Annual Report 2011  Notes to Consolidated Financial Statements  Monument Mining Limited a. Authorized  b. Issued and outstanding  c. Warrants  12. Share Capital  Unlimited common shares without par value  (i) On September 25, 2009, the Company issued 475,000 common shares valued at $0.26 per share to settle a debt  owing to Avocet in the amount of $122,788. The Company incurred transaction costs in the amount of $1,073 for filling  fees related to the transaction.  (ii) On September 13, 2010, the Company issued 14,000,000 common shares valued at $0.24 per share for a total value  of $3,406,900 to acquire the Famehub Properties (note 9(c)). The shares were subject to a four months hold period,  which expired on January 13, 2011. The continuity of share purchase warrants is as follows:  On August 11, 2010, the Company issued 5,000,000 common share purchase warrants in conjunction with the Gold  Forward Sale (note 11(b)). Each share purchase warrant is exercisable at $0.48 per share, expiring five years from the  date of issuance of the Notes. The warrants must be either exercised or otherwise expire on a pro-rata basis within 30  days of the delivery of gold by the Company.  On February 3, 2011, the TSX Venture Exchange (TSXV) consented to extend the term of 68,055,000 common share  purchase warrants for 12 months, from an expiry date of July 21, 2011 to an expiry date of July 21, 2012. All other terms  of those warrants remain intact including the exercise price. As of the date of the Company's application to the TSXV,  2,680,000 of these warrants have been exercised, leaving 67,440,000 warrants unexercised. An incremental fair value of  $2,953,678 was recognized against retained earnings and contributed surplus for the warrant extension. The fair value of  the extended warrants was estimated using the Black-Scholes option pricing model with the following assumptions: risk  free rate of 1.33%, volatility of 53.24%, expected life of 1.46 years and no expected dividends. The fair value of the  warrants prior to extension was estimated using the Black-Scholes option pricing model with the following assumptions:  risk free rate of 1.07%, volatility of 57.82%, expected life of 0.46 years and no expected dividends.  60 |  P a g e Expiry date  21-Jul-12)  12-Aug-11  11-Aug-15  Total outstanding  and exercisable  Exercise price  $0.50)  $0.47  $0.48  Balance, June 30, 2009 and 2010  70,120,000)  8,125,003  -  78,245,003)  Issued (note 11(b))  -  -  5,000,000  5,000,000)  Exercised  (2,680,000)  -  -  (2,680,000)  Balance, June 30, 2011  67,440,000)  8,125,003  5,000,000  80,565,003)  Common shares  Shares  Amount  Balance, June 30, 2009  155,640,028  $ 58,801,934 Shares issued for debt settlement (note 12(b)(i))  475,000  122,788 Share issuance costs for debt settlement (note 12(b)(i))  -  (1,073)  Balance, June 30, 2010  156,115,028  $ 58,923,649 Shares issued for Famehub acquisition (note 12(b)(ii))  14,000,000  3,406,900 Shares issued from the exercise of stock options  1,451,833  513,949 Fair value of stock options exercised -  321,671 Shares issued from the exercise of warrants 2,680,000  1,352,630 Balance, June 30, 2011  174,246,861  $ 64,518,798