Medusa Mining Exploration Update Wed, 1 Jul 2009 19:05:00 +1000       8 months, 3 weeks ago

MEDUSA MINING LIMITED ABN: 60 099 377 849 Unit 7, 11 Preston Street Como WA 6152 PO Box 860 Canning Bridge WA 6153 Telephone: +618-9367 0601 Facsimile: +618-9367 0602 Email: admin@medusamining.com.au Internet: www.medusamining.com.au 1 July 2009 The Manager Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam Co -O MINE RES OURCES NOW 1.38 MILLION OZS Medusa Mining Limited (“Medusa” or the “Company”), through its Philippines operating company, Philsaga Mining Corporation (“Philsaga”), advises that a new resource estimation for the Co-O Mine has: • In c re a s e d th e J ORC c o m p lia n t to ta l re s o u rc e s in th e la s t 6 m o n th s b y 15% to 1,380,000 o u n c e s a t 10.8 g /t g o ld (a n n u a l in c re a s e o f 60%), e xc lu d in g m in e d e p le tio n s in c e De c e m b e r 2008, a n d im p o rta n tly, b o o s te d th e In d ic a te d Re s o u rc e s c a te g o ry b y 25.6% to 603,000 o u n c e s ; and • Set the stage for significant resource extensions to the east of the mine with further drilling. Ta b le I. Re s o u rc e e s tim a te to 14 J u n e 2009: Category Indicated Inferred Grand total > 0 g/t gold tonnes 1,250,000 2,730,000 3,980,000 g/t gold 15.0 8.9 10.8 ounces 603,000 777,000 1,380,000 Geoff Davis, Managing Director of Medusa, commented: “The continuing growth of the Co-O Mine resource at a very robust gold grade testifies the quality of this asset.

We expect resource growth to continue, especially to the east as more drilling is undertaken. This work will focus primarily on extending Co-O’s shallower resources where mine infrastructure can be expanded at low capital costs. In addition drilling will focus on nearby vein systems where there is the real opportunity to make new discoveries.” RESOURCE ESTIMATIONS Discussion Diamond drilling has continued since the past resource estimate announced on 19 January 2009 with the ....