Monroe Minerals Inc.
TSX VENTURE : MMX

Monroe Minerals Inc.

December 21, 2007 13:00 ET

Monroe Minerals Provides Update on Angolan Exploration Program

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2007) - Monroe Minerals Inc. (TSX VENTURE:MMX) today provided an update on its Cangandala Project diamond exploration program in Angola. The field program was concluded earlier in December and, as a result of heavy rainfall making transport impossible, only half of the constituents of the program were completed. Any further field program will await the end of the rain season in Angola, anticipated in May 2008.

In summary, the deficiencies in both the nature of the potential source of diamonds and the depositional environment of the Cuanza River in the Cangandala Concession, along with the lack of enthusiasm shown by local garimpeiros, implies that, although diamonds have been, and will continue to be found by local garimpeiros, there may not be substantial resources within the confines of the project area that can be mined on a commercial scale. These results will be reviewed to ascertain the future exploration program, if any, for the Cangandala Project. In addition to geological factors, there are infrastructural and logistical issues in Angola that must bear heavily in future considerations. A determination of the future of the Cangandala Project will be made following discussions with partners early in 2008.

The planned 2007 program comprised systematic geological mapping, sampling, determination of the depositional environment, characterisation of the sediments that hosts diamonds, a review of the concession to determine the areas that might host these sediments, and an investigation of the garimpeiro operations. While bad weather hindered the completion of the program, several conclusions regarding the prospectivity of the Project were reached.

Commercial alluvial diamond deposits, anywhere in the world, are dependent on two major features; namely, the nature of the source and the depositional environment of the river:

Source (or Primary deposits): The headwaters of the Cuanza River do not appear to have tapped diamondiferous Calonda conglomerate. No Calonda has been identified on the Concession and the regional elevation would argue against it being present. Secondly, the known kimberlites to the south and west of the Cangandala Concession are either barren or very poorly mineralised (as defined in the Diamang/Condiama database and as reported by companies operating on these Concessions). It appears that only the Lussechi and Luando rivers (right-bank tributaries of the Cuanza River) may have tapped diamondiferous sources some distance to the east of the project area, and even these do not appear to be rich in diamonds. As a consequence, the Cuanza River within the Concession does not appear to have a large store of diamonds that it may have tapped upstream.

Depositional Environment (or Secondary deposits): The Cuanza River is a large, reasonably fast flowing river, with few meanders and braid plains where active deposition can continually take place. The large meander plain identified on the eastern flank of the river represents a slow migration across a slope that has left a thin layer of homogenous gravels blanketing the surface rather than a depositional centre of thick, incised channel-gravels. The flat-lying, horizontally bedded, soft sandstone and shale bedrock is not conducive to the development of extensive trap sites. Small trap sites will occur where the sedimentary bedrock has been intruded by dykes or where faults and fractures occur. These trap sites, however, will be limited in extent and will not occur with any regularity. As a result, an operation will come across a number of pothole-type features in the present river (and floodplain), but they will not be sustainable and will be difficult to identify in an advanced resource estimation exercise. The lack of heavy minerals in the basal gravels indicates that the hydraulic environment is insufficient to concentrate diamonds in a large deposit. It further indicates that any substantial (diamondiferous) kimberlitic source is likely to be a significant distance from the Concession.

Further, the lack of garimpeiro activity on the Concession is disappointing. It is well known that garimpeiros congregate where diamond grades are high. The fact that a few barges were operating and have, subsequently, left is an indication that the (potentially) economic deposits are patchy, of limited extent and quickly depleted and that the stretches of river in between these patches are not sufficiently diamondiferous to support artisanal activity. Much the same can be said for the lazeria: it is apparent that garimpeiros have prospected on the terrace and have walked away, in some instances without even processing all the gravels from their pits. This cannot bode well for their recovered grades and/or diamond values.

The deficiencies in both the source and the depositional environment of the Cuanza River in the Cangandala Concession, along with the lack of enthusiasm shown by local garimpeiros, implies that, although diamonds have been, and will continue to be found by local garimpeiros, there may not be substantial resources within the confines of the project area that can be mined on a commercial scale.

The Qualified Person who has reviewed the information contained in this release is Dr. T.R. Marshall.

Monroe is engaged in the exploration and development of gem quality diamond properties in Southern Africa and the assembly of an international portfolio of uranium projects. Its strategy is well defined: enhancing shareholder value by combining Monroe's recognized twin strengths of technical expertise and professional management to advance mining projects to profitable long term production. Monroe's shares trade on the TSX Venture Exchange under the symbol MMX. For more information please visit www.monroeminerals.com.

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Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

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