MANAGEMENT’S DISCUSSION & ANALYSIS  For the period ended June 30, 2010  Form51-102F  Investment in mineral property development, construction and other capital assets in fiscal 2010 has produced a positive cash  flow of $4,411,148 (2009 – ($8,691,447)) comprised of $9,017,755 spent for plant construction and purchase of other capital  assets (2009 - $6,491,046), offset by $808,525 in gold sales as a result of commissioning of the gravity circuit; $690,198 for  mineral property development (2009 - $2,200,401), offset by a net operating profit of $13,310,576 (2009 - $nil) from the gravity  circuit, which was charged to mineral properties during the pre-commercial production period. During fiscal 2010, the Company incurred legal and regulatory fees of $140,932 for $13 the million financing transaction, $1,170  for issuance of common shares of the Company and $14,639 for capital leases.  As at June 30, 2010, the Company has a positive working capital of $7,140,906 compared to $4,153,948 as at June 30, 2009  increased by $2,986,958 as a direct result of gold sales. The accounts payable increased to $3,844,291 at June 30, 2010 from  $2,095,964 at June 30, 2009 primarily attributed to construction and mining costs incurred during the year. During fiscal 2010, the net shareholders’ equity has decreased by $1,306,854 primarily due to the operating loss of $2,936,587,  partially offset by an increase of $1,496,855 in contributed surplus due to stock-based compensation cost incurred. From time  to time the Company exercises its best effort to seek and utilize its capital resources in an efficient manner in order to meet its  business commitments including exploration and mineral property development expenditure, acquisitions, capital assets  upgrades, etc. The Company’s capital resources as at June 30, 2010 included cash and cash equivalents. The Company’s primary sources of  funding are though equity financing by issuance of stock, debt financing and sale of gold. From time to time the Company  exercises its best effort to seek and utilize its capital resources in an efficient manner in order to meet its business  commitments including exploration and mineral property development expenditure, acquisitions, capital asset upgrades, etc. 1.7  Capital Resources  Shares issued for debt  On September 25, 2009, the Company issued 475,000 Monument shares to settle a debt owing to Avocet.  Avocet has been operating a gold mine in Malaysia since 1996 which is located approximately 45 kilometers from Monument’s  Selinsing property. Avocet has provided assistance to Monument in training mining and gold plant processing operators at  Monument’s Selinsing Gold Mine Project.  The training assistance costs of $134,048 (US$131,600) were fully paid by issuance of 475,000 Monument shares at $0.28 per  share. All shares issued are subject to a four-month hold period.  On December 21, 2009, the Company announced that it had signed Term Sheets to raise up to $12.0 million of new capital. The  new funding is in lieu of the $10 million dollar credit facility which was not completed due to the global credit melt down in late  2008 and early 2009.  The financing closed on August 11, 2010, subsequent to the year ended June 30, 2010, with an overallotment of $1 million  totaling $13 million comprised of the private placement of $8 million in convertible notes (the "Notes") and a $5 million  forward sale of gold (the "Forward Sale"). The Notes have a term of five years and one day from the date of the issuance and must be repaid by the Company at the end  of the term in cash at 121.67% of the principal amount. Any early repayment of the Notes will result in a pro-rata adjustment  of this repayment amount. The holders of the Notes (the "Note holders") may, at any time, convert the Notes into units at a  price of $0.40 per unit with each unit comprising one common share of the Company and one common share purchase warrant.  Each whole share purchase warrant is exercisable at $0.50 per share, expiring five years from the date of issuance of the Notes. The conversion price of the units and the exercise price of the warrants are subject to adjustment in accordance with anti- dilution provisions of the Notes and the warrants. In connection with the issuance of the Notes, the Company entered into gold option agreements with each of the Note holders  (the "Option Agreements") whereby the Note holder has the option to acquire gold from the Company up to an amount equal  to the balance of the Note outstanding at the price greater of: (i) $1,000 per ounce; and (ii) the gold price in US dollars as set by  the London PM Fix and converted to Canadian dollars at the noon rate of exchange published by the Bank of Canada on the  maturity date of the Notes, less a 5% discount. In addition, as an inducement to enter into the subscription agreement for the  Convertible Note and Forward Sale of Gold  11 | P a g e