Monroe Minerals Inc.
TSX VENTURE : MMX

Monroe Minerals Inc.

May 13, 2008 09:00 ET

Monroe Minerals Announces Disposal of Diamond Interests

CALGARY, ALBERTA--(Marketwire - May 13, 2008) - Monroe Minerals Inc. (TSX VENTURE:MMX) ('Monroe') announced today that it has entered into an agreement with Namakwa Diamonds Holdings (Pty) Ltd ('Namakwa') for the sale of its South African subsidiary, Monroe Mining (Pty) Limited ('Monroe SA'). The terms will see Monroe receiving approximately $1.4 million in cash and a carried equity interest in developments arising from the intellectual data base of Monroe SA. Completion of the transaction is subject to receipt of regulatory approval.

Monroe President and CEO Derek Moran commented: "This is a satisfactory outcome to our efforts to reorganize the diamond division. We shall have exposure to future successes that arise from Monroe SA's diamond portfolio while eliminating funding and significantly reducing management commitment. The sale means that Monroe is focused on expanding its uranium exploration division. Completion of the transaction is subject to receipt of regulatory approval, which, in the case of South Africa, may present an uncertain timeframe."

The agreement with Namakwa provides for Monroe to receive a carried equity interest of 10% in any projects that develop from the intellectual database of Monroe SA. Monroe is required to facilitate the services of Dr Tania Marshall to Namakwa in connection with this development for a period of one year from the date of sale and to facilitate the services of Derek J Moran from time to time for a period of two years from the date of sale, both at limited cost to Monroe. The initial cash consideration, amounting to $1.1 million, will be used to advance the uranium exploration division, retire long term debt and for general corporate purposes. $0.3 million of the cash consideration will be held in escrow pending receipt of regulatory approval in South Africa, expected to take approximately one year. Income on the escrowed amount will follow the principal.

Namakwa Diamonds Holdings (Pty) Ltd. is a wholly owned subsidiary of Namakwa Diamonds Limited, a Bermuda company that was recently admitted to listing on the London Stock Exchange. Its market capitalization on admission to listing was US$430 million. Namakwa is a vertically integrated diamond resource group comprising a number of producing diamond mines in South Africa, a portfolio of diamond development projects in Angola, the DRC, Namibia and South Africa, and a rough and polished diamond trading, sorting, cutting and polishing business.

Monroe is engaged in 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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