Kamarangan Permits Granted

    Kamarangan Permits Granted
             



11 June 2008

                        MEDUSA MINING LIMITED
                             (AIM: MML)

                     KAMARANGAN PERMITS GRANTED

Medusa Mining Limited ("Medusa" or the "Company"), the Australian
based company operating and developing gold mines in the Philippines,
advises that permits have been granted for drilling over the
Kamarangan area, which has potential for gold, iron and copper
mineralisation.

The potential mineralisation types are hosted by various skarns that
have been interpreted to cover an area approximately 1,200 metres by
up to 1,000 metres where alluvial gold workings are widespread. The
skarns are developed in shallowly dipping and banded limestones.

Detailed descriptions of gold, iron and copper sampling results from
21 iron-rich surface samples, which averaged 9.5g/t gold and 37.5%
iron, and which returned elevated copper values to 0.33% copper, are
contained in an announcement dated 25 February 2008.

Drilling is expected to commence within two weeks, initially in the
Dumaag area where the iron-rich samples were collected.


Geoff Davis, Managing Director of Medusa, commented:

"The Tambis-Barobo  region, which  includes Kamarangan,  has all  the
hallmarks of  a mineral  district that  will host  several  different
types and styles of mineralisation.

"Drilling at Kamarangan is the start of investigating this  potential
away from  the known  Bananghilig disseminated  and vein  style  gold
mineralisation where work has been concentrated to date.  We are very
optimistic about this prospect."

Figure 1 shows the location of the Kamarangan area in the
Tambis-Barobo region; Figure 2 shows the various geological and
geophysical features of the region and the detailed location of the
Kamarangan area; Figure 3 shows all gold assays above 1g/t gold for
all skarn types; Figure 4 shows the location of the iron assays and
Figure 5 shows copper assays above 0.05% copper for all skarn types.
Please see the link at the end of this announcement for all of these
images.


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



Gold potential

The widespread occurrence of gold assays on Figure 3, which shows
only samples returning over 1g/t gold, indicates there may be
substantial open-pit gold targets associated with the skarns, in
particular the epidote-silica skarns and the iron-rich skarns.
 Twenty one iron-rich samples that were assayed for iron also
returned an average of 9.5g/t gold.

Iron ore potential

Twenty one iron-rich, weathered surface samples were assayed for iron
(Figure 4) and averaged 37.54% iron.  Only the Dumaag area of skarns
was assayed for iron, with the other outcrops appearing physically
similar at Layap Layap and Palm Oil.  These other outcrops also have
returned anomalous copper and gold assays.  Recent re-interpretation
of aeromagnetics using 3-dimensional inversion processing techniques
suggests that the magnetite component of the iron-rich skarns may be
shallow.

Copper potential

The common occurrence of high background copper assays of >500ppm
(0.05% copper), as shown on Figure 5, is suggestive of a major copper
source, probably below the iron-rich skarns.  It should be noted from
Figure 2 that the skarn area is situated almost central to the large
aeromagnetically defined alteration zone.  The nearby outcropping
Sopon diorite intrusive to the north of Kamarangan is "fertile" as it
carries visible disseminated chalcopyrite (copper sulphide).

Discussion

It is apparent that the Kamarangan area represents a major
metalliferous target for gold, iron and copper.  Conceptually it is
interpreted that the mineralisation has originated from an underlying
intrusive porphyry copper body.



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.

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