity to 2,350 tonnes per day. We are committed to continued growth in the production, resources and profitability ends of our business, and look forward to sharing the progress of our initiatives with our shareholders," Mr. Lacoste added.