Company Information for Medusa Mining Ltd

ASX-MML; AIM-MML; FRANKFURT-MQG

www.medusamining.com.au

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Company Statement

Medusa Mining Limited ("Medusa" or the "Company") was incorporated on 5 February 2002 and officially admitted to the Australian Stock Exchange on 23 December 2003, following a successful Initial Public Offering ("IPO") of 12,500,000 shares at 20 cents each, that raised $2.5 million.

The current Directors of Medusa are Messrs Kevin Tomlinson, Geoffrey Davis, Dr Robert Weinberg and Roy Daniel.

Medusa's corporate objectives at listing were to:

acquire new gold and gold-copper projects with potential to generate cashflow;
continue to achieve gold production with a low capital exposure; and to
explore for high grade deposits with good access and infrastructure.

Current Operations

PHILIPPINES
CO-O - Gold
The Co-O underground mine is developed on a series of low sulphide, epithermal quartz veins and to date have been worked to approximately 270 metres below surface.

In September 2007 the Company completed resource and reserve estimations for the Co-O Mine based on drilling and underground development. The estimations are based on 3D mine frame models of eight veins. The Resource estimation has increased contained ounces by 446,000 ounces (266%) to 713,000 ounces using a lower cut of 3 g/t gold.

The Company has prioritised the sinking of two new shafts and driving to access the New Catto Veins due to the success to date of the on-going drilling programme at the Co-O Mine and the recent resource and reserve upgrades at this mine, to 713,000 ounces and 256,000 ounces of gold respectively.

ANOLING PROJECT - Gold and Diamond drilling
The MOA with Alcorn Gold Resources Inc. covers Mining Production Sharing Agreement ("MPSA") application number 039-XIII situated in the Agusan del Sur province in east Mindanao to the north of the Co-O mine and mill site. The MPSA comprises approximately 405 hectares (4.05 km²) and covers mineralised extensions of the favourable geology found further south.

On 19 March 2007 the Company announced that two Small Scale Mining Permits had been granted over prospective areas at Anoling.

TAMBIS BANANGHILIG GOLD PROJECT
The Company undertook underground exploration and trial mining of several "high grade" veins based on the previous explorers' drill hole data bases consisting of a total of 29,477 metres of RC and diamond drilling in 344 holes The underground exploration and follow-up underground drilling has shown that interpreted high grade vein widths from RC holes have generally been exaggerated by the RC drilling by several orders of magnitude through down hole smearing of narrow high grade veinlets and that many of the veins are too narrow and too discontinuous to mine economically.

Subsequently a programme of underground drilling has been completed, and
geological mapping and assessment is in progress in combination with surface drilling.

Newly discovered "blanket style" mineralisation has returned a best intersection of 98.9 metres at 4.23 g/t gold within the sub-horizontal zone.

SINUG-ANG PROJECT
The Sinug-ang Project is made up of two prospects, the Banbanon Prospect in the area of current drilling which was explored in the 1980s by surface sampling and drilling, and the Sinug-ang prospect which is located approximately 1000m further to the north on the same vein system which trends in a NNW direction parallel to the Philippine Rift Fault trend. Some small scale mining activities of selected parts of the Banbanon vein and with limited lateral extent within a strike length of approximately 600 metres have been undertaken to a depth of approximately 190 metres below surface.

DAS-AGAN PROJECT
The Das-Agan Project which is encompassed in Mining Production Sharing Agreement application ("APSA") number 000024-XIII situated in Surigao del Sur province in east Mindanao, consists of two parcels, one to the north and one to the south-east of the Co-O mine and millsite. The APSA covers approximately 8,019 hectares (80 km²) of the favourable geology of the east Mindanao ridge.

In 1997 Barrick Gold Philippines assessed the project for its gold potential through mapping and collection of 110 rock samples. During this work a large circular quartz veined breccia plug measuring 750 metres x 1,200 metres and located approximately 1,500 metres south of drill hole DDH1 was identified and sampled returning gold values between 0.1 and 1.3 g/t Au.

Fresh rocks with disseminated grains sphalerite (zinc) and galena (lead) were found to have higher gold values ranging from 0.3 to 1.3 g/t Au than intensely weathered rocks suggesting some surface leaching effects. The lead-zinc association is consistent with the gold mineralization associations in the Co-O Mine area.

ABACUS PROJECT
The MOA with Abacus Consolidated Resources and Holdings Inc. covers Exploration Permit ("EP") application number 000028-XIII situated in Agusan del Sur province in east Mindanao to the north of the Co-O mine and mill site as shown on Figure 1.

The EP covers approximately 8,100 hectares (81 km²) and covers favourable geology for gold and copper-gold mineralisation.

APICAL GOLD PROJECT (Option to Acquire 70%)
The Apical Gold Project is a joint venture signed with MRL Gold Phils., Inc. (the Philippine operating company of Mindoro Resources Limited, a public company listed on the TSX Venture Exchange in Canada) and an underlying claim owner.

The JV covers Mining Production Sharing Agreement ("MPSA") application number 0028-XIII situated in the provinces of Agusan del Sur and Surigao del Sur in east Mindanao to the north of the Co-O mine and millsite as shown on Figure 1. The MPSA application comprises approximately 2,084 hectares (20.84 km²) and covers favourable geology for gold and copper-gold mineralisation.

SAUGON GOLD-SILVER PROJECT (Medusa 50%)
The project is located in central eastern Mindanao in the Republic of the Philippines and is accessed by the national highway over an approximate 2.5 hour drive north of Davao City. Access from the highway to the project is via 5 kilometres of gravel roads. The project is approximately 23 kilometres by road from the Co-O milling facility.

Within the Saugon Gold Project area are numerous outcropping epithermal vein systems, three of which are currently being explored, being the First Hit Vein, the Mabas Prospect and the Paradise Ridge Prospect.

CORPLEX GOLD PROJECTS
The MOAs with Corplex Resources Inc ('CRI') cover 162 hectares of Application for Financial and Technical Assistance Agreement number 000004-XIII and Application for Mineral Production Sharing Agreement number 000077-XIII covering 810 hectares.

The tenements are adjacent to a northwest trending branch of the Philippine Rift Fault. The tenements have potential for vein style deposits and disseminated replacement deposits in sedimentary rocks.

Geographical Spread

Board of Directors and Key Management

Mr Kevin Michael Tomlinson	Non-Executive Chairman

Mr Geoffrey John Davis	Managing Director

Mr Roy Philip Daniel	Finance Director

Dr Robert Weinberg	Non-Executive Director

Company Address

Unit 7
11 Preston Street
Como, United States 6152


Telephone:	618-9367 0601
Facsimile:	618-9367 0602
Email:	admin[at]medusamining.com.au
Website:	http://www.medusamining.com.au

Additional Address/Key Contact

PO Box 860
Canning Bridge
Western Australia 6153

Capital

Total number of ordinary shares on issue; 142,037,548

Annual General Meeting

November

Broker/Analyst Reports

16/07/07 - Ambrian Resources

Major Shareholders

Name of Shareholder	No of Shares Held	% Held

Gallagher Holdings Limited	17,500,000	12.32

Advanced Concept Holdings Limited	14,600,000	11.72

Forty Traders Limited	7,051,584	6.84

Most Recent Statement

05/11/08 - Crosby Capital not to proceed with proposed unsolicited highly conditional takeover offer
23/09/08 - Crosby Capital's Proposed Unsolicited Highly Conditional Takeover Offer
19/09/08 - Offer by Crosby Capital
09/09/08 - New Addition Announcement
26/08/08 - Co-O MINING INVENTORY UPDATE
20/08/08 - Lingig Porphyry Copper Drilling Confirms Mineralisation

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