Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of  changes in market interest rates. The Company is subject to interest rate risk with respect to its cash equivalents and  convertible notes. However, this risk is limited because of the short- term maturity of these instruments. The Company’s  interest rate sensitivity analysis suggests they are not exposed to significant interest rate risk.  Credit risk is the risk of a loss if a customer or third party to a financial instrument fails to meet its contractual  obligations. The carrying amount of financial assets recorded in the financial statements, net of any allowances for  losses, represen ts the Company’s maximum exposure to credit risk.  The Company’s credit risk is attributable to its liquid financial assets. The Company established an investment policy to  avoid any investments other than government t-bills, term deposits guaranteed by major Canadian financial institutions,  or term deposits at major Malaysian banks which are guaranteed by the Malaysian government. The Company’s  accounts receivable includes $1,843,416 (June 30, 2010  –  $1,814,529) due from a single Australian Government-owned  refinery in Western Australia. Credit risk on this receivable is negligible and the balance was collected subsequent to  year-end.  The Company is exposed to concentration of credit risk with respect to cash and cash equivalents and restricted cash as  $33,763,473 (June 30, 2010 - $3,634,437) is held with a single Malaysian financial institution. The remaining $15,403,053  (June 30, 2010 - $262,709) is held with various Canadian financial institutions. Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company  manages liquidity risk through budgeting and forecasting cash flows to ensure it has sufficient cash to meet its short- term requirements for operations, business  development and other contractual obligations. The Company’s cash and  cash equivalents are highly liquid and immediately available on demand for the Company’s use. The Company has funded its mine development, processing plant extension and exploration through shares issuances,  convertible notes and a forward gold sale. To meet its repayment obligations and sale commitment, the Company is  required to deposit gold on a monthly basis as collateral. Contractual obligated cash flow maturities of financial liabilities as at June 30, 2011 are as follows:   (iii) Liquidity risk   (ii) Credit risk  Interest rate risk  Contractual obligated cash flow maturities of financial liabilities as at June 30, 2010 are as follows:  Total  under 3 months  4 to 12 months  1 to 5 Years  Accounts payable and accrued liabilities  $ 4,903,751 $ 4,903,751 $ -  $ -  Convertible notes  $ 10,091,796  $ -  $ -  $ 10,091,796  Total  under 3 months  4 to 12 months  1 to 5 Years  Accounts payable and accrued liabilities  $ 3,624,057  $ 3,086,519  $ 537,538  $ -  33 |  P a g e Monument Mining Limited Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011 