DAVYHURST

Stirling Resources Limited announced it had reached an agreement with administrators Pitcher Partners to inject funds into Monarch Gold Mining Limited (subject to Deed of Company Arrangement) to fund the recommencement of operations at the Davyhurst and Mt Ida gold projects located in the Western Australian Goldfields. Stirling will provide the capital through wholly-owned subsidiary, Stirling Gold Pty Ltd and the agreement will ensure all Monarch creditors and debt providers receive 100 cents in the dollar, being a total payout of $55 million, based upon creditor figures provided by the Administrator. In July 2008, Monarch Gold was placed in voluntary administration due to the continued underperforming of the Davyhurst open pit mine. . Managing Director Michael Kiernan said the aim was to recommence the operations as soon as possible, ahead of a proposed name change and re-listing on the ASX. Mt Ida was targeted to produce 48,000 ounces per year at a projected cash cost of A$450/oz and Davyhurst which was intended to be re-commissioned within three months of settlement with a production target of 65,000 ounces per year at a projected cost of A$850/oz.

Reported that due to continued underperformance of the Davyhurst open pit operations that effective immediately this operation has been suspended. Mt Ida high grade underground operation will continue and operate on a toll treatment of ore basis.

Reported the following highlights: - Monarch continued the extensive exploration drilling programme as part of the 2008 Exploration Budget for the Davyhurst project with 22,668 metres of RAB and 15,099 metres of RC drilling completed during the quarter. - Outstanding high grade results from Riverina include 4m @ 7.09g/t Au from 36m in hole RMRC067, 8m @ 5.68g/t Au from 24m in hole RMRC068, and 5m @ 65.8g/t Au from 72m in hole RMRC051.