36 | P a g e The revision in estimate of liabilities in 2010 and 2009 was the result of the development on Selinsing.  Changes to the reclamation and closure cost balance during the 2010 and 2009 years are as follows:  The Company’s asset retirement obligation consists of reclamation and closure costs for mine development and exploration  activities. Although the ultimate amount of reclamation costs to be incurred cannot be predicted with certainty, the total  undiscounted amount of estimated cash flows required to settle the Company’s estimated obligations is $4.5 million. The  present value of asset retirement obligations is $2,566,438 (2009 - $1,502,309) and is expected to be settled over the next ten  years. This amount has been disclosed using a credit and inflation adjusted risk free rate of 10.0%. Significant reclamation and  closure activities include land rehabilitation, decommissioning of tailing storage facilities, mined waste dump, road bridges,  buildings and mine facilities.  11. Asset Retirement Obligation  10. Capital Lease Obligation  9. Deferred costs  2010  2009  Asset retirement obligation, beginning of year  $ 1,502,309  $ 107,537  Revision in estimate of liabilities  929,390  1,394,772  Accretion expense  150,230  -  Foreign exchange gain  (15,491)  -  Balance, end of year  $ 2,566,438  $ 1,502,309  Year ending June 30, 2010  2009  2010  $ -  $ 18,032  2011  17,863  18,032  2012  17,863  18,032  2013  17,863  18,032  2014  15,872  16,023  Total minimum lease payments  69,461  88,151  Amount representing interest  (7,257)  (11,308)  Obligation under capital leases  $ 62,204 $ 76,843 Less current portion  (14,723)  (14,050)  Balance, June 30, 2010  $ 47,481  $ 62,793  MONUMENT MINING LIMITED Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 Deferred costs are comprised of the following:  a. Deferred business acquisition cost: the Company has incurred $14,981 in legal expenditures related to the Famehub  Acquisition (notes 8(c) and 21(b)). In addition, $50,000 which was incurred in 2009 was reclassified from mineral property  interests to deferred costs in 2010 (note 8(c)).  b. Deferred financing costs: the Company has incurred $173,518 (2009 - $nil) in legal and regulatory costs associated with the  $8,000,000 convertible notes and $5,000,000 gold forward sale financing (note 21(a)).  As at June 30, 2010 and 2009, the Company has three long-term leases on vehicles for its operations at rates ranging from 5.2%  to 6.5%.