Dear <<First Name>>,
June 19 2012
Monument and PLSB Working Together Harmonizing Oxide Magnetite Iron Ore Operation
Release #12 - 2012
Vancouver, B.C., Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) announces that the Company held a meeting with Phoenix Lake Sdn. Bhd. (“PLSB”) to harmonize magnetite iron ore operations at the designated area of the Mengapur Project in Pahang State, Malaysia, in which the Company has a 70% interest except for the free digging oxide magnetite iron ore material covering the skarn.
As result of the meeting, Monument and PLSB have reached an agreement in principle that Monument would be the sole operator of the oxide magnetite iron ore operation and ensure that (1) PLSB will continue to participate in the oxide magnetite iron ore operation as contractor and retain the right to share profits; (2) other metals contained in the mined oxide magnetite iron ore material remain with the owner of the Mengapur Project; and (3) the environment is safeguarded. The agreement will be documented and disclosed when it is dully signed.
PLSB was carrying out the oxide magnetite iron ore operation at a certain designated area of the Mengapur Project pursuant to an Iron Ore Agreement with the previous owner, which was terminated by MMSB, the successor of the Operator of the Mengapur Project. Subsequent to closing of the 70% Mengapur Project acquisition MMSB advised due to PLSB’s fundamental breach of the terms of this agreement including, but not limited to, extracting and removing other metals, noncompliance with certain environmental conditions and defaulting on consideration payments in exchanging the exclusive rights, such breach has caused total damages totalling an estimated $312 million during a twelve month period up until January 2012 to CASB, the owner of the mining lease, and potentially to Pahang State of Malaysia as a royalty recipient. Similar losses would have continued if PLSB were allowed to operate at the Mengapur property without a change in operating procedure. In response, PLSB filed legal claim against the Company and two of its subsidiaries, Cermat Aman Sdn. Bhd. (“CASB”) and Monument Mengapur Sdn. Bhd. (“MMSB”) for damages over $130 million.
The above meeting was called immediately to reconcile the dispute. Both parties have agreed to act in good faith in harmonizing the oxide magnetite iron ore operation for the best interest of both stakeholders, all major terms of an agreement have been reached and all legal claims will be dropped immediately after the agreement is duly signed as quick as possible.
Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 910- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1
For further information contact:
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX VentureExchange) accepts responsibility for the adequacy or accuracy of this release."
This news release contains forward-looking information about Monument Mining Limited ("Monument"), its business and future plans. The use of words such as "would", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking information. Forward-looking information in this news release includes statements with respect to the completion and the timing of the Summary Report, the financing,, the results of due diligence and the Summary Report, the entering into of a definitive agreement and the closing of the proposed acquisition of the Project. The following are some of the assumptions upon which forward-looking information is based: that general business and economic conditions remain stable; continuing demand for, and stable or improving prices of gold; receipt of regulatory and government approvals in a timely manner; the availability of financing; Monument's ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; Monument's ability to attract and retain skilled personnel; the accuracy of the company's resources estimates and the accuracy of the historical estimates in the Study; the estimated cash cost per ounce of gold production and the estimated cash flows which may be generated from the operations. Actual results could differ materially from those anticipated in this forward-looking information as a result of risks and uncertainties, including: volatility in the price of gold; risk inherent in mineral exploration and development; uncertainties associated with the estimating of mineral resources, and in particular the historical estimates in the Study; competition for capital and skilled personnel; geological technical and drilling problems; general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; foreign operations risks; other risks inherent in the mining industry and other risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR at www.sedar.com.. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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