Quarterly Report

 
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:  [phone] 
             Email: [e-mail] <mailto:[e-mail]> 
              Internet:www.medusamining.com.au <http://www.medusamining.com.au/> 
 
 
                             MEDUSA MINING LIMITED 
                                   (AIM: MML) 
 
                          QUARTERLY ACTIVITIES REPORT 
                           PERIOD ENDED 31 MARCH 2010 
 
Medusa  Mining  Limited  ("Medusa"  or  the  "Company"), through its Philippines 
operating  company  Philsaga  Mining  Corporation  ("Philsaga"),  announces  its 
Quarterly Activities Report for the period ending 31 December 2009. 
 
Highlights: 
 
Co-O MINE PRODUCTION 
 
  * Record gold production of 25,505 ozs (compared to 21,108 ozs in the previous 
    quarter) at an average grade of 20.61 g/t gold and average cash cost of 
    US$180 per oz 
 
Co-O PHASE II EXPANSION 
 
  * Phase II expansion completed on time with the annualised production of 
    100,000 ounces recorded for the quarter 
  * Mill commissioning completed 
 
Co-O RESOURCE DRILLING 
 
  * Drilling continuing. New gold results include 1.70 metres @ 99.63 g/t, 6.40 
    metres @ 23.36 g/t and 4.90 meters @ 20.27 g/t 
  * Resource/reserve estimates scheduled for July-August 2010 
 
 BANANGHILIG DEPOSIT 
 
  * Planning is underway to commence pre-feasibility studies for drilling 
    campaign in July 2010 
 
LINGIG COPPER 
 
  * Drilling paused to allow assessment of results to date to be undertaken; 
    drill rigs re-allocated 
 
 SAUGON PROJECT 
 
  * Preparations are underway to drill at the Saugon Project, last drilled in 
    2004 
  * A summary of previous results will be provided shortly 
 
 FINANCIALS 
 
  * Cash  and cash equivalent of US$48.1 million 
  * Bonus issue of 1 new ordinary share for every 10 ordinary shares announced 
    and completed during the quarter 
 
Managing Director Geoff Davis commented: 
 
"We  are pleased  with the  scheduled completion  of our  expansion programme to 
enable  the production  of 100,000 annualised  ounces. In  addition, underground 
development  at the Co-O  Mine is also  well advanced with approximately 60,000 
tonnes  of  broken  ore  underground  and  20,000 tonnes  in  surface stockpiles 
which augers well for meeting our production targets. 
 
 On-going  drilling  at  Co-O,  preparations  for  drilling  at  Bananghilig and 
commencing  of drilling  at Saugon  highlight both the  short term and long term 
potential of the Company." 
 
PROJECT OVERVIEW 
 
The  locations of the  Company's projects are  shown on Figures 1 and 2. (please 
see the link at the end of this announcement) 
 
Co-O MINE 
 
GOLD PRODUCTION 
 
The  production statistics  for the  March 2010 quarter  and year  to date (nine 
months  to 31 March 2010) with comparatives  for the December 2009 and September 
2009 quarters are summarised in Table I. 
 
Table I. Gold production statistics 
 
+-----------------+------+-------------+-------------+-------------+-----------+ 
|Period           | Unit |Quarter ended|Quarter ended|Quarter ended|Current YTD| 
|                 |      | 31 Mar 2010 | 31 Dec 2009 | 30 Sep 2009 |31 Mar 2010| 
+-----------------+------+-------------+-------------+-------------+-----------+ 
 Tonnes mined     |tonnes|       45,359|       53,064|   40,434    |    138,857 
=-----------------+------+-------------+-------------+-------------+------------ 
 Ore milled       |tonnes|       40,943|       37,588|    40,467   |    118,998 
=-----------------+------+-------------+-------------+-------------+------------ 
 Head grade       | gpt  |        20.61|        18.68|    14.78    |      18.07 
=-----------------+------+-------------+-------------+-------------+------------ 
 Recovery         |  %   |          94%|          94%|     94%     |        94% 
=-----------------+------+-------------+-------------+-------------+------------ 
 Gold produced    | ozs  |       25,505|       21,108|   18,054    |     64,667 
=-----------------+------+-------------+-------------+-------------+------------ 
 Cash costs (1)   | US$  |         $180|         $184|    $193     |       $185 
=-----------------+------+-------------+-------------+-------------+------------ 
 Gold sold (2)    | ozs  |            0|       21,108|   18,054    |     39,162 
=-----------------+------+-------------+-------------+-------------+------------ 
 Average      gold| US$  |           $0|       $1,111|    $975     |     $1,047 
 price received   |      |             |             |             | 
                  |      |             |             |             | 
 
Note: 
 
(1) Cash costs refers to the cost of gold mined (net of development costs), 
    produced and sold and includes taxes, royalties and local production taxes 
    of US$48 per ounce for the Mar 2010 qtr (Dec 09 qtr: US$48 per oz, Sep 2009 
    qtr: US$34 per ounce; Current YTD: US$46 per ounce) 
 
(2) The Company did not sell any gold during the Mar 2010 qtr and retained its 
    entire gold production for the qtr as bullion or on metal account. 
 
 
Gold  production for the quarter increased to 25,505 ounces (a 20% increase from 
the  previous quarter's  production) at  an average  grade of 20.61 g/t gold and 
cash costs of US$180 per ounce. 
 
Medusa  an unhedged gold producer, did not  sell any gold during the quarter and 
retained  its entire  gold production  for the  quarter as  bullion or  on metal 
account. 
 
Phase  II of the Company's expansion programme was completed on schedule and the 
forecast  gold production for the fiscal  year to 30 June 2010 is anticipated to 
be around 90,000 ounces at an anticipated cash cost of US$190 per ounce. 
 
As  reported in the previous  quarter, the presence of  unusual amounts of black 
leader material in current mine development concentrated along the Great Hamish, 
Central,  Jeremy and Roysan veins has resulted  in the current high grades being 
processed.  It  should  be  noted  that  the occurrence of black leader material 
rarely shows up in drilling and its occurrence is highly unpredictable. 
 
Graph 1 (please see the link at the end of this announcement) 
 
Co-O MINE 
 
Mine Development 
 
The  mine development  has proceeded  extremely well  with 5 levels at 50 metres 
apart  operating and  a 6(th) expected  to be  opened around  mid-year. There is 
currently  approximately 60,000 tonnes of broken  ore in stopes underground, 21 
headings and approximately 36 stopes on the breaking cycle. In addition there is 
around 20,000 tonnes of ore stockpile. 
 
This situation augurs well for meeting our production targets going forward. 
 
Mine Production 
 
Production has continued uninterrupted at the mine. 
 
The fitting of the skip and headframe to the vertical Ventilation Shaft near the 
Baguio Shaft to haul mineralised material from above Level 2 should be completed 
in the next quarter. 
 
Driving  from Level 3 northwards from the Baguio  Shaft area to link up with the 
3 compartment  Tinago Shaft is progressing well. A rise from Level 3 to Level 2 
will  complete this work and open the Tinago Shaft for ventilation initially. If 
sufficient  mineralised material can be  located in this area,  then it could be 
converted to a haulage shaft. 
 
Mill Expansion 
 
Commissioning of the expanded milling capacity has now been completed. 
 
Tailings Dam 
 
Construction of a new eight year life tailings dam is progressing and is due for 
completion  late  in  the  2(nd) quarter  of  2010 subject to favourable weather 
conditions. 
 
Power 
 
The  Company  is  finalising  arrangements  with  the local power provider for a 
dedicated  line  from  San  Francisco  to  the  mill. Surveying of the route has 
already  commenced  with  the  current  projection  for completion in the 3(rd) 
quarter  of  the  year.  All  costs  over  the estimated budget will be advanced 
initially by the Company and these will be recovered through tariff reductions. 
 
Plate 1 (please see the link at the end of this announcement) 
 
RESOURCE DRILLING 
 
Discussion 
 
Figure 3 (please see the link at the end of this announcement) shows all the new 
MD  series diamond  drill holes  from MD  217 to MD  240 totalling 11,262 metres 
which  have been completed  around the Co-O  Mine since 9 December 2009. Results 
are awaited for MDs 236 and 240. 
 
The  on-going drilling programme has concentrated  on infill and extensional (up 
and down dip, and lateral) drilling in and around the Co-O Mine. 
 
Drill results 
 
Table II lists the surface diamond drilling results greater than 3 g/t gold from 
the  Co-O Mine for new drill holes from  MD 217 to MD 240 as well as results not 
previously  reported for  some earlier  holes. These  drill hole results will be 
incorporated  into a new resource estimate which  is expected to be completed in 
July-August  2010. Other  reports  containing  intersections  for holes numbered 
below MD 217 were announced on 18 January 2010, 1 July 2009, 1 December 2008 and 
11 August  2008. In  2007 the  announcements  are  dated  9 July, 15 May and 28 
February. The 2007 announcements also contain information regarding drilling and 
surveying  techniques,  comments  on  vein  interpretation and methodologies and 
assaying protocols. 
 
The  announcement of 29 March 2010 contained more  detailed results down to 0.2 
metres  wide as underground  development shows that  in many cases  as the veins 
approach  cross-cutting faults, they narrow down on both sides of the fault over 
5 to  10 metres before  widening out,  and hence  the narrower intersections are 
important  in defining vein continuity. There is also some pinching and swelling 
of  veins along strike. Most drilling is sub-parallel to the fault direction and 
rarely  intersects the faults, which  are subsequently identified by underground 
on-vein development. 
 
Table II. Drill hole results >3 g/t gold and ? 0.5 metres downhole for new holes 
          MD 217 to MD 240 and complete assays for some previously partly 
          reported holes designated * 
 
 
 
 
+-------+------+------+---+-------+--------+--------+-------------+ 
|Hole   | East |North |Dip|Azimuth|    From|   Width|Grade (uncut)| 
|       |      |      |( °)|  ( °)  |(metres)|(metres)| (g/t gold)  | 
+-------+------+------+---+-------+--------+--------+-------------+ 
 MD 212*|614329|913256|-53|  180  |  301.80|    0.70|         3.09 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  387.15|    0.95|         9.67 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  468.10|    0.50|        10.23 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  486.30|    1.30|         3.46 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  494.20|    3.90|         3.75 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 213*|613320|912924|-80|  180  |   58.80|    2.25|         3.06 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |   66.15|    4.25|         6.02 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |   72.55|    1.15|         3.53 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 214*|614532|913022|-60|  160  |  427.65|    0.65|        23.50 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  479.80|    1.70|        99.63 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  590.10|    6.40|        23.36 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 215*|614498|913211|-65|  165  |  612.50|    1.00|         4.85 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 216*|613551|912780|-45|  220  |  126.80|    0.45|        15.07 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 217 |613284|912951|-74|  121  |   96.60|    2.55|         5.14 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  141.10|    3.00|         3.59 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 218 |614331|913241|-45|  177  |  377.10|    0.50|        13.83 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  558.95|    0.65|        58.66 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  626.70|    1.70|         4.42 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 220 |613286|912950|-77|  162  |   87.40|    3.80|         8.34 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 221 |613366|913038|-45|  202  |  151.45|    2.45|         6.33 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 222 |613437|913229|-45|  340  |  605.80|    0.70|         3.60 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 226 |614331|913243|-47|  160  |  436.50|    1.05|         3.05 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  523.05|    0.55|        10.50 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 227 |614137|912987|-45|  180  |  241.10|    3.10|         3.61 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  322.25|    0.50|        25.63 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  332.85|    1.40|        20.63 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 228 |613388|913227|-45|  150  |   73.95|    1.35|         3.65 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  108.20|    1.00|         3.83 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  118.10|    4.75|         3.03 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  147.45|    0.85|        30.33 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  189.10|    2.50|         3.44 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  198.80|    1.60|        22.48 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  408.20|    0.60|         3.07 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  411.70|    1.85|         3.97 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 230 |613836|913239|-46|  170  |  232.00|    1.30|         3.67 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  266.60|    1.95|         3.34 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  372.30|    3.80|         6.36 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  380.10|    1.85|         7.38 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  445.90|    1.00|         5.67 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  468.45|    1.55|         3.43 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  533.60|    3.00|        10.00 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 231 |613969|913099|-46|  189  |   85.25|    0.75|        24.93 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  158.90|    1.70|         4.38 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  169.10|    2.00|        16.49 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  235.60|    1.65|         6.25 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  240.40|    1.50|         3.82 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 232 |614353|913191|-56|  154  |  350.20|    1.30|        17.59 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  590.65|    1.15|        35.18 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  704.80|    1.00|         6.27 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 233 |614137|912993|-60|  175  |  306.50|    2.05|         5.98 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  423.80|    0.50|        10.20 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 235 |614020|913156|-57|  200  |  142.20|    3.30|         3.69 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 237 |613812|913203|-49|  176  |  299.40|    1.20|        13.16 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  331.20|    1.00|        26.83 
=-------+------+------+---+-------+--------+--------+-------------- 
 MD 239 |613369|913037|-45|  168  |  110.90|    4.90|        20.27 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  125.10|    0.50|         8.76 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  156.80|    1.30|         4.84 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  195.75|    1.45|         8.91 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  233.00|    1.00|        10.70 
=-------+------+------+---+-------+--------+--------+-------------- 
        |      |      |   |       |  244.80|    2.30|         9.53 
        |      |      |   |       |        |        | 
 
 
 
Notes: 
 
(i)     Intersection widths are downhole drill widths not true widths; 
 
(ii)    All assays are by Philsaga Mining Corporation's laboratory; 
 
(iii)   Grid coordinates based on the Philippine Reference System 92; 
 
Co-O REGIONAL DRILLING 
 
Using the Co-O Mine as a model, drill testing commenced in the September quarter 
of 2009 on veins in the vicinity of the Co-O Mine. 
 
The  Co-O vein system  outcrops at surface  on the western  side of the Oriental 
Fault,  where it was first  discovered. The veins at  surface rarely exceed 0.5 
metres  width and  generally assay  around 1 to  5 g/t gold  (with possibly some 
supergene   enrichment).   Gold   values   started   to  increase  significantly 
approximately 80 metres below surface. 
 
To  date 22 drill holes (EXP 1 to 22) as  shown on Figure 3 (please see the link 
at  the end of this announcement) have  been completed. Results for EXP 1 to 12 
were announced on 17 December 2010. Subsequent drill holes have not achieved any 
significant  results above 1 g/t gold to date. Hole EXP 17 was re-drilled as EXP 
18, and drill hole EXP 19 was re-drilled as EXP 21. 
 
LINGIG COPPER PROJECT 
 
The  Lingig  prospect  is  covered  by  a Mines Operating Agreement ("MOA") over 
Mineral  Production Sharing Agreement ("MPSA") application number APSA 024-XIII 
comprising  two  parcels  situated  to  the  north  and  to the east (the Lingig 
porphyry  copper prospect) of the  Co-O Mine and millsite  as shown on Figure 2 
(please   see   the   link   at   the   end   of   this   announcement). 
Drilling was completed during the quarter while results to date are assessed and 
the  rigs can be  re-allocated to other  projects. An update  of recent drilling 
will be provided when all results are available. 
 
TAMBIS-BAROBO REGION 
 
The  Tambis project, currently  comprising the Bananghilig  Gold Deposit and the 
Kamarangan  copper porphyry prospect (Fig. 2) (please see the link at the end of 
this  announcement),  is  operated  under  a  Mining  Agreement with Philex Gold 
Philippines  Inc.  over  MPSA  application  APSA-000022-XIII which covers 6,262 
hectares. 
 
Figure  2 (please  see  the  link  at  the  end  of this announcement) shows the 
location  of the  Bananghilig Deposit.  Preparations are  advancing for  a major 
drilling  campaign commencing around July  2010 as the basis for pre-feasibility 
studies.  The aim of the work will be to increase the resources to a level which 
could provide a 5 year minimum mining life at a production rate of approximately 
200,000 ounces per year. 
 
ANOLING 
 
The  Mines  Operating  Agreement  with  Alcorn  Gold  Resources Inc. covers MPSA 
application  number 039-XIII situated approximately  8 kilometres north from the 
millsite as shown on Figure 2. Processing of the MPSA is progressing. 
 
Mapping  and sampling is  continuing. Drilling will  recommence when the MPSA is 
granted. 
 
OTHER PROJECTS 
 
  * Sur-sur Project. 
 
The Company is advancing the tenement applications. 
 
  * Saugon Project 
 
Construction  of field camps and access are  in progress for the commencement of 
drilling  shortly. A summary of results from the Company's drilling in 2004 will 
be provided in the near future. 
 
FINANCIALS 
 
As  at  31 March  2010, the  Company  which  is  debt  free, had a cash and cash 
equivalent balance of US$48.1 million (Dec 2009: US$35.5 million); 
 
During the quarter, 
 
  * The Company did not sell any gold and retained it's entire gold produced for 
    the quarter as bullion or on metal account (Dec 2009 qtr: Gold proceeds 
    totalling US$$23.4 million from the sale of 21,108 ozs of gold at an average 
    price of US$1,111 per oz); 
  * Incurred exploration expenditure of US$4.3 million (Dec 2009 qtr: US$5.8 
    million); 
  * Spent US$1.8 million on capital works associated with the mine/mill 
    expansion and sustaining capital(Dec 2009 qtr US$1.7 million); and 
  * Expensed US$1.8 million in mine development costs (Dec 2009 qtr: US$1.8 
    million). 
 
CORPORATE 
 
A  one for  ten bonus  issue of  shares to  all shareholders  of the Company was 
announced on 8 March 2010 and finalised during the quarter. 
 
 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               [phone] 
 
 Michael Padley/Libby Moss 
 
 Canada 
 
 Nicholas Sayce, Investor Relations        [phone] 
 
 
 
 
Information in this report relating to Exploration Results has been reviewed and 
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" and  is a  "Qualified Person" as 
defined   in   "National   Instrument   43-101" of   the   Canadian   Securities 
Administrators.  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. 
 
Information  in this report relating to Mineral Resources has been estimated and 
compiled  by Mark Zammit of Cube Consulting Pty Ltd of Perth, Western Australia. 
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"  and  is  a  "Qualified  Person"  as  defined  in "National Instrument 
43-101" of  the Canadian  Securities Administrators.  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. 
 
Information in this report that relating to Ore Reserves is based on information 
compiled  by  Declan  Franzmann,  B  Eng  (Mining),  MAusIMM.  Mr Franzmann is a 
full-time employee of Crosscut Consulting. Mr Franzman has 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" and is a 
"Qualified  Person" as defined  in "National Instrument  43-101" of the Canadian 
Securities  Administrators. Mr Franzmann consents to the inclusion in the report 
of  the matters  based on  his information  in the  form and context in which it 
appears. 
 
Refer  to  the  revised  Technical  Report  which  was  filed  on  www.sedar.com 
<http://www.sedar.com/>  in  March  2010 for  further  discussion  of  the  Co-O 
Deposit's   geology,   structural  controls,  drilling,  sampling  and  assaying 
information,  and any  known material  environmental, permitting,  legal, title, 
taxation, socio-political, marketing or other relevant issue. 
 
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  is  currently  expanding  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 
increase  its forecast  production to  100,000 ounces per  year in  2010, and is 
conducting  near  mine  exploration  to  assess  the  possibilities  of  further 
expansion  to 200,000 ounces per year.  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 in the discovery of substantial copper deposits 
within the tenement holding of more than 800 km(2). 
 
DISCLAIMER 
 
This  announcement  may  contain  certain  forward-looking statements. The words 
'anticipate',  'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 
'intend',   'should',   'could',  'may',  'target',  'plan'  and  other  similar 
expressions are intended to identify forward-looking statements. Indications of, 
and guidance on, future earnings and financial position and performance are also 
forward-looking statements. 
 
Such  forward-looking statements  are not  guarantees of  future performance and 
involve  known and unknown risks, uncertainties and other factors, many of which 
are  beyond  the  control  of  Medusa,  and  its officers, employees, agents and 
associates,  that  may  cause  actual  results  to  differ materially from those 
expressed or implied in such statements. 
 
Actual   results,  performance  or  outcomes  may  differ  materially  from  any 
projections  and forward-looking statements  and the assumptions  on which those 
assumptions are based. 
 
You  should not place  undue reliance on  forward-looking statements and neither 
Medusa  nor  any  of  its  directors,  employees,  servants or agents assume any 
obligation to update such information. 
 
 
 
[HUG#1403322] 
 
 
 
 
 
    Quarterly Report March 2010 Accompanying Images: http://hugin.info/138050/R/1403322/357619.pdf