Monument Mining Limited Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011  The Company’s ability to continue its mine development activities, exploration activities and producti on activities, and to  continue as a going concern, will depend on its ability to obtain suitable financing and to generate cash flow from gold  production. The Company has generated positive cash flow from operations in its first full quarter of commercial  production. Management believes it is able to obtain adequate working capital to continue the on-going operations  through its Selinsing mine operation and other financing vehicles. However, the positive cash flow generated from the  plant cannot be seen as an indication for future profitability. The profitability of the Company is affected by various  factors, including the amount of gold produced and sold, the market price of gold, operating costs, interest rates,  environmental costs, labour risk and political risk. The Company seeks to manage risks associated with its business;  however, many of the factors affecting these risks are beyond the Company’s control.  Financing may be required from time to time to meet its business development program. Whether the Company is able  to generate adequate cash to meet its capital requirements is affected by a number of external economic factors beyond  the Company’s control. None.  Refer to note 14 of the audited consolidated financial statements as at June 30, 2011.  The operating results of the Company reflect its income from operations, on-going corporate business development,  administrative costs and other income or expenses such as interest, accretion expense, fair value gains or losses on  derivative liabilities and foreign exchange gains or losses.  Summary  1.8  Off Balance Sheet Arrangements  1.9  Transactions with Related Parties  1.10 Fourth Quarter  Sales, Cost of Goods Sold and Gross Margin from Mining Operations Accretion and Depletion  For the three months ended June 30, 2011, commercial production from the Selinsing Gold Project, generated an income  of $10,880,950, or $0.06 per share, net of operating and corporate expenses, which was mainly increased by other gains  due to changes in fair value on derivative liabilities of $826,720 estimated using Black-Scholes financial model and fair  value on a gold forward contract of $129,102, offset by foreign exchange loss of $213,887 and accretion expense of  $312,560 that resulted in a net income of $10,880,950, or $0.06 per share, compared to a net loss of $638,475, or  $(0.00) per share, reported for the corresponding period in fiscal 2010. Revenue from the sale of metals is recognized in the financial statements when the following conditions are met:  persuasive evidence of an arrangement exists; title and risk passes to buyer, the price is fixed or determinable; and  collectability is reasonably assured. Incidental revenues from the sale of silver by-products are classified within cost of  sales.  For the three months ended June 30, 2011, the Company had gold sales of $16,617,862, produced 12,136 ounces of gold  and sold 10,936 ounces of gold at an average realized price of $1,520. For the three months ended June 30, 2011, cash cost of goods sold amounted to $2,867,144 or $262/oz, comprised  primarily of $589,833, or $53/oz for mining; $1,506,594, or $138/oz for processing; $827,765, or $76/oz for royalties,  and $75,275, offset by silver sales of $132,323, or $(5)/oz for operations. Other operating expenses included depletion and accretion of $1,133,064 for the three months ended June 30, 2011.  Depletion began in September 2010, in conjunction with the commencement of commercial production. 27 |  P a g e