MML Medusa Mining

    Joint Venture with Bunwan Mining
             



11 April 2008

                        MEDUSA MINING LIMITED
                             (AIM: MML)

            JOINT VENTURE WITH BUNAWAN MINING CORPORATION

Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
wishes to clarify its position with respect to the ASX announcement
by Sierra Mining Corporation ("Sierra") on 8 April 2008 that Sierra
will not be proceeding with the Joint Venture Agreement ("JVA")
between the respective Filipino operating companies, Philsaga Mining
Corporation ("Philsaga") for Medusa and Bunawan Mining Corporation
("Bunawan") for Sierra.

Medusa and Philsaga reject any assertion by Sierra and Bunawan that
the JVA has come to an end because of the non-fulfilment of any
conditions precedent to the operation of the JVA.  The JVA is a
binding document that has been relevantly registered in the
Philippines, remains in force and under which Philsaga is continuing
to fulfil its obligations including clearing up access issues which
will enable Philsaga to have unfettered access to all of the tenement
area.

However, in light of the position of Sierra to not proceed with the
placement of 9.9% of Sierra shares to Medusa under the August 2007
Heads of Agreement (between Medusa and Sierra), Medusa agrees not to
take up the placement.


For further information, please contact:


Medusa Mining Limited                   +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director

Fairfax I.S. PLC                        +44 (0)20 7598 5368
Nominated Adviser / Joint Broker
Ewan Leggat

Mirabaud Securities Limited             +44 (0)20 7321 2508
Joint Broker
Peter Krens

Bankside Consultants                    +44 (0)20 7367 8888
Michael Padley / Louise Davis

- ---END OF MESSAGE---

Medusa (LSE:MML)
Historical Stock Chart
From Jun 2024 to Jul 2024

Medusa (LSE:MML)
Historical Stock Chart
From Jul 2023 to Jul 2024