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## MONUMENT MINING LIMITED 

Notes to Consolidated Financial Statements For the years ended June 30, 2010 and 2009 

## 4. Restricted Cash 

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a. The Company entered into a series of foreign exchange forward contracts (the “Contracts”) in 2009 and was required to hold a cash deposit equivalent to 10% of the outstanding contract commitments in its foreign exchange line account as a security against the Contracts. As at June 30, 2010, the Company had no forward contracts on hand (2009 - $500,000 forward contracts on hand requiring a $50,000 security deposit). 

b. The Company has lodged cash in the amount of $16,325 (2009 - $23,149) to meet customs clearance requirements. The cash is backed by a bank facility with a limit of $327,600 (RM1,000,000). 

c. The Company has entered into agreements restricting cash of $168,633 (2009 - $nil) for payment on agitators and power supply equipment. 

## 5. Inventory 

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## 6. Financial Instruments and Financial Risk Exposure 

## a. Financial Assets and Liabilities 

The Company’s financial instruments consist of cash and cash equivalents, restricted cash, forward contracts, accounts receivable (excluding refundable taxes) and accounts payable and accrued liabilities. 

The Company has classified its cash and cash equivalents and restricted cash as held-for-trading. Accounts receivable (excluding refundable taxes) are classified as loans and receivables. Accounts payable and accrued liabilities are classified as other liabilities. 

The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable (excluding refundable taxes) and accounts payable and accrued liabilities are considered to be reasonable approximations of their fair values due to the short- term nature of these instruments. 

The value of the forward contract has been adjusted to fair value based on quoted market prices. 

The carrying values of financial assets by category at June 30, 2010 and 2009 are as follows: 

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