Concurrently with the adoption of the US dollar as the functional currency, effective July 1, 2010, the Company exposure  to currency risk is to the extent the financial instruments held by the Company are not denominated in US dollars. Prior  to July 1, 2010, as the functional currency was the Canadian dollar, the Company’s exposure to foreign currency risk was  to the extent financial instruments were not denominated in Canadian dollars.  As at June 30, 2011 and June 30, 2010, the Company is exposed to currency risk through the following assets and  liabilities denominated in Malaysian ringgit (RM):  Based on the above net exposures as at June 30, 2011, and assuming that all other variables remain constant, a 5%  depreciation or appreciation of the RM against the US dollar would result in an increase/decrease of approximately  $83,000 (2010  – $143,000) in the Company’s net earnings (losses).  As at June 30, 2011, the Company is exposed to foreign currency risk through the following assets denominated in CAD  dollars:  Based on the above net exposures as at June 30, 2011, and assuming that all other variables remain constant, a 5%  depreciation or appreciation of the Canadian dollar against the US dollar would result in an increase/decrease of  approximately $494,000 (2010  – $142,000) in the Company’s net earnings (losses).  In August, 2010, the Company received net proceeds of $11,001,196 from the convertible notes and forward gold sale.  The contracts contain a number of derivative components that would cause exposure to foreign currency risk. The  Company has not hedged against the foreign currency risk exposure. The derivative components associated to foreign  currency fluctuation are adjusted to fair value at each period and gains or losses are recorded to the statement of  operations (refer to note 11).  The Company is exposed to the risk of fluctuation in prevailing commodity prices on gold it produces. Other price risk is  the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market  prices other than those arising from interest rate risk or foreign currency risk. On August 11, 2010, the Company issued  the convertible notes which contain derivative liabilities. The Company values such derivative liabilities at fair market  price using the Black-Scholes option pricing model with reference to the volatility of its own stock estimated using  historical closing market prices and record gains and losses to other income. Assuming that all other variables remain  constant, a 5% depreciation or appreciation of the Company’s share market price would result in an increase/decrease of  approximately $ 400,000 in the Company’s net earnings (losses).  52 |  P a g e Commodity and other price risk  June 30, 2011)  In thousands  CAD)  US)  Cash and cash equivalents  9,585)  9,938)  Accounts receivable (excluding refundable taxes)  10)  10)  Accounts payable and accrued liabilities  (59)  (61)  June 30, 2011  June 30, 2010  In thousands  RM US RM  US)  Cash and cash equivalents   614)  203)  383)  118)  Restricted cash  312)  103)  565)  175)  Accounts  receivable  (excluding  refundable  taxes)  66)  22)  8)  2)  Accounts payable and accrued liabilities   (9,452) (3,131)  (10,464)  (3,232)  Currency risk  Monument Mining Limited Annual Report 2011  Notes to Consolidated Financial Statements 