Annual Report 2011  Notes to Consolidated Financial Statements  Monument Mining Limited International Financial Reporting Standards ("IFRS")  4. Restricted Cash  5. Gold Bullion Sections 1582 and 1602 will require net assets, non‐controlling interests and goodwill acquired in a business combination  to be recorded at fair value. In addition, the definition of a business is expanded and is described as an integrated set of  business activities and assets that are capable of being managed to provide a return to investors or economic benefits to  owners. Acquisition costs are not part of the consideration and are to be expensed when incurred. Section 1601  establishes standards for the preparation of consolidated financial statements. In August 2009, the CICA issued certain amendments to Section 3251 “Equity”. The amendments apply to entities that  have adopted Section 1602. The amendments require separate presentation on the statement of operations and  comprehensive income of income attributable to owners of the Company and those attributable to non-controlling  interests. The amendments also require that non-controlling interests be presented separately as a component of equity. The Company early adopted these sections as of July 1, 2010 with no significant impact on the consolidated financial  statements.  The Canadian Accounting Board has confirmed January 1, 2011 as the date that International Financial Reporting  Standards (“IFRS”) will replace Canadian GAAP for publicly accountable enterprises. As a result, the Company will report  under IFRS for interim and annual periods beginning July 1, 2011, with comparative information for the year ended June  30, 2011 restated under IFRS. Adoption of IFRS as Canadian GAAP requires the Company to make certain accounting  policy choices and could materially impact its reported financial position and results of operations.  As at June 30, 2011:  On January 28, 2011, the Company entered into an “Agreement for Sale of Gold” (the “Gold Forward Contract”) with  Queenstake Resources USA, Ltd. a wholly owned subsidiary of Yukon Nevada Gold Corp. to pay $5,000,800 in advance to  purchase 4,465 ounces of gold with a settlement date of June 30, 2011. Alternatively, the Company may require a cash  payment of $6,000,960 instead of delivery in gold. The Gold Forward Co ntract was further guaranteed by “Escrow  Agreement” under which Monument is entitled to receive 1,000,000 common shares of Yukon Nevada Gold Corp upon  default of the Gold Forward Contract. Yukon-Nevada Gold Corp. is considered to be a related party by virtue of common  management and common directors. As at June 30, 2011, the 4,465 ounces from the Gold Forward Contract were received and the Company realized a gain of  $1,602,306 on settlement of the contract. Of the 4,465 ounces received, as of June 30, 2011, 3,465 were sold for  proceeds of $5,365,575. The remaining 1,000 ounces of gold is carried as a temporary investment at cost. a. The Company fulfilled the bank guarantee obligation during fiscal 2011 that was held to meet customs clearance  requirements (June 30, 2010 - $15,394). b. The Company has entered into agreements restricting cash of $103,500 (June 30, 2010 - $159,006) for payment on  supplies and equipment. June 30, 2011   June 30, 2010  Bank Guarantee for customs clearance (a)  $ - $ 15,394  Letter of Credit and payment guarantee for equipment  (b)  103,500  159,006  $ 103,500 $ 174,400  50 |  P a g e