Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011  Monument Mining Limited Mine Development  Production  Project Development and Phase III Expansion  $_{(1)}$ Total cash cost includes production costs such as mining, processing, tailing facility maintenance and camp  administration, royalties, and operating costs such as storage, temporary mine production closure, community  development cost and property fees, net of by-product credits. Cash cost excludes amortization, depletion, accretion  expenses, capital costs, exploration costs and corporate administration costs. The Company pays 5% of gross revenue as a  royalty to Malaysian government.  Phase III expansion of the gold plant estimated at $8.1 million is aimed to increase capacity of the gold treatment  processing plant from 400,000 tpa to 1,000,000 tpa through installation of an additional crusher, a primary ball mill,  three leach tanks, and other improvement to the gold room, detox circuit, tailing pipelines and pumping system. As of  June 30, 2011, the Company completed major engineering and metallurgical design work and engaged pre-qualified  contractors in supplying critical heavy equipment such as a new ball mill and leach agitators. Total costs incurred to June  30, 2011 were $252,600 and a total of $626,847 was paid in advance to suppliers to initiate the contract work. Selinsing mine development commenced in October 2008 and was completed in the first quarter of fiscal 2011, including  the mine site and camp development, the 1,200 tpd gold treatment plant construction and the tailing storage facility  development with capacity to store a 16 month tailing discharge from the processing plant. The plant was fully  commissioned and achieved commercial production in September 2010. The cost of plant construction and mine  development totaled $18 million (CAD 17 million), comprised of $21 million (CAD 20 million) expenditures, offset by $3  million (CAD 3 million) revenue generated from gold sales prior to commercial production. The approximate $3 million  (CAD 3 million) overrun resulted primarily from the delay in delivery and replacement of the CIL agitators.  First year commercial operation produced 44,438 ounces of gold, 11% higher than projected mainly due to higher feed  grade and recovery of the ore materials compared to the budget. Mining and processing operating results as at June 30,  2011 are provided as follows:  17 |  P a g e Year  ended, Jun 30,  2010  Three  months,  Sep 30,  2010  Three  months, Dec 31,  2010  Three  months, Mar 31,  2011  Three  months, Jun 30, 2011  Year  ended, Jun 30,  2011  Mining  Ore mined (tonnes)  662,330  203,150  159,681  140,736  237,342  740,909  Waste removed (tonnes)  2,326,502  615,937  649,584  741,109  700,968  2,707,598  Stripping ratio  3.51  3.03  4.07  5.27  2.95  3.65  Ore stockpiled (tonnes)  387,545  499,589  570,719  623,130  773,432  773,432  Process  Crushed ore (tonnes)  274,786  91,106  88,552  88,325  87,038  355,021  Ore processed (tonnes)  272,120  89,834  87,845  87,780  86,540  351,999  Average mill feed grade (g/t)  3.08  4.08  4.41  4.18  4.58  4.31  Process recovery rate 58.7%  90.0%  93.7%  93.7%  94.1%  92.9%  Gold produced (oz)  13,793 9,050 11,348 11,904 12,136  44,438 Gold sold (oz)  13,793 8,650 10,148 10,704 10,936  40,438 Gold sales (in 000's)  16,316 10,863 14,115 15,031 16,618  56,627 Cash cost (US$/oz) ⁽¹⁾ – Mining  64 49 52 56 53  53 Processing  90 89 140 107 138  120 Royalties  62 61 68 69 76  69 Operations  - - 2 5 (5)  - Total cash cost (US$/oz)  216 199 262 237 262  242