Toronto, May 10, 2017 – Monarca Minerals Inc. (TSXV:MMN) (“Monarca” or the “Company”) is pleased to announce that it has completed the first tranche of its previous announced non-brokered private placement financing (the “Financing”). Under the Financing, Monarca issued 13,232,182 units (the  “Units”) at a price of $0.13 per Unit for gross proceeds of $1,720,183. Each Unit was comprised of one Common Share and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at a price of $0.18 per share for a period of 36 months from the date of issuance. The Company may raise additional proceeds under the Financing and complete one or more closings.

The Units are subject to a four-month hold period expiring on September 10, 2017. The Company paid cash finder’s fees of $89,903 and issued 691,563 finder warrants (a “Finder Warrant”) in connection with the Financing. Each Finder warrant is exercisable for one Common Share at a price of $0.13 per share for a period of 36 months.

Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 3,077,000 Units pursuant to the Financing for total consideration of $400,010. As a result of the Financing, Mr. Sprott is the beneficial owner of 3,077,000 Common Shares and 3,077,000 Warrants representing approximately 7.2% of the issued and outstanding Common Shares on a non-diluted basis and 13.5% on a partially-diluted basis. The above percentages are calculated based on 42,527,321 Common Shares issued and outstanding after giving effect to the Financing. Prior to the Financing, Mr. Sprott did not own any securities of the Company.

The Units were acquired by Mr. Sprott through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.’s early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).

The information in the preceding two paragraphs was provided to Monarca on behalf of Mr. Sprott.

Consolidation Completed

Effective on May 5, 2017, the Company completed the previously announced consolidation of its Common Shares on a one-for-five basis and the Common Share commenced trading on the TSXV on a consolidated basis.

A letter of transmittal will be sent by mail to shareholders instructing shareholders to surrender the certificates evidencing their Common Shares for replacement certificates representing the number of Common Shares to which they are entitled as a result of the consolidation. Until surrendered, each certificate will be deemed for all purposes to represent the number of Common Shares to which the holder thereof is entitled as a result of the consolidation.

About Monarca Minerals Inc.

Monarca is a Canadian company focusing 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 a mineral resource of 27.8 million ounces of silver (19.8 million tonnes at 45.0 g/t Ag) at its Tejamen deposit.

For further information, please contact:

Allan Folk
Interim Chief Executive Officer Monarca Minerals Inc.

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.