Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011  Monument Mining Limited b. Financial Instrument Risk Exposure  (i) Market risk  Currency risk  Other price risk  The Company’s financial instruments are exposed to certain financial risks, including market risk, credit risk, and liquidity risk. Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes  in market prices. Market risk is comprised of three types of risk: foreign currency risk, price risk and interest rate risk. The Company is exposed to foreign currency risk to the extent financial instruments held by the Company are not  denominated in US dollars. As at June 30, 2011 and June 30, 2010, the Company is exposed to currency risk through the following assets and  liabilities denominated in Malaysian ringgit:  Based on the above net exposures as at June 30, 2011, and assuming that all other variables remain constant, a 5%  depreciation or appreciation of the Malaysian ringgit against the U.S. dollar would result in an increase/decrease of  approximately $83,000 (2010  – $143,000) in the Company’s net income (loss).  As at June 30, 2011 and June 30, 2010, the Company is exposed to foreign currency risk through the following assets  denominated in CAD$ dollars:  Based on the above net exposures as at June 30, 2011, and assuming that all other variables remain constant, a 5%  depreciation or appreciation of the US dollar against the Canadian dollar would result in an increase/decrease of  approximately $494,000 (2010  – $142,000) in the Company’s net income (loss).  On August 11, 2010, the Company received net proceeds of $11,001,196 from the convertible notes and forward gold  sale. The contracts contain a number of derivative components that would cause exposure to foreign currency risk. The  Company has not hedged any of its gold sales. The derivative components associated to foreign currency fluctuation are  fair valued at each period and gains or losses are recorded to its income (refer to note 11).  Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of  changes in market prices other than those arising from interest rate risk or foreign currency risk. On August 11, 2010, the  Company issued the convertible notes which contain derivative liabilities. The Company values such derivate liabilities at  fair market price using the Black-Scholes option pricing model and record gains and losses to other income. 32 |  P a g e June 30, 2011)  June 30, 2010)  In thousands  CAD$)  US$)  CAD$)  US$)  Cash and cash equivalents  9,585)  9,938)  310)  321)  Accounts receivable (excluding refundable taxes)  10)  10)  3)  3)  Accounts payable and accrued liabilities  (59)  (61)  (3,343)  (3,466)  June 30, 2011  June 30, 2010  In thousands  RM US RM  US)  Cash and cash equivalents   614)  203)  383)  118)  Restricted cash  312)  103)  565)  175)  Accounts receivable (excluding refundable taxes)  66)  22)  8)  2)  Accounts payable and accrued liabilities   (9,452) (3,131)  (10,464)  (3,232) 