MONUMENT MINING LIMITED 2. Significant Accounting Policies (continued)  Work in progress represents gold in the processing circuit that has not completed the production process. Work in progress is  recorded at average cost. Costs include direct labour, mine-site overhead, and depreciation and depletion on Selinsing mine  equipment and mineral properties.  Finished goods inventory is metal available for sale and is valued at the lower of average production cost and net realizable  value. Property, plant and equipment are recorded at cost, and amortization begins when the asset is substantially put into service.  Amortization is calculated on a straight-line basis over the assets’ estimated useful lives at the following annual rates:  Buildings 2%  Furniture and equipment 10%  Computers  20% - 45%  Vehicles (including vehicles under capital lease) 20%  Construction costs 5% to 20%  Equipment used in exploration and development of mineral property interests is amortized, but the amortization charge is  deferred with other mineral property interests, exploration and development expenditures. Amortization of equipment not  specifically related to the Company's exploration and development activities is included in the consolidated statements of  operations and deficit. Construction costs related to the Selinsing Gold Mine Project are recorded at cost. On completion, the cost of construction is  transferred to the appropriate category of property, plant and equipment. No amortization is calculated until the assets are  substantially put into service. During the year-ended June 30, 2010, the gravity circuit of the mine was substantially complete  and its various components are amortized at rates between 5% and 20% straight-line.  e. Property, plant and equipment  f. Impairment of long-lived assets  g. Mineral property interests  The Company monitors the recoverability of long-lived assets, including property, plant and equipment, based on factors such  as current market value, future asset utilization, business climate and future undiscounted cash flows expected to result from  the use of the related assets. The impairment loss is recorded in the period when it is determined that the carrying amount of  the asset may not be recoverable. The amount of loss is measured as the excess of the carrying value of the asset over its fair  value.  The Company capitalizes all costs related to investments in mineral property interests on a property-by-property basis. Such  costs include mineral property interest acquisition costs and exploration and development expenditures, net of any recoveries.  These deferred expenditures will be amortized over the estimated life of the property following commencement of commercial  production, or written off if the property is sold, allowed to lapse, abandoned or when impairment in value is determined to  have occurred. Mineral property interest acquisition costs include the cash consideration, the fair value of common shares issued for mineral  property interests and the fair value of warrants issued determined using the Black-Scholes option pricing model. During the development of a mine, prior to the commencement of production, costs incurred to remove overburden and other  mine waste materials in order to access the ore body at Selinsing open pit operations (“stripping costs”) are capitalized to the  related property and depleted over the productive life of the mine using the unit-of-production method. During the production  phase of a mine, stripping costs are accounted for as variable production costs and included in the cost of inventory produced  during the period except for stripping costs incurred to provide access to sources of reserves that will be produced in future  periods and would not otherwise have been accessible, which are capitalized to the cost of mineral property interests and  depleted on a unit-of-production method over the reserves that directly benefit from the stripping activity.  When a mine construction project moves into the production stage, the capitalization of certain mine costs ceases and costs  are either charged to inventory or expensed. Mining costs incurred to stockpile ores for production are charged to inventory. 26 | P a g e Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009