MONUMENT MINING LIMITED Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 a. Authorized  Unlimited common shares without par value  (i) On July 21, 2008, the Company closed a private placement for total gross proceeds of $28,048,000 by issuing 70,120,000  units at a price of $0.40 per unit, each unit comprising one fully paid share of common stock and one common share purchase  warrant entitling the holder to purchase one additional common share for $0.50 for a three-year term from closing. Costs of  the financing include a 10% agent fee in the amount of $2,804,800 and legal and filing fees of $79,389 and other cost of  $23,056.  (ii) On August 19, 2008, the Company purchased a 1.0 million tons per year capacity ball mill from Avocet. Consideration of $3,250,001 for the mill was paid by the issuance of 8,125,003 units at $0.40 per unit, at the same price and the same terms as  the private placement disclosed above. Each unit is comprised of one share and one share purchase warrant exercisable at  $0.50 for three years from date of issuance. Avocet is a shareholder of the Company (note 14)  (iii) On September 25, 2009, the Company issued 475,000 Monument shares at approximately $0.28 per share to settle a debt  owing to Avocet in the amount of $134,048. The transaction incurred costs of $1,170 in filing fees. The continuity of share purchase warrants is as follows:  The 2009 Stock Option Plan (“2009 Plan”) is a fixed plan allowing 22,126,000 common shares of the Company to be granted to  its directors, officers, employees and consultants. The number of shares reserved for issuance under the 2009 Plan shall not  exceed 15% of the total number of issued and outstanding shares on a non-diluted basis. The total number of stock options  granted during the year together with previously granted stock options shall not exceed, on a non-diluted basis, 6% for any one  Optionee; 15% for Insiders as a group, 2% for any one Consultant; 2% for all Eligible Persons who undertake Investor Relations  Activities. The previous 10% Rolling Stock Option Plan was automatically converted to the 2009 Plan. Under the 2009 Plan,  22,601,000 stock options were outstanding as at June 30, 2010, which included 475,000 stock options pending Shareholders’  approval.  12. Share Capital 37 | P a g e b. Issued and outstanding:  d. Stock options c. Warrants  Common shares  Shares  Amount  Balance, June 30, 2008  77,395,025  $ 33,016,984  Brokered and non-brokered private placement for cash (note 12(b)(i))  70,120,000  28,048,000  Share issuance costs for private placement (note 12(b)(i))  -  (2,907,245)  Shares issued for ball mill purchase (note 12(b)(ii))  8,125,003  3,250,001  Balance, June 30, 2009  155,640,028  $ 61,407,740  Shares issued for debt (note 12(b)(iii))  475,000  134,048  Share issuance cost for debt (note 12(b)(iii))  -  (1,170)  Balance, June 30, 2010  156,115,028  $ 61,540,618  12(b)(i) 12(b)(ii) Total Expiry date 15-Mar-09 25-Jun-09 21-Jul-11 12-Aug-11 outstanding and Exercise price $0.65 $0.65 $0.50 $0.50 exercisable Balance, June 30, 2008 500,000 22,544,500 - - 23,044,500 Issued through private placement  - - 70,120,000 - 70,120,000 Issued through ball mill purchase  - - - 8,125,003 8,125,003 Expired  (500,000) (22,544,500) - - (23,044,500) Balance, June 30, 2009 and 2010 - - 70,120,000 8,125,003 78,245,003