MONUMENT MINING LIMITED Consolidated Statements of Cash Flows Supplemental Cash Flow Information (note 18) See accompanying notes to consolidated financial statements. 24 | P a g e 2010 2009 Operating Activities Net loss for the year (2,936,587) $ (3,498,950) $ Items not involving cash Unrealized foreign exchange gain from asset  retirement accretion (15,491) - Unrealized foreign exchange loss 16,117 591 Provision for future income tax (6,900) - Stock-based compensation 1,227,420 1,416,204 Changes in fair value of forward contracts 10,103 (10,103) Amortization 18,273 13,624 (1,687,065) (2,078,634) Change in non-cash working capital items Accounts receivable (4,089) (13,587) Prepaid expenses and deposits (47,336) 87,692 Inventory (4,818,599) - Accounts payable and accrued liabilities 270,338 254,848 (4,599,686) 328,953 Cash used in operating activities (6,286,751) (1,749,681) Financing Activities Proceeds from private placements - 9,277,755 Cost from issuance of shares for debt (1,170) - Deferred financing cost (140,932) - Payment of capital lease obligation (14,639) - Cash provided by (used in) financing activities (156,741) 9,277,755 Investing Activities Expenditures on mineral property interests, net of recoveries 12,620,378 (2,200,401) Expenditures on property, plant and equipment, net of recoveries (8,209,230) (6,491,046) Cash provided by (used in) investing activities 4,411,148 (8,691,447) Foreign exchange effect on cash (16,117) (591) Increase in cash and cash equivalents (2,048,461) (1,163,964) Cash and cash equivalents, beginning of the year 6,182,602 7,346,566 Cash and cash equivalents, end of the year 4,134,141 $ 6,182,602 $ Cash and cash equivalents consist of: Cash 3,699,468 $ 2,500,740 $ Cash equivalents 249,715 3,608,713 Restricted cash 184,958 73,149 4,134,141 $ 6,182,602 $ For the years ended June 30,