Annual ReportThere are some issues arising upon which I welcome...

Annual Report

There are some issues arising upon which I welcome your views - I may have misunderstood some points and would be happy to be corrected

“Clearing the Decks”

Part of the exploration costs of the Siberia Mining Company Tenements have been written off as “the results were disappointing” this includes $10.9m costs inherited when MON took over the company in January 2006 and amounts to some $14m in total. Also in the report it states that goodwill of $14.6m on the acquisition of Siberia, has been written down to nil. However, it seems that in order to pay for the Siberia acquisition/merger MON issued 121.5m shares at a value of $41.7m with options and costs of a further $1.7m (total $43.4m). MON now has 417million shares issued.

At the time Siberia Mining Tenements were described as a 750,000 ounces resource with an overall exploration area of 1,250 sq kms and a 35km long Siberia Gold Belt.

In August 2007, 2 large chunks of the Siberia Tenements were sold by MON to Halcyon Group Limited (HCY) a junior Nickel explorer:

· 7.8.07 – 318 sq km at Goongarie for $45,500 plus GST (total $50,000) plus a 2% royalty on net smelting receipts.
· 21.8.07 – 8.8 kms of “strike” containing 389 million tonnes of nickel for $250,000 plus $25,000 GST (total $275,000) plus a 2% royalty on net smelting receipts.

As far as one can see MON have retained the tenements at Bellvue from the Siberia acquisition said to contain 120,000 ounces of gold. One hopes these and other residual assets from Siberia are worth as much if not more that the balance of value of the placement in Jan 06 ($15m).

Consultancy Fees

“During the financial year £334,928 was paid to Mr James Kiernan who is a substantial shareholder, for the provision of capital management services on normal commercial terms”.

You may care to note that Mr Quadrio the MD earned $262,980 in salary during that year, and his co-directors similar or lower amounts.

Gold Production Targets

If MON can get up to 10,000 ounces a month by November 2007 from Davyhust and Mt Ida, and the gold price continues upwards, the prospects are very positive. If Minjar and presumably Bellvue, come on stream by 2009, it will be a case of onwards and upwards.

Good luck to all holders

DYOR