## Exploration 

Prior to fiscal 2010, the Company completed two drilling programs in 2008 and 2009 for 11,871 meters of reverse circulation drilling (“RC drilling”) with 1,400 meters of diamond drilling pending at the S outh, Central and Northern Zone of Buffalo Reef. The assay results were announced by the Company through a series of news releases with a positive outlook confirming historic drill results (refer to www.sedar.com). Based on the results from the drill program, the historical resources were updated to NI 43-101 compliant resources in May 2011. 

On September 22, 2010, the Company initiated a drill program which includes 33 drill holes comprising 2,500m of RC drilling and 3,200m of diamond drilling, budgeted at $0.8 million. The drill program is an extension of the previous 11,871m of shallow RC drilling programs completed in 2008. It is aimed to convert the inferred resources to measured and indicated resources under NI 43-101 standards. Metallurgical and recovery test work has also been carried out on the Buffalo Reef ore as part of the ongoing development program. 

During fiscal 2011, the Company upgraded its existing RC rig into the multipurpose drilling machine which had the capacity to undertake both the reverse circulation and diamond drilling work. Two additional drill rigs were ordered and were delivered subsequent to the end of the year to enhance its exploration capacity. A new exploration office was built to accommodate the newly recruited exploration personnel and core storing and handling facilities were constructed. Upgrading of the workshop to support the ongoing exploration activities continued into the 2012 fiscal year. 

## Famehub Properties 

The Famehub area is located in the Pahang State of Malaysia approximately 15km northwest of the town of Kuala Lipis and 2km north of the Selinsing Gold mine. 

On September 13, 2010, through its wholly owned subsidiary Damar, the exploration arm of Monument’s Malaysian group of companies, the Company acquired the Famehub Property by purchasing 100% of the issued and outstanding shares of Famehub Venture Sdn. Bhd. (“Famehub”), a company incorporated in Malaysia. Famehub has rights to approximately 32,000 acres of prospective exploration land to the north of Buffalo Reef along the trend and east of the Selinsing gold mine. Famehub also owns a package of technical information and exploration database in respect to the subject property. The full purchase price for the Famehub acquisition is $1.5 million in cash and 14 million common shares of the Company. The Company has started preparation to for its exploration programs, targeting the consolidation of its Selinsing and Buffalo Reef properties together with the Famehub Property around the newly constructed producing Selinsing gold mine in order to extend the life of the mine through increased resources situated nearby. 

The Famehub area is in an early stage of exploration. It consists of nine separate exploration prospects. Extensive stream sediment and soil sampling campaigns have been completed by the previous owners with minimal drilling conducted to date. The results of the geochemical sampling included in the database obtained by the Company indicate anomalous gold grades are present in the Famehub properties. Follow up exploration work is required to define the extents of any potential gold mineralization (refer to “Preliminary Assessment of Exploration Tenements, Malaysia, NI 43 -101 Technical Report”, August 2010, prepared by S nowden Group Australia and filed on www.sedar.com 

Data obtained from the acquisition allows the Company to quickly focus on prospective drill targets and assess the potential of the newly acquired ground through targeted exploration. The initial 12 month program includes trenching and 61 drill holes comprising of 7,440m of RC drilling and 1,500m of diamond drilling and is budgeted at $1.6 million (CAD 1.6 million). The program is aimed to generate targets for future drilling. 

During the year, field work was carried out at Panau, Serau and Tekai prospects. A total of 402 trench samples, 794 soils samples, 297 stream sample and 10 rock chips were collected from these area which located between 8-15 km north east from Selinsing and Buffalo Reef deposit. 

