Monument Mining Limited — Interim / Quarterly Report 2022

Feb 28, 2022

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS OF

MONUMENT MINING LIMITED

(Expressed in thousands of United States dollars)

For the three and six months ended December 31, 2021 and 2020

In accordance with National Instrument 51-102 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed the condensed interim consolidated financial statements for the three and six months ended December 31, 2021.

TABLE OF CONTENTS

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ............................................................................... 1 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS ........................................................... 2 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ................................................................................ 3 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS ............................................................................................ 4 NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS ........................................................................ 5-21

MONUMENT MINING LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

	Notes	December 31, 2021	June 30, 2021
		$	$
ASSETS
Current assets
Cash and cash equivalents	4	27,797	38,623
Trade and other receivables	5	1,331	416
Income tax receivable	17	15	-
Prepaid expenses and deposits		763	891
Inventories	6	13,253	14,522
Deferred costs	7	10	70
Total current assets		43,169	54,522
Non-current assets
Property, plant and equipment	8	32,573	30,306
Exploration and evaluation	9	60,672	56,948
Total non-current assets		93,245	87,254
Total assets		136,414	141,776
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities	12	4,180	3,107
Deferred revenue	13	365	2,402
Lease liabilities	14	19	43
Income taxpayable	17	-	431
Total current liabilities		4,564	5,983
Non-current liabilities
Borrowings	15	47	47
Asset retirement obligations	16	6,247	6,206
Deferred tax liabilities	17	2,412	2,662
Total non-current liabilities		8,706	8,915
Total liabilities		13,270	14,898
Equity
Share capital	18	117,193	117,129
Capital reserves – warrants	19	2,612	2,612
Capital reserves – options	19	10,303	10,303
Capital reserves – restricted share units	19	904	933
Deficit		(7,868)	(4,099)
Total equity		123,144	126,878
Total liabilities and equity		136,414	141,776

Commitments and contingencies (Note 25) Subsequent events (Note 28)

Approved on behalf of the Board:

“Cathy Zhai” “Graham Dickson” Cathy Zhai, CEO and Director Graham Dickson, Director, Chairman

The accompanying notes are an integral part of these consolidated financial statements 1 | P a g e

MONUMENT MINING LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

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Three months ended Six months ended
December 31, December 31, December 31, December 31,
Notes
2021 2020 2021 2020
$ $ $ $
Mining operations
Revenue 5,047 6,835 7,430 12,754
Production costs 20 (5,199) (4,141) (7,234) (7,001)
Gross margin (loss) from mining operations (152) 2,694 196 5,753
Operation expenses 21 - (150) (48) (179)
Accretion of asset retirement obligation 16 (37) (33) (69) (68)
Depreciation and amortization (1,589) (892) (2,185) (1,616)
Income (loss) from mining operations (1,778) 1,619 (2,106) 3,890
Corporate expenses 22 (346) (460) (773) (788)
Income (loss) before other items (2,124) 1,159 (2,879) 3,102
Other items
Interest income 16 21 27 41
Interest expense 13,14 (66) (297) (197) (721)
Loss on disposal of assets 10(iii),(c) (12) (121) (12) (121)
Forei gn currency exchange loss (504) (858) (674) (1,547)
Loss from other items (566) (1,255) (856) (2,348)
Loss before income taxes (2,690) (96) (3,735) 754
Tax recovery (expenses ) 17 188 (553) (34) (1,265)
Total loss and comprehensive loss (2,502) (649) (3,769) (511)
Loss per share
- Basic 23 $ (0.01) $ (0.00) $ (0.01) $ (0.00)
- Diluted 23 $ (0.01) $ (0.00) $ (0.01) $ (0.00)
Weighted average number of common shares
- Basic 23 326,362,867 321,971,563 326,167,215 321,580,259
- Diluted 23 326,362,867 321,971,563 326,167,215 321,580,259
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The accompanying notes are an integral part of these consolidated financial statements 2 | P a g e

MONUMENT MINING LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

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Common Capital Capital Capital Retained Total equity
shares reserve - reserve - reserve - earnings
warrants options restricted (deficit)
share units
("RSUs")
Notes $ $ $ $ $ $
Balances at June 30, 2020 117,444 2,612 10,303 843 95,219 226,421
RSUs redeemed 54 - - (54) - -
Net loss for the period - - - - (511) (511)
Balances at December 31, 2020 117,498 2,612 10,303 789 94,708 225,910
Balances at June 30, 2021 117,129 2,612 10,303 933 (4,099) 126,878
Share-based compensation - - - 35 - 35
RSUs redeemed 64 - - (64) - -
Net loss for the period - - - - (3,769) (3,769)
Balances at December 31, 2021 117,193 2,612 10,303 904 (7,868) 123,144
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The accompanying notes are an integral part of these consolidated financial statements 3 | P a g e

MONUMENT MINING LIMITED

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

		Three	months ended	Six	months ended
	Notes	December 31,	December 31,	December 31,	December 31,
		2021	2020	2021	2020
		$	$	$	$
Operating activities
Loss for the period		(2,502)	(649)	(3,769)	(511)
Adjustments to reconcile net loss to net cash provided
from operating activities:
Depreciation, depletion and amortization		1,601	903	2,208	1,638
Accretion expense on asset retirement obligations	16	37	33	69	68
Share-based compensation(reversal)		5	-	10	-
Changes of deferred revenue	13	(1,051)	(776)	(2,038)	(353)
Unrealized foreign currency exchange loss(gain)		314	628	408	1,107
Loss on disposal of assets		12	121	12	121
Deferred income tax expense (recovery)		(506)	433	(692)	598
Cash provided from (used in) operating activities		(2,090)	693	(3,792)	2,668
before change in working capital items
Change in non-cash working capital items:
Trade and other receivables		(643)	(389)	(915)	(457)
Prepaid expenses and deposits		152	(177)	126	(705)
Inventories		1,763	252	594	(526)
Accountspayable and accrued liabilities		(3,205)	417	(13)	563
Cashprovided from(used in) operating activities		(4,023)	796	(4,000)	1,543
Financing activities
Payment of lease liabilities	14	(11)	(12)	(19)	(19)
Borrowings	15	-	18	-	18
Cashprovided from(used in) financing activities		(11)	6	(19)	(1)
Investing activities
Expenditures on exploration and evaluation, net of recoveries		(2,909)	(378)	(3,406)	(700)
Expenditures on property, plant and equipment		(829)	(1,314)	(3,401)	(1,672)
Deposit received for due diligence on Mengapur sale		-	-	-	3,750
Proceeds from sale of 80% interests in Tuckanarraproject		-	1,522	-	1,522
Cashprovided from(used in) investing activities		(3,738)	(170)	(6,807)	2,900
Increase (decrease) in cash and cash equivalents		(7,772)	632	(10,826)	4,442
Cash and cash equivalents at the beginningof theperiod		35,569	13,935	38,623	10,125
Cash and cash equivalents at the end of theperiod	4	27,797	14,567	27,797	14,567
Cash and cash equivalents consist of:
Cash on hand and held from sale of assets		27,480	10,378	27,480	10,378
Restricted cash		317	4,189	317	4,189
		27,797	14,567	27,797	14,567

Supplemental Cash Flow Information (Note 26)

The accompanying notes are an integral part of these consolidated financial statements 4 | P a g e

MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

1. Corporate Information and Nature of Operations

Monument Mining Limited (“Monument” or “the Company”) is a Vancouver based gold producer, engaged in the operation of gold mines, acquisition, exploration and development of precious metals and other base metal mineral properties with a focus on gold. The Company is incorporated and domiciled under the Canada Business Corporations Act and listed on the Toronto Stock Venture Exchange (“TSX-V: MMY”) and Frankfurt Stock Exchange (“FSE: D7Q1”) with the head office located at 1100 Melville Street, Suite 1580, Vancouver, British Columbia, Canada V6E 4A6.

The Company’s 100% owned Selinsing Gold Mine is located in Pahang State, Malaysia, and has been in commercial production since September 2010. The Company’s exploration and development mineral assets are 100% owned through its subsidiaries, including the Selinsing gold portfolio in Pahang State, Malaysia comprised of the Selinsing, Buffalo Reef, Felda Land and Famehub projects (together “Selinsing”), and Murchison gold portfolio in Western Australia, Australia (“WA”) comprised of the Burnakura, Gabanintha and 20% interests in Tuckanarra project.

The unaudited condensed interim financial statements of the Company for the three and six months ended December 31, 2021, comprising the Company and its subsidiaries, were authorized for issue in accordance with a resolution of the directors on February 28, 2022. These unaudited condensed interim consolidated financial statements are presented in thousands of United States (US) dollars and all values are rounded to the nearest thousand dollars except per share amounts or where otherwise indicated.

2. Basis of Preparation

These unaudited condensed interim consolidated financial statements have been prepared in accordance with IAS 34, “Interim Financial Reporting”. The accounting policies applied in these condensed interim consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended June 30, 2021. These unaudited condensed interim consolidated financial statements do not include all disclosures required by International Financial Reporting Standards (“IFRS”) for annual consolidated financial statements and accordingly, should be read in conjunction with the Company’s annual audited consolidated financial statements for the year ended June 30, 2021, as some disclosures from the annual consolidated financial statements have been condensed or omitted. These unaudited condensed interim consolidated financial statements were prepared on a going concern basis under the historical cost method except for certain derivatives, which are measured at fair value and were prepared using accounting policies consistent with those in the annual audited consolidated financial statements as at and for the year ended June 30, 2021.

3. Significant Accounting Policies

The unaudited condensed interim consolidated financial statements have been prepared in accordance with the accounting policies adopted in the Company’s most recent annual consolidated financial statements for the year ended June 30, 2021.

a) Critical accounting estimates and judgments

The preparation of these unaudited condensed interim consolidated financial statements requires management to make estimates and judgments that affect the amounts reported in the financial statements. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and subject to measurement uncertainty, Actual financial results may not equal the estimated results due to differences between estimated or anticipated events and actual events. The judgments, estimates and assumptions made in the preparation of these condensed interim consolidated financial statements were similar to those made in the preparation of the Company's annual consolidated financial statements for the year ended June 30, 2021.

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

4. Cash and Cash Equivalents

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December 31, 2021 June 30, 2021
$ $
Cash and cash equivalents 27,480 38,311
Restricted cash 317 312
27,797 38,623
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As of December 31, 2021, cash and cash equivalents of $27.80 million (June 30, 2021: $38.62 million) included restricted cash of $0.32 million (June 30, 2021: $0.31 million).

5. Trade and Other Receivables

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December 31, 2021 June 30, 2021
$ $
Interest receivable 6 11
Goods and services tax receivable 59 13
Other receivables 628 392
1,331 416
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Trade and other receivables are non-interest bearing.

Other receivables of $0.63 million include $0.36 million (AUD$0.50 million) consideration payment (“second deferred consideration”) from Odyssey Gold Ply Ltd, the Purchaser who acquired the 80% interests in Tuckanarra project (Note 9 (b)), which will be due within 5 business days upon completion of the transfer of the 80% legal and beneficial interest of the tenements to Odyssey from the Company.

6. Inventories

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December 31, 2021 June 30, 2021
$ $
Mine operating supplies 1,553 1,420
Stockpiled ore 1,354 2,733
Work in progress 4,891 3,071
Finished goods (a) 5,455 7,298
13,253 14,522
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Inventory includes supplies to production, stockpiled ore at ROM pad, work in progress such as gold in circuit and gold dore, and finished goods representing unsold gold bullion on hand. Ore inventories that are not expected to be processed in the next 12 months are classified as non-current assets which are nil as of December 31, 2021 (June 30, 2021: nil).

(a) Finished goods include 1,341 ounces of gold bullion held in the metal accounts (June 30, 2021: 2,911 ounces).

7. Deferred Costs

As of December 31, 2021, deferred costs were $0.01 million (June 30, 2021: $0.07 million) for the gold prepaid sale (Note 13), as described in the following table:

described in the following table:
	December 31, 2021	June 30, 2021
	$	$
Gold prepaid sale transaction costs, opening balance	70	158
Changes for theperiod	(60)	(88)
Goldprepaid sale transaction costs,closingbalance currentporiton	10	70

As of December 31, 2021, deferred financing cost included the transaction costs of gold prepaid in the amount of $0.36 million, amortized over the 36 months period ending January 2022 against cost of sales when a portion of physical gold being delivered to the Lender (Note 13). During the six months ended December 31, 2021, $0.06 million (six months ended December 31, 2020: $0.03 million) was amortized against cost of sales.

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

8. Property, Plant and Equipment

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Mineral Buildings, Construction Total
Properties (a) plant and equipment (b) in Progress (c)
$ $ $ $
Cost
As at June 30, 2020 62,029 46,329 4,477 112,835
Addition 2,917 412 565 3,894
Change in ARO provision (712) (135) - (847)
Disposal - (285) - (285)
Reclassification - 28 - 28
Menga pur project sale (Note 9(c)) - (10,049) - (10,049)
As at June 30, 2021 64,234 36,300 5,042 105,576
Addition 1,170 373 2,254 3,797
Change in ARO provision 56 (48) - 8
Disposal - (80) - (80)
Reclassification (d) (715) 1,217 - 502
As at December 31, 2021 64,745 37,762 7,296 109,803
Accumulated depreciation and amortization
As at June 30, 2020 (45,260) (27,319) - (72,579)
Charge for the period (4,328) (1,686) - (6,014)
Disposal - 149 - 149
Menga pur project sale (Note 9(c)) - 3,174 - 3,174
As at June 30, 2021 (49,588) (25,682) - (75,270)
Charge for the period (1,391) (599) - (1,990)
As at December 31, 2021 (50,979) (26,251) - (77,230)
Net book value
As at June 30, 2020 16,769 19,010 4,477 40,256
As at June 30, 2021 14,646 10,618 5,042 30,306
As at December 31, 2021 13,766 11,511 7,296 32,573
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• a) Included under mineral properties placed into production at the Selinsing Gold Mine in Pahang State, Malaysia, which is subject to depletion on a unit of production basis.

• b) Included under buildings, plant and equipment are camps and gold processing plants in Malaysia for net book value of $6.13 million and in Western Australia for $5.36 million including $1.22 million (Note 9(b)) Burnakura gold plant maintenance cost that have been reclassified from exploration and evaluation expenditures during the quarter.

• c) As of December 31, 2021, construction expenditures totaled $7.30 million (June 30, 2021: $5.04 million) comprised $3.14 million (June 30, 2021: $3.14 million) for the sulphide ore treatment process study, $2.63 million for flotation plant construction (June 30, 2021: $0.37 million) at Selinsing, and $1.53 million (June 30, 2021: $1.53 million) for the Burnakura crushing plant refurbishment at Murchison. Of which a total $1.70 million were incurred during the three-month period ended December 31, 2021 for the flotation construction. Construction expenditures are not subject to depreciation until they are available for use.

• d) Included in $(0.72) million as of December 31, 2021 were reclassification from last years transactions at Selinsing Gold Mine: $(0.77) million reclassified to Exploration and Evaluation which spent on tailing storage facilities (“TSF”) and river diversion for sulphide project development, offset by $0.05 million reclassified from Exploration and Evaluation which spent on building temporary access road to Peranggih pits to accommodate mining production (Note 9(a)).

Included in $1.22 million as of December 31, 2021 were repair and maintenance expenditure on Murchison gold process plant in past years that were recorded under care and maintenance against Exploration and Evaluation and were reclarified under Property, Plant and Equipment (Note 9(b)).

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

9. Exploration and Evaluation

9. Exploration and Evaluation
	Selinsing Gold	Murchison	Mengapur	Total
	Portfolio	Gold Portfolio	Copper and Iron Portfolio
	$	$	$	$
	(a)	(b)	(c)
Balance, June 30, 2020	28,134	31,835	122,085	182,054
Drilling	116	-	-	116
Geological	21	377	-	398
Plant maintenance	-	125	-	125
Site activities	46	372	346	764
Share-based compensation	35	-	-	35
Asset retirement obligations	-	1	(23)	(22)
Property fees	104	242	28	374
Mine development tranfer to inventory(i)	(1,447)	-	-	(1,447)
Incidental cost for property sale	-	31	-	31
Sale of 80% interest in Tuckanarra project(ii)	-	(3,044)	-	(3,044)
Cancellation of Intec agreement(iii)	-	-	(1,272)	(1,272)
Mengapurproject sale(c)	-	-	(121,164)	(121,164)
Changes for the year	(1,125)	(1,896)	(122,085)	(125,106)
Balance, June 30, 2021	27,009	29,939	-	56,948
Assay and analysis	15	110	-	125
Drilling	45	642	-	687
Geological	26	220	-	246
Plant maintenance (Note 8(d))	-	(1,217)	-	(1,217)
Site activities	44	238	-	282
Property fees	43	175	-	218
Mine development	2,668	-	-	2,668
Reclass from mineralproperties(Note 8(d))	715	-	-	715
Changes for the period	3,556	168	-	3,724
Balance, December 31, 2021	30,565	30,107	-	60,672

a) Selinsing Gold Portfolio

Exploration and evaluation expenditure covers the Company’s 100% interest in the Selinsing Gold Mine Portfolio including Selinsing Deep, a part of Buffalo Reef, Felda Land and Famehub, which lie continuously and contiguously along the gold trend upon which the Selinsing Gold Mine is located. As of December 31, 2021 total balance of $30.57 million mainly included $3.43 million for Selinsing Flotation project development comprised of $2.79 million for TSF upgrade, $0.45 million for cutback and $0.19 million for river diversion at Buffalo Reef, and $26.2 million for acquisition and exploration, of which $1.41 million for Selinsing Deep, $16.48 million for Buffalo Reef, $0.13 million for Felda Land, $5.05 million for Famehub and $3.13 million for Peranggih.

During the six months ended December 31, 2021, total $3.56 million expenditure occured including 2.67 million for mine development comprised of $2.15 million for TSF upgrade, $0.42 million for cutback and $0.10 million for river diversion at Buffalo Reef, $0.77 million reclassified from Properties, Plant and Equipment offset by $(0.05) million (Note 8(d)), and $0.17 million on exploration included $0.07 million for Buffalo Reef, $0.07 million for Peranggih, and $0.03 million for Selinsing Deep.

Selinsing Deep

The Company acquired a 100% interest in the Selinsing Gold Project in 2007 through its 100% owned subsidiary Able Return Sdn. Bhd. Acquisition costs and continuous exploration and development expenditure were recoded against exploration and evaluation. As of December 31, 2021 oxide ore and partial of leachable sulphide ore in Selinsing Deep have been placed into a production and have been classified to property, plant and equipment (Note 8(a)). The remaining balance of $1.41 million (June 30, 2021: $1.40 million) included $0.01 million incurred during the six months ended December 31, 2021.

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

Buffalo Reef

On June 25, 2007, the Company acquired 100% of the common shares of Damar Consolidated Exploration Sdn. Bhd., a company incorporated under the laws of Malaysia, thereby effectively acquiring 100% of the Buffalo Reef tenement property interests. Since the oxide ore at Buffalo Reef have been placed into production and reclassified against property, plant and equipment (Note 8(a)). As of December 31, 2021, remaining balance of $17.96 million (June 30, 2021: $16.41 million) reflects costs of defining new life of mine primarily sulphide resources and reserves.

Felda Land

The Company acquired exclusive irrevocable exploration licenses over Felda Land through a subsidiary Able Return Sdn Bhd from settlers – individual owners of blocks on the Felda Land, with consent from Federal Land Development Authority (“FELDA”).

The Felda Land is located east and south adjacent to Selinsing and Buffalo Reef.

Included in Felda land, Block 7, covering a 39.12-acre area of Felda Land (“Felda Block 7”) was converted to proprietary mining leases in October 2017. It is adjacent east of Buffalo Reef as the extension of the BRC oxide ore body, and nearby existing gold process plant. The balance as of December 31, 2021 was $0.13 million (June 30, 2021: $0.13 million) for Felda Land with no exploration and evaluation expenditures incurred in the six months ended December 31, 2021.

Peranggih

The Peranggih area is located north of the Selinsing Gold Mine and is in the same regional shearing structure as the Selinsing and Buffalo Reef gold deposits. As of December 31, 2021, the balance was $3.13 million (June 30, 2021: $3.11 million) including $0.07 million incurred for RC drilling and geological costs in the six months ended December 31, 2021, offset by $0.05 million spent on temporary road access to Peranggih pits to accommodate mining production which has been reclassified to Mineral Properties (Note 8(a)).

Famehub

On August 13, 2010, the Company acquired a 100% interest in Famehub Venture Sdn. Bhd. (“Famehub”), a company incorporated in Malaysia to purchase a land package of prospective exploration land as well as the associated data base. This land is located to the east of the Selinsing Gold project and the Buffalo Reef prospect. The balance as of December 31, 2021 was $5.05 million (June 30, 2021: $5.05 million) with no exploration and evaluation expenditures incurred in the year ended December 31, 2021.

b) Murchison Gold Portfolio

The Company has a 100% interest in the Murchison Gold Portfolio which consists of the Burnakura, Gabanintha, and 20% interest in Tuckanarra gold properties, located in the Murchison Mineral Field, a highly prospective historical gold province within the Murchison District of Western Australia. Burnakura and Gabanintha are located southeast of Meekatharra, WA and northeast of Perth, WA. Tuckanarra is located approximately southwest of Burnakura.

As of December 31, 2021, the Murchison Gold Portfolio exploration and evaluation expenditures totalled $30.11 million, of which $26.19 million (June 30, 2021: $26.10 million) for Burnakurra, $3.42 million (June 30, 2021: $3.34 million) for Gabanintha and $0.50 million (June 2021: $0.50 million) for Tuckanarra, representing 20% JV interest. Included in the $30.11 million expenditures, $14.44 million (AUD$16.09 million) were acquisition costs, $10.18 million (AUD$13.15 million) were exploration costs and $5.49 million (AUD$7.01 million) were care and maintenance (C&M)/development costs. Total $1.22 million plant maintenance costs were reclassified from exploration and evaluation expenditure to buildings, plant and equipment cost (Note 8(b)) during the quarter.

A total of $1.38 million incurred during the six months ended December 31, 2021, comprised of $0.97 million for exploration and $0.41 million for C&M.

Burnakura

In February 2014, Monument acquired the Burnakura Gold Project and Gabanintha Gold Project that includes a number of mining and exploration tenements, lease applications, a fully operational gold processing plant, a developed camp site and all necessary infrastructure.

As of December 31, 2021, the balance of exploration and evaluation expenditures was $26.19 million (June 30, 2021: $26.10 million), of which $8.42 million (AUD$9.35 million) were acquisition costs, $9.62 million (AUD$12.38 million) were exploration costs, and $8.15 million (AUD$10.69 million) were care and maintenance and development costs. Exploration costs for the six months ended December 31, 2021 were $1.36 million for Burnakura.

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

Gabanintha

Gabanintha Gold Project was acquired in conjunction with Burnakura, containing a number of prospective tenements located to the east of Burnakura.

As of December 31, 2021, total exploration and evaluation expenditures were $3.42 million (June 30, 2021: $3.34 million) including acquisition costs of $2.88 million (AUD$3.19 million), exploration costs of $0.31 million (AUD$0.44 million), and care and maintenance costs of $0.23 million (AUD$0.31 million) which was primarily related to site activities and property fees. A total of $0.08 million was spent in the six months ended December 31, 2021 for Gabanintha.

Tuckanarra

On December 24, 2020, the Company sold 80% controlling interest in Tuckanarra to Odyssey Gold Ltd (ASX: “ODY”, “Odyssey”, formerly Odyssey Energy Ltd) pursuant to a Joint Venture Arrangement (the “JV Arrangement”). Under the JV arrangement, Monument has 20% free carried interest until a decision to mine being made, provided preferentially ODY’s gold ore will be processed through Monument’s Burnakura gold plant subject to commercial terms.). Monument also retains a 1% net smelter return royalty over ODY’s percentage share in Tuckanarra.

The Company has received AUD$3.50 million (or equivalent $2.66 million) in cash out of the total cash consideration of AUD$5.00 million (or equivalent $3.81 million) in fiscal 2021. Among remaining $1.50 million consideration, AUD$0.50 million (or equivalent $0.36 million) are recorded as a receivable upon the completion of transfer of the 80% legal and beneficial interest of the tenements to ODY; and AUD$1.00 million (or equivalent $0.76 million) contingency consideration may become receivable within 36 months of the completion of the Transaction subject to exploration success when additional 100,000 ounces of gold being discovered at a minimum resource grade of 1.55g/t in relation to Tuckanarra Gold Project.

The balance of $0.50 million as of December 31, 2021 (June 2021: $0.50 million) represented the 20% interest in Tuckanarra Gold Project carried by the Company.

c) Mengapur Copper and Iron Portfolio

On April 8, 2021, the Company sold the 100% Mengapur Project to Fortress Minerals Limited (“Fortress”, or Purchaser”) and received $30.00 million in cash and was granted a royalty of 1.25% on the gross revenue over all products that may be produced at the Mengapur Project.

10. Capital Management

The Company manages its capital to ensure that it will be able to continue to meet its financial and operational strategies and obligations, while maximizing the return to shareholders through the optimization of equity financing. Management continuously monitors its capital position and periodically reports to the Board of Directors.

The Company is sensitive to changes in commodity prices and foreign exchange. The Company’s policy is to not hedge gold sales. The Company’s capital management policy has not changed in the six months ended December 31, 2021.

The Company’s objectives when managing capital are to:

• Ensure the Company has sufficient cash available to support the mining, exploration, and other areas of the business in any gold price environment;

• Ensure the Company has the capital and capacity to support a long-term growth strategy; and

• Minimize counterparty credit risk.

Other than restricted cash and cash held from sale of assets (Note 4) the Company is not subject to any externally imposed capital restrictions. Monument has the ability to adjust its capital structure by issuing new equity, issuing new debt, and by selling or acquiring assets. The Company can also control how much capital is returned to shareholders through dividends and share buybacks.

The capital of the Company consists of items included in equity and debt, net of cash and cash equivalents.

The capital of the Company consists of items included in equity	and debt, net of cash and cash equivalents.
	December 31, 2021	June 30, 2021
	$	$
Total equity attributable to shareholders	123,144	126,878
Less: cash and cash equivalents	(27,797)	(38,623)
Total capital	95,347	88,255

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

11. Financial Instruments and Financial Risk

The Company’s financial instruments are classified and measured at amortized cost (cash and cash equivalents, restricted cash, trade and other receivables, accounts payable and accrued liabilities.

a) Fair value measurement

The carrying amounts of cash and cash equivalents, restricted cash, trade and other receivables, accounts payable and accrued liabilities are considered reasonable approximations of their fair values due to the short-term nature of these instruments.

The Company does not have any financial assets or financial liabilities measured at fair value subsequent to initial recognition.

b) Risk exposures and responses

The Company’s financial instruments are exposed to market risk, credit risk, and liquidity risk.

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types of risk: foreign currency risk, price risk and interest rate risk.

Foreign currency risk

The Company is exposed to foreign currency risk to the extent financial instruments held by the Company are not denominated in US dollars.

At the reporting date, the Company is exposed to foreign currency risk through the following assets and liabilities denominated in Malaysian ringgit (RM), Australian dollar (AUD) and Canadian dollar (CAD):

	December	31, 2021			June 30, 2021
	$	$	$	$	$	$
(in 000’s,US dollar equivalent)	AUD	RM	CAD	AUD	RM	CAD
Financial instrument – assets
Cash and cash equivalents	228	582	175	1,958	680	258
Restricted cash	-	315	2	-	310	2
Trade and other receivable	395	872	4	388	7	6
Financial instruments – liabilities
Accounts payable and accrued liabilities	207	3,857	116	157	2,695	255
Lease liabilities	-	-	19	-	-	43
Borrowings	-	-	47	-	-	47

The Company has not hedged any of its foreign currency risks.

Based on the above net exposures as at December 31, 2021 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 $0.10 million (six months ended December 31, 2020: $0.13 million) in the Company’s net income, a 5% depreciation or appreciation of the CAD against US dollar would result in an increase/decrease of approximately $0.01 million (six months ended December 31, 2020: increase/decrease $0.01 million) in net income and a 5% depreciation or appreciation of the AUD against the US dollar would result in a decrease/increase of approximately $0.02 million (six months ended December 31, 2020: decrease/increase $0.15 million) in net income.

Price risk

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. The Company has not hedged any of its commodity price risks.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. Generally, the Company’s interest income will be reduced during sustained periods of lower interest rates as higher

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

yielding cash equivalents and short-term investments mature and the proceeds are reinvested at lower interest rates. The converse situation will have a positive impact on interest income.

To limit interest rate risk, the Company uses a restrictive investment policy. The fair value of the investments of financial instruments included in cash and cash equivalents is relatively unaffected by changes in short-term interest rates. The investments are generally held to maturity and changes in short-term interest rates do not have a material effect on the Company’s operations.

Credit risk

The Company’s credit risk on trade receivables is negligible.

The Company is exposed to concentration of credit risk with respect to cash and cash equivalents (Note 4). The maximum exposure to credit risk is the carrying amounts at December 31, 2021. The amount of $1.00 million (June 30, 2021: $1.09 million) is held with a Malaysian financial institution, $0.23 million with an Australian financial institution (June 30, 2021: $1.96 million) and $26.57 million (June 30, 2021: $35.57 million) is held with Canadian financial institutions.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company manages liquidity risk through budgeting and forecasting cash flows to ensure it has sufficient cash to meet its short-term requirements for operations, business development and other contractual obligations. The Company’s cash and cash equivalents are highly liquid and immediately available on demand for the Company’s use. The table below summarizes the maturity profile of the Company’s non-derivative financial liabilities as of December 31, 2021 and June 30, 2021.

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----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $ $ $
Current Non-Current Current Non-Current
<1 year 1-3 years <1 year 1-3 years
Non derivative liabilities
Accounts payable and accrued liabilities 4,180 - 3,107 -
Lease liabilities 19 - 43 -
Borrowings - 47 - 47
4,199 47 3,150 47
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12. Accounts Payable and Accrued Liabilities

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----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Trade payables 4,007 2,826
Employment payables and accruals 173 281
4,180 3,107
----- End of picture text -----

Trade payables are non-interest-bearing and are normally settled on 30-day terms.

Employment payables and accruals include vacation, employment benefits and related withholding taxes.

13. Deferred Revenue

As of December 31, 2021, deferred revenue of $0.37 million (June 30, 2021: $2.40 million) represents the balance of gold delivery obligations of 241 ounces (June 30, 2021 1,687 ounces) that shall be delivered in January 2022.

Pursuant to the Gold Sale Agreement entered into with Concept Capital Management (“CCM” or the “Purchaser”) effective January 23, 2018, the Company received a total of $7.00 million from sales of 8,676 ounces of gold to the Purchaser. The gold delivery obligation is 241 ounce per month over a 36-month period commencing February 28, 2019, after a twelve-month grace period, to January 31, 2022 through its subsidiary Monument Murchison Pty Ltd (the “Seller”). Deferred revenue of $6.65 million was recorded, net of transaction costs. Upon adoption of IFRS 15 on July 1, 2018, the transaction costs of $0.35 million were reclassified to deferred financing costs (Note 7) and amortized to cost of sales on a per ounce of gold delivered basis. The gold prepaid sale is guaranteed by the Company and its Malaysian subsidiary, Able Return Sdn Bhd (“ARSB”), and is secured by certain assets of the Company.

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

As of December 31, 2021, the Company has delivered a total 8,435 ounces (June 30, 2021: 6,006 ounces) of physical gold to CCM through ARSB as the Guarantor.

The following table reflects the change of deferred revenue:

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----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Opening balance 2,402 4,543
Interest expense 196 1,153
Revenue recognized on gold deliveries (2,233) (3,294)
Changes for the period (2,037) (2,141)
Closing balance current portion 365 2,402
----- End of picture text -----

14. Lease Liabilities

==> picture [473 x 111] intentionally omitted <==

----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Opening balance 43 78
Interest expenses 1 2
Lease payments (20) (43)
Forei gn currency exchange gain (5) 6
Changes for the period (24) (35)
Closing balance current portion 19 43
----- End of picture text -----

Upon the adoption of IFRS 16 on July 1, 2019, the Company has recognized a right-of-use asset and lease liability of $0.03 million on a long-term office lease. During the six months ended December 31, 2021, all lease terms were less than 12 months.

==> picture [473 x 136] intentionally omitted <==

----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Undiscounted lease payment obligations:
Less than one year 19 43
Total undiscounted lease liabilities 19 43
15. Borrowings
December 31, 2021 June 30, 2021
$ $
Opening balance 47 29
Long-term loan from Canadian government - 18
Closing balance 47 47
----- End of picture text -----

Included in Borrowings of $0.05 million (CAN$ 0.06M) as of December 31, 2021 is a 32-month term loan granted under the Government of Canada’s Emergency Business Account (the “CEBA Loan”) on April 30 and December 15, 2020. The CEBA Loan is available to qualified businesses to fund their operations due to COVID-19 pandemics. is non-interest bearing until December 31, 2023, postponed from December 31, 2022 (the “Due Date”). A one third of the outstanding loan shall be forgiven should the Company repay the two thirds of the loan by the Due Date. The Company may choose not to make minimum payment by Due Date, in such case the remaining balance on the Due Date shall be converted into a 2-year term loan bearing interest rate of 5%.

16. Asset Retirement Obligations

The Company’s ARO as of December 31, 2021 consists of reclamation and closure costs for mine development and exploration activities. The total cash flows required to settle the Company’s obligations before discounting is estimated to be $7.13 million (June 30, 2021: $6.96 million), comprised of $6.00 million (June 30, 2021: $5.79 million) for Malaysian projects and $1.13 million (June 30, 2021: $1.17 million) for the Western Australia Projects.

As at December 31, 2021, the present value of the Company’s ARO was $6.25 million (June 30, 2021: $6.21 million), comprised of $5.12 million (June 30, 2021: $5.04 million) for Selinsing gold portfolio using a pre-tax risk-free rate of 3.16% (June 30, 2021: 2.54%)

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

and an inflation rate of 3.20% (June 30, 2021: 3.40%); $1.13 million (June 30, 2021: $1.17 million) for the Murchison gold portfolio using a pre-tax risk-free rate of 0.10% (June 30, 2021: 0.10%) and an inflation rate of 3.00% (June 30, 2021: 1.10%);

Significant reclamation and closure activities include land rehabilitation, slope stabilization, decommissioning of tailing storage facilities, mined waste dump, road bridges, buildings and mine facilities.

The following is an analysis of the asset retirement obligations:

==> picture [473 x 122] intentionally omitted <==

----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Opening balance 6,206 9,742
Accretion expense 70 129
Reassessment of liabilities (29) (865)
Mengapur project sale (Note 9(c)) - (3,144)
Forei gn currency exchange loss - 344
Changes for the period 41 (3,536)
Closing balance 6,247 6,206
----- End of picture text -----

17. Income Tax

==> picture [473 x 111] intentionally omitted <==

----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Opening balance - Income tax payable 431 414
Income tax expense 281 1,385
Tax installments paid (722) (1,380)
Forei gn currency exchange loss (gain) (5) 12
Changes for the period (446) 17
Closing balance - income tax pa yable (receivable) (15) 431
----- End of picture text -----

As of December 31, 2021, the income tax receivable balance of $0.01 million (June 30, 2021: income tax payable of $0.43 million) resulted from overpayment of tax installments after offsetting income tax expense. Deferred tax liabilities were $2.41 million (Jun 30, 2021, $2.66 million).

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----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Opening balance 2,662 2,691
Deferred income tax expenses (247) (105)
Forei gn currency exchange loss (gain) (3) 76
Changes for the period (250) (29)
Closing balance 2,412 2,662
The income tax expenses during the three and six months ended December 31, 2021 and 2020 are consisted of the following:
Three months ended December 31, Six months ended December 31,
2021 2020 2021 2020
$ $ $ $
Current income tax expense (271) (549) (281) (938)
Deferred income tax recovery (expense) 459 (4) 247 (327)
188 (553) (34) (1,265)
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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

18. Share Capital

a) Authorized

Unlimited common shares without par value.

b) Common shares

Issued and outstanding:

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----- Start of picture text -----

Number of shares Value assigned
$
Balance, June 30, 2020 328,071,563 117,444
RSUs redeemed (Note 19(b)) 4,900,000 244
Shares cancelled (i ) (7,000,000) (559)
Balance, June 30, 2021 325,971,563 117,129
RSUs redeemed (Note 19(b)) 500,000 64
Balance, December 31, 2021 326,471,563 117,193
----- End of picture text -----

• (i) 7 million common shares were held in escrow since February 2015 according to the Head Agreement entered between Monument Mining Ltd and Intec International Pty Ltd. (“Intec”), that gave Intec an interim license for Monument to carry out sulphide test work at Mengapur site. The Head Agreement has come to termination on March 18, 2021 based on the Ore body test results at the Mengapur site, and the 7 million shares in escrow have been canceled and returned to treasury.

19. Capital Reserves

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----- Start of picture text -----

December 31, 2021 June 30, 2021
$ $
Warrants 2,612 2,612
Options (a) 10,303 10,303
Restricted share units (b) 904 933
13,819 13,848
----- End of picture text -----

a) Stock options

At the Annual General Meeting of Shareholders (“AGM”) held on December 15, 2016, the Company’s shareholders approved a 5% Fixed Stock Option Plan (the “2016 Stock Option Plan”). The total number of shares reserved for issuance under the 2016 Stock Option Plan is 16,210,905. The general terms of stock options granted under the 2016 Stock Option Plan include a life of stock options up to ten years and a vesting period up to two years.

As of December 31, 2021, no stock options were outstanding and a total of 12,140,406 common shares were available for future grant under the 2016 Stock Option Plan, comprised of an initial 16,210,905 reserved for issuance, of which 4,070,499 stock options were exercised. There were no new stock options granted during the six months ended December 31, 2021.

b) Restricted share units

At the AGM held on December 15, 2016, the Company’s shareholders approved a fixed 10% restricted Share unit plan (the “RSU Plan”). Under the RSU Plan, the total number of shares reserved for grant is 32,421,800, of which 24,943,666 have been granted to date, 10,753,533 have been redeemed, 166,667 are forfeited, 14,023,466 are outstanding and 7,644,801 remain available for future grant at December 31, 2021.

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----- Start of picture text -----

Restricted share units outstanding Number of common shares
Balance, June 30, 2020 15,523,466
Granted 3,900,000
Redeemed (4,900,000)
Balance, June 30, 2021 14,523,466
Redeemed (500,000)
Balance, December 31, 2021 14,023,466
----- End of picture text -----

Of the 14,023,466 RSUs granted under the RSU Plan and outstanding, 11,423,466 units for $0.69 million were vested, redeemable until February 10, 2024; 1,500,000 units for $0.17 million were vested, redeemable until April 8, 2024; the remaining 1,100,000 units for $0.11 million shall be vested equally over a three-year period from the grant date. The underlying fair value of granted

15 | P a g e

MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

RSUs is amortized over the corresponding vesting periods as compensation expenses against capital reserves. Once vested and units are redeemed, the cost of issuance of shares is credited to share capital against capital reserves.

For the six months ended December 31, 2021, $nil has been credited to expense for forfeitures (six months ended December 31, 2020 $nil million) , and $0.04 million (six months ended December 31, 2020 $nil million) has been expensed and allocated to production expense and exploration expenditure against capital reserves for RSUs vested, and $0.06 million (six months ended December 31, 2020: $0.05 million) was credited to share capital for 500,000 RSUs (six months ended December 31, 2020: 900,000 RSUs) redeemed.

20. Production Costs

20. Production Costs
Mining Processing Royalties Operations,net of silver recovery	2021 $ 2,091 2,577 470 61 5,199 Three months ended	2020 $ 1,371 2,073 645 52 4,141 December 31,	2021 $ 2,834 3,601 709 90 7,234 Six months ended	2020 $ 2,221 3,565 1,149 66 7,001 December 31,
21. Operation Expenses
	Three months ended	December 31,	Six months ended	December 31,
	2021	2020	2021	2020
	$	$	$	$
Expenses from operation suspension	-	150	48	179

During the COVID-19 pandemic period Selinsing gold production was suspended from May 18 to June 28, 2021 and from March 18 to May 12 in 2020 in compliance with the Movement Control Order (“MCO”) issued by Malaysia authorities, except certain initial services. As a result, the costs of the idle capacity during the suspension and recovery periods were recorded against operation expenses: $0.05 million for the three and six months ended December 31, 2021, compared to $0.15 million for three months and $0.18 million for six months periods ended December 31, 2020 in last fiscal year.

22. Corporate Expenses

22. Corporate Expenses
	Three months ended	December 31,	Six months ended	December 31,
	2021	2020	2021	2020
	$	$	$	$
Office and general expenses	30	63	56	89
Rent and utilities (a)	(3)	9	(2)	(15)
Salaries and wages	147	203	379	379
Share-based compensation	5	-	10	-
Legal, accounting and audit	58	93	115	189
Consulting Fees	56	-	87	-
Shareholders communication	32	20	61	48
Travel	1	-	1	2
Regulatory compliance and filing	8	61	43	74
Amortization	12	11	23	22
	346	460	773	788

a) During the six months ended December 31, 2021, the Company received an office rental subsidy of $0.02 million (six months ended December 31, 2020: $0.03 million) from Canada Emergency Commercial Rent Assistance program offered by Canadian Government during COVID-19 pandemic, which was recorded against rental expenses.

16 | P a g e

MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

23. Loss Per Share

The calculation of basic and diluted income (loss) per share for the relevant periods is based on the following:

	Three months ended December 31,	Six months ended December 31,
	2021 2020	2021 2020
Loss for the period	$ (2,502) $ (649) $	(3,769) $ (511)
Basic weighted average number of common shares outstandin 326,362,867 321,971,563		326,167,215 321,580,259
Effect of dilutive securities:
Restricted share units	- -	- -
Diluted weighted average number of common share outstandi 326,362,867 321,971,563		326,167,215 321,580,259
Basic earnings per share	$ (0.01) $ (0.00) $	(0.01) $ (0.00)
Diluted earningsper share	$(0.01) $(0.00) $	(0.01) $(0.00)

All options are potentially dilutive but excluded from the calculation of diluted earnings per share are those for which the average market prices are below the exercise price. The restricted share units are anti-dilutive for a reduction in loss per share if restricted share units are redeemed. There were no options and restricted share units granted during the six months ended December 31, 2021.

24. Related Party Transactions

Key management personnel

The Company’s related parties include key management, who have authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly: five directors (executive and non-executive), the Chief Executive Officer (“CEO”), the Chief Financial Officer and the Vice President of Business Development who directly reports to the CEO.

The remuneration of the key management of the Company as defined above including salaries and director fees is as follows:

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----- Start of picture text -----

Three months ended December 31, Six months ended December 31,
2021 2020 2021 2020
$ $ $ $
Salaries 144 163 318 318
Directors’ fees 34 45 67 81
178 208 385 399
----- End of picture text -----

As at December 31, 2021, the net amount due to related parties are $nil (June 30, 2021: $0.03 million) relating to director fees. Directors’ fees are paid on a quarterly basis. Unpaid amounts due to directors are recorded against accrued liabilities, are unsecured and bear no interest.

25. Commitments and Contingencies

	2022	2023	2024	2025	2026	Total
	$	$	$	$	$	$
Lease commitments	12	-	-	-	-	12
Mineral property obligations	65	476	587	446	592	2,166
Purchase commitments
Mine Operations	1,300	7	4	4	4	1,319
Flotation Construction	717	-	-	-	-	717
	2,094	483	591	450	596	4,214

The Company’s commitment includes leases, mineral property obligations, purchase commitment and physical gold deliveries. Lease commitments represent contractually obligated payments associated with the long-term office lease that was recognized as a right-of-use asset. Mineral property obligations include exploration expenditures and levies mandated by government authorities to keep the tenements in good standing. Purchase commitments include $0.72 million for flotation construction, $1.25 million for

17 | P a g e

MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

mine operations at Selinsing Gold Mine in Malaysia; and $0.05 million for exploration expenditure at Murchison Gold Project in Western Australia.

In addition to commitments outlined above, the Company is obligated to deliver 241 ounces of gold (Note 13) in January 2022.

26. Supplemental Cash Flow Information

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----- Start of picture text -----

Three months ended December 31, Six months ended December 31,
2021 2020 2021 2020
$ $ $ $
Interest received 21 13 30 93
Net income tax paid (319) (136) (722) (702)
Non-cash working capital, financing and investing activities:
Amortization charged to mineral properties 2 105 4 211
Amortization inherent in inventory (656) (14) 3,455 3,357
Expenditures on mineral properties in accounts payable (187) 42 198 183
Plant and equi pment costs included in accounts pa yable 697 (330) 1,260 209
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27. Segment Disclosures

The Company operates primarily in the gold mining industry and its major product is gold. Its activities include gold production, acquisition, exploration and development of gold and other base metal properties. The Company’s mining operations are in Malaysia. Another reportable operating segment is the exploration and evaluation segment. The Company’s corporate head office is the last reportable operating segment.

The Company’s reportable operating segments reflect the Company’s individual mining interests and are reported in a manner consistent with the internal reporting used by the Company’s chief operating decision maker to assess the Company’s performance.

a) Operating segments

a) Operating segments
	Mine	Exploration	Exploration and	Corporate	Total
December 31, 2021	Operations	and Evaluation	Evaluation
	(Gold)	(Gold)	(Copper/Iron)
	$	$	$	$	$
Balance sheet
Current assets	15,504	1,021	-	26,644	43,169
Property, plant and equipment	25,653	6,893	-	27	32,573
Exploration and evaluation	-	60,672	-	-	60,672
Total assets	41,157	68,586	-	26,671	136,414
Total liabilities	11,750	1,338	-	182	13,270
	Mine	Exploration	Exploration and	Corporate	Total
June 30, 2021	Operations	and Evaluation	Evaluation
	(Gold)	(Gold)	(Copper/Iron)
	$	$	$	$	$
Balance sheet
Current assets	16,181	2,728	-	35,613	54,522
Property, plant and equipment	24,644	5,617	-	45	30,306
Exploration and evaluation	-	56,948	-	-	56,948
Total assets	40,825	65,293	-	35,658	141,776
Total liabilities	13,226	1,323	-	349	14,898

18 | P a g e

MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

Income statement Revenue Loss from mining operations Corporate expenses Other income, (expenses) and (loss) Tax recovery Net loss Income statement Revenue Income from mining operations Corporate expenses Other income, (expenses) and (loss) Tax expense Net income/(loss) For the three months ended December 31, 2021 For the three months ended December 31, 2020	$ 5,047 (1,778) - (532) 188 (2,122) $ 6,835 1,619 - (732) (553) 334 Mine Operations (Gold) Mine Operations (Gold)	Exploration and Evaluation (Gold) $ - - - (81) - (81) Exploration and Evaluation (Gold) $ - - - (483) - (483)	Exploration and Evaluation (Copper/Iron) $ - - - - - - Exploration and Evaluation (Copper/Iron) $ - - - (1,086) - (1,086)	Corporate $ - - (346) 47 - (299) Corporate $ - - (460) 1,046 - 586	Total $ 5,047 (1,778) (346) (566) 188 (2,502) Total $ 6,835 1,619 (460) (1,255) (553) (649)
For the six months ended	Mine	Exploration	Exploration and	Corporate	Total
December 31, 2021	Operations (Gold)	and Evaluation (Gold)	Evaluation (Copper/Iron)
	$	$	$	$	$
Income statement
Revenue	7,430	-	-	-	7,430
Loss from mining operations	(2,106)	-	-	-	(2,106)
Corporate expenses	-	-	-	(773)	(773)
Other expenses and loss	(538)	(153)	-	(165)	(856)
Tax expense	(34)	-	-	-	(34)
Net loss	(2,678)	(153)	-	(938)	(3,769)
For the six months ended	Mine	Exploration	Exploration and	Corporate	Total
December 31, 2020	Operations (Gold)	and Evaluation (Gold)	Evaluation (Copper/Iron)
	$	$	$	$	$
Income statement
Revenue	12,754	-	-	-	12,754
Income from mining operations	3,890	-	-	-	3,890
Corporate expenses	-	-	-	(788)	(788)
Other income, (expenses) and (loss)	(1,189)	(1,007)	(1,663)	1,511	(2,348)
Tax expense	(1,265)	-	-	-	(1,265)
Net income/(loss)	1,436	(1,007)	(1,663)	723	(511)

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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

b) Geographical area information

The Company operates in three geographic areas – Australia, Malaysia and Canada. Revenues are generated 100% in Malaysia and sold to a single customer in the US.

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December 31, 2021 Australia Malaysia Canada Total
$ $ $ $
Balance sheet
Current assets 779 15,746 26,644 43,169
Property, plant and equipment 6,892 25,654 27 32,573
Exploration and evaluation 30,107 30,565 - 60,672
Total assets 37,778 71,965 26,671 136,414
Total liabilities 1,703 11,385 182 13,270
June 30, 2021 Australia Malaysia Canada Total
$ $ $ $
Balance sheet
Current assets 2,484 16,425 35,613 54,522
Property, plant and equipment 5,614 24,647 45 30,306
Exploration and evaluation 29,941 27,007 - 56,948
Total assets 38,039 68,079 35,658 141,776
Total liabilities 3,725 10,824 349 14,898
For the three months ended Australia Malaysia Canada Total
December 31, 2021 $ $ $ $
Income statement
Revenue - 5,047 - 5,047
Loss from mining operations - (1,778) - (1,778)
Corporate expenses (2) (25) (319) (346)
Other income, (expenses) and (loss) (81) (531) 46 (566)
Tax recovery - 188 - 188
Net loss (83) (2,146) (273) (2,502)
For the three months ended Australia Malaysia Canada Total
December 31, 2020 $ $ $ $
Income statement
Revenue - 6,835 - 6,835
Income from mining operations - 1,619 - 1,619
Corporate expenses (48) (29) (383) (460)
Other income, (expenses) and (loss) (484) (1,815) 1,044 (1,255)
Tax expense - (553) - (553)
Net income/(loss ) (532) (778) 661 (649)
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MONUMENT MINING LIMITED

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the three and six months ended December 31, 2021 and 2020

(Unaudited-expressed in thousands of United States dollars, except share and per share amounts or otherwise stated)

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For the six months ended Australia Malaysia Canada Total
December 31, 2021 $ $ $ $
Income statement
Revenue - 7,430 - 7,430
Loss from mining operations - (2,106) - (2,106)
Corporate expenses 2 (30) (745) (773)
Other expenses and loss (153) (538) (165) (856)
Tax expense - (34) - (34)
Net loss (151) (2,708) (910) (3,769)
For the six months ended Australia Malaysia Canada Total
December 31, 2020 $ $ $ $
Income statement
Revenue - 12,754 - 12,754
Income from mining operations - 3,890 - 3,890
Corporate expenses (94) (59) (635) (788)
Other income, (expenses) and (loss) (1,008) (2,851) 1,511 (2,348)
Tax expense - (1,265) - (1,265)
Net income/(loss ) (1,102) (285) 876 (511)
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28. Subsequent Events

None

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