Monument Mining Limited Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011  1.3  Selected Annual Financial Information  1.4  Results of Operations  Summary  The operating results of the Company reflect its income from operations, on-going corporate business development,  administrative costs and other income or expenses such as interest, accretion expense, fair value gains or losses on  derivative liabilities and foreign exchange gains or losses.  For the year ended June 30, 2011, commercial production from the Selinsing Gold Project generated an income of  $35,374,349 net of operating and corporate expenses, or $0.21 per share, which was increased by a change in fair value  on a gold forward contract of $1,602,306 and interest income of $104,946 and offset by other losses mainly due to  changes in fair value on derivative liabilities of $4,759,797 estimated using Black-Scholes financial mode and indicated  foreign exchange forward contract spot rates; and accretion expense of $1,145,509 all of which resulted in a net income  of $31,252,160, or $0.19 per share, compared to a net loss of $3,034,838, or ($0.02) per share, reported for the  corresponding period in fiscal 2010. Revenue from the sale of metals is recognized in the financial statements when the following conditions are met:  persuasive evidence of an arrangement exists; title and risk passes to buyer, the price is fixed or determinable; and  22 |  P a g e BALANCE SHEET  June 30, June 30, June 30, 2011  2010 2009 Current assets  $ 68,116,284 $ 10,599,467 $ 5,388,260 Other assets  52,443,687  52,934,019  48,891,680  Total assets  120,559,971  63,533,486  54,279,940  Current liabilities  4,919,497  3,637,939  1,815,034  Other liabilities  19,610,948  3,137,344  196,822  Shareholders’ equity 96,029,526  56,758,203  53,629,732  Total liabilities and shareholders' equity  120,559,971  63,533,486  55,641,588  Working capital  $ 63,196,787 $ 6,961,528 $ 3,573,226 Three months ended June 30,  Year ended June 30,  2011  2010 2011 2010 Revenue  $ 16,617,861  $ -  $ 52,379,851  $ -  Cost of Gold Sold 2,867,143  -  9,134,079 -  $ 13,750,718  $ -  $ 43,245,772  $ -  Depletion and amortization  (1,133,064)  -  (2,528,611)  -  Income from mining operations  $ 12,617,654  $ -  $ 40,717,161  $ -  Corporate expenses  (2,231,282)  (521,228)  (5,342,812)  (2,635,390)  Income before other items  $ 10,386,372  $ (521,228)  $ 35,374,349  $ (2,635,390)  Other income (loss)  494,578 (117,247)  (4,122,189)  (399,448)  Net income (loss) for the period $ 10,880,950  $ (638,475)  $ 31,252,160  $ (3,034,838)  Earnings (loss) per share (EPS), basic  $ 0.06 $ (0.00)  $ 0.19  $ (0.02)  Weighted average number of common  shares  173,948,235 156,115,028 168,732,680 156,003,110 Fully diluted earnings (loss) per share  $ 0.06 $ (0.00)  $ 0.17  $ (0.02)  Fully diluted number of common  shares  192,320,033 156,115,028 182,355,516 156,003,110 Sales, Cost of Goods Sold and Gross Margin from Mining Operations