Co-O Vein System Drilling Update

    Co-O Vein System Drilling Update
             



4 June 2008

                        MEDUSA MINING LIMITED
                             (AIM: MML)

                  Co-O VEIN SYSTEM DRILLING UPDATE

Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
advises the latest results from the on-going diamond drilling at the
Co-O Gold Mine.  This report summarises the drilling since the last
report of 7 April 2008.  The drilling continues to extend the known
vein system which is now drilled over approximately 1,000 metres
along strike and with indications that it is up to approximately 300
metres wide across strike.

New significant intersections include:


Hole Number   Intercepts      Grade
                 (metres) (g/t gold)
MD 68                3.10      15.37
MD 72                3.00      18.94
                    15.90      32.85
MD 77                1.75      22.53
MD 80               10.20      13.53


The drill programme is continuing with four surface rigs and two
underground rigs operational.
Discussion

Figure 1 shows the location of the Co-O Mine and Figure 2 shows all
the diamond drill holes holes from MD 46 upwards drilled and in
progress around the Co-O Mine.  These are the holes that will be
added into the next resource estimation.  Figure 3 shows the updated
three dimensional model of the vein system including the newly
discovered Catto West Veins whilst Figure 4 shows the conceptual
model for the Co-O vein system in comparison to the Diwalwal Mine.
Please see the link at the end of this announcement for these images.

Drilling has continued to define veins to the west of the Agsao River
but has been discontinued to the east for the time being.  The
drilling is designed to extend the West Catto and other veins to the
west as this is where the current mining infrastructure is situated.

Hole MD 66 was abandoned due to bad ground conditions and MD 76 was
abandoned at 104.10 metres due to severe hole deflection.

Low Angle Veins and Siter Hole for the Hill View Shaft

The previously reported wide intercept in MD 61 (14.60 metres at 5.29
g/t gold) has now been intersected  by development on the 3050  metre
level (100 metres  below adit  level) and found  to be  a second  low
angle vein approximately 2 metres  wide, named the Godfrey Vein,  (in
addition to the  previously reported low  angle vein associated  with
the Catto West Veins  on the 3050 metre  level).  Development is  now
underway to the  east and west  on this vein  where the initial  bulk
development grades returned  well above the  drill hole  intersection
grade.

Hole MD 74 was drilled as a  siter hole for the Hill View Shaft.   It
encounted poor ground conditions in the upper levels resulting in the
loss of 280 metres of  PQ sized casing (which will  now be used as  a
compressed air line into the western end of the mine).  As a  result,
a new position for the Hill View Shaft will be chosen once additional
drilling has been completed and suitable ground conditions have  been
delineated.

This  hole  intersected   three  low  angle   veins,  including   the
intersection listed  in Table  I of  1.05 metres  at 7.53  g/t  gold,
located  approximately  15  metres   below  the  3100  metre   level.
 Development  is  underway  to   intersect  this  vein.   Two   other
intersections of between  1 and 3  g/t gold in  low angle veins  were
made at 301 metres and  476 metres vertical depth which  demonstrates
that other low angle veins are present in the Co-O system.

Deepest intersection

The end of  hole MD 68  passed below  the 400 metres  below (at  2750
metre level) adit level (at 3150 metre level) and intersected the top
of a  new vein  (3.10  metres at  15.37g/t  gold from  612.30  metres
downhole) approximately 60 metres to  the north of the Central  Vein.
 Other shallower holes along  strike appear to  confirm that this  is
the top of a new vein.

Drill results

Table I lists the surface diamond drilling results greater than 3 g/t
gold from the Co-O  Mine for drill  holes MD 46  to MD 80.   Previous
announcements on the Co-O drilling on 9 July, 15 May and 28  February
2007 contain information regarding drilling and surveying techniques,
comments  on  vein  interpretation  and  methodologies  and  assaying
protocols.

Table I. Drill hole results > 3 g/t gold for holes MD 46 to 80.


+--------------------------------------------------------------------------------+
|Hole                   |East   |North  |Dip|Azimuth|From    |Width   |Grade     |
|                       |       |       |(º)|(º)    |(metres)|(metres)|(uncut)   |
|                       |       |       |   |       |        |        |(g/t gold)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|EAST                   |       |       |   |       |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD46                   |614,047|912,472|-48|41     |  489.30|    0.85|      8.51|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  501.40|    0.40|      4.50|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  542.90|    1.40|     20.62|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD48                   |614,257|912,704|-60|253    |  212.45|    1.95|     22.02|
|(Agsao Shaft pilot     |       |       |   |       |        |        |          |
|hole)                  |       |       |   |       |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD49                   |614,129|912,487|-50|40     |  449.85|    2.05|      6.61|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  463.90|    1.00|      4.24|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD55                   |614,134|912,495|-45|35     |  361.60|    3.45|     12.48|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  421.20|    0.70|     12.23|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  486.25|    0.70|      3.89|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD64                   |614,175|912,505|-45|41     |  405.80|    1.00|      3.19|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD67                   |614,173|912,504|-52|43     |  278.00|    0.80|      7.20|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  398.30|    1.30|      6.55|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD71                   |614,360|912,502|-55|11     |  574.40|    1.15|      7.81|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|WEST                   |       |       |   |       |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD47                   |613,805|912,788|-55|30     |  153.30|    1.10|      7.01|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD51                   |613,749|912,798|-53|17     |  130.50|    1.30|      6.50|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  155.75|    0.25|     41.06|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD52                   |613,754|912,816|-50|14     |   75.25|    0.55|      3.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  157.60|    0.30|      5.31|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  170.40|    0.30|     14.93|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD54                   |613,830|912,745|-47|29     |  174.00|    1.80|     14.59|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD56                   |613,809|912,706|-54|29     |  390.85|    1.00|      3.11|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD57                   |613,739|912,767|-54|16     |  152.55|    0.45|     39.64|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  191.90|    3.45|     26.26|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  194.80|    0.40|     18.47|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD58                   |613,739|912,767|-58|16     |  176.10|    0.40|     43.46|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  207.00|    0.70|      7.45|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  280.40|    0.90|      6.18|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD61                   |613,662|912,804|-47|347    |  249.10|   14.60|      5.29|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  308.20|    1.45|     12.64|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD62                   |613,723|912,767|-56|2      |  184.65|    2.10|      9.07|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  238.55|    0.60|   3.28(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD65                   |613,663|912,802|   |       |  115.60|    0.65|     25.42|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  153.05|    2.75|      8.80|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD68                   |613,723|912,766|-57|344    |  370.40|    3.40|      6.07|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  612.30|    3.10|     15.37|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD72                   |613,607|912,785|-54|347    |   56.50|    1.35|     18.29|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  146.60|    4.30|  15.20(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  169.50|    3.00|     18.94|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  188.90|   34.70|     16.70|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |Incl   |  188.90|   15.90|     32.85|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |Incl   |  209.80|    2.65|      7.17|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |Incl   |  217.90|    3.90|      4.11|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD74 Hill View Shaft   |613,747|912,843|-90|0      |  217.95|    1.20|     29.04|
|Siter hole             |       |       |   |       |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  229.65|    1.05|      7.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  476.90|    0.35|      3.00|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD75                   |613,735|912,727|-54|135    |  181.00|    0.20|      6.48|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  240.75|    0.90|      8.71|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD77                   |613,734|912,727|-54|358    |   92.35|    0.60|     13.81|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  212.45|    0.45|      6.01|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  214.50|    0.60|     10.52|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  220.55|    0.45|      5.18|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  230.40|    1.75|     22.53|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  237.65|    1.40|      5.60|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  247.65|    1.20|      5.66|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  313.00|    0.90|      5.76|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD78                   |613,568|912,747|-50|347    |  258.20|    1.20|   4.97(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD79 (in progress)     |613,534|912,696|-47|336    |        |        |          |
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|MD80 (in progress)     |614,294|912,937|-60|206    |  271.30|   10.20|  13.53(*)|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  277.50|    1.00|      8.33|
|-----------------------+-------+-------+---+-------+--------+--------+----------|
|                       |       |       |   |       |  298.05|    0.65|      3.73|
+--------------------------------------------------------------------------------+


Notes:
(i)             (*) denotes Philsaga assays;
(ii)            Independent laboratory McPhar assays are quoted in
preference to Philsaga assays;
(iii)           Grid coordinates based on the Philippine Reference
System 92;
(iv)          Intersection lower cut-off grade is 3 g/t gold in line
with current resource estimation parameters;
(v)           Some previously reported intersection widths and grades
may have changed as a result of check assaying by McPhar.

Geoff Davis, Managing Director commented:

"These results confirm the presence of additional veins, with some
holes showing excellent grades.  The ongoing drilling will better
define these and, we believe, further extend the system westward."

Information in this report relating  to Exploration Results is  based
on information compiled  by Mr Geoff  Davis, who is  a member of  The
Australian Institute  of  Geoscientists.  Mr Davis  is  the  Managing
Director of Medusa Mining Limited and has sufficient experience which
is relevant to the style of mineralisation and type of deposits 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 Davis consents  to the inclusion  in
the report of the  matters based on his  information in the form  and
context in which it appears.


For further information, please contact:


Medusa Mining Limited                   [phone]
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director

Fairfax I.S. PLC                        [phone]
Nominated Adviser / Joint Broker
Ewan Leggat

Mirabaud Securities Limited             [phone]
Joint Broker
Peter Krens

Bankside Consultants                    [phone]
Michael Padley / Louise Davis

- ---END OF MESSAGE---




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