Monument Mining Limited — Management Reports 2020

Sep 16, 2020

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

This Management’s Discussion and Analysis (“MD&A”) of Monument Mining Limited (“Monument” or the “Company”) as of September 14, 2020 should be read in conjunction with the audited consolidated financial statements of the Company for the year ended June 30, 2020 and the notes related thereto, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

This MD&A contains “forward-looking statements” and should be read in conjunction with the Cautionary Statement on Forward-Looking Statements at the end of this MD&A. Non-IFRS performance measures referred under the section “ Non-IFRS Performance Measures” in the MD&A are subject to risk factors set out in a cautionary note contained herein. All amounts are in United States dollars unless otherwise noted. References to “C$” or “CAD” are to Canadian dollars, “RM” are to Malaysian Ringgits and “AUD” are to Australian dollars.

Additional information relating to the Company’s activities may be found on the Company’s website at www.monumentmining.com and at www.sedar.com.

1. EXECUTIVE SUMMARY

1.1 Fiscal 2020 Highlights

• 19,401 ounces (“oz”) of gold sold for $29.97 million (2019: 16,505oz for $20.99 million);

• Average annual gold price realized at $1,563/oz (2019: $1,260/oz);

• Gross margin increased by 40% to $12.94 million (2019: $9.23 million);

• 17,360oz of gold produced (2019: 15,763oz) at cash cost of $878/oz (2019: $713/oz);

• All-in sustaining cost (“AISC”) increased to $1,136/oz (2019: $1,040/oz);

• Peranggih trial mining program completed with encouraging average gold recoveries;

• Mentique Prospect discovered at west of Peranggih mineralization.

• Drill program at Murchison confirmed targeted mineral mineralization identified geological structure study;

• Full production capacity maintained during Selinsing production suspension caused by COVID-19 pandemic.

1.2 Company Overview

Monument Mining Limited (TSX-V: MMY, FSE: D7Q1) is an established Canadian gold producer and mining asset developer. The Company owns the 100% interest in Selinsing Gold Mine and Murchison Gold Project portfolios, as well the Mengapur Copper and Iron portfolio. The Selinsing Gold Mine is located in Pahang State, within the Central Gold Belt of Western Malaysia, comprised the Selinsing, Buffalo Reef, Felda Land, Peranggih and Famehub projects. Murchison is located in the Murchison region, Western Australia (“WA”), Australia, comprised the Burnakura, Tuckanarra and Gabanintha projects. The Mengapur Copper and Iron portfolio (the “Mengapur Project”) is located in Pahang State, Malaysia.

Monument’s primary business activities include advancing its mineral projects from exploration stage to production stage and conducting mining and processing operations to generate profit from sustainable precious metal production. Its business strategy consists of four perspectives. The shareholder perspective is to provide a satisfactory return to shareholders. The growth perspective is to increase its mineral resource inventory to achieve higher sustainable production. The operations process perspective is to maximize production performance and efficiency and enhance exploration success. The financial performance perspective is to have effective budgetary control, maintain efficient operational excellence and improve the quality of assets by advancing exploration and evaluation projects to producing mines. The Company’s long-term goal is to become a sustainable dividend paying, mid-tier gold and base metals producer.

Monument has an experienced management team with demonstrated ability to effectively build profitable operations. The Company employs approximately 200 people and is committed to the highest standards of environmental management, social responsibility, and health and safety for its employees as well as for its neighboring communities. Monument’s Head Office is located at Vancouver, British Columbia, Canada. It operates through its subsidiaries in Pahang State, Malaysia and Western Australia, Australia.

1.3 Review of Operations

Fiscal 2020 was extraordinary. In March 2020, the World Health Organization declared a global pandemic following the emergence and rapid spread of a novel strain of the coronavirus (COVID-19). The Malaysian Government issued the first Movement Control Order (“MCO”) effective Match 18, 2020. From the same date, the Department of Mines and Geoscience ordered the suspension of all mining and quarrying operations in the country. The suspension of mining operations lasted for eight weeks at the Selinsing Gold Mine except essential services. The mining ban was lifted on May 4, and the Selinsing Gold Mine reopened on May 12, 2020. Following the compulsory COVID-19 testing for all employees, production activities resumed gradually to full capacity in July 2020, subsequent to the year end. During the MCO period, Monument was in full compliance with the Order which puts employee’s well-being at first priority, while maintaining the production capacity level ready for resumption of production. No emplyees were laid off during the MCO period. The costs on the idle capacity were expensed under operation expenses.

1 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

The business sustaining plan was executed, and ensured the operations gradually resumed with health and safety measures, such as screening, isolation, quarantine and social distancing procedures, after the mining ban was lifted in accordance with the Company’s COVID19 preventive policies and health authority requirements across all its operating sites and offices in Vancouver, Canada, Malasia, and Western Australia. The regular reporting and educational workshops are open to employees under a well-etablished communication channel. In the supply chain area, mitigation measures that have been implemented include initiating a process to increase stocks of key consumables, ordering additional critical spares, assessing potential disruptions, and identifying alternative sources of supply. The continuous adverse impact and risk caused by the COVID-19 pandemic on the Company’s development and operations are monitored and assessed on a regular basis.

Despite the intervening COVID-19, fiscal 2020 is a critical year, following completion of three NI 43-101 technical reports that have updated mineral resources and reserves for Monument’s three major projects, the Company aims on the following deliveries:

• ➢ Selinsing Sulphide Project financing and commencement of an 18-month construction plan;

• ➢ Murchison Gold Project drilling and evaluation of targets for new gold and development solutions; and

• ➢ Mengapur partnership development in building up opportunities for copper and iron down-stream production portfolio; ➢ Opportunities for corporate growth.

During the year ended June 30, 2020, the Company continued to focus on obtaining funding to initiate construction at the Selinsing Gold Mine to convert the current gold processing plant from an oxide to a sulphide treatment plant. Management is expecting to place the Selinsing Sulphide Gold Project into production within 18 months of commencement of construction. This will provide the Company with additional cash flow for future growth.

Production during the year ended June 30, 2020 delivered 17,360oz comparing to 15,763oz in fiscal 2019, and continuously generated positive cash flow through 19,401oz of gold sold, significant increased from the 16,505oz gold sold in the previous year. $6.27 million (2019: $2.14 million) was generated from production, offset by $5.47 million (2019: $7.81 million) spent mainly on business development, working capital and exploration. This resulted in a net increase in cash of $0.78 million during fiscal 2020 as compared to a net decrease in cash of $5.67 million in fiscal 2019.

Mining was focused on transitional sulphide ore at Selinsing Pit 5/6, blended with oxide materials from old tailings, Buffalo Reef pits and Peranggih trial mining pit. The transitional sulphide production decision resulted from metallurgical test work that indicated potential positive cash flow generation might be expected by processing the underlined leachable sulphides ore at the above pits through the current oxide treatment plant. However, the reader shall not use this production decision when considering investment alternatives. A cut back was carried out at Selinsing Pit 4 and Block 7 to gain access to additional oxide material.

The Peranggih trial mining was carried out from February 22 to March 3, 2020, under which the bulk sample was extracted from the higher grade mineralized area. Out of 15,677 tonnes of material mined, 13,047 tonnes of material was were processed at a reconciled head grade of 1.17g/t Au with actual recovery of 89.8% as compared to average assayed grade gold of 1.22g/t Au with recovery of 90.2%. The trial mining has generated a positive cash flow and was reported in the statements of loss and comprehensive loss.

A new grade control program is currently in the planning stage to define the extensions of the known mineralization along strike to the Northeast and Southwest of the Peranggih trial mining area. Mineralized materials from the grade control drilling might be fed into the mill from time to time once the results of grade control are satisfactory, as an extension of the trial mining program.

At Murchison, a 3D structural geological study was completed. Data compilation, GIS systems upgrade and geological interpretation continued to improve drilling targets. A drill program targeting down plunge of existing mineralization at the Burnakura and Gabanintha projects commenced and completed during fiscal 2020, with a total of 37 holes for 3,864 meters were drilled.

The Company’s development is dependent on cash generated by its gold production from remaining oxide ore and leachable sulphide ore inventory at the Selinsing Gold Mine, its success in obtaining funding to convert the Selinsing Gold Plant from an oxide process plant to a sulphide process plant and to develop its Murchison Gold Project into a second cash generating operation. In management’s opinion both projects are highly prospective. However, there are no guarantees that the Company can obtain the necessary funding due to uncontrollable factors, including a volatile global economic environment.

1.3.1 Development

During the year ended June 30, 2020, development initiatives focused on projects at the Selinsing Gold Mine, namely the optimization of the sulphide gold project and the tailing storage facility (“TSF”) construction and mine development for gold production.

Sulphide Gold Project: The sulphide plant upgrade construction is anticipated to take 18 months inclusive of commissioning activities. Consideration is being assessed by the procurement team, aiming to reduce the completion time for long lead items such as stainless steels for BIOX® based applications, the provision of HV power supply, BIOX® agitators, flotation cells and thickeners. Also, the refinement of sulphide gold project plan is ongoing to reach maximum feasible return.

TSF Development: Following the completion of construction of the TSF main embankment to 533.3 mRL at the Selinsing Gold Mine, which has increased the TSF capacity for fiscal 2020 production, a plan for the second stage TSF lift to 535.5 mRL was finalized to meet fiscal

2 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

2021 production requirements through the current oxide processing plant. Construction planning was initiated during the year, but its completion was postponed due to operation suspension from the MCO issued by the Malaysian Government. The construction is ongoing and has reached about 68.9% of the total TSF construction to 535.5 mRL. Preliminary planning for the final stage TSF lift to 540mRL commenced during the year, aimed to meet sulphide gold production capacity, which was withheld until completion of funding.

Sulphide Leachability Test Work: During the first quarter, metallurgical drilling was undertaken at the Selinsing and Buffalo Reef pits for investigating the leachability of transitional sulphide ore through the current CIL circuit by adding lead nitrate and blending with super low-grade ore. The majority of samples showed good leachability with a gold recovery above 70% at Selinsing Pit 5. Mining progressed to 465mRL for the east and the west of the main Pit 5 area, and the actual recoveries have reached up to 77.5%.

Buffalo Reef metallurgical drilling of 395m over eight holes was completed during the first quarter, with good intercepts of transition and fresh material. However, CIL test-work on transition samples initially gave poor results, but some improvement was achieved after the addition of lead nitrate.

The Pit 4 southwest cutback design was completed in the second quarter. Mining of the Pit 4 southwest cutback commenced in November 2019 at an elevation of 540 mRL and progressed to 510 mRL by the end of the third quarter.

Peranggih Bulk Mining: Haul truck road construction was primarily completed during the second quarter which included 14 new culvert crossings along a 10km length from the Selinsing Northern tenement boundary to the south of the Peranggih tenement. Trial pit for bulk mining started in January 2020, completed in February 2020 then continued with extension mining of the trial pit in March 2020. Grade control drilling recommenced in Peranggih in May 2020.

1.3.2 Production

Gold production for the year ended June 30, 2020 was mainly from stockpiled super low-grade oxide ore, old tailing materials, transitional leachable sulphide ore from Selinsing Pit 5/6 and remaining oxide ore from Buffalo Reef.

Gold production of 17,360oz, a 10% increase as compared to 15,763oz of the previous year. The increase mainly resulted from higher mining rates and contained gold in old tailing materials and leachable sulphide ore, and less super low-grade oxide ore as compared to last year, which off set by lower mill feed.

Ore processed decreased to 675,708t from 934,843t last year. The decreased mill feed was mainly due to a decrease in stockpiled super low-grade oxide ore, less oxide ore being mined and the production suspension caused by COVID-19. The negative impact was offset by average mill feed grade that was increased to 1.11g/t from 0.80g/t, brought the annum average processing recovery rate up to 71%, comparable to 69% of the previous year, despite the lower recoveries generally obtained from the transition ore materials.

Gold recovered for the year ended June 30, 2020 increased by 2% to 17,107oz as compared to 16,770oz recovered in the prior year.

During the year ended June 30, 2020, mining operations at Selinsing generated a gross margin of $12.94 million as compared to $9.23 million last year, before non-cash depreciation and accretion expenses of $5.69 million (2019: $4.44 million). Gold production increased by 10% to 17,360oz (2019: 15,763). The Company sold a total of 19,401oz (2019: 16,505oz) of gold for gross revenue of $29.97 million (2019: 20.99 million) comprised of 16,750oz (2019: 15,300oz) at an average realized price of $1,563 per ounce (2019: $1,260 per ounce) from production and 2,651oz (2019: 1,205oz) at a realized price of $1,429 per ounce (2019: $1,429 per ounce) from delivered gold prepaid sales.

Cash cost per ounce increased by 23% to $878 per ounce for the year ended June 30, 2020 from $713 per ounce last year primarily due to additional reagents, processing time and energy required in leaching sulphide materials.

Ore stockpile has significantly reduced mainly due to adverse impact from lower mining rate in previous year that has yet be caught up. Significant mining facilities were used in fiscal 2019 to deliver material borrowed from mining waste for tailing development. COVID-19 pandemic has not helped in achieving the target. The Company has devoted its effort to improve the stockpile balance.

Production and financial results for the year ended June 30, 2020 are summarized in Figure 1 below:

3 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

Figure 1: Operating and Financial Results

==> picture [500 x 433] intentionally omitted <==

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

Selinsing, Felda Block 7, Buffalo Reef Three months ended Year ended
June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019
Operating results Unit
Ore mined t 42,331 45,076 263,074 166,940
Waste removed (1) t 463,228 829,286 2,887,441 3,201,817
Stripping ratio 10.94 18.40 10.98 19.18
Ore stockpiled t 131,285 621,519 131,285 621,519
Ore processed t 68,961 229,416 675,708 934,843
Average ore head grade g/t Au 1.06 0.75 1.11 0.80
Process recovery rate % 67.2 72.3 70.9 68.6
Gold recovery oz 1,578 4,010 17,107 16,770
Gold production oz 2,311 3,577 17,360 15,763
Gold sold oz 3,282 3,623 19,401 16,505
Financial results
Gold sales US$’000 5,404 5,210 29,971 20,993
Gross margin US$’000 2,653 2,204 12,944 9,227
Weighted average gold price
London Fix PM US$/oz 1,688 1,338 1,563 1,262
Monument realized (2) US$/oz 1,684 1,337 1,563 1,260
Cash costs per ounce (3)
Mining US$/oz 233 174 223 159
Processing US$/oz 454 539 507 456
Royalties US$/oz 143 106 136 92
Operations, net of silver recovery US$/oz 8 11 12 6
Total cash cost per ounce US$/oz 838 830 878 713
All-in sustaining costs per ounce (4)
By-product silver recovery US$/oz 1 1 1 1
Operation expenses US$/oz 179 - 40 -
Corporate expenses US$/oz 6 (1) 6 6
Accretion of asset retirement obligation US$/oz 12 14 9 12
Exploration and evaluation expenditures US$/oz 45 47 32 43
Sustaining capital expenditures US$/oz 174 383 170 265
Total all-in sustaining cost per ounce US$/oz 1,255 1,274 1,136 1,040
----- End of picture text -----

• (1) Waste removed of 463,228t for the three months ended June 30, 2020 includes 340,778t operating waste, 35,338t for TSF construction fill and 87,112t used for cutback (Three months ended June 30, 2019: 477,460t operating waste, nil t for cutback and 351,826t for TSF construction fill). For the year ended June 30, 2020 waste removed consisted of 1,964,268t operating waste, 779,524t for cutback and 143,649t for TSF construction fill (2019: 1,726,757t operating waste, 720,647t cutback and 754,413t for TSF construction fill). The cost of waste removed for TSF construction was capitalized and not included in mining operations.

• (2) Monument realized a weighted average gold price of 1,684US$/oz for the three months ended June 30, 2020 which excludes gold prepaid delivery of 482oz at an average London Fix PM gold price of $1,700US$/oz for comparison purposes. Monument realized a weighted average gold price of 1,563US$/oz for the year ended June 30, 2020 which excludes gold prepaid delivery of 2,651oz at average London Fix PM gold price of $1,547US$/oz for comparison purposes.

• (3) Total cash cost per ounce includes production costs such as mining, processing, TSF maintenance, camp administration, royalties, storage, temporary mine production closure, community development cost and property fees, net of by-product credits. Cash cost excludes amortization, depletion, accretion expenses, idle production costs, capital costs, exploration costs and corporate administration costs. Readers should refer to section 14 “Non-IFRS Performance Measures”.

• (4) All-in sustaining cost per ounce includes total cash costs, operation expenses, sustaining capital expenditures, corporate administrative expenses for the Selinsing Gold Mine including share-based compensation, exploration and evaluation costs, and accretion of asset retirement obligations. Certain other cash expenditures, including tax payments and acquisition costs, are not included. Readers refer to section 14 “Non-IFRS Performance Measures” for detailed descriptions of each calculation.

4 | P a g e

For the year ended June 30, 2020

MANAGEMENT’S DISCUSSION & ANALYSIS

(in United States dollars, except where noted)

Figure 2: Gold production and cash costs per ounce Figure 3: Quarterly Average Gold Price

==> picture [483 x 155] intentionally omitted <==

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

6,000 1,000
1,800
900
1,700
5,000 800
1,600
700
4,000 1,500
600
1,400
3,000 500
1,300
400
1,200
2,000 300
1,100
200
1,000 1,000
100
Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal
0 0 2019 2019 2019 2019 2020 2020 2020 2020
Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal
2019 2019 2019 2019 2020 2020 2020 2020
Gold production Total cash cost per ounce London Fix PM Monument realized
Total Cash Costs (US$/oz)
Gold Production (Ounces)
US$/oz
----- End of picture text -----

1.3.3 Exploration

Malaysia

Sulphide : The sulphide mineralization at both Selinsing and Buffalo Reef deposits is still open down dip, down plunge and along strike. Monument plans to perform follow-up drill programs that will focus on adding resources and defining sulphide mineralization preferentially at depth below and around the existing pits within gap zones, in between the known resources that contain little drill hole information, through extension drilling for Buffalo Reef and to investigate underground opportunities with deep drilling at Selinsing Pits and extensions to the south. The main programs include down-dip and strike/plunge extension sulphide drilling programs plus resource definition drilling for Buffalo Reef Central (“BRC”) and Felda Block 7; and Selinsing Deep's high-grade sulphide gold resource definition/extension drilling. The drill program at Felda Block 7 will also enable the Buffalo Reef South (“BRS”) open pits to be extended at depth. Other than a metallurgical drilling conducted in the first quarter, no drill program was carried out during the year ended June 30, 2020.

Oxide: The Selinsing short-term exploration program is focused on existing mine areas, such as Selinsing, BRS, BRC, and Buffalo Reef North (“BRN”), to locate more oxide and leachable sulphide ore through extensional drilling in order to increase mill feed. Opportunities for infill and extension drilling have also been verified on and around Selinsing Pits, in particular Pit 5 and Pit 6, aiming to intercept oxide shallow high-grade mineralization and using current understanding from structural information and interpretation, including historical underground developments.

An exploration drill program consisting of 700m over 13 holes at Pits 5 and 6 was under review. The main objective of this program is to delineate resource extensions in this area that potentially could be mined as immediate feed to the current CIL plant. The main drilling target is the shallow dipping structure extension close to the east flank of the pits.

In the short run, the drill programs are aiming at identifying mineralization areas with average grades that can be potentially economically mined. Once those areas are defined, materials will be mined to feed into the processing plant.

Grade control drilling recommenced in Peranggih in May 2020 to detail the geological and assay data through close space drilling (5mx5m) at 10m maximum target depth. This method was proved to be effective to define near-surface mineralisation as demonstrated by a previous campaign conducted at Peranggih Central, thus should be continued to aid the exploration at Peranggih and the nearby area. In addition, the area covered with GC drilling could be mined immediately, following the current practice in Peranggih Central.

Regional Exploration:

A soil sampling campaign was conducted at the Peranggih area between December 2018 and March 2019 covering a total area of 16 km². The main objective was to identify additional oxide exploration targets to the northeast and southwest of the existing Peranggih mineralization. The soil sample lines were spaced at 50x200m to the southwest of Peranggih and 50x400m to the northeast of Peranggih. A total of 506 samples were collected during this campaign and the results were received during fiscal 2020, and were analyzed at Intertek, Perth using Terraleach Partial Digest Geochemistry.

A total of 5 different gold anomalous zones have been identified in the study area and two zone strikes along more than 1.5km in a north west-south easterly direction and are up to 0.3km wide. Zone 1 (Peranggih) and Zone 2 (Mentique) are the most significant anomalies discovered to date.

Peranggih Prospect : Less than 10% of the total of 1.5km mineralization strike structure length was drilled to date at Peranggih, and the gold mineralization is still open along strike and down-dip. The extensive nature of the brecciation events indicates a high potential for a significant gold discovery within the Peranggih tenement. It is a major regional exploration target.

5 | P a g e

For the year ended June 30, 2020 (in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

Mentique Prospect : A soil sampling campaign that was conducted in the Peranggih area between December 2018 and March 2019 had delineated 1.8km by 0.8km gold soil anomaly located 1 km west of the Peranggih deposit on a parallel north west- south east trending structure, with a peak value of 103ppb. This discovery has been named the Mentique Prospect. Infill soil sampling, trenching, and geological mapping are planned to be carried at Mentique to assist in creating a drill target and to determine the nature of mineralization in this area.

Western Australia

Fiscal 2020 Exploration was focused on drilling near mine down-plunge targets that have been historically mined at NOA 1 and NOA 2, Alliance, New Alliance and Yagahong open pits as well as to test the regional NOA 9 target. Holes were widely spaced with a view to identify significant new resources rather than smaller step outs from existing drilling.

A drill program commenced on February 26, 2020 and the first phase of this drill program was completed on March 12, 2020. A second phase of the drill program was subsequently completed between April 23, 2020 and May 8, 2020 which utilized a diamond drilling (“DD”) rig to complete 4 of the deeper holes due to water ingress into reverse circulation (“RC”) samples.

A total of 3,864m was completed, consisting of 397m of DD, 2,864m of RC and 603m of air core drilling (“AC”). The RC drilling included 8 holes for 1,577m at Burnakura and 6 holes for 1,265m at Gabanintha. A total of 397m of DD was drilled at Burnakura as tails to 4 RC precollars. The AC drilling consisted of 23 holes and was targeting the NOA 9 regional target. Geological structures and mineralisation were generally intersected where expected for the RC drilling.

A total of 1329 samples from Burnakura and 975 samples from Gabanintha including QAQC samples were analysed at ALS Perth for gold. In addition, selected samples from Gabanintha were analysed for multi-elements. A best intersection of 5.77m at 2.13g/t gold was returned from hole 20MRD013 at NOA 1 and a best intersection of 4m at 5.01g/t gold was returned from Yagahong.

A 3D structural study was completed preceding the drill program that identified down plunge targets at Gabanintha and Burnakura. The study was completed by principal structural geologists, Dr. Jun Cowan (JunCowan) and Dr. Oliver Kreuzer (X-plore GeoConsulting) with assistance from Dr. Amanda Buckingham (Fathom Geophysics). The study was completed by the end of September 2019 and confirmed near mine down-plunge potential and highlighted regional prospectivity. This study will assist Monument to undertake focused exploration to extend the current resources reported in the 2018 SRK NI43-101 Resource Estimation Report, dated July 17, 2018.

1.3.4 The Mengapur Copper-Iron Project

The Mengapur Project is a large economic scale copper-iron project in the East Coast region of Malaysia within Pahang State. Significant exploration programs and metallurgical studies were carried out from 2011 to 2015. A geological and resource modelling study was carried out in 2018 and in fiscal 2019 a NI43-101 Mineral Resource Estimate Technical Report was completed by Snowden and SEDAR filed in October 2018.

The major mining lease for the Mengapur Project tenements are renewable every two years. The application for renewal were filed with the authority prior to expiry and the approval is imminent for the period of June 1, 2020 to May 31, 2022; exploration license extension and mining lease applications to convert certain areas of the exploration license are pending approval by Pahang State for Star Destiny Sdn. Bhd. (“SDSB”), a 100% owned subsidiary of Monument. Management continues its dialogue with the Pahang State authority to expedite this process.

1.4 2020 Activity Highlights

• On September 30, 2019, the Company announced that the 3D structural geological targeting study confirmed near mine downplunge potential and highlighted regional prospectivity at the Murchison Gold Project as part of the exploration work under the Murchison development strategy. The newly identified down-plunge targets may provide the best chance of discovery to increase the resource base in the near term.

• On October 23, 2019, the Company announced that the 1,000[th] gold bar was poured at its Selinsing Gold Mine in Malaysia on October 16, 2019, which brings total gold production to date over 304,000 ounces since commencement of gold production in 2010.

• On November 7, 2019, the Company announced encouraging drill results from a 681m diamond drill program for 14 holes at the Selinsing Gold Mine Pit 4 west wall, including significant intercepts from MSMDD211 (2m @ 1.06 g/t from 40m depth), MSMDD215 (2.6m @ 7.62 g/t from 54.2m depth) and MSMDD217 (8.5m @1.33g/t from 14.5m depth). This indicates that the mineralization has extended outside of the resources defined in the 2019 NI43-101 report, having the potential to increase the current Selinsing gold resources.

• On February 11, 2020, the Company announced that a trial mining program commenced on January 20, 2020 at the Peranggih Gold Prospect. Bulk sample material was fed into the Selinsing oxide gold processing plant to confirm the average grade of the close-spaced drilled area, to quantify the presence of coarse gold and to test the metallurgical performance at plant scale.

6 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

• On February 19, 2020 the Company announced the discovery of a new anomaly at the Mentique Prospect, 1km parallel to the west of the Peranggih Gold Prospect. Mineralization at Mentique has an Au-Sb-As-W-Mo association.

• On February 28, 2020 the Company announced that it has commenced a 38-hole, 4,580 meter drill program at its 100% owned Burnakura and Gabanintha gold projects in Western Australia. The objective of the program is to test certain exploration targets identified through geological interpretation of last year’s data collection, prior years’ drilling results and structural geological studies.

• In March 2020, the Company made several announcements on the suspension of the Selinsing Gold Mine operation from March 18 to April 30 in compliance with the Movement Control Order issued by the Malaysian government due to the COVID-19 pandemic.

• On April 20, 2020, the Company announced the results from the trial mining program at Peranggih Gold Prospect with encouraging results: 13,047 tonnes of material were processed at a reconciled head grade of 1.17g/t with actual recovery of 89.8% as compared to average assayed grade gold of 1.22g/t with recovery of 90.2%.

• On April 30, 2020, the Company announced that the approval for Selinsing Gold Mine to resume full operation during the Movement Control Order period had been received. The Company started to prepare staff to return to work safely under certain conditions.

• On July 7, 2020, the Company announced positive drilling results at Murchison Gold Project at Burnakura and Gabanintha. The drill programs that commenced in late February 2020 was completed in early May 2020. The results confirmed the continuity of gold mineralization within identified structures and favorable lithology from existing mineral resources.

2. PROJECT UPDATE

2.1 Selinsing Gold Portfolio

The Selinsing Gold Portfolio is located in Pahang State, Malaysia. It includes the Selinsing Gold property (“Selinsing”), the Buffalo Reef property (“Buffalo Reef”), the Felda Land (“Felda”) and the Famehub properties (“Famehub”). Buffalo Reef lies continuously and contiguously along the gold trend upon which the Selinsing Gold Property is located. Both Felda and Famehub are located east and north of the Selinsing and Buffalo Reef properties.

Among those properties, Selinsing and Buffalo Reef are primary gold properties acquired on June 25, 2007 and are at the development and production stage while others are at the exploration and evaluation stage. The 1.00 million tonne per annum gold processing plant is situated at the Selinsing site, which provides easy access to all of the Company’s gold properties. Felda is gazetted as a group settlement area covering 3,920 acres owned by local individuals (“Settlers”).

The Company acquired exclusive irrevocable exploration licenses over 896 acres of Felda through its subsidiary Able Return Sdn Bhd from the Settlers, with consent from the Federal Land Development Authority. Pursuant to these agreements with the Settlers, and subject to regulatory approval, certain portions of Felda can be converted to mining leases upon exploration success at the Company's discretion. The exclusive mining permits are automatically assigned for mining to the Company in the event of approval of the mining leases obtained by those Settlers. In October 2017, a portion of Felda (“Felda Block 7”) was converted into proprietary mining leases.

Famehub was acquired in September 2010. Famehub is an area with approximately 32,000 acres of prospective exploration land to the north of Buffalo Reef along the trend and east of the Selinsing Gold Mine. Snowden completed a NI 43-101 Technical Report on the Famehub dated August 2010. The Company targets the consolidation of Selinsing, Buffalo Reef and Famehub, which are all situated around the Selinsing Gold Mine, as a long-term exploration strategic portfolio in order to extend the life of the mine.

2.1.1 Resources and Reserves and Results of the Feasibility Study

According to the Snowden 2019 NI43-101 Report dated January 31, 2019, the Company has proven and probable mineral reserves at Selinsing Gold Mine, including the Selinsing and the adjacent Buffalo Reef and Felda Block 7 deposits in Pahang State, Malaysia. All Mineral Reserves and Mineral Resources were updated by Snowden as Independent Qualified Person defined under NI 43-101 standards.

The tables below summarize the estimated mineral reserves and mineral resources by classification and ore type, all expressed in metric tonnes and Troy ounces (1 ounce = 31.1035 g). The updated mineral reserves are estimated using an average gold price of $1,300 per ounce.

7 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

==> picture [498 x 91] intentionally omitted <==

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

Selinsing-Buffalo Reef/Felda Reserves as of March 31, 2018 (Snowden)
OXIDE (above approx. 0.4 g/t Au TRANSITION (above approx. 0.75 SULPHIDE (above approx. 0.75
Category OXIDE + TRANSITION + SULPHIDE
cut-off) g/t Au cut-off) g/t Au cut-off)
kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz)
Mineral Reserves (based on a US$1,300/oz gold price)
Proven 1,265 0.47 19 - - - 45 1.53 2 1,310 0.51 21
Probable 991 0.91 29 757 1.72 41.9 2,680 2.03 175.1 4,428 1.73 246
P+P 2,256 0.67 48 757 1.72 42 2,725 2.02 177 5,738 1.45 267
----- End of picture text -----*

*Proven Reserve is entirely stockpile material;

**Probable Oxide Reserve comprises oxide ore in Selinsing, Buffalo Reef, Felda deposits, and in Selinsing old tailings; Probable Transition and Sulphide Reserves comprise ore in Selinsing, Buffalo Reef and Felda deposits.

==> picture [498 x 102] intentionally omitted <==

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

Selinsing-Buffalo Reef/Felda Resources as of March 31, 2018 (Snowden)
TRANSITION (above 0.5 g/t Au SULPHIDE (above 0.5 g/t Au cut-
Category OXIDE (above 0.3 g/t Au cut-off) OXIDE + TRANSITION + SULPHIDE
cut-off) off)
kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz) kTonnes g/t Au (kOz)
Mineral Resources, reported inclusive of Reserves (based on a potential US$2,400/oz gold price)
Measured 1,265 0.47 19 - - - 45 1.53 2 1,310 0.51 21
Indicated 1,533 0.85 42 1,086 1.49 52 8,052 1.60 415 10,671 1.48 509
M+I 2,798 0.68 61 1,086 1.49 52 8,097 1.60 417 11,981 1.38 530
Inferred 349 1.05 11.8 485 1.22 19 5,563 1.79 319 6,397 1.70 350
----- End of picture text -----**

*Measured Resource is entirely stockpile material;

Indicated Oxide Resource is a combination of oxide mineralization occurring in Selinsing, Buffalo Reef and Felda deposits plus Selinsing old tailings material; Indicated Transition and Sulphide Resources comprise mineralization occurring in Selinsing, Buffalo Reef and Felda deposits; *Inferred Resource comprises mineralization occurring in Selinsing, Buffalo Reef and Felda deposits.

Based on these reserves, the 2019 Feasibility Study has demonstrated an approximately six-year life of mine (LOM) with an NPV of $27.56 million based on reported oxide and sulphide ore reserves as of March 2018. Over the six-year LOM, a total 5.7 million tonnes of ore would be treated at an average grade of 1.45g/t for 223koz at a cost of $863.67 per ounce. At a gold price of $1,300 per ounce, the Selinsing Gold Mine Project would generate net cash flow after tax of $97.00 million from operations, or $45.00 million net of capital expenditure.

The opportunity to consider Inferred Resources was discussed in the Feasibility Study. The inferred mineral resource inside the reserve open pit designs potentially contains an additional 20koz of gold. The inferred mineral resource external to the open pit design contains 130koz of gold. Recommendations have been made to initiate further exploration programs, aimed at the conversion of inferred mineral resources into indicated mineral resources. Should those conversions be successful, the mineral reserves could potentially be significantly increased. The Selinsing Gold Mine has a proven record in converting oxide inferred mineral resources to recovered ounces, even though historical records should not be used as an indicator of future performance.

2.1.2 Production

Mining: The mining of transitional leachable sulphide ore has increased significantly over the prior year (134,280t for the year ended June 30, 2020 as compared to 46,794t for the year ended June 30, 2019). This increase was due to reduced availability of oxide ore and depleting oxide stockpile levels. Additional waste was mined for TSF construction in the first and the last quarter. Cut-back as well as prestripping activities were carried out during the year at Selinsing Pit 4 and Block 7. Ore mined completed an initial ramp up in the third quarter and returned to a normal level that lowered the stripping ratio accordingly.

A combination of factors, such as increased mining rates related to both waste and ore and increase in mining leachable sulphide material at a higher cost due to blasting requirements, led to the increase in mining costs by 22% to $0.76 million and by 65% to $4.32 million during the fourth quarter and the fiscal 2020, respectively (fourth quarter 2019: $0.63 million, fiscal 2019: $2.62 million). The Company continues to implement grade control drilling practices to manage mining cost increases during ramp up of mining rates to access additional ore and replenish stockpile levels.

Peranggih Bulk Mining: The Peranggih bulk sampling program was initiated during mid-January 2020and was completed by the end of February 2020. The mined material was fed into the processing plant in one campaign and completed by early March 2020.

By the end of the program, a total of 15,677 tons at 1.22 g/t Au of mineralized material and 17,340 tons of waste were mined from Peranggih, slightly lower than indicated by the grade control block model due to topography and density variance. 13,047 dry ton material with reconciled grade of 1.17 g/t Au was fed to the mill during the trial period.

Actual gold recovery is calculated at 89.8% from a reconciliation of opening and closing of gold in circuit based on gold loaded onto activated carbon, physical gold recovered by electrowinning and gold in tailings, as compared to an average assayed grade gold of 1.22g/t Au with a recovery of 90.2% from plant sampling of mill feed and tailings. Both gravity and leach responses were very encouraging.

8 | P a g e

For the year ended June 30, 2020 (in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

The completed bulk sampling program indicated that the grade control drilling with conventional fire assay is a sufficient method to produce a representative result for high-grade (“HG”) and low-grade (“LG”) gold mineralization and tonnage evaluation for near-surface mineralisation at Peranggih. The grade variance ranged from negative 4.1% for composite HG and LG.

Throughout the trial mining progress, a total of 103x 3m interval length horizontal channel samples at 2/4m of defined RL was collected. 60% of the collected samples were mineralized as the assay returned grades above 0.2 g/t Au. However, the sampling might be categorized as biased sampling as it was collected along the mineralization strike, which is trending NW-SE (350°). Despite that, the mineralized sample showed representative association with quartz breccia and tuff breccia lithology. Several high-grade samples are mainly the tuff breccia with quartz fragments.

Processing: Referring to Figure 1 Operating and Financial Results, processing throughput tonnage was 70% and 28% lower for the three months and the year ended June 30, 2020, respectively, as compared with the corresponding period of the prior fiscal year. This reduction was due to ore shortages and operation suspension for eight weeks under the MCO in Malaysia. Overall mill availability, utilization and efficiency were 96.9%, 83.5% and 80.9% respectively. The process recovery rate for the year ended June 30, 2020 was higher than the previous year due to processing transitional ore and high gold grade mill feed.

For the year ended June 30, 2020, as a result of more gold sold and processing an increased amount of harder, leachable sulphide ore which require additional consumables and reagents to maintain recovery levels as well as an increased level of plant maintenance, processing costs increased by 31% to $9.84 million (year ended June 30, 2019: $7.52million). For the three months ended June 30, 2020, processing costs decreased by 24% to $1.49 million as compared to $1.95 million for the three months ended June 30, 2019. The decrease was mainly due to operation suspension under the MCO for the most part in the fourth quarter of fiscal 2020.

The figures below illustrate production results on a consolidated basis including Selinsing, Buffalo Reef and Felda Block 7 operations and Peranggih trial mining.

Figure 4: Gold production and cash costs per ounce Figure 5: Selinsing Gold Mine: Operating Metrics

==> picture [484 x 150] intentionally omitted <==

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

6,000 1,000 300,000
900
5,000 800 250,000
700 200,000
4,000
600
150,000
3,000 500
400 100,000
2,000 300 50,000
200
1,000
100 0
0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2019 2019 2019 2019 2020 2020 2020 2020 2019 2019 2019 2019 2020 2020 2020 2020
Gold production Total cash cost per ounce Ore mined Ore processed
Total Cash Costs (US$/oz)
Gold Production (Ounces)
Tonnes
----- End of picture text -----

2.1.3 Development

The Selinsing Sulphide Gold Project optimization, being the primary focus of fiscal 2020, is to bring about a new six-year life of mine after depletion of existing Selinsing oxide production. Continuing TSF and mine development for gold production enable the mining of leachable sulphide materials in bridge of cash flow during this transition period.

Sulphide Gold Feasibility Study and Project Execution Plan

The Feasibility Study for the Selinsing Sulphide Gold Project was released on February 1, 2019. The economic viability of the project described in the Feasibility Study is primarily driven by adding flotation and BIOX® processes to the current Selinsing Gold Processing Plant to treat sulphide ore. An execution plan is in place to commence construction of the Selinsing Gold plant upgrade. The project team is in the process of optimizing cost estimates, including expected maintenance and reagent consumptions to lower operating cost estimates and sourcing local equipment to lower capital cost estimates.

Bioleaching batch amenability tests (BAT) were conducted in-house using locally adapted bacteria. Bioleaching tests were conducted as training exercises for metallurgists and technicians to have a better understanding of how the bioleaching process works and what essential parameters are to be monitored. Equipment specifications were prepared for the proposed pilot plant for use as the BIOX© test facility, including the crusher, ball mill, pumps, cyclone, rougher and cleaner flotation cells, reagent mixing and dosing pumps. Conversion of the Intec pilot plant to BIOX® primary and secondary reactors is anticipated.

A potential underground desktop study was carried out internally, indicating potential in the Selinsing area, but more inventories over a 3g/t Au cut-off grade and sourcing an available and cost-effective contractor arrangement are both required. Major follow-up work will

9 | P a g e

(in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

be undertaken for additional resource definition and conversion of the Inferred open pit potential into an Indicated Mineral Resource, as well as mineralisation extensions for potential underground mining. The main emphasis will be in the Buffalo Reef area for fresh/sulphide material.

As of June 30, 2020, development expenditures totaling $2.36 million have been incurred for the Selinsing Sulphide Project where economic viability has been established prior to the commencement of commercial production over Selinsing Deep, Buffalo Reef and Felda land. Sulphide Project related expenditures incurred during the year ended June 30, 2020 included $0.59 million related to stockpiled non-leachable sulphide ore.

TSF Development/Pit 4 South-West Cutback: As the TSF main embankment lift to 533.3 mRL at the Selinsing Gold Mine was completed during the first fiscal quarter, TSF capacity was raised to cater for fiscal 2020 production. During the third fiscal quarter, the second stage TSF lift to 535.5 mRL started to meet fiscal 2021 production requirements. During the year ended June 30, 2020, total expenditures allocated to the completed TSF expansion were $0.94 million, including 143,649 tonnes of mining waste used as upgrade material. The cutback at Pit 4 continued during the year to gain access to additional mineable ore. Expenditures for the cutback amounted to $1.47 million, including 779,524 tonnes of mining waste.

Sulphide Leachability Test Work: Metallurgical drilling was performed to investigate the possibility of treating non-leachable material using CIL, additional lead nitrate and flotation methods. Upon its completion during the first quarter, Pit 5 mining activities continued to progress based on the drilling results. The objective of metallurgical drilling and test work is to provide representative samples of the remaining ore at Selinsing and Buffalo Reef and to explore options for continued economic gold production at Selinsing. Samples were tested in three stages. Stage 1 was further CIL test work for those samples reported above 0.35 g/t. Stage 2 was to put non-leachable transitional ore through CIL test with additional lead nitrate in addition to blending analysis with super low grade ore. Stage 3 was to separate nonleachable fresh material into low- and high-grade categories according to the corresponding pit and proceeded with flotation testing. With actual recoveries reaching up to 77.5%, the Company continues to monitor the results, including, but not limited to, the feasibility of longer term mining.

2.1.4 Exploration

Total exploration expenditures excluding development activities at the Selinsing Gold Portfolio for the year ended June 30, 2020, were $0.57 million and were attributable to $0.08 million at Selinsing, $0.35 million at Peranggih and $0.14 million at Buffalo Reef.

No major exploration drill programs have been initiated during fiscal 2020 due to ongoing sulphide development work, the main exploration activity during the year related to bulk sampling program at Peranggih and geological assessment at Selinsing pit 5, 6 and Buffalo Reef.

Peranggih Prospect: The Peranggih deposit hosted adjacent to the north of Buffalo Reef is a highly prospective, new oxide exploration target. Geological evidence and modelling indicate that it occurs in the same regional shearing structure hosting Selinsing and Buffalo Reef gold deposits, and has a potential mineralised hydrothermal breccia system containing oxide materials suitable to provide immediate mineable/leachable oxide feed for sustainable production at the current oxide plant at Selinsing.

Less than 10% of the total of 1.5km mineralization strike structure length was drilled to date at Peranggih, and the gold mineralization is still open along strike and down-dip. The extensive nature of the brecciation events indicates a high potential for a significant gold discovery within the Peranggih tenement. It is a major regional exploration target.

Mentique Prospect: A soil sampling campaign that was conducted in the Peranggih area between December 2018 and March 2019 had delineated 1.8km by 0.8km gold soil anomaly located 1 km west of the Peranggih deposit on a parallel north west- south east trending structure with a peak value of 103ppb. This discovery has been named the Mentique Prospect. Infill soil sampling, trenching, and geological mapping are planned to be carried at Mentique to assist in creating a drill target and to determine the nature of mineralization in this area.

Pits 5 and Pit 6: An exploration drill program consisting of 700m over 13 holes at Pits 5 and 6 was under review. The main objective of this program is to delineate resource extensions at Pit 5 that potentially could be mined as immediate feed to the current CIL plant. The main drilling target is the shallow dipping structure extension close to the east flank of the pit. There are shallow dipping quartz veins and quartz stockwork occurrences exposed at the target zone, cutting the highly deformed lithic tuff and phyllite bedding with an intense chloritesericite-carbonate alteration. The quartz stockwork system is the characteristic of the Selinsing mineralization and indicates that the targeted zone could potentially host significant gold mineralization extended down dip.

2.1.5 Environment, Safety and Health

The Company is committed to comply with Malaysia’s environmental laws within the mandates of three government authorities:

• The Department of Minerals and Geosciences (“JMG”) for mining and processing activities including environmental jurisdiction inside the Company’s project tenements;

10 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

• The Department of the Environment (“DOE”), whose jurisdiction lies outside of the Company’s tenements, regarding quality of air and water discharge; and

• The Department of Safety and Health (“DOSH”), primarily concerned with occupational safety and health, lifting equipment, pressurized vessels, storage and handling of hazardous chemicals.

During the year ended June 30, 2020, there were no lost time accidents recorded at the Selinsing operation. All reported incidents were shared among staff at safety toolbox meetings and new safety topics were raised at each of these meetings. Regular safety inspections were carried out by the HSE department and notices of improvement sent out to various departments for any immediate corrective action. Third party environmental compliance audits were conducted by accredited independent consultants and laboratories on environmental audits, ambient air quality and environmental noise monitoring.

2.2 Murchison Gold Portfolio

The Murchison Gold Portfolio is 100% owned by the Company and was acquired in 2014, consisting of the Burnakura, Gabanintha, and 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 40km southeast of Meekatharra, WA and 765 km northeast of Perth, WA. Tuckanarra is located approximately 40 km southwest of Burnakura.

The Murchison Gold Portfolio includes a number of mining and exploration tenements and lease applications covering approximately 230 square kilometres of mining land prospective for resource extension, and a fully operational gold processing plant at the Burnakura site, a newly developed camp site and necessary infrastructure. Underground mining was carried out by the previous owner of the Burnakura gold processing plant for several months and shortly thereafter it was placed in administration.

2.2.1 Resources

The Murchison Gold Project consists of a historical resource of 300koz Au of Indicated Resource and 344koz Au of Inferred Resource reported to a 1.0g/t Au lower cut-off, at the time of the acquisition in 2014, within a number of previously operated open pits and an underground mine. The Company believes that the quality of the data supporting the resources meets industry standards and considers this historical resource estimate to be relevant to its ongoing review of the Murchison Gold Project. The historical resources were reported in line with the JORC guidelines, and resource confidence categories and the reliability of the estimate are consistent with this standard, however they are not yet in full compliance with NI43-101 standards.

The current updated mineral resource estimation at Burnakura reported in the SRK NI43-101 Report dated July 2018, comprised of an indicated mineral resource of 4.043mt@2.3g/t Au for 293koz and an inferred mineral resource of 1.551mt@1.8g/t Au for 88koz at a 0.5g/t Au grade cut-off for open pit and 3.0 g/t Au for underground. The Company continued to improve its internal mining studies and these amounts represents a positive outcome toward the preparation of a preliminary economic assessment in respect of the Burnakura deposits. The Company is planning to continue a confirmation program over the remainder of the historical resources combined with exploration program to add new resources.

11 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

Figure 6: 2018 Mineral Resource estimate breakdown for Burnakura Project

==> picture [501 x 227] intentionally omitted <==

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

Updated Mineral Resources, Burnakura Gold Project (SRK, July 2018)
Lower cut-off Tonnes Au Gold
Deposit Category
(Au g/t) (Kt) (g/t) (Koz)
Indicated 0.5 1,030 2.1 68
NOA1-6
Inferred 0.5 609 2.3 44
Indicated 0.5 2,141 1.6 107
ANA
Inferred 0.5 92 1.5 4
Indicated 0.5 - - -
Authaal
Inferred 0.5 556 1.4 25
Indicated 0.5 96 1.3 4
Federal City
Inferred 0.5 259 1.3 11
TOTAL Indicated 0.5 3,267 1.7 179
Inferred 0.5 1,516 1.8 84
Indicated 3.0 776 4.6 114
NOA7-8
Inferred 3.0 35 3.9 4
Indicated 4,043 2.3 293
GRAND-TOTAL
Inferred 1,551 1.8 88
----- End of picture text -----*

Notes:

(1) Small discrepancies may occur due to rounding.

(2) All Mineral Resources have been reported on a dry tonnage basis.

(3) SRK is unaware of any issues that materially affect the Mineral Resources in a detrimental sense.

(4) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

(5) Mineral Resources estimated by David Slater (Principal Consultant, SRK), QP.

(6) Open pit Resources (NOA1-6, ANA, Authaal, Federal City) are constrained in a Lerchs Grossman pit shell *Underground Resources (NOA7-8) are constrained to >3g/t and 200m vertical depth.

2.2.2 Exploration

Exploration was focused on the completion of a 3D structural targeting study in the second quarter and then the execution of a drilling program in the third and the last quarter. The drill program tested near mine down-plunge targets that have been historically mined at NOA 1 and NOA 2, Alliance, New Alliance and Yagahong open pits as well as to test the regional NOA 9 target.

A 3D structural study was completed that identified down plunge targets at Gabanintha and Burnakura. The study was completed by principal structural geologists, Dr. Jun Cowan (JunCowan) and Dr. Oliver Kreuzer (X-plore GeoConsulting) with assistance from Dr. Amanda Buckingham (Fathom Geophysics). The study was finalized by the end of September and confirmed near mine down-plunge potential and highlighted regional prospectivity. This study was used to refine drill targets in the subsequently completed drill program at Burnakura and Gabanintha.

A drill program commenced on February 26, 2020 and the first phase of this drill program was completed on March 12, 2020. During the first phase of drilling, a total of 4 holes for 839m of RC were drilled at Burnakura and 6 holes for 1,265m was drilled at the Gabanintha Project. In addition, 23 holes for 603m of AC were drilled at the NOA 9 regional target. Due to high volumes of water at Burnakura, several of the deeper planned RC holes at Alliance and NOA 1 and 2 were postponed and completed in a second phase of drilling. The second phase of drilling commenced on the 23[rd] of April and was completed on the 8[th] of May using an RC rig for precollars and a diamond rig for tails. A total of 4 holes that included 738m of RC and 397m of DD tails was drilled in the second phase of drilling. Holes were widely spaced with a view to find significant new resources rather than smaller step outs from existing drilling. Geological structures and mineralisation were generally intersected where expected.

A total of 1,329 samples from Burnakura and 975 samples from Gabanintha including QAQC samples were analysed at ALS Perth for gold. In addition, selected samples from Gabanintha were analysed for multi-elements. A best intersection of 5.77m at 2.13g/t gold was returned from hole 20MRD013 at NOA 1, and a best intersection of 4m at 5.01g/t gold was returned from Yagahong. There were no significant intersections from the Canterbury hole or the regional NOA 9 target.

Throughout the fiscal year historical and GIS Compilation database refinement work and upgrades continued to realize improved efficiencies. As this refinement work continues, improved interpretation of data will assist in identifying additional drilling targets to

12 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

supplement drilling programs. Part of this work included compilation and organisation of historical maps and a vacation student was employed for 2 months to organize and compile a catalogue of all hardcopy maps.

Burnakura: A total of 3 holes for 640m of RC and 166.3m of DD was completed at Alliance and 3 holes for 557m of RC at New Alliance. In addition, 1 hole was drilled at NOA 1 for 179m of RC and 85m of DD and 1 hole was drilled at NOA 2 for 201m of RC and 145m of DD. Holes were stepped out between 100-200m of existing drilling. All holes intersected targets as expected. Due to high water flows in the first phase of drilling it was decided to drill 4 of the deeper holes in a second phase of drilling utilizing a DD rig for tails. A total of 1329 samples were sent to ALS Perth for Au analysis. A best result of 5.77m at 2.13g/t Au in drill hole 20MRD013 from 237.8m down-hole was returned.

The NOA 9 target was tested with 23 AC holes spaced at 40m over 3 lines for 603m. Most of the holes intersected massive dolerite and granite with very little alteration or quartz veining and no significant intercepts were returned. No follow up work for this target is currently planned.

Gabanintha: A total of 5 holes for 1,105m of RC was completed at Yagahong and 1 hole for 160m was drilled at Canterbury. This drilling was targeting down plunge of existing high grade mineralization in the Yagahong and Canterbury pits. The Yagahong drilling was encouraging with some strong sulphide mineralization and quartz veining being intersected. A best intersection of 4m at 5.01g/t Au in drill hole 20MRC008 from 139m was returned. In addition, an intersection of 2m at 8.8g/t Au in 20MRC009 from 194m down-hole was returned. Hole 20MRC007 returned 14m at 0.97% Cu.

Hole 20MRC010 at Canterbury contained predominantly massive basalt and very little alteration or veining.

Tuckanarra: Only minor data compilation and targeting work was completed for the Tuckanarra project, but previous work has highlighted that there is potential for further discoveries along untested prospective strike, in particular at the Bottle Dump deposit.

For the year ended June 30, 2020, exploration at Murchison incurred expenditure of $0.48 million (2019: $0.16 million) on drilling and geological work.

2.2.3 Development

The Company continues to ensure that the plant and other facilities are operationally ready through its care and maintenance program to ensure efficient commissioning in the future. Site accommodations and catering are fully functional in readiness for the Company’s personnel and mining contractors to commence on site.

2.3 Mengapur Copper-Iron Project

The Mengapur project is located in Pahang State, Malaysia, approximately 130 kilometers from Monument’s wholly owned Selinsing Gold Mine near Sri Jaya, 12 kilometers from a highway and 75 kilometers from the Malaysian port of Kuantan. The Mengapur Project includes a mining tenement held by Cermat Aman Sdn. Bhd. (“CASB”) and an exploration tenement held by Star Destiny Sdn. Bhd. (“Star Destiny”). Following significant exploration programs and metallurgical studies carried out from 2011 to 2015, a geological and resource modelling study had been carried out in 2018 and a NI43-101 Mineral Resource Estimate Technical Report was released in October 2018.

2.3.1 Resources

The technical report titled “Mineral Resource Estimate for the Mengapur Cu-Au Deposit, NI43-101 Technical Report” and dated October 29, 2018 was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects by John Graindorge BSc (Hons); Grad. Cert. Geostatistics, MAusIMM(CP), Principal Consultant, Resources, Snowden Mining Industry Consultants Pty Ltd., the Qualified Person.

The project has been drilled using mostly diamond core drilling down to a nominal spacing of approximately 40m by 40m in a significant portion of the project area. The 2018 mineral resource estimate has incorporated a total of approximately 112,000m completed to date, of which nearly 53,000m were completed by Monument between 2011 and 2014. Drilling primarily comprised of diamond core drilling with some minor RC drilling. The geological interpretation has considered all known material items and represents an accurate reflection of current geological understanding, of copper oxide, transition and sulphide skarn type mineralization.

Figure 7 below presents the 2018 mineral resource estimate for the Mengapur project, reported above a 0.3% Cu cut-off grade. To establish the requirement for the grade, quantity and quality of mineralization to have reasonable prospects of eventual economic extraction, a cut-off grade of 0.3% Cu was selected. This represented an assumption of an open-pit mining approach with limited selectivity and is based on values used at other similar deposits along with consideration of the continuity above the cut-off grade. The cut-off grade of 0.3% Cu is considered by Monument to be the base case scenario at this stage; however, further study is required to assess mining and processing options along with costs.

13 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

Figure 7: Mengapur August 2018 Mineral Resource estimate (0.3% Cu lower cut-off)

==> picture [492 x 204] intentionally omitted <==

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

Indicated Mineral Resource
Tonnes Cu Au Ag Contained Cu Contained Au Contained Ag
Material type
Mt % g/t g/t t oz oz
Oxide 6.3 0.45 0.17 9.7 28,300 34,000 1,960,000
Transitional 9.7 0.48 0.15 9.8 46,800 47,000 3,060,000
Fresh 23.5 0.41 0.21 4.5 96,400 159,000 3,400,000
Total Indicated 39.5 0.43 0.18 6.6 170,000 229,000 8,380,000
Inferred Mineral Resource
Tonnes Cu Au Ag Contained Cu Contained Au Contained Ag
Type
Mt % g/t g/t t oz oz
Oxide 15.5 0.41 0.06 19.1 63,600 29,900 9,520,000
Transitional 12 0.5 0.1 17 60,000 38,600 6,560,000
Fresh 23.4 0.43 0.14 6.9 100,600 105,300 5,190,000
Total Inferred 50.9 0.44 0.11 13 224,000 180,000 21,270,000
----- End of picture text -----

(1) Small discrepancies may occur due to rounding.

(2) All Mineral resources have been reported on a dry tonnage basis.

(3) Snowden is unaware of any issues that materially affect the mineral resources in a detrimental sense.

(4) Mineral resources that are not Mineral Reserves do not have demonstrated economic viability.

(5) Mineral resources estimated by John Graindorge (Principal Consultant, Snowden), QP.

(6) The majority of the interpreted mineralization is within 200m of the surface and as such considered by Snowden to be within the limits of extraction by open-pit mining.

2.3.2 Development

The Mengapur Project is a large economic scale project in the Company’s pipeline of projects. Since acquisition of Mengapur, the Company has carried out extensive exploration programs to confirm historical resources and metallurgical test work to study downstream products. The resource confirmation and definition drilling were largely completed in fiscal 2014.

During fiscal 2018, geological and resource modelling work was resumed and in fiscal 2019 a NI43-101 Mineral Resource Estimation Technical Report was SEDAR filed in October 2018. As copper prices rise, the Company intends to carry out further assessment of the opportunity for copper production.

Harmonization Agreement : Monument Mengapur Sdn. Bhd. (“MMSB”), a wholly-owned subsidiary of the Company, entered into a Harmonization Agreement with Phoenix Lake Sdn. Bhd. (“PLSB”) and ZCM Minerals Sdn. Bhd. (“ZCM”), (together the “Third Parties”). Pursuant to the Harmonization Agreement, the Third Parties have exclusive rights to mine free digging oxide magnetite iron materials (the “Third Party Interest”) contained in top soil overburden at Area A and Area B under certain conditions, and to purchase the those materials once mined from MMSB for RM28 per tonne. In May 2019, ZCM had assigned its right to the Area A to PLSB. MMSB, being the exclusive operator, carried out grade control and supervision over the mining operation, including collecting proceeds from Iron Ore sales on behalf of Malaco, the owner of the Third Party Interest, with all operating costs incurred by MMSB to maintain iron ore operation being charged back to Malaco with additional fees.

Intec Interim License : In February 2015, Monument and Intec International Projects Pty Ltd (“Intec”) entered the Heads of Agreement which was amended in August 2017 (together the “Intec Agreements”). Pursuant to the Intec Agreements, the Company was granted an interim license with an expiry date of January 16, 2017, which was subsequently extended to January 16, 2022, to exploit the Intec patented technology at the Company’s alpha sites in Malaysia, including Mengapur. Subject to the success of staged test-work and certain conditions, Monument will obtain a full license to treat sulphide gold or copper materials using Intec technology across designated territories including Australia and South East Asia countries.

Tenements: The mining lease at the 100% owned subsidiary CASB is renewable every two years. The application for renewal for the period June 1, 2020 to May 31 2022 has been sent to the authority and the approval is imminent. The prospecting exploration permit of SDSB expired on September 23, 2012. The Company submitted an application of renewal in November 2011 to the Pahang State authority. The Company also submitted additional mining lease applications in 2009, 2010 and 2012 covering sections of the same area, and yet to receive an official notification from the authority. Management continues its dialogue with the Pahang State authority to expedite the approval process. According to the Mining Enactment 2001 of Malaysia, until receipt of official notification with the Company’s consent, the exploration rights remain intact.

14 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

The scientific and technical information in Section 2 has been prepared, reviewed and approved by Mr. Roger Stangler, B.Sc., MEng, FAusIMM, MAIG, a Qualified Person defined in accordance with National Policy 43-101, retained by Golder Associates Pty Ltd.

3. OVERVIEW OF FINANCIAL PEFORMANCE

3.1 SUMMARY

During the year ended June 30, 2020, mill operations included processing Selinsing, Buffalo Reef and Block 7 leachable sulphide ore, oxide ore, super low-grade oxide ore, Peranggih oxide ore, and old tailings through the Selinsing Gold Plant. Processing was in transition from oxide ore production to sulphide ore production. The production gross margin is expected to vary from time to time due to recovery rates and volatile gold prices.

Figure 8: Selected Annual Information

Balance Sheet (in thousands of US dollars)	June 30, 2020	June 30, 2019	June 30, 2018
	$	$	$
Current assets	25,121	31,497	33,935
Non-current assets	222,458	219,781	220,350
Total assets	247,579	251,278	254,285
Current liabilities	6,335	6,978	6,831
Non-current liabilities	14,823	17,610	19,710
Equity attributable to shareholders	226,421	226,690	227,744
Total liabilities and shareholders' equity	247,579	251,278	254,285
Working capital (including restricted cash)	18,786	24,519	27,104
Income Statement (in thousands of US dollars)	For the year ended June 30, 2020	For the year ended June 30, 2019	For the year ended June 30, 2018
	$	$	$
Revenue	29,971	20,993	19,250
Production costs	(17,027)	(11,766)	(11,103)
Operation Expenses	(770)	-	-
Accretion, depletion and amortization	(5,691)	(4,436)	(4,669)
Corporate expenses	(1,974)	(1,884)	(4,527)
Loss from other items	(1,955)	(2,360)	(3,242)
Income tax expense	(2,829)	(1,046)	(458)
Net Income (loss)	**(275) **	**(499) **	(4,749)
Loss per share (basic)	($0.00)	$(0.00)	$(0.02)
Loss per share (diluted)	($0.00)	$(0.00)	$(0.02)

15 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

Figure 9: Financial Highlights

==> picture [501 x 208] intentionally omitted <==

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

Fiscal 2019 Fiscal 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
$ $ $ $ $ $ $ $
Revenues (000’s) 5,530 5,663 4,590 5,210 6,343 6,606 11,618 5,404
Weighted average gold price
London Fix PM (per ounce) 1,214 1,233 1,299 1,338 1,477 1,485 1,609 1,688
Monument realized (per ounce) 1,215 1,231 1,295 1,332 1,475 1,485 1,602 1,684
Net earnings (loss) before other items and tax
1,110 768 269 759 745 757 2,303 704
(000’s)
Earnings (loss) per share before other items
and tax:
- Basic 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00
- Diluted 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00
Net earnings (loss) after other items and tax
1,062 469 (914) (1,116) 208 (1,076) 1,866 (1,273)
(000’s)
Earnings (loss) per share:
- Basic 0.00 0.00 (0.00) (0.00) 0.00 (0.00) 0.01 (0.00)
- Diluted 0.00 0.00 (0.00) (0.00) 0.00 (0.00) 0.01 (0.00)
----- End of picture text -----

The quarterly financial results of the Company are outlined for the past eight quarters in Figure 9 above. The overall financial results of the Company reflect its income from gold mining operations, on-going corporate business development, administrative costs and other income or expenses such as foreign currency exchange gains or losses.

For the year ended June 30, 2020 net loss was $0.28 million, or $0.00 per share (basic) compared to net loss of $0.50 million or $(0.00) per share (basic) in last year.

The decrease in net loss was attributable to the following factors:

• An increase in income from mining operations.

• A decrease in interest expense, which is non-cash in nature, arising from the prepaid gold sale transaction.

• Offset by:

• An increase in non-cash depreciation and amortization expense.

• The operation expenses of $0.77 million due to COVID-19 operation suspension.

• An increase in tax expenses.

16 | P a g e

For the year ended June 30, 2020

(in United States dollars, except where noted)

3.2 Operating Results: Sales and Production Costs

MANAGEMENT’S DISCUSSION & ANALYSIS

Year ended June 30, 2020

For the year ended June 30, 2020, mining operations before noncash amortization and depreciation generated a gross margin of $12.94 million, an increase of 40% from $9.23 million of last year.

After deducting non-cash depletion and accretion of $5.69 million (2019: $4.44 million) and operation expenses of $0.77 million (2019: nil), income from mining operations was $6.48 million as compared to $4.79 million of the prior year.

Gold recovery increased by 2% for the year ended June 30, 2020 to 17,107oz (year ended June 30, 2019: 16,770oz) due to slightly higher recovery rates and a 38% increase in mill feed grade to 1.11g/t (year ended June 30, 2019: 0.80g/t). Total cash cost per ounce sold increased to $878/oz for the year ended June 30, 2020 from $713/oz of last year due to increases in mining and processing costs caused by harder leachable sulphide material as well as higher repair and maintenance costs, Increase in mining rates related to both ore and waste also contributed to the increase in production costs.

Figure 10: Gross margin

==> picture [248 x 142] intentionally omitted <==

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

1,400
900
400
-100
-600
-1,100 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2019 2019 2019 2019 2020 2020 2020 2020
Total cash cost per ounce Monument realized Margin
US$/Ounce
----- End of picture text -----

Sales

Gold sales generated revenue of $29.97 million for the year ended June 30, 2020 as compared to $20.99 million of last year.

Gold sales revenue was derived from the sale of 16,750oz (year ended June 30, 2019: 15,300oz) of gold at an average realized gold price of $1,563 per ounce (year ended June 30, 2019: $1,260 per ounce) and the delivery of 2,651oz (year ended June 30, 2019: 1,205oz) in fulfilling gold prepaid obligations at an average London Fix PM gold price of $1,547 per ounce (year ended June 30, 2019: $1,429 per ounce).

Figure 11: Selinsing Gold Mine: Revenue

==> picture [242 x 149] intentionally omitted <==

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

12,000
10,000
8,000
6,000
4,000
2,000
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2019 2019 2019 2019 2020 2020 2020 2020
Revenue (US$'000)
----- End of picture text -----

Production Costs

Total production costs for the year ended June 30, 2020 were $17.03 million as compared to $11.77 million of last year. The increase is in line with the increase in gold sales revenue and reflected timing difference of gold sold and higher mining and processing costs as compared to last year.

Cash cost per ounce increased by 23% to $878/oz during the year ended June 30, 2020 as compared to $713/oz of last year. The increase was attributable to the increase in harder leachable sulphide material being processed which led to increases in mining and processing costs and increase in repairs and maintenance costs.

Mill feed head grade was 1.11g/t Au for the year ended June 30, 2020 as compared to 0.80g/t Au of last year. The increase was due to more Pit 5 ore processed and less super low grade ore fed into the processing plant.

Figure 12: Cash production costs by quarter

==> picture [245 x 178] intentionally omitted <==

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

1,100
1,000
900
800
700
600
500
400
300
200
100
0
Q1 Fiscal Q2 Fiscal Q3 FiscalQ4 Fiscal Q1 Fiscal Q2 Fiscal Q3 Fiscal Q4 Fiscal
2019 2019 2019 2019 2020 2020 2020 2020
Mining Processing Royalties Operations, net of silver recovery
Cash Cost (US$/oz)
----- End of picture text -----

17 | P a g e

(in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

Figure 13: Production costs

==> picture [488 x 105] intentionally omitted <==

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

Three months ended Year ended
June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019
Production cost breakdown ('000s) $ $ $ $
Mining 764 629 4,318 2,618
Processing 1,491 1,953 9,836 7,522
Royalties 469 384 2,639 1,524
Operations, net of silver recovery 27 40 234 102
Total production costs 2,751 3,006 17,027 11,766
----- End of picture text -----

Mining

Mining activities continued to focus on Selinsing Pit 5/6, Buffalo Reef, Felda Block 7 as well as the Selinsing Pit 4 south west cutback where mining began in December 2019, and also Peranggih trial mining. During the year ended June 30, 2020, five open pits supplied ore to the Selinsing Plant – Selinsing Pit 5/6 (Oxide + Transition), BRC2 (Oxide) and BRC3 (Oxide) in Buffalo Reef, Felda Block 7, and Peranggih (Oxide). The Selinsing Transition ore feed to the CIL plant is continually being evaluated based on ongoing lead nitrate leaching tests.

For the year ended June 30, 2020, cash cost per ounce of mining operations increased by 40% to $223/oz from $159/oz of last year, mainly due to increased tonnage of ore mined. The mining of harder leachable sulphide ore materials in transition zones for mill feed to supplement current processing also contributed to the increased cost. Mining production included 263,074t of ore (year ended June 30, 2019: 166,940t) and 2,887,441t of waste (year ended June 30, 2019: 3,201,817t). Waste mined for the year ended June 30, 2020 included 1,964,268t of operating waste, 779,524t of waste cutback at Selinsing and Buffalo Reef and 143,649t of waste fill related to the TSF upgrade, compared to 1,726,757t of operating waste, 720,647t of waste cutback at Selinsing and 754,413t of waste removed for the TSF upgrade for last year. Based on the current fiscal years mining sequence, the stripping ratio reduced to 10.98 for the year ended June 30, 2020 compared to 19.18 last year. The cost of waste fill related to TSF upgrade is capital in nature and is not included in mining operating costs. Cost per tonne mined increased by 32% from $1.29/t to $1.70/t.

Processing

For the year ended June 30, 2020 total processing cash costs were $9.84 million as compared to $7.52 million of last year. Processing cost per tonne was $12.91/t for the year ended June 30, 2020; a 22% increase from $10.57/t of last year. The increase was primarily due to more consumables and power costs used to process harder ore from Selinsing, additional maintenance and higher detoxification consumable costs for reducing the TSF water levels. Total ore processed decreased by 28% to 675,708t from 934,843t of last year. Mill feed for the year ended June 30, 2020 comprised of 280,943t super low grade oxide, 66,369t oxide, 201,185t old tailings and 120,739t leachable sulphide as compared to those of last year of 657,332t super low grade oxide, 83,457t oxide, 175,681t old tailings and 20,884t leachable sulphide.

Royalties

For the year ended June 30, 2020 total royalties cost increased 73% to $2.64 million as compared to $1.52 million of last year, due to increased production of gold. Royalties paid are affected by average gold spot prices and the amount of gold produced and sold in the period.

Operation expenses

During the COVID-19 pandemic, Selinsing gold production was suspended from March 18, 2020 to May 12, 2020 in compliance with the Movement Control Order (“MCO”) issued by the Malaysian government. The fixed costs incurred to maintain the production capacity at the normal level when the plant and the majority of workforce were idle, except essential services such as security, maintenance and environmental control which were carried out during the MCO period. Certain management and technical support were also provided remotely from home.

Subsequent to May 12, 2020, production resumed gradually. The secondary mill was put into operation first in reclaiming old tailings and cleaning up gold in circuit. The primary ball mill operation resumed on June 9, 2020. Mining activities with blasting were not initiated until July 2020, when explosives supplier became available.

Costs incurred during the production suspension and transition period to maintain normal production capacity and essential services were recorded under operation expenses, which comprised $0.67 million for maintaining idle capacity and $0.10 million for essential services.

18 | P a g e

For the year ended June 30, 2020 (in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

Non-cash Costs

For the year ended June 30, 2020, non-cash production expenses amounted to $5.69 million (year ended June 30, 2019: $4.44 million). Included therein are depreciation and amortization of $5.51 million (year ended June 30, 2019: $4.23 million) and accretion of asset retirement obligations of $0.18 million year ended June 30, 2019: $0.21 million).

3.3 Corporate General and Administrative

Figure 14: Corporate Costs (000’s)

==> picture [494 x 164] intentionally omitted <==

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

Three months ended Year ended
June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019
$ $ $ $
General and administration 251 312 1,254 1,302
Stock-based compensation 0 1 (4) 5
Legal, accounting and audit 108 42 303 281
Shareholder communications 17 25 137 133
Travel 0 17 88 105
Regulatory compliance and filing 2 2 50 52
Project investigation and financing 103 - 103 -
Amortization 9 2 43 6
Total Corporate Costs 490 401 1,974 1,884
----- End of picture text -----

Corporate expenditures for the year ended June 30, 2020 were $1.97 million (year ended June 30, 2019: $1.88 million), same level compared to the same period last year. The increase was mainly attributable to $0.10 million (year ended June 30, 2019: nil) incurred for project investigation and financing but offset by decrease in general and administration of $0.05 million.

3.4 Other (Loss) Income

For the year ended June 30, 2020, loss from other items amounted to $1.95 million (year ended June 30, 2019: loss of $2.36 million). The decrease was mainly due to interest expenses recognized from gold prepaid sales of $1.80 million (year ended June 30, 2019: $2.10 million), a $0.30 million reduction thereof.

3.5 Income Taxes

Income tax expense for the year ended June 30, 2020 was $2.83 million (year ended June 30, 2019: $1.05 million) comprising of current tax expense of $2.24 million (year ended June 30, 2019: $1.76 million) and deferred tax expense of $0.59 million (year ended June 30, 2019: deferred tax recovery of $0.71 million).

4. LIQUIDITY AND FINANCIAL CONDITION

The Company’s principal cash requirements are working capital used for business development, general administration, property maintenance and development, construction of gold treatment plant expansions, production operations at Selinsing and exploration. The Company's cash and cash equivalents as at June 30, 2020 was $9.82 million, an increase of $0.78 million from June 30, 2019. The Company's cash and cash equivalents primarily comprised of cash held with reputable financial institutions and is invested in cash accounts. The funds are not exposed to liquidity risk and there are no restrictions on the ability of the Company to use these funds to meet its obligations. The Company’s restricted cash of $0.30 million (June 30, 2019: $0.31 million) represented issued letters of credit and fixed deposits as guarantees for utilities, custom duties and certain equipment.

The Company’s cash flows from operating, financing and investing activities during the year ended June 30, 2020 are summarized as follows:

19 | P a g e

(in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

Figure 15: Cash Flows from Operating, Investing and Financing Activities (000s)

==> picture [488 x 323] intentionally omitted <==

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

In US' 000s
March 31, 2020 June 30, 2020 March 31, 2020 June 30, 2019
$ $ $ $
Cash provided from operating activities 5,187 6,273 (132) 2,139
Financing activities
-
Payment of finance lease obligations (12) (40) (29)
-
Financing fees for gold prepaid sale (8) (8) (8)
Borrowings 1,500 29 - -
Cash (used in)/provided from financing activities 1,480 (19) (37) -
Investing activities
Selinsing Gold Portfolio (1,120) (4,060) (3,609) (5,858)
Murchison Gold Portfolio (156) (1,263) (787) (1,642)
Mengapur Project (18) (147) (100) (307)
Head Office in Vancouver - - - (5)
Cash used in investing activities (1,294) (5,470) (4,496) (7,812)
Increase (decrease) in cash and cash equivalents 5,373 784 (4,665) (5,673)
Cash and cash equivalents at the beginning of the period 5,051 9,341 9,341 15,014
Cash and cash equivalents at the end of the period 10,424 10,125 4,676 9,341
Cash and cash equivalents consist of:
Cash 9,821 9,821 9,821 9,036
Restricted cash 304 304 304 305
10,125 10,125 10,125 9,341
----- End of picture text -----

For the year ended June 30, 2020, the Selinsing Gold Mine generated net cash from operating activities of $6.27 million, an increase of $4.13 million as compared to $2.14 million of the prior year. Net cash used in investing activities for the year ended June 30, 2020 amounted to $5.47 million (year ended June 30, 2019: $7.81 million). Overall speaking, for the year ended June 30, 2020, cash and cash equivalents increased by $0.78 million as compared to a decrease of $5.67 million of the prior year.

For the year ended June 30, 2020, cash used in investing activities represented $4.06 million invested in Selinsing for sulphide project development and tailings storage facility upgrades (year ended June 30, 2019: $5.86 million), $1.26 million and $0.15 million invested in Murchison exploration and evaluation projects and Mengapur exploration and evaluation projects, respectively (year ended June 30, 2019: $1.64 million and $0.31 million, respectively).

Currents assets at June 30, 2020 were $25.12 million (June 30, 2019: $31.50 million). The decrease of $6.38 million was primarily due to drawdown of stockpiled ore for gold production of $5.29 million and reduction in finished gold inventory of $1.17 million.

Total assets at June 30, 2020 were $247.58 million (June 30, 2019: $251.28 million). The decrease of $3.70 million was primarily due to decrease in current assets of $6.38 million and increase in capitalized exploration and evaluation expenditures of $2.94 million.

Current liabilities at June 30, 2020 were $6.34 million (June 30, 2019: $6.98 million). The decrease of $0.64 million was primarily due to decrease in accounts payable and accrued liabilities of $0.91 million that was partially offset by increase in income tax payable of $0.39 million.

Total liabilities at June 30, 2020 were $21.16 million (June 30, 2019: $24.59 million). The decrease of $3.43 million was primarily due to decrease in current liabilities of $0.64 million, decrease in deferred revenue of $3.60 million as gold delivery took place pursuant to the prepaid gold sale arrangement and increase in deferred tax liabilities of $0.50 million.

At June 30, 2020, current assets exceeded current liabilities by $18.79 million (June 30, 2019: $24.52 million). The Company believes that this is sufficient to provide funding for shorter term items such as general administration, property care and maintenance and day-to-day production at Selinsing.

20 | P a g e

For the year ended June 30, 2020 (in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

With respect to longer term capital expenditure funding requirements, the Company considers the equity market as its primary source of funding for major capital projects. Another possible source of capital could be proceeds from the sale of non-core assets. These capital sources together with operating cash flow and the Company’s active management of its operations and development activities will enable the Company to maintain an appropriate overall liquidity position.

5. CAPITAL RESOURCES

The Company’s capital resources as at June 30, 2020 included cash and cash equivalents. The Company’s primary sources of funding are cash flow generated from the sale of gold, debt, equity financing through the issuance of stock, other financial arrangements that can be reasonably considered and available to provide financial resources to the Company. The Company exercises its best effort to seek and utilize its capital resources in an efficient manner in order to meet its business commitments including exploration and mineral property development, acquisitions, capital asset upgrades and working capital.

In January 2018, the Company entered into a $7.00 million gold prepaid sale agreement with Concept Capital Management (“CCM” or the “Purchaser”). Pursuant to that agreement, the Company’s Australian subsidiary, Monument Murchison Pty Ltd (the “Seller”) received a $7.00 million prepayment and committed to deliver a total 8,676 ounces of gold to the Purchaser, after a twelve month grace period effective January 23, 2018, over a 36-month period commencing February 28, 2019 to January 31, 2022. Due to postponed gold production at the Burnakura Gold Project, the gold delivery obligation has been taken over by the Company’s Malaysian subsidiary, Able Return Sdn Bhd, as a guarantor.

In August 2019, the Company provided a $1.5 million loan to CCM. On February 26, 2020, 983 ounces of gold at $1,635 per ounce pursuant to London Fix PM was deducted from the gold forward delivery obligation to fully settle the loan principal plus interest of $0.11 million.

As at June 30, 2020, the Company has delivered 3,856 ounces of physical gold to CCM out of the total 8,676 ounces of gold delivery obligation. After deducting the 983 ounces of gold used to offset the $1.5 million loan, the balance of gold delivery obligation was 3,837 ounces as of June 30, which are to be delivered at 241 ounces of gold per month till January 31, 2022, except that there is no delivery from July 2020 to September 2020 and only 222 ounces for October 2020.

In conjunction with the above transaction, the Company continues to seek additional funding to place its Selinsing Sulphide Project into production. The Company continues to assess the Burnakura early stage production decision. Upon success, this would potentially allow the Company to generate a second source of cash flow from Australian operations.

Figure16: Commitments and Contingencies (000’s)

	2021	2022	2023	2024	2025	Total
	$	$	$	$	$	$
Lease commitments	40	22	-	-	-	62
Mineral property obligations	1,081	788	617	568	617	3,671
Purchase commitments	1,106	35	7	4	4	1,156
Total	2,227	845	624	572	621	4,889

Lease commitments relate to future contractually obligated payments of a long-term office lease recognized as a right-of-use asset. Mineral property obligations include exploration expenditures and levies mandated by relevant government authorities to keep tenements in good standing. Purchase commitments are mainly related to operations carried out in Malaysia and Western Australia.

In addition to commitments outlined in the table above, the Company is obligated to deliver 3,837 ounces of gold related to the gold prepaid sale at 241 ounces of gold each month till January 31, 2022, except there is no delivery from July 2020 to September 2020 and only 222 ounces for October 2020.

6. OFF BALANCE SHEET ARRANGEMENTS

None.

7. TRANSACTIONS WITH RELATED PARTIES

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. Members of key management include five directors (executive and non-executive), the Chief Executive Officer (“CEO”), the Chief Financial Officer and the Vice President of Business Development who report directly to the CEO.

The remuneration of the key management of the Company as defined above including salaries, director fees and share-based payments is as follows:

21 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

Figure 17: Key management compensation (000’s)

	Three Months Ended	Three Months Ended	Year ended
	June 30, 2020	June 30, 2019	June 30, 2020	June 30, 2019
Salaries	255	264	945	978
Directors’ fees	35	33	138	136
Share-based payments	0	1	(4)	5
Total compensation	290	298	1,079	1,119

During the year ended June 30, 2020, $0.80 million (Year ended June 30, 2019: $0.39 million) was paid out in relation to legacy payments expensed in previous periods.

Amount due to related parties as at June 30, 2020 was $nil (June 30, 2019: $0.77 million), representing the legacy payment due to the CEO change announced on January 2, 2018 and directors’ fees of $0.04 million (June 30, 2019: $0.03 million).

Directors’ fees are paid on a quarterly basis. Any unpaid amounts due to directors are recorded in accrued liabilities and are unsecured and bear no interest.

8. SUBSEQUENT EVENTS

NA

9. CRITICAL ACCOUNTING ESTIMATES

Refer to Note 3 of the consolidated financial statements as at June 30, 2020. 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. The Company makes estimates and assumptions that affect amounts reported. Significant estimates and areas where judgment is applied include: accounting for gold prepaid sale arrangements, purchase price allocation and valuation of deferred exploration assets, ore reserve and mineral resource estimates, determination of useful lives for property, plant and equipment, inventory valuation, exploration and evaluation expenditures, impairment of non-current assets, provision for reclamation and remediation obligations, deferred taxes, share-based payments, derivative assets and liabilities, determination of commencement of commercial production, title to mineral properties, realization of assets, functional currency, business combinations and own use contracts. Actual results could differ from the Company’s use of estimates and judgements.

10. CHANGES IN ACCOUNTING POLICY INCLUDING INITIAL ADOPTION

On July 1, 2019, the Company adopted IFRS 16 - Leases ("IFRS 16") using the modified retrospective application method, with the cumulative effect of initially applying the standard recorded as an adjustment to retained earnings and no restatement of comparative information.

In transitioning to IFRS 16, the Company elected to apply the practical expedient to grandfather the assessment of which transactions are leases. It applied IFRS 16 only to contracts that were previously identified as leases. Contracts that were not identified as leases under IAS 17 and IFRIC 4 were not reassessed. Therefore, the definition of a lease under IFRS 16 has been applied only to contracts entered into or changed on or after July 1, 2019.

The Company has elected to measure its right-of-use assets at amounts equal to the associated lease liabilities as at the adoption date which, resulted in a $0.11 million increase in right-of-use assets (Note 8) and lease liabilities (Note 15), with no adjustment necessary to retained earnings.

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are charged directly the statements of comprehensive loss on a straight-line basis over the lease term.

The following table summarizes the difference between operating lease commitments disclosed immediately preceding the date of initial application and lease liabilities recognized in the consolidated statement of financial position at the date of initial application. The associated right-of-use assets were measured at the amount equal to the lease liability at July 1, 2019:

22 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

==> picture [494 x 93] intentionally omitted <==

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

$
Operating lease commitments as at June 30, 2019 248
Recognition exemption for :
Short term leases (4)
Leases of low value assets (20)
Commitments attributable to non-lease components (104)
Discount using the incremental borrowing rate as at Jul y 1, 2019 (5)
Lease liabilities recognized as at July 1, 2019 115
----- End of picture text -----

Right-of-use assets and lease liabilities are related to the Company’s building rental contract. The incremental borrowing rate for lease liabilities initially recognized on adoption of IFRS 16 was 2.9%.

Due to the recognition of additional right-of-use assets and lease liabilities, during the year ended June 30, 2020, depreciation expense increased by $0.04 million and nominal financing costs being recognized, respectively, under IFRS 16 compared to the previous standard. Additionally, operating cash flows increased by $0.04 million with a corresponding $0.04 million increase in financing cash outflows.

Right-of-use assets are presented in the same line item as it presents underlying assets of the same nature that it owns. The Company presents lease liabilities in the statement of financial position.

11. FINANCIAL INSTRUMENTS – RISK EXPOSURE AND OTHER INSTRUMENTS

The Company’s financial instruments are classified and subsequently measured at amortized cost and include cash and cash equivalents, restricted cash, trade and other receivables, and accounts payable and accrued liabilities. Refer to the consolidated financial statements as at June 30, 2020 for the details of the financial statement classification and amounts of income, expenses, gains and losses associated with the relevant instruments. Details provided include a discussion of the significant assumptions made in determining the fair value of financial instruments. The Company’s financial instruments are exposed to certain financial risks, including market risk, credit risk, and liquidity risk as outlined below.

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. The Company mitigates market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

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. The Company operates in Canada, Australia and Malaysia whereby operations sell commodities and incur costs in different currencies. This creates exposure at the operational level, which may affect the Company’s profitability as exchange rates fluctuate. The Company has not hedged its exposure to currency fluctuations.

Exposure to the Canadian dollar is through corporate administration costs. The Company has exposure to the Australian dollar through the Company’s Australian operations. The Company has exposure to the Malaysian Ringgit through the Company’s Malaysian operations. The Malaysian Ringgit strengthened slightly during the second quarter compared with the USD and CAD. A stronger Malaysian Ringgit increases costs in US dollar terms at the Company’s Malaysian operations.

Based on the above net exposures as at June 30, 2020 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 $0.09 million (June 30, 2019: $0.12 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 $0.04 million (June 30, 2019: increase/decrease $0.04 million) in net income and a 5% depreciation or appreciation of the AUD against the US dollar would result in an increase/decrease of approximately $0.01 million (June 30, 2019: increase/decrease $0.01 million) in net income.

23 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

==> picture [500 x 152] intentionally omitted <==

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

1.50 4.50
4.25
1.40
4.00
1.30
3.75
1.20 3.50
USD to CAD USD to RM
Canadian dollar (CAD) Malyasian Ringit (RM)
----- End of picture text -----

Commodity price risk

For the year ended June 30, 2020, the Company’s revenues and cash flows were impacted by fluctuation in gold prices. For the year ended June 30, 2020, gold prices fluctuate within the range of $1,389 to $1,772 per ounce (fiscal 2019: $1,178 to $1,431 per ounce) based on London Fix PM prices. The Company has not hedged its exposure to commodity price fluctuations.

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 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 investments of financial instruments included in cash and cash equivalents is relatively unaffected by changes in short-term interest rates. 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. The maximum exposure to credit risk is the carrying amounts as at June 30, 2020. An amount of $1.00 million (June 30, 2019: $0.52 million) is held with a Malaysian financial institution, $0.15 million (June 30, 2019: $0.06 million) with an Australian financial institution and $8.98 million (June 30, 2019: $8.76 million) is held with Canadian financial institutions. To mitigate exposure to credit risk, the Company has established policies to limit the concentration of credit risk to ensure counterparties demonstrate minimum acceptable credit worthiness and to ensure liquidity of available funds.

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 effective management of its capital structure together with 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.

24 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020

(in United States dollars, except where noted)

12. OUTSTANDING SHARE DATA

The following details the share capital structure as at September 15, 2020, the date of this MD&A.

Figure 20: Share capital structure

==> picture [496 x 71] intentionally omitted <==

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

Common shares (1) Quantity
Issued and outstanding 328,071,563
Restricted share units Quantity
15,523,466
----- End of picture text -----

(1) 7,000,000 common shares are held in escrow in relation to the Intec Transaction. The terms of the escrow period have been extended to January 16, 2022.

13. RISKS AND UNCERTAINTIES

Monument Mining Limited is a mineral exploration, development and gold production company. The exploration for and development of mineral deposits involves significant risks which even with a combination of careful evaluation, experience and knowledge may not be eliminated. While the discovery of a mineral deposit may result in substantial rewards, few properties which are explored are ultimately developed into production. Significant expenses may be required after initial acquisition investment to establish ore reserves, to develop metallurgical processes and to construct mining and processing facilities at a particular site. It is impossible to ensure that the current exploration programs planned by the Company will result in the discovery of mineral resources or a profitable commercial mining operation, and, on an industry statistical basis, it is unlikely that an economic operation will be developed.

Whether a mineral deposit, if ever discovered, will be commercially viable depends on a number of factors, some of which are the particular attributes of the deposit, such as size, grade and proximity to infrastructure together with the impact on mineability and recoverability as well as metal prices which are highly cyclical. Government regulations are significant factor to consider, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. The exact effect of these factors cannot be accurately predicted but the combination of these factors may result in the Company not receiving an adequate return on invested capital.

The Company has gold production at its Selinsing gold mine. The profitability of production is dependent on various factors that may not be controllable by the Company.

Some major risks associated with the business are, but not limited to, the following:

Title to mineral property interests

Although the Company has taken steps to verify the title to its mineral property interests in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to administrative delays common in Malaysia, unregistered prior agreements or transfers and title may be affected by undetected defect or litigation.

To the Company’s best knowledge, title to its mineral properties is in good standing.

Realization of assets

Mineral property interests comprise a significant portion of the Company’s assets. Realization of the Company’s investment in these assets is dependent upon the establishment of legal ownership, obtaining permits, compliance with governmental requirements, potential aboriginal claims as well as achieving profitable production from the properties or from the proceeds of their disposal.

Reserves and resource estimates

There is a degree of uncertainty attributable to the estimation of mineral reserves and mineral resources and the corresponding grades. Mineral reserve and resource estimates are dependent partially on statistical information drawn from drilling, sampling and other data. Reserve and resource figures set forth by the Company are estimates and there is no certainty that the mineral deposits would yield the production of metals indicated by reserve and resource estimates. Declines in the market price for metals may adversely affect the economics of a mineral deposit and may require the Company to reduce its estimates. Changes in gold recovery rates during milling and especially the impact of Intec Technology on treatment of gold sulphides may also adversely affect the viability of reserves and resources.

Profitability from production

The profitability of mining companies depends in part, on the actual costs of developing and operating mines, which may differ significantly from estimates determined at the time a relevant mining project was approved or ongoing projections. The development of mining

25 | P a g e

For the year ended June 30, 2020 (in United States dollars, except where noted)

MANAGEMENT’S DISCUSSION & ANALYSIS

projects may also be subject to unexpected problems and delays that could increase the cost of development as well as the ultimate operating cost of relevant projects. Monument’s decision to acquire, develop a mineral property and operate for production is based on estimates made as to the expected or anticipated project economic returns. These estimates are based on assumptions regarding:

• future gold prices;

• anticipated tonnage, grades and metallurgical characteristics of the ore to be mined and processed;

• anticipated recovery rates of gold extracted from the ore;

• anticipated material and spares cost associated with production, and

• anticipated capital expenditure and cash operating costs.

Actual cash operating costs, production and economic returns may differ significantly from those anticipated by such estimates.

Environmental

Environmental legislation is becoming increasingly stringent and costs and expenses of regulatory compliance are increasing. The impact of new and future environmental legislation that are relevant to the Company’s operations may cause additional expenses and restrictions. If the restrictions adversely affect the scope of exploration and development on mineral properties, potential for a commercially viable production may diminish or be negated.

The Company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates, including provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may also be held liable should environmental problems be discovered that were caused by former owners and operators of its properties. Environmental liability may still exist for properties that the Company had a prior ownership or participating interest. The Company conducts its mineral exploration activities in compliance with applicable environmental protection legislation. The Company is not aware of any existing environmental problems related to any of its current properties.

Additional funding for mineral property pipelines

The Company will continue to assess targets to increase its mineral resource base. Additional capital may be required from time to time to provide funding for acquisitions and development in order to carry out its business strategy. The additional capital may come from public markets, debt financing and cash flows generated from current production, which are largely influenced by global and regional economies which are out of the Company’s control. Management has successfully mitigated those risks in the past through exercise of due care, experience and knowledge; however, those factors do not guarantee such risks will be successfully mitigated in the future.

Foreign operations

The Company's properties are located in Malaysia and Western Australia. The Company has historically received strong support from the local, state and federal governments for its gold mine development and operation. However, the political risk is considered external and not within the control of the Company.

The Company's mineral exploration and mining activities may be affected in varying degrees by risks associated with foreign ownership including inflation, political instability, political conditions and government regulations. Any changes in regulations or shifts in political conditions are beyond the Company's control and may adversely affect the Company's business. Operations may be affected by government regulations with respect to restrictions on foreign exchange and repatriation, price controls, export controls, restriction of earnings distribution, taxation laws, expropriation of property, environmental legislation, water use, mine safety and renegotiation or nullification of existing concessions, licenses, permits, and contracts.

The regulations the Company shall comply with in Malaysia include, but not limited to, the Mineral Enactment Act 2001, Mineral Development Act 2004, Environmental Quality Regulations 1978, The Planning Guideline for Environmental Noise Limit and Controls, Factories and Machinery Act 1967, Occupational Safety and Health Act 1994, Income Tax Act 1967, Finance Act 2017, the Goods and Services Tax Act 2014 and Employment Act 1955.

The regulations the Company shall comply with in Western Australia include, but not limited to, Mines Safety and Inspection Act 1994, Dangerous Goods Safety Act 2004, Environmental Protection Act 1986, Corporations Act – Corporations (Western Australia) Acts 1961 and 1981, Income Tax – Income Tax Act 1962, Fringe Benefit Tax Assessment Act 1986, Payroll Tax Assessment 2002, Goods & Services Act 1999 and Fair Work Act 2009.

Failure to comply with applicable laws, regulations and local practices relating to mineral rights applications and tenure could result in loss, reduction or expropriation of entitlements, or closure of operations. The occurrence of these various factors and uncertainties cannot be accurately predicted and could have an adverse effect on the Company's operations or profitability.

14. NON-IFRS PERFORMANCE MEASURES

This Management’s Discussion and Analysis refers to cash costs per ounce sold, all-in sustaining costs per ounce sold (“AISC”), sustaining capital expenditures and exploration and evaluation expenditures included in AISC calculations. These are measures with no standardized

26 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS

For the year ended June 30, 2020 (in United States dollars, except where noted)

meaning under International Financial Reporting Standards (“IFRS”), i.e. they are non-IFRS measures, and may not be comparable to similar measures presented by other companies. Their measurement and presentation are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cash cost per ounce sold

The Company has included the non-IFRS performance measure “cash cost per ounce sold”. This non-IFRS performance measure does not have any standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. This measure is used by management to identify profitability trends and to assess cash generating capability from the sale of gold on a consolidated basis in each reporting period, expressed on a per unit basis. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance. Accordingly, unit cash cost per ounce of gold sold is intended to provide additional information and should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. More specifically, management believes that these figures are a useful indicator to investors and management of a mine's performance as they provide: (i) a measure of the mine's cash margin per ounce, by comparison of the cash operating costs per ounce to the price of gold, (ii) the trend in costs as the mine matures and, (iii) an internal performance benchmark to allow for comparison against other mines. Total cash cost includes mine site operating costs such as mining, processing, administration and royalties, offset by sales of silver by-product, and excludes amortization, depletion, reclamation, idle production costs, capital costs, exploration costs and corporate administration costs.

All-in sustaining cost per ounce sold

The Company reports all-in sustaining costs on a gold ounce sold basis. This performance measure has no standardized meaning and may not be comparable to similar measures presented by other issuers or used as a substitute for performance measures prepared in accordance with IFRS. The Company follows the guidance announced by the World Gold Council (“WGC”) in September 2013 and updated in November 2018. The WGC is a non-profit association of the world’s leading gold mining companies established in 1987 to promote the use of gold to industry, consumers and investors. The WGC is not a regulatory body and does not have the authority to develop accounting standards or disclosure requirements. The WGC has worked with its member companies to develop a measure that expands on IFRS measures such as operating expenses and non-IFRS measures to provide visibility into the economics of a gold mining company. All-in sustaining costs are calculated by taking total cash costs and adding sustaining capital expenditures, corporate administrative expenses at the Selinsing Gold Mine including share-based compensation, exploration and evaluation costs, and accretion of asset retirement obligations. Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at the Selinsing Gold Mine and exclude all expenditures for major growth or infrastructure projects and non-producing projects. Certain other cash expenditures, including tax payments and acquisition costs, are also excluded. The Company believes that this measure represents the total costs of producing gold from current operations and provides the Company and other stakeholders of the Company with additional information of the Company’s operational performance and ability to generate cash flows.

15. DISCLOSURE CONTROLS AND INTERNAL CONTROLS OVER FINANCIAL REPORTING

Disclosure controls and procedures

Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to senior management, including the Chief Executive Officer (“CEO”) and the Chief Financial Officer (“CFO”) on a timely basis so that appropriate decisions can be made regarding public disclosure.

27 | P a g e

MANAGEMENT’S DISCUSSION & ANALYSIS For the year ended June 30, 2020

(in United States dollars, except where noted)

CAUTION ON FORWARD LOOKING STATMENTS

All statements, other than statements of historical fact, contained or incorporated by reference in this Management’s Discussion and Analysis, but not limited to, any information as to the future financial or operating performance of Monument, constitute ‘‘forward-looking information’’ within the meaning of Canadian securities legislation and ‘‘forward-looking statements’’ within the meaning of the United States Private Securities Litigation Reform Act of 1995 (referred to herein as “forward-looking statements”). These statements are based on expectations, estimates and projections as of the date of this Management’s Discussion and Analysis. Forward-looking statements include, without limitation, statements with respect to: possible events; estimates of construction, commissioning and production of the gold treatment plant at Selinsing Gold Mine Project; exploration results and budgets; mineral reserve and resource estimates; capital expenditures; strategic plans; proposed financing transactions; the timing and amount of estimated future production; costs of production; mine life; success of exploration, development and mining activities; permitting timelines; estimates of fair value of financial instruments; currency fluctuations; requirements for additional capital; government regulation and permitting of mining operations and development projects; environmental risks; unanticipated reclamation expenses; litigation, title disputes or other claims; and limitations on insurance coverage. The words ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘is expected’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘guidance’’, ‘‘targets’’, ‘‘models’’, ‘‘intends’’, ‘‘anticipates’’, or ‘‘does not anticipate’’, or ‘‘believes’’, or variations of such words and phrases or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘should’’, ‘‘might’’, or ‘‘will be taken’’, ‘‘occur’’ or ‘‘be achieved’’ and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Monument as of the date of such statements, are inherently subject to significant business, political, economic and competitive uncertainties and contingencies. The estimates and assumptions of Monument contained or incorporated by reference in this Management’s Discussion and Analysis, which may prove to be incorrect, include, but not limited to, the various assumptions set forth herein, or as otherwise expressly incorporated herein by reference as well as: (1) there being no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; (2) permitting, development, operations, expansion and acquisitions at Malaysia (including, without limitation, land acquisitions for and permitting and construction of new tailings facilities) being consistent with our current expectations; (3) development of the Phase IV plant expansion on a basis consistent with Monument’s current expectations; (4) the viability, permitting and exploration of Mengapur project being consistent with Monument’s current expectations; (5) political developments in Malaysian jurisdiction in which the Company operates being consistent with its current expectations; (6) the exchange rate between the Canadian dollar, Malaysian ringgit, Australian dollar and the U.S. dollar being approximately consistent with current levels; (7) certain price assumptions for gold; (8) prices for natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (9) production and cost of sales forecasts for Selinsing operations meeting expectations; (10) the accuracy of current mineral reserve and mineral resource estimates for the Company and any entity in which it now or hereafter directly or indirectly holds an interest; (11) labour and materials costs increasing on a basis consistent with Monument’s current expectations; (12) outcomes and costs of ongoing litigation. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but not limited to: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates that could impact the mark-to-market value of outstanding derivative instruments; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-tomarket risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, Malaysia, Australia or other countries in which the Company conducts business or may carry on business in the future; business opportunities that may be presented to, or pursued by, the Company; the Company’s ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; the speculative nature of gold exploration and development, including the risks of obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and expected costs, developments and outcomes of ongoing litigation and other contests over title to properties,. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect, and could cause, Monument’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Monument. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this Management’s Discussion and Analysis are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada including, but not limited to, the cautionary statements made in the ‘‘Risk Factors’’ section. These factors are not intended to represent a complete list of the factors that could affect Monument. Monument disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent occurrence of events and such forward-looking statements, except to the extent required by applicable law.

Other information

Where we say ‘‘we’’, ‘‘us’’, ‘‘our’’, the ‘‘Company’’, or ‘‘Monument’’ in this Management’s Discussion and Analysis, we mean Monument Mining Limited and/or one or more or all of its subsidiaries, as may be applicable.

28 | P a g e