Management’s Discussion and Analysis (Form 51 -102F)  For the year ended June 30, 2011  Monument Mining Limited IFRS 1 -  “First Time Adoption of International Financial Reporting Standards (“IFRS 1”) requires the Company to apply  IFRS effective at the end of its first IFRS reporting period retrospectively, which will be the financial statements as at  September 30, 2011, with specific mandatory exemptions and a limited number of optional exemptions. IFRS introduces a number of changes to the format and disclosure of financial statements, some of which are mandatory  and will have an impact on the presentation of the Company’s financial statements.  The underlying principle of IFRS 1  disclosures is that the Company explain how the transition from Canadian GAAP to IFRS has affected its financial  position. IFRS 1 will impact the presentation of the Company’s financial statements as at September 30, 2011 , as the  following items will be specifically included:  Significant first-time adoption optional exemptions chosen by the Company relate to the following:  Other change of accounting standard that has impact on the Company ’s financial results includes: Related party transactions : CICA 3840 contains requirements for measuring related party transactions. IAS 24 does not  deal with the measurement of related party transactions. The Company will adjust its past related party transactions  accordingly from July 1, 2011.  Change in functional currency : With change of functional currency, the current method applies under both CGAAP and  IFRS; however, under IFRS a simple approach is used to translate assets, liabilities, equity and the income statement (and  cash flow statement) at the spot rate; under CGAAP, the equity items are translated at the historical rates.  30 |  P a g e  a reconciliation of equity previously reported under Canadian GAAP to equity under IFRS at July 1, 2010 and  June 30, 2011 for the first IFRS financial statements;    a reconciliation of the total compre hensive income and shareholders’ equity previously reported under  Canadian GAAP to IFRS at July 1, 2010 and June 30, 2011;   more extensive disclosures for transactions that will be considered to be Related Party transactions under IFRS  than under Canadian GAAP. These disclosures include: relationships between parent and subsidiary  companies; key management personnel compensation in total and for each of the following categories: short  term employee benefits; post employment benefits; other long term benefits; termination benefits, and share  based payments   more extensive disclosure relating to assets per Operating Segments (whereas currently under Canadian GAAP  the Company reports on segmental basis).  $_{1.}$  Business combination : IFRS 1 gives an optional exemption that allows an entity to carry forward its previous  Canadian GAAP accounting for business combinations prior to the transition date. The Company will not restate  any business combination retroactive and will apply the requirements of IFRS 3 prospectively from July 1, 2010.  $_{2.}$  Asset retirement obligation (“ARO”), included in the cost of property, plant and equipment: The Company will  adjust ARO prospectively from July 1, 2010. $_{3.}$  Cumulative translation differences.  IFRS 1 permits cumulative translation gain and losses to be reset to zero at  the transition date. This provides relief from determining cumulative translation differences in accordance with  International  Accounting Standard (“IAS”) 21. $_{4.}$  Mandatory exception for estimates.  IFRS estimates as at July 1, 2010 are consistent with the estimates as at  the same date in conformity with Canadian GAAP.