Annual Report 2011  Notes to Consolidated Financial Statements  Monument Mining Limited June 30, 2011  June 30, 2010  Mine operating supplies  $ 942,383 $ 424,629  Stockpiled ore  11,282,007 2,199,104  Material discharged from ball mill for CIL process  1,949,689  1,905,911  Work in progress 853,064  240,337  Finished goods 1,109,619 -  $ 16,136,762 $ 4,769,981  Less: restricted finished goods (note 11)  1,109,619  -  $ 15,027,143 $ 4,769,981 6. Inventory  7. Financial Instruments a. Financial Assets and Liabilities  The carrying values of financial assets by category at June 30, 2011 and June 30, 2010 are as follows:  The Company’s cash equivalents bear interest at rates of 1.20%  to 1.38% (2010  –  0.60% to Prime less 2.00%) and mature  on February 27, 2012 (2010 - July 14, 2010 and September 12, 2010). The carrying values of financial liabilities by category at June 30, 2011 and June 30, 2010 are as follows:  Financial assets  Held-for-trading  Loans and receivables  2011  2010  2011  2010  Cash and cash equivalents  $ 49,063,026 $ 3,722,746  $ -  $ -  Restricted cash  103,500  174,400  -  -  Accounts receivable (excluding refundable  taxes)  -  -  1,924,131  1,843,755  $ 49,166,526 $ 3,897,146  $ 1,924,131  $ 1,843,755  Financial liabilities  Held for trading  Other liabilities  30-Jun-11  30-Jun-10  30-Jun-11  30-Jun-10  Convertible notes  $ -  $ -  $ 5,290,009  $ -  Derivative liabilities  8,087,040  -  -  -  Accounts payable and accrued liabilities  -  -  4,903,751  3,624,057  $ 8,087,040  $ -  $ 10,193,760  $ 3,624,057  Level 1  Level 2  Level 3  Total  Derivative liabilities  -  -  8,087,040  8,087,040  b. Financial Instrument Risk Exposure   (i) Market risk  The Company’s  financial instruments are exposed to certain financial risks, including market risk, credit risk, and liquidity  risk. Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes  in market prices. Market risk is comprised of three types of risk: foreign currency risk, price risk and interest rate risk. 51 |  P a g e Cash and cash equivalents, restricted cash and accounts receivable are classified as Level 2 within the fair value  hierarchy. The following table sets forth the Company’s financial liabilities measured at fair value by level within th e fair  value hierarchy at June 30, 2011 (June 30, 2010 - $Nil): 