Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 4. Restricted Cash  MONUMENT MINING LIMITED 2010  2009  Foreign Exchange Line Account (a)  $ -  $ 50,000  Bank Guarantee for customs clearance (b)  Letter of Credit and payment guarantee for equipment (c)  16,325  168,633  23,149  -  $ 184,958  $ 73,149  a. The Company entered into a series of foreign exchange forward contracts (the “Contracts”) in 2009 and was required to hold  a cash deposit equivalent to 10% of the outstanding contract commitments in its foreign exchange line account as a security  against the Contracts. As at June 30, 2010, the Company had no forward contracts on hand (2009 - $500,000 forward  contracts on hand requiring a $50,000 security deposit).  b. The Company has lodged cash in the amount of $16,325 (2009 - $23,149) to meet customs clearance requirements. The cash  is backed by a bank facility with a limit of $327,600 (RM1,000,000). c. The Company has entered into agreements restricting cash of $168,633 (2009 - $nil) for payment on agitators and power  supply equipment. 5. Inventory  2010  2009  Mine operating supplies  $ 429,028  $ -  Stockpiled ore  3,075,124  -  Material discharged from ball mill for CIL process  1,068,702  Work in progress  245,745  -  $ 4,818,599 $ -  6. Financial Instruments and Financial Risk Exposure  a. Financial Assets and Liabilities The Company’s financial instruments consist of cash and cash equivalents, restricted cash, forward contracts, accounts  receivable (excluding refundable taxes) and accounts payable and accrued liabilities.  The Company has classified its cash and cash equivalents and restricted cash as held-for-trading. Accounts receivable (excluding  refundable taxes) are classified as loans and receivables. Accounts payable and accrued liabilities are classified as other  liabilities.  The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable (excluding refundable taxes) and  accounts payable and accrued liabilities are considered to be reasonable approximations of their fair values due to the short- term nature of these instruments.  The value of the forward contract has been adjusted to fair value based on quoted market prices.  The carrying values of financial assets by category at June 30, 2010 and 2009 are as follows:  Financial assets  Held-for-trading  Loans and receivables  2010  2009  2010  2009  Cash and cash equivalents  $ 3 ,949,183  $ 6,109,453  $ -  $ -  Restricted cash  184,958  73,149  - -  Forward contracts  -  10,103  -- -  Accounts receivable (excluding refundable taxes)  -  -  1,943,529 18,752  $ $ 4,134,141  $ 6,192,705  $ 1,943,529 $ 18,752  30 | P a g e