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Monument to Raise $12.0 M in Convertible Debenture and Forward Gold Sale

December 21, 2009

Release #11 - 2009

Vancouver, B.C. Monument Mining Limited (TSX-V: MMY and FSE: D7Q1) (“Monument” or the “Company”) announces that it has signed Term Sheets with Peter Beck Performance Fonds GbR (the “Lender”), a German based company, to raise up to $12.0 million new capital comprised of a convertible note up to $7 million (the “Convertible Note”) and a forward sale of gold up to $5 million (the “Forward Sale”). 

The Convertible Note of up to $7 million has a term of five years and a day from the date of the issuance and must be repaid by the Company at the end of the term in cash or gold at the option of the Lender at 121.6% of the principal amount. The Lender may, at any time, convert the Convertible Note into units at a price of $0.40 per unit with each unit comprising one common share of the Company and one common share purchase warrant. Each whole share purchase warrant is exercisable at $0.50 per share, expiring five years from the date of issuance of the Convertible Note. As an inducement to enter into the subscription agreement for the Convertible Note, the Company will offer to sell the Lender 5,000 ounces of gold at a price of $1,000 per ounce and 2,500 ounces of gold at a price of $1,250 per ounce, which offer the Lender may accept at any time during the term of the Convertible Note.

The Term Sheet for the Forward Sale provides for the advance of $5 million to Monument. Repayment of the advance will be made in gold. The Forward Sale has a term of five years and a day with the Lender having the right to call for repayment after 3 years under certain conditions. Warrants for the purchase of 5 million common shares with the same terms as described in connection with the Convertible Note above will be issued to the Lender upon closing the transaction. The warrants must be either exercised or otherwise expire on a pro-rata basis upon gold delivery.

The Company’s obligations under the Convertible Note and the Forward Sale will be secured by a charge over a designated gold metal account of the Company. The Company will be required to deposit at least 365 ounces of gold per month into such metal account to a maximum of 12,000 ounces commencing on the earlier of April 1, 2010 and commencement of post-commissioning of the CIL plant. 

A 10% finder’s fee (the “Finder’s Fee”) will be payable in cash to Procter Advisers Ltd. of Switzerland as the lead agent for the transaction.

The Convertible Note, the Forward Sale and the payment of the Finder’s Fee are all subject to the approval of the TSX Venture Exchange.

The new funding is in lieu of the $10.0 million dollars credit facility which was not completed due to the global credit melt down in late 2008 and early 2009. The funds are to be used for the following purposes: the continuing exploration programs that will be carried out by the Company’s drill team using its own equipment; closing the previously announced acquisition of a significant prospective exploration property adjacent to the Selinsing gold project where the Company expects to commission the CIL plant shortly; and for the phase III gold treatment plant extension with a second mill. With the additional funding, the Company expects to be able to increase gold resources and enhance gold production through increased plant through put. 

Robert Baldock, President and CEO of Monument Mining states, “We are very pleased to make this announcement on the cusp of completing the CIL plant early next year. The combination of gold production and this new capital will place the Company into a comfortable position to carry out these programs and conserve cash for debt repayment and accumulate cash for other opportunities should they arise”. 

The Selinsing gold project was acquired by the Company in June 2007. Since then the Company has been developing the open pit gold mine together with a new 1,200 tpd gold treatment plant in two construction phases. Phase I gravity circuit of the plant is now commissioned and is producing limited gold in parallel with the ongoing Phase II construction of the CIL circuit. The Selinsing gold project currently has a work force of over 120 trained employees and mine contractors on site.

Robert F. Baldock, President and CEO
Monument Mining Limited
Suite 490- 688 West Hastings Street
Vancouver B.C. Canada V6B 1P1

For further information contact:

North America:
Richard Cushing, Investor Relations
Office: 604.638.1661
Cell: 604.889.6563 
E-mail: info@monumentmining.com
Website: www.monumentmining.com

Wolfgang Seybold, President and CEO, Axino.AG
Office: +49.711.
Fax: +49.711.
Website: www.axino.de
E-mail: wolfgang.seybold@axino.de

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

Not for distribution to U.S. news wire services or dissemination in the United States. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the information contained herein. Certain disclosures in this release, including management’s assessment of the Company’s plans and projects, constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to the Company’s operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such.

Forward-Looking Statement

This press release contains forward-looking statements about Monument Mining Limited (“Monument”), its business and future plans, including the contemplated phase I and phase II development plans resulting in the commencement of mining and gold production, and in respect of the dates and amounts projected for these two phases resulting in the plant construction, gold production, gold sales and costs of the Selinsing Project. Forward-looking statements are statements that are not historical facts and include the timing of the proposed programs and events. The forward-looking statements in this press release are subject to various risks, uncertainties and other factors that could cause actual results or achievements to different materially from those expressed or implied by the forward-looking statements. These risks and certain other factors include, without limitation, uncertainty to the actual cost of the gravity circuit and the estimated cash flows which may be generated from the gravity circuit therefore committed forward gold sales cannot be fulfilled, the risk that the Selinsing Project will not be completed successfully or in a timely manner, the financing risk that an expected funding could not be delivered by the debtor, general economic factors and other factors that may be beyond the control of Monument. Forward-looking statements are based upon the beliefs, opinions and expectations of the management of Monument at the time they are made and Monument does not assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations or circumstances should change.

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