Medusa Mining in JV agreement in Philippines

Shares in Como-based mining explorer Medusa Mining Ltd closed up 11 per cent today after it announced, through its Filipino subsidiaries and in joint venture with Philsaga Mining Corporation, the signing of a joint venture agreement with MRL Gold Phils. Inc. and an underlying claim over the Apical Gold project in the Philippines.

At market close, shares in the company were up 8 cents to 78 cents.

MRL is the Philippine operating company of Mindoro Resources Limited, a public company listed on the TSX Venture Exchange in Canada.

Below is the edited announcement including key terms of the JVA:

ACQUISITION OF APICAL GOLD PROJECT, PHILIPPINES

Medusa Mining Limited ("Medusa") is pleased to advise that it has, through its Filipino subsidiaries and in joint venture with Philsaga Mining Corporation, signed a Joint Venture Agreement ("JVA") with MRL Gold Phils., Inc. ("MRL") and an underlying claim owner over the Apical Gold Project. MRL is the Philippine operating company of Mindoro Resources Limited, a public company listed on the TSX Venture Exchange in Canada.

The JVA 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. The MPSA application comprises approximately 2,084 hectares (20.84 km2) and covers extensions of the favourable geology found further south and in the Tambis area.

The key terms of the JVA are as follows:

• Medusa has the right to earn a 70% interest :

(i) in narrow vein deposits, by commencing narrow vein development and earning its interest by producing the first 500 tonnes of ore, after which MRL has the option to contribute to ongoing expenditure or reduce to a 3% Net Smelter Royalty ("NSR"); and
(ii) in large bulk tonnage deposits, such as porphyry copper-gold deposits or disseminated gold deposits, by completion of a Bankable Feasibility Study, after which MRL has the right to contribute to ongoing expenditure or dilute to a 3% NSR.

• Medusa is required to spend US$300,000 within 3 years of grant of the APSA, and spend a minimum of US$150,000 per year subsequently;
• Medusa will issue to the underlying claim holder fully paid shares in Medusa to the value of US$50,000 once the project has been assigned to the joint venture company and registered with the Mines and Geosciences Bureau; and
• Medusa will be responsible for all costs incurred to progress the APSA to granting.

Barlo Project

Following notification that the Appeal to the Office of the President by claim owner Pyro Copper has been unsuccessful, the Company is withdrawing from the project.