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Please see end of this report for important disclosures

Equity Research

March 3, 2011

Rating: BUY Monument Mining LimitedTarget Price: C$1.15 (MMY-TSXV)

All figures in C$, unless otherwise noted Projected Gold Production and Plant Expansion

Plan Better than Market Expectation

XMill Capacity Will Increase 250% in One Year: Monument Miningreleased its Phase III expansion plan for its 100%-owned Selinsing

Gold Mine. The company plans to raise the mill capacity 250% to1 million tonnes/year from 400,000 tonnes/year by April 2012 with

a budgeted capex of $8 million. The designed capacity is 25%

higher than market expectation, but the budgeted capex is in line

with our expectation.

XProjected Gold Production in Fiscal 2012 Beats MarketExpectation: According to the companys released news, the

projected gold production in fiscal 2012 will be no less than 50,000

ounces, over 25% higher than market expectation (40,000 ounces),

due to increased processing capacity. Therefore, we have raised

our projected gold production in fiscal 2012 to 50,000 ounces from

40,000 ounces.

XThe Company Plans to Further Accelerate Its ExplorationActivities: Currently only two drilling rigs, one diamond rig and one

RC rig, are operated by MMYs exploration team at Selinsing,

Damar Buffalo Reef and Famehub. The company plans to use four

in-house rigs and one contract diamond drill rig for its future

exploration and speed up its drilling activity significantly.

XFuture Exploration Success Will Enhance MMYs Long-term ValueAny future exploration success at Selinsing, Damar Buffalo Reef or

Famehub will extend the LOM of Selinsing Gold Mine and enhance

the companys intrinsic value. At the current stage, we have notincluded any potential future exploration success into our

forecasting model.

XRecommendation: Due to our updated assumption on goldproduction in fiscal 2012 at Selinsing, we are raising our price

target to $1.15 from $1.10 per share and reiterating our BUY

recommendation.

Recent Price: $0.66

52 Week Range: $0.24-$0.74

Shares O/S basic (MM): 173.3

f.d. (MM): 319.3

Market Cap (MM): $114.4

Net Cash (Estimated) (MM): $25.0

Enterprise Value (MM): $89.4

Fiscal Year End: Jun. 30

Financials 2011E 2012E

Production (Oz 000s) 38 50

Revenue (US$MM) $50 $72

Cash Flow/Share $0.10 $0.15

Price/Cash Flow 6.8 4.4

Commodities 2011E 2012E

Gold (avg. in US$/oz) $1,425 $1,425

Company Description: Monument Mining Ltd.,

together with its subsidiaries, engages in the

exploration, development and production of

gold mineral properties in Malaysia. It owns

100% interests in the Selinsing Gold Mine and

the Damar Buffalo Reef exploration prospect. It

recently acquired a 100% interest in the

Famehub exploration prospect located to the

north of Buffalo Reef and east of the Selinsing

gold mine.

Jeff Wu, CFA

Mining Analyst

604-697-2455

jwu@byroncapitalmarkets.com

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Monument Mining Limited

Jeff Wu, CFA 604-697-2455 jwu@byroncapitalmarkets.com P a g e | 2

Exhibit 1: Financial Forecasting for Monument Mining

Source: Monument Mining Limited, Byron Capital Markets Ltd.

(US$ 000's) 2011E 2012E 2013E 2014E 2015E 2016E 2017E

Fiscal Year End 30-Jun-11 30-Jun-12 30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 30-Jun-17

Revenue 49,587 71,787 99,013 93,345 77,010 44,080 41,487

Operating Costs

Mining Costs 3,092 4,004 6,219 6,595 6,595 6,595 6,595

Milling Costs 3,837 4,942 7,674 8,140 8,140 8,140 8,140

Leaching Costs 1,590 2,703 4,198 4,452 4,452 4,452 4,452

8,519 11,649 18,091 19,187 19,187 19,187 19,187

Operating Margin 41,068 60,138 80,922 74,158 57,823 24,893 22,300

General & Admin Costs 2,500 2,500 3,000 3,000 3,000 3,000 3,000

Royalty 2,479 3,589 4,951 4,667 3,850 2,204 2,074

EBITDA 36,088 54,048 72,971 66,491 50,972 19,689 17,225

Interest Payment -100 -200 -500 -700 -900 -1,000 -1,100

Exploration Expense 2,000 2,000 1,000 1,000 0 0 0Depreciation 1,820 2,976 5,081 5,231 5,431 5,731 6,331

Taxable Income 32,368 49,273 67,391 60,960 46,442 14,958 11,995

Taxes Payable 0 0 0 0 0 4,487 3,598

Net Income 32,368 49,273 67,391 60,960 46,442 10,471 8,396

EPS ($ Fully diluted) 0.10 0.15 0.21 0.19 0.15 0.03 0.03

EPS (C$ Fully diluted) 0.10 0.16 0.23 0.21 0.16 0.04 0.03

Operating Cash Flow (OCF) 30,888 45,948 70,871 65,591 51,272 15,601 14,127

OCF/Share ($ FD) 0.10 0.14 0.22 0.21 0.16 0.05 0.04

OCF/Share (C$ FD) 0.10 0.15 0.24 0.23 0.18 0.05 0.05

Price/OCF 6.8 4.4 2.7 2.9 3.7 12.2 13.4Gold Ounces Produced (000's) 38 50 73 78 70 44 41

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Monument Mining Limited

Jeff Wu, CFA 604-697-2455 jwu@byroncapitalmarkets.com P a g e | 3

IMPORTANT DISCLOSURES

Analyst's Certification

All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the

subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly,

related to the specific recommendations or views expressed by the responsible analyst(s) in this report. The particulars contained herein

were obtained from sources which we believe to be reliable but are not guaranteed by us and may be incomplete.

Byron Capital Markets Ltd. (Byron) is a Member of IIROC and CIPF. Byron compensates its research analysts from a variety of sources.

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Company Specific Disclosures:

1. The research analyst(s) and/or associate(s) who prepared this research report have viewed the material operations ofMonument Mining Limited.

2. Byron has been paid or reimbursed by the issuer for the analyst(s) travel expenses to view the material operations ofMonument Mining Limited.

3. Byron has received compensation for investment banking and advisory services from Monument Mining Limited during thepreceding 12 months.

Investment Rating Criteria

STRONG BUY

BUY

The security represents extremely compelling value and is expected to appreciate significantly from the

current price over the next 12-18 month time horizon.

The security represents attractive value and is expected to appreciate significantly from the current

price over the next 12-18 month time horizon.

SPECULATIVE BUY The security is considered a BUY but in the analysts opinion possesses certain operational and/or

financial risks that may be higher than average.

HOLD The security represents fair value and no material appreciation is expected over the next 12-18 month

time horizon.

SELL The security represents poor value and is expected to depreciate over the next 12-18 month time

horizon.

Other Disclosures

This report has been approved by Byron for distribution in Canada for the use of Byrons clients. Clients wishing to effect transactions in

any security discussed should do so through a qualified Byron salesperson, registered in their jurisdiction.

Informational Reports

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