Placing of Shares

 
TIDMMML 
 
MEDUSA MINING LIMITED 
                             (AIM: MML) 
 
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS 
 
               UNDERWRITTEN AUS$24.5 MILLION PLACEMENT 
 
Medusa Mining Limited (ASX & AIM: MML) ("Medusa" or the "Company") is 
pleased to announce the placing of 20,300,000 fully paid new ordinary 
shares of no par value at a placing price of Aus$1.21 (approximately 
GBP 0.54) per share to institutional and sophisticated clients of 
Euroz Securities Limited ("Euroz") under section 708 of the 
Australian Corporations Act. 
 
The gross proceeds of the placing are Aus$24,563,000. The net 
proceeds of the placing are Aus$23,334,850 and will be applied to: 
 
*          the Phase 2 expansion of the Company's Co-O underground 
  goldmine and associated milling facilities in the Philippines, 
  targeting production of 100,000 ounces per annum by early 2010; 
 
*          intensive drilling at the Co-O mine designed to increase 
  resources from the current 1.2 million ounces to approximately 1.5 
  million ounces, which in conjunction with underground development 
  is also targeting a reserve of approximately 500,000 ounces by 
  August 2009; and 
 
*          general working capital. 
 
The placement is fully underwritten by Euroz. 
 
Application will be made for the new ordinary shares to be admitted 
to trading on AIM, which is expected to occur on 5 March 2009. The 
new ordinary shares to be issued pursuant to the placing will rank 
pari passu with the existing ordinary shares of no par value in the 
Company. 
 
Following the admission of the new ordinary shares to trading on AIM 
the Company will have a total of 66,607,548 ordinary shares with 
voting rights in issue. 
 
Geoff Davis, Managing Director of Medusa, commented: 
 
"The Company is very pleased to welcome new shareholders and 
acknowledges the invaluable support provided by existing 
shareholders, as this support has enabled the Company to reach this 
pivotal point in its development. 
 
"We are an unhedged, high margin gold producer with an exciting 
future as we grow our production this year.  I believe the market is 
starting to recognise our potential". 
 
 
Market update re interim results for the 6 months to 31 December 2008 
 
Given the conduct of the above placement, Medusa believes it is 
appropriate to provide an early indication of its half year results 
to 31 December 2008. 
 
Subject only to final review and sign off by the Company's external 
auditors, Medusa expects to make a net profit after tax for that 
period of Aus$12.0 million. 
 
The Company intends to release its interim results for the six months 
to 31 December 2008 on or before Friday, 6 March 2009. 
 
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 
 
Lothbury Financial                      [phone] 
Michael Padley / Louise Davis 
 
 
 
 
DISCLAIMER 
 
This announcement has been prepared for publication in Australia and 
the United Kingdom and may not be released in the United States. This 
announcement does not constitute an offer of securities for sale in 
the United Kingdom or the United States. The shares described in this 
announcement may not be offered or sold in the United States absent 
registration under the US Securities Act of 1933 or an exemption from 
registration, or in any other jurisdiction in which such an offer 
would be illegal. 
 
 
JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS 
 
Medusa Mining Limited 
 
Information in this announcement 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 announcement of the matters based on his information in the form 
and context in which it appears. 
 
Cube Consulting Pty Ltd 
 
Information in this announcement 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 announcement 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. 
 
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This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.