9. Mineral Properties  Realization of assets  Title to mineral properties  Environmental  55 |  P a g e Environmental legislation is becoming increasingly stringent as costs and expenses of regulatory compliance are  increasing. The impact of new and future environmental legislation on the Company’s operations may cause additional  expenses and restrictions. If the restrictions adversely affect the scope of exploration and development on the mineral  properties, the potential for production on the property may be diminished or negated.  Mineral exploration and development is highly speculative and involves inherent risks. While the rewards if an ore body  is discovered can be substantial, few properties that are explored are ultimately developed into producing mines. There  can be no assurance that current exploration programs will result in the discovery of economically viable quantities of  ore.  The investment in and  expenditures on mineral properties comprise a significant portion of the Company’s assets.  Realization of the Company’s investment in these assets is dependent upon the establishment of legal ownership, the  attainment of successful production from the properties or from the proceeds of their disposal.  Although the Company has taken steps to verify the title to its mineral properties, in accordance with industry standards  for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title.   Property  title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defect. To  the best of the Company’s knowledge, titles to its properties are in good standing. Selinsing Gold  (Development)  Buffalo Reef  (Exploration)  Famehub  (Exploration)  Total  June 30, 2009 $ 33,011,884)  $ 11,989,357  $ -  $ 45,001,241)  Assay and analysis  -)  23,556  -  23,556)  Asset retirement obligation  1,235,662)  -  -  1,235,662)  Drilling  -)  21,165  -  21,165)  Geological  -)  81,842  -  81,842)  Site activities  190,095)  6,254  -  196,349)  Environmental  21,750)  -  -  21,750)  Socio-economic  7,449)  588  -  8,037)  Property fees  59,970)  899  -  60,869)  Recoveries, net of costs  (14,012,697)  -  -  (14,012,697)  Stripping costs  361,757)  -  -  361,757)  Stock-based compensation (note 12(d))  48,205)  109,592  -  157,797)  Foreign exchange credited to OCI (note 2)  1,357,858)  1,209,398  -  2,567,256)  June 30, 2010  $ 22,281,933)  $ 13,442,652  $ -  $ 35,724,585)  Reclassification  to  property,  plant  and  equipment  (22,281,933)  -  -  (22,281,933)  Acquisition costs  102,921  35,090  4,971,686  5,109,697) Assay and analysis 15,953  19,155  -  35,108) Drilling 515,824  32,576  -  548,400) Geological 119,909  295,912  2,905  418,726) Site activities  357,008  51,243  -  408,251) Metallurgical  77,658  - -  77,658 Property fees  -  17,315  -  17,315)  Stock-based compensation (note 12(d)) -  6,881  -  6,881)  Incurred during the year  1,189,273   13,900,824  4,974,591  20,064,688)  Deposits for mineral property expenditures  1,057  1,057  June 30, 2011  $ 1,189,273  $ 13,901,881  $ 4,974,591  $ 20,065,745)  Annual Report 2011  Notes to Consolidated Financial Statements  Monument Mining Limited