MONUMENT MINING LIMITED 15. Income Tax Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 The reconciliation of income tax provision computed at statutory rates to the reported income tax provision is as follows:  Future income tax assets and liabilities have been calculated using the following enacted corporate income tax rates: Canada at  25.75% (2009 – 26%) and Malaysia at 25% (2009 – 20%). Significant components of future tax assets and liabilities, after  applying enacted corporate income tax rates, are as follows:  At June 30, 2010, the Company’s losses for Malaysian tax purposes are approximately $961,600 (Malaysian ringgit 2,935,000),  that may be carried forward to apply against future income for Malaysian tax purposes. These losses do not expire.  41 | P a g e June 30, 2010  June 30, 2009  Future income tax liabilities  Mineral property interests in excess of tax value $ (858,400)  $ (980,400)  Property, plant and equipment in excess of tax value  (353,200)  (90,300)  (1,211,600)  (1,070,700)  Future income tax assets  Asset retirement obligation in excess of tax value  641,600  300,500  Share issuance cost carry forwards  516,500  744,400  Loss carry forwards 2,032,200  1,382,200  3,190,300  2,427,100  Valuation allowance  (2,694,800)  (2,079,400)  Net future income tax assets  495,500  347,700  Net future income tax liabilities  $ (716,100)  $ (723,000)  June 30, 2010  June 30,  2009  Income tax recovery computed at statutory rates  $ 860,700)  $ 1,058,200)  Lower effective rate attributable to Malaysian income  (3,900)  (36,500)  Non-deductible stock-based compensation  (359,000)  (428,400)  Non-deductible foreign exchange loss  (84,100)  (8,200)  Other non-deductible expenses  (12,300)  (15,000)  Share issuance costs deductible for tax purposes  251,100)  259,600)  Non-business income  (900)  -  Unutilized tax losses  (652,401)  (830,733)  Reduction in future income tax liability due to statutory rate reduction  6,900  -  Income tax recovery (expense)  $ 6,099  $ (1,033)  Income tax recovery (expense) consists of the following:  Current tax provision  $ (801)  $ (1,033)  Future tax provision  6,900  -  Income tax recovery (expense)  $ 6,099  $ (1,033) 