MONUMENT MINING LIMITED Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 12. Share Capital (continued) During the year ended June 30, 2010, 2,930,000 options were granted to employees, consultants and a director (2009 –  15,851,000 options were granted to various directors and members of management). Using an option pricing model with the  assumptions noted below, the estimated fair value of all options recognized during the years ended June 30, 2010 and 2009  have been reflected in the financial statements as follows:  For the years ended June 30,  2010  2009  Mineral property exploration and development  $ 167,671  $ 338,255  Property, plant and equipment 101,764  136,378  Administration and operation  1,227,420  1,416,204  Total compensation cost recognized in operations, credited to  contributed surplus  $ 1,496,855  $ 1,890,837  The weighted average assumptions used to estimate the fair value of options were:  June 30, June 30, 2010  2009  Risk-free interest rate 1.96%  2.92%  Expected life  3.4 years  4.0 years  Expected volatility  97%  92%  Expected dividends  nil  nil  The weighted average fair value of options granted during 2010 is $0.17 (2009 - $0.18).  Option pricing models require the input of highly subjective assumptions including the expected price volatility. Changes in the  subjective input assumptions can materially affect the fair value estimate. e. Agent’s options  Continuity of Agent’s options outstanding:  Expiry date  Exercise price  Balance, June 30, 2008  Expired  Balance, June 30, 2009 and 2010  25-Jun-09  $0.50  1,994,800  (1,994,800)  -  Each Agent’s option unit is comprised of one common share of the Company and one-half share purchase warrant exercisable  at $0.50 for two years until June 25, 2009 (“Agent’s warrant”). Each Agent’s warrant would allow the holder to purchase one  common share at $0.65 exercisable to June 25, 2009. As at June 30, 2009 and 2010, all Agent’s options were expired.  39 | P a g e