Mr. Richard Cushing reports

MONUMENT LITIGATION UPDATE

The trial for the 5-per-cent joint venture claim against Monument Mining Ltd. originally scheduled on July 28, 2015, to July 31, 2015, was taken off the trial list by the Shah Alam High Court pending disposal of the application for a stay of proceeding filed by Monument, Able Return Sdn. Bhd. and Selinsing Gold Mine Manager Sdn. Bhd. In addition, the company acknowledges that the former partners of Arci Enterprises have filed a claim against Selinsing Mining Sdn. Bhd., the plaintiff in the 5-per-cent JV suit. Monument and its wholly owned Malaysian subsidiaries ARSB and SGMM have also been named as a defendant in the suit by Arci.

Hearing of Monument's stay application on the 5-per-cent JV claim

The 5-per-cent JV suit is described in the company's news release of Jan. 19, 2015. The Shah Alam High Court originally fixed July 28, 2015, to July 31, 2015, for the trial with respect to the 5-per-cent JV suit. The hearing dates have been taken off the trial list by the court pending hearing of the stay of proceeding application filed by Monument, which is fixed on Aug. 12, 2015.

One of the grounds for Monument's application for a stay of proceedings is due to the continuing Kuantan High Court suit, described in the company's news release of Feb. 16, 2015, wherein Monument and ARSB are seeking for the return of 100 per cent of the issued shares of SMSB from Kesit Pty. Ltd., the present 100-per-cent shareholder of SMSB. Kesit is a private Australian company owned by Peter Kestel and his wife. Kesit's recent application to transfer the Kuantan matter out to the Kuala Lumpur High Court was dismissed by the Kuantan High Court on July 8, 2015.

The Arci suit

Hong Teck, Yee Fook Choy, Yee Choong Khoon and Yong Choong Yim (as the administrator of the estate of Yong Kat Keong), in their capacities as former partners of Arci, have filed a suit against the TRA Mining (Malaysia) Sdn. Bhd., SMSB (the plaintiff in the 5-per-cent JV suit), Monument, and its subsidiaries ARSB and SGMM in the Shah Alam High Court, Malaysia, writ of summons No. 22NCvC-291-05/2015. Peter Steven Kestel is the director in both TRA and SMSB. The Arci suit alleges, among other things, that Arci continued to hold title to MC 1/113, one of the mining leases that Monument acquired from SMSB (the holder of the sublease of MC 1/113) in June, 2007, and that ownership of such lease gives Arci rights to the profits generated under the claimed mining lease. In fact, the mining lease claimed by Arci was forfeited by the Pahang state government in 2008. Subsequently, a new mining lease was directly granted to ARSB, long before commencement of the gold production. The Arci claim is the latest in a series of litigation between Arci, a group of local miners, SMSB and TRA, which has been in progress in Malaysia since approximately 1998. Monument denies that it or Able has any liability with respect to the Arci claim and intends to vigorously defend this claim.

We seek Safe Harbor.