Proposed Tax Will Not Affect Medusa

 
TIDMMML 
 
MEDUSA MINING LIMITED 
                                                       ABN: 60 099 377 849 
                                                 Unit 7, 11 Preston Street 
                                                            Como  WA  6152 
                                                                PO Box 860 
                                                  Canning Bridge  WA  6153 
                                                 Telephone:  [phone] 
                                                 Facsimile:  618-9367 0602 
      Email:  [e-mail] <mailto:[e-mail]> 
      Internet:  www.medusamining.com.au <http://www.medusamining.com.au/> 
 
 
                                                                    ANNOUNCEMENT 
 
 
                                                                      5 May 2010 
 
 
                      PROPOSED TAX WILL NOT AFFECT MEDUSA 
 
Medusa  Mining  Limited  (ASX  and  AIM  -  MML;  TSX  -  MLL)  ("Medusa" or the 
"Company"),  advises that  the new  Resources Super  Profits Tax proposed by the 
Australian  government  will  not  have  any  impact on Medusa, as the Company's 
operating assets are located  offshore in the Philippines. 
 
 
 
For further information please contact: 
 Australia 
 
 
 Medusa Mining Limited                       [phone] 
 
 Geoffrey Davis, Managing Director 
 
 Roy Daniel, Finance Director 
 
 
 United Kingdom 
 
 Fairfax I.S. PLC                            [phone] 
 
 Nominated Adviser and Broker 
 
 Ewan Leggat/Laura Littley 
 
 
 Lothbury Financial Services Limited         [phone] 
 
 Michael Padley/Libby Moss 
 
 
 Canada 
 
 Nicholas Sayce, Investor Relations          [phone] 
 
 
ABOUT MEDUSA MINING LIMITED 
Medusa  Mining Limited ("Medusa"  or the "Company"),  a public company listed on 
the  ASX, AIM and the TSX, is an Australian based gold producer, focussed solely 
on the Philippines. 
 
With  current mineral resources comprising  indicated 580,000 ounces of gold and 
inferred  1,310,000 ounces of gold,  Medusa's corporate strategy  is to become a 
mid-tier, 300,000 to 400,000 ounce per year, low-cost gold producer. 
 
The  Company has completed the expansion of  its high grade Co-O Mine operations 
(indicated  resources 580,000 ounces of gold inclusive  of a probable reserve of 
500,000 ounces  of gold,  and inferred  resources 660,000 ounces  of gold)  to a 
production  level 100,000 annualised  ounces, and  is currently  conducting near 
mine  exploration to assess the  possibilities of further  expansion to 200,000 
ounces  per annum.  Current cash costs at the Co-O Mine are approximately US$190 
per ounce. 
 
A  pipe-line of deposits  is now being  established with the Bananghilig Deposit 
(inferred  resource  of  650,000 ounces  of  gold)  recently  added and which is 
expected to expand, potentially in conjunction with nearby discoveries. 
 
Further potential upside exists for the discovery of substantial copper deposits 
within the tenement holding of more than 800 km2. 
 
 
[HUG#1411979]