MGFX Monarch Gulf Exploration Inc New (CE)

Monarch Gulf Exploration Inc. (Pink Sheets:MGFX) announced today that it has received a Termination of Engagement letter from Securities Network, LLC, dba, ForeRunner Financial of Norcross Georgia. This letter effectively cancels the Financial Advisory and Investment Banking Agreement between them and Monarch Gulf Exploration Inc. (The Company). As a consequence of this action, no funds have been raised for the Monarch Drilling Fund #2, which was scheduled to close escrow on March 30, 2008, to raise funds for the drilling of 34 wells in Young County Texas. This action by Securities Network LLC, combined with the earlier failure of Securities Network�s, ForeRunner Financial affiliate, of Austin, Texas, to raise funds for the 2007 Monarch Drilling fund #1, has had a material adverse effect on our company and its financial position. The Board of Directors is at this time evaluating all options available to the company, including its future corporate strategy, and potential business plans for moving forward.