Monument Mining Limited Annual Report 2011  Notes to Consolidated Financial Statements  e. Contributed surplus:  13. Earnings (loss) Per Share  14. Deferred Costs  Deferred costs are comprised of the following: $_{a.}$  In May 2011, the Company, through its wholly owned subsidiary Monument Mengapur Sdn. Bhd. (formerly “Orifer  Asia Sdn. Bhd.”) in Malaysia, has entered into a binding Memorandum of Understanding (the “MOU”) with Malaco  Mining Sdn. Bhd (“Malaco”) and Malaco’s wholly owned subsidiary Cermat Aman Sdn. Bhd.(“CASB”), both  incorporated in Malaysia, to acquire the Mengap ur Polymetalic Project (the “Mengapur Project” or the “Project”)  located in Pahang State, Malaysia. The acquisition remains subject to due diligence, updating of historical resource  and reserve estimates, signing of a Definitive Sale and Purchase Agreement, financing, board and regulatory  approvals and other conditions. Upon completion of the acquisition, Monument would hold a 70% pre-financing  interest in the Project. The consideration for acquiring the Mengapur Project will be comprised of a cash payment of $50,000,000 and the  issuance of a share parcel equivalent to a 30% interest in Monument Mengapur Sdn. Bhd. In parallel with the  acquisition, the Company has signed a Mandate with Deutsche Bank Global Mining Finance of London UK (“the  Bank”) to assi st in the funding of the acquisition and subsequent build out of the project and study the possibility of All the warrants (note 12(c)) and options (note 12(d)) are potentially dilutive in the period ended June 30, 2011, but  excluded from the calculation of diluted earnings per share are those for which the exercise price exceeds the average  market price. For the year ended June 30, 2010, warrants (note 12(c)) and options (note 12(d)), which are potentially  dilutive, are excluded from the calculation of diluted loss per share as their impact would be anti-dilutive.  63 |  P a g e Amount)  Balance, June 30, 2009  $ 6,220,243) Stock-based compensation  1,404,986) Balance, June 30, 2010  7,625,229) Warrants due to financing (notes 11(b) and 12(c))  1,655,715) Stock-based compensation  1,089,969) Stock options exercised  (321,671)  Warrants extension (note 12(c))  2,953,678)  Balance, June 30, 2011  $ 13,002,921) For the years ended June 30,  2011  2010  Net income (loss) for the period  $ 31,252,160 $ (3,034,838)  Basic  weighted  average  number  of  common shares outstanding  168,732,680  156,003,110)  Effect of dilutive securities:  Warrants (note 12(c))  2,855,225  -)  Options (note 12(d))  7,350,011  -)  Gold forward warrants (note 11(b))  708,800  -)  Convertible note shares (note 11(a))  2,708,800  -)  Diluted  weighted  average  number  of  common share outstanding  182,355,516  156,003,110)  Basic income (loss) per share  $ 0.19  $ (0.02)  Diluted income (loss) per share  $ 0.17  $ (0.02) 