Mr. Robert Baldock reports

MONUMENT REPORTS SECOND QUARTER FISCAL 2015 RESULTS; GROSS REVENUE OF $13.8 MILLION, NET PROFIT OF $3.1 MILLION AND CASH COST OF US$597/OZ

Monument Mining Ltd. has released its second quarter production and financial results for the three and six months ended Dec. 31, 2014. All amounts are in United States dollars unless otherwise indicated (refer to SEDAR for full financial results).

Second quarter highlights:

• Gold production of 9,950 ounces (Q2 fiscal 2014: 8,588 ounces);
• Cash cost per ounce of $597/ounce (Q2 fiscal 2014: $650/ounce);
• Gross revenue from gold sales of $13.83-million on 11,400 ounces sold (Q2 fiscal 2014: $8.34-million on 6,482 ounces sold);
• Net profit of $3.1-million (Q2 fiscal 2014: $1.5-million);
• Profit from gold production of $4.54-million (Q2 fiscal 2014: $2.53-million);
• Average ore head grade of 1.46 grams per tonne Au (Q2 fiscal 2014: 1.13 g/t Au);
• Processing recovery rate of 84.59 per cent (Q2 fiscal 2014: 70.98 per cent);
• Completed acquisition of the Tuckanarra gold project in Western Australia;
• Initiated the stage 1 laboratory testwork of the Intec commercialization trial at Selinsing mine.

                               SECOND QUARTER PRODUCTION AND FINANCIAL HIGHLIGHTS

                                                       Three months ended Dec. 31,      Six months ended Dec. 31,
                                                             2014            2013            2014           2013
Production
Ore mined (tonnes)                                         89,667         153,207         164,051        303,392
Ore processed (tonnes)                                    233,799         265,814         487,313        501,623
Average mill feed grade (g/t)                                1.46            1.13            1.56           1.33
Mill utilization (per cent)                                 90.30%          96.75%          91.40%         94.02%
Processing recovery rate (per cent)                         84.59%          70.98%          84.48%         75.77%
Gold poured (recovered) (ounces)                            9,272           8,120          20,596         17,752
Gold production (1) (ounces)                                9,950           8,588          19,696         19,103
Gold sold (ounces)                                         11,400           6,482          17,700         18,720
Financial (in thousands  of U.S. dollars)
Revenue                                                   $13,830          $8,340         $22,009        $24,342
Net income before other items                               3,128             899           4,329          3,558
Net income                                                  3,058           1,452           4,583          3,194
Cash flows from operations                                  9,621           2,899          11,269          7,354
Working capital excluding derivative liabilities           35,493          61,352          35,493         61,352
Earnings per share before other items -- basic
(U.S. $/share)                                               0.01            0.00            0.02           0.01
EPS -- basic (U.S. $/share)                                  0.01            0.01            0.02           0.01
Other (U.S. $/ounce)
Average realized gold price per ounce sold                  1,213           1,287           1,243          1,300
Cash cost per ounce (2)
Mining                                                        230             221             243            185
Processing                                                    305             337             328            294
Royalties                                                      61              90              62             74
Operations, net of silver recovery                              1               2               1              1
Total cash cost per ounce                                     597             650             634            554

(1) Defined as good-delivery gold bullion according to the London Bullion Market Association, net of gold dore 
    in transit and refinery adjustment.
(2) Total cash cost includes production costs such as mining, processing, tailings facility maintenance and camp
    administration, and royalties, and operating costs such as storage, temporary mine production closure, 
    community development cost and property fees, net of byproduct credits. Cash cost excludes amortization, 
    depletion, accretion expenses, capital costs, exploration costs and corporate administration costs.

Production results

Gold production for the quarter, net of gold dore in transit and refinery adjustment, was 9,950 ounces (this is defined as good-delivery gold bullion according to the London Bullion Market Association), a 16-per-cent increase compared with 8,588 ounces in the corresponding period last year, mainly due to higher average ore head grade in the current period. Plant throughput from the Selinsing gold processing plant decreased by 12 per cent to 233,799 tonnes for the quarter compared with 265,814 t for the same period last year, primarily due to downtime from heavy rainfall during the monsoon season. Gold recovery increased by 36 per cent for the current quarter to 9,272 ounces (Q2 fiscal 2014: 6,825 ounces), average ore head grade increased by 29 per cent to 1.46 g/t Au (Q2 fiscal 2014: 1.13 g/t Au), and process recovery rate increased by 19 per cent to 84.59 per cent (Q2 fiscal 2014: 70.98 per cent), compared with the corresponding period last year, reflecting improved performance of the plant. For the six months ended Dec. 31, 2014, gold production was 19,696 ounces from plant throughput ore of 487,313 t at an average head grade of 1.56 g/t Au compared with gold production of 19,103 ounces from plant throughput ore of 501,623 t at an average head grade 1.33 g/t Au for the six months ended Dec. 31, 2013.

Financial results and discussion

For the second quarter of fiscal 2015, net income was $3.06-million, or one cent per share (basic), compared with net income for the corresponding period last year of $1.45-million or one cent per share (basic). The increase in earnings quarter over quarter is primarily due to an increase of gold sold and a 14-per-cent reduction in corporate costs to $1.41-million in Q2 fiscal 2015 (Q2 fiscal 2014: $1.63-million). For the six months ended Dec. 31, 2014, net income was $4.58-million or two cents per share (basic) compared with net income for the corresponding period last year of $3.19-million or one cent per share (basic). The increase in earnings for the six-month period ended Dec. 31, 2014, is primarily due to a reduction in corporate cost, offset by lower gross margin from mining operations.

Gold sales generated $13.83-million for the quarter compared with $8.34-million in the corresponding period last year. The revenue comprised 11,400 ounces of gold sold (Q2 fiscal 2014: 6,482 ounces) for the quarter. The increase in revenue was mainly due to higher gold sales resulted from timing, partially offset by the lower average realized gold price of $1,213 per ounce (average London p.m. fix: $1,201 per ounce) for the second quarter of fiscal 2015 compared with $1,287 per ounce from the same period of fiscal 2014 (average London p.m. fix: $1,276 per ounce), and timing of gold sales and out-turn. The price of gold is a significant factor affecting the company's profitability and operating cash flows. For the six months ended Dec. 31, 2014, revenue from gold sales was $22.01-million compared with $24.34-million for the same period last year. The decrease in revenue was due to the decrease in ounces sold (17,700 ounces compared with 18,720 ounces) and lower average realized gold price ($1,243 per ounce compared with $1,300 per ounce).

The cash cost per ounce of gold sold in the second quarter of fiscal 2015 was $597 per ounce, compared with $650 per ounce for the corresponding period last year. The decrease resulted primarily from lower processing costs and royalties on a per-ounce basis, offset by higher mining costs. On a per-tonne basis, mining costs were higher due to longer distances now required for hauling. In addition, drill and blast costs were also higher due to mining at Buffalo Reef, and harder sulphide ore and deeper drilling at Selinsing. The decrease in processing costs per ounce was mainly due to higher-grade mill feed from stockpiled materials that were previously discharged from the mill in the early stage of production. For the six months ended Dec. 31, 2014, cash cost per ounce was $634/ounce compared with $554/ounce in the same period of the prior fiscal year.

For the three and six months ended Dec. 31, 2014, cash in the amount of $9.62-million and $11.27-million was generated from operations, respectively (Q2 fiscal 2014: $2.90-million; six months ended Dec. 31, 2013: $7.35-million). As at Dec. 31, 2014, the company had positive working capital of $35.49-million compared with $37.05-million as at June 30, 2014. The decrease of $1.56-million was mainly the result of investing activities carried out by the company to expand the mineral base and project pipeline.

Research and development

Treatment of Selinsing and Buffalo Reef sulphide ore

As mining enters the oxide/sulphide transition zone, the Selinsing gold processing plant is no longer treating high-grade, high-recovery oxide ores, but lower-grade, leachable sulphide ores. Refractory sulphide mineralization will require different treatment to sustain gold production. The company has engaged highly experienced senior metallurgists and is carrying out parallel studies for several alternatives including a flotation approach to produce gold or gold concentrate, plus a halide-leaching and bio-heap-leaching approach without flotation. A bio-leach plant was recommended by the May, 2013, National Instrument 43-101 report to treat sulphide materials that could achieve satisfactory recoveries. Due to a high upfront investment, the research and development program is pursuing other better treatment alternatives targeting lower capital investment.

Subsequent to the quarter, on Feb. 2, 2015, the company announced it has been granted an interim from Intec International Projects Pty. Ltd., under which Monument has the right to exploit and test the Intec technology in respect of both copper and gold processes, and to use the Selinsing gold process plant as an alpha site. Subject to success of the trial commercialization testwork and certain conditions, Monument will obtain the licence rights to exploit the Intec technology in respect to an agreed territory which covers most of Southeast Asia, including Malaysia, Australia and China. The Intec technology is under several registered patents, and is a hydrometallurgical process using a mixed halide lixiviant for the extraction of pure copper, precious metals and associated metals from sulphide concentrates. Management of Monument is of the view that the Intec technology, among other alternatives, might provide an economic solution to treat sulphide materials through Monument's Selinsing gold plant and for other gold projects.

Development at the Mengapur project

The Mengapur project continues to represent a very significant opportunity for a long-term mining asset owned by the company with downstream commodity products. During the six months ended Dec. 31, 2014, the company completed resource definition drilling for oxide iron materials in the overburden of area C of the Mengapur project, studied the production alternatives including copper, and made considerable progress in refurbishing and upgrading its 1,000-tonne-per-day beneficiary iron and copper flotation pilot plant. However, due to the recent dramatic decline in iron ore price and volatility in copper price, the plant development and production have been placed on hold.

Acquisitions

Tuckanarra gold project

On Aug. 28, 2014, the company entered into the tenement purchase agreement with Phosphate Australia Ltd. (Pounce) to acquire a 100-per-cent interest in the Tuckanarra gold project, consisting of two exploration licences, six prospecting licences and a mining lease covering a total of 416 square kilometres in the Murchison mining district in Western Australia, and containing historical indicated and inferred Joint Ore Reserves Committee-compliant resources. The transaction was closed on Nov. 13, 2014. In consideration for Tuckanarra, the company paid a total of $2.0-million (Australian) in cash and issued 10 million fully paid common shares at a deemed issue price of 25 Canadian cents per share. The company is now reviewing the exploration program for confirmation, infill and step-out drilling to confirm, extend and consolidate gold resources to its inventory for production using its Burnakura process facility.

Gascoyne joint venture acquisition and private placement

This proposed transaction was announced on Sept. 4, 2014, pursuant to the heads of agreement entered into by Monument and Gascoyne Resource Ltd. On Dec. 23, 2014, Monument and Gascoyne mutually agreed to terminate the heads of agreement for the previously announced proposed transaction between the two companies, due to the fact that certain conditions precedent to the completion of the transaction had not been met. As a result of the termination, Monument will not be obligated to participate in any further placements of Gascoyne shares but remains with the previously purchased four million Gascoyne ordinary shares. Gascoyne retains control of its mineral properties including the Glenburgh, Dalgaranga and Mt. Egerton in the Gascoyne and Murchison regions, Western Australia.

Exploration progress

Several favourable drilling results were announced during or subsequent to the second quarter, confirming historical resources at the Alliance and New Alliance areas, and the mineral resource estimates were announced in February, 2015, subsequent to the quarter ended Dec. 31, 2014, indicating that the total contained gold ounces have been increased by 15 per cent as compared with the historical estimate inventory. An NI 43-101-compliant technical resource report is expected to be released within 45 days.

Exploration activities at Murchison during the quarter included the completion of the initial drill program designed to validate the historical resource, increase the grade and geological continuity of the mineralization through infill drilling, test for resource extensions, and define further exploration targets. The initial program consisted of 102 reverse circulation drill holes for 9,340 metres at Alliance and New Alliance, and 50 RC drill holes for 3,833 m were completed during the quarter. A program of six PQ diamond drill holes was also planned across varying grades within the deposit to test metallurgical recoveries and aid in process flow designs for the Burnakura carbon-in-leach/carbon-in-pulp plant for more efficient outcomes. During the second quarter of fiscal 2015, the company also continued drilling on the Federal City program and completed 58 RC drill holes for a total of 3,609 m. Favourable assay results were announced subsequent to the quarter.

Exploration for fiscal 2015 in the Malaysia region is focused on replacement of oxide ore and further studies of regional geological structures to effectively define new targets. During the second quarter of fiscal 2015, two Desco drill rigs continued exploration drilling at the Perangih prospect and West Panau area along trend from Buffalo Reef North; four drill holes were drilled for 175 m, and 921 samples related to exploration activities were dispatched to the SGS laboratory situated at Mengapur. Among 15 drill holes for 1,299 m of metallurgy drilling completed during the quarter, four drill holes totalling 287 m and 261 samples were directly related to Intec sampling for stage 1 laboratory testwork.

We seek Safe Harbor.