MML Medusa Mining

    Takeover Offer
             



5th November 2008

                        MEDUSA MINING LIMITED
                             (AIM: MML)

   CROSBY CAPITAL NOT TO PROCEED WITH PROPOSED UNSOLICITED HIGHLY
                     CONDITIONAL TAKEOVER OFFER


On 19 September 2008, Crosby Capital Limited ("Crosby") of Hong Kong
announced a proposal to make an unsolicited and highly conditional
takeover offer ("Offer Announcement") for Medusa Mining Limited
("Medusa" or the "Company").

On 23 September, the Board of Medusa advised shareholders to take no
action. Market reaction to the proposal, and interactions between the
Company and shareholders representing over 50% of the shares in
Medusa, strongly indicated that the A$1.15 per share to be offered
under Crosby's highly conditional takeover was inadequate.

On 3 November 2008, Crosby announced that it had decided not to
proceed with its proposed takeover offer, relying primarily on
certain market conditions which were described in the Offer
Announcement.

The Board and management of the Company can now focus on delivering
the on-schedule incremental expansion of gold production from the
Co-O Mine.

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

Lothbury Financial                      +44 (0)20 7011 9411
Michael Padley / Louise Davis

ABOUT MEDUSA

Medusa is an expanding gold producer operating in the Philippines.
The September quarterly report with incremental production of 6,986
ounces of gold at a cash cost of US$243 supports the production
guidance for the financial year to June 2009 of 38,000 to 45,000
ounces, and 80,000 ounces for the following financial year.

The Company's resource base at the Co-O Mine is 862,000 ounces at
10.72 g/t gold including probable reserves of 249,000 ounces at 10.77
g/t gold. Drilling is continuing to expand the resources. On
completion of the mine expansion, the Company presently anticipates a
long term cash cost of approximately US$200 per ounce.


JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS

Cube Consulting Pty Ltd

Information  in  this  report  relating  to  Mineral  Resources   has
been estimated and complied by  Mark  Zammit  of Cube Consulting  Pty
Ltd. Mr Zammit is a member of  The Australasian Institute of Mining &
Metallurgy and  has  sufficient experience  that is  relevant to  the
style of mineralisation and type  of deposit under consideration  and
to the activity  which he is  undertaking to qualify  as a  Competent
Person as defined  in the 2004  Edition of the  "Australian Code  for
Reporting  of  Exploration   Results,  Mineral   Resources  and   Ore
Reserves". Mr Zammit consents to the  inclusion in the report of  the
matters based on his information in the form and context in which  it
appears.
Cube Consulting is an independent Perth based resource industry
consulting firm specialising in geological modelling, resource
estimation and information technology.

Golder Associates Pty Ltd

The information in this report that relates to Ore Reserves is based
on information compiled by Charles Hastie BAppSc (Mining
Engineering), B AppSc (Multidisciplinary Science), MAusIMM and Peter
Onley MBA, MSc, BSc (Hons), FAusIMM, CP.  Mr Hastie and Mr Onley are
full-time employees of Golder Associates Pty Ltd.
Messrs Hastie and Onley have sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to
qualify as Competent Persons as defined in the 2004 Edition of the
"Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves". Charles Hastie and Peter Onley consent
to the inclusion in the report of the matters based on their
information in the form and context in which it appears.

Golder Associates is a global consulting group employing more than
5500 staff offering services in earth engineering and environmental
sciences.

---END OF MESSAGE---


This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.

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