content_image/226435.jpg content_image/226436.jpg
Notes to Consolidated Financial Statements 

For the years ended June 30, 2010 and 2009 

## 12. Share Capital 

a. Authorized 

Unlimited common shares without par value 

b. Issued and outstanding: 

<img src='content_image/226435.jpg'>

(i) On July 21, 2008, the Company closed a private placement for total gross proceeds of $28,048,000 by issuing 70,120,000 units at a price of $0.40 per unit, each unit comprising one fully paid share of common stock and one common share purchase warrant entitling the holder to purchase one additional common share for $0.50 for a three-year term from closing. Costs of the financing include a 10% agent fee in the amount of $2,804,800 and legal and filing fees of $79,389 and other cost of $23,056. 

(ii) On August 19, 2008, the Company purchased a 1.0 million tons per year capacity ball mill from Avocet. Consideration of $3,250,001 for the mill was paid by the issuance of 8,125,003 units at $0.40 per unit, at the same price and the same terms as the private placement disclosed above. Each unit is comprised of one share and one share purchase warrant exercisable at $0.50 for three years from date of issuance. Avocet is a shareholder of the Company (note 14) 

(iii) On September 25, 2009, the Company issued 475,000 Monument shares at approximately $0.28 per share to settle a debt owing to Avocet in the amount of $134,048. The transaction incurred costs of $1,170 in filing fees. 

c. Warrants 

The continuity of share purchase warrants is as follows: 

<img src='content_image/226436.jpg'>

d. Stock options 

The 2009 Stock Option Plan (“2009 Plan”) is a fixed plan allowing 22,126,000 common shares of the Company to be granted to its directors, officers, employees and consultants. The number of shares reserved for issuance under the 2009 Plan shall not exceed 15% of the total number of issued and outstanding shares on a non-diluted basis. The total number of stock options granted during the year together with previously granted stock options shall not exceed, on a non-diluted basis, 6% for any one Optionee; 15% for Insiders as a group, 2% for any one Consultant; 2% for all Eligible Persons who undertake Investor Relations Activities. The previous 10% Rolling Stock Option Plan was automatically converted to the 2009 Plan. Under the 2009 Plan, 22,601,000 stock options were outstanding as at June 30, 2010, which included 475,000 stock options pending Shareholders’ approval. 

