Medusa Mining Announcements

Medusa Mining Limited
09 July 2007

MEDUSA MINING LIMITED
ABN: 60 099 377 849

Unit 7, 11 Preston Street
Como WA 6152

PO Box 860
Canning Bridge WA 6153

Telephone: 618-9367 0601
Facsimile: 618-9367 0602

Email: admin@medusamining.com.au
Internet: www.medusamining.com.au


MEDUSA MINING LIMITED

NEW DISCOVERIES at Co-O
Medusa Mining Limited ("Medusa" or the "Company"), the Australian based company
operating and developing gold mines in the Philippines, advises that it has
discovered new veins with consistent and exceptionally high gold grades at its
Co-O Mine.

The new discoveries, named the Jereme and New Catto Veins 1 to 5 ("NCV 1 to 5"),
are located to the south of and parallel to the known 1.5 km long Co-O Mine vein
system and are still open in three directions. Results include:

Hole Intercepts (metres) Grade (g/t gold)

JEREME
--------- -----------
MD 41 1.00 198.84
----------- --------- -----------
NEW CATTO VEIN 1
--------- -----------
MD 34 2.70 92.03
----------- --------- -----------
MD 35 1.70 55.77
----------- --------- -----------
MD 43 2.15 58.88
----------- --------- -----------
NEW CATTO VEIN 2
--------- -----------
MD 28 0.90 32.32
----------- --------- -----------
MD 44 0.50 18.23
----------- --------- -----------
NEW CATTO VEIN 3
--------- -----------
MD 35 0.60 75.39
----------- --------- -----------
MD 41 1.35 75.98
----------- --------- -----------
MD 44 0.70 42.29
----------- --------- -----------
NEW CATTO VEIN 4
--------- -----------
MD 44 4.50 20.05
----------- --------- -----------
NEW CATTO VEIN 5
--------- -----------
MD 44 1.90 79.05
----------- --------- -----------
Geoffrey Davis, Managing Director of Medusa, commented:

"These results confirm our belief that the Co-O Mine is highly prospective with
exceptionally high grades throughout, and that it has the potential for us to
increase the resources in the August-September estimate considerably via the
ongoing drill programme."
DRILLING RESULTS

Programme description

The Company commenced a diamond drilling programme in December 2006 which is
designed to define the Co-O Mine vein system in preparation for a new resource
estimation due for completion by late August to early September and
incorporating all relevant holes from MD 20 to MD 44.

The first five holes (MD 20 to 24) were reported on 28 February 2007 and
subsequently holes MD 25 to 34 (excluding MD 33) were reported on 16 May 2007.
The next full drilling update report will be provided in August 2007. Drilling
is continuing.

Current interpretations are based on 3D plotting and modelling of the data
available, and future interpretations may be subject to change as more data
become available.

The tops of the New Catto Veins are presently believed to be between the same
elevation as the bottom of the 3W shaft at 3050 metres and the new sublevel at
the 3000 metre elevation. All veins are open in at least three directions. It is
now apparent that some of the early holes have drilled over the top of some of
the veins or were not deep enough.

The Jereme Vein has been identified on the 3050 metre level to the south of the
3W shaft but was not previously recognised as a coherent high grade vein.

Table I: Initial Drill Results greater than 4g/t gold from the Jereme and New
Catto Veins
Hole East North Dip Azimuth Vein From Width Grade
(degrees)(degrees) name (metres) (metres) (uncut
(g/t gold)
MD 28 614003 913253 -48 211 NCV 2 413.00 0.90 32.32
MD 32 614254 913017 -51 217 Jereme 313.80 2.30 16.97
Jereme 321.90 0.50 38.55
South
Split
NCV 2 371.10 0.70 6.66
MD 34 614285 912923 -50 227 NCV 2 304.20 0.50 18.92
NCV 1 354.30 2.70 92.03
MD 35 614243 912851 -58 297 Jereme 198.30 0.30 34.59 (*)
NCV 3 209.30 0.60 75.39 (*)
NCV 2 253.50 0.90 9.34
NCV 1 268.50 1.70 55.77
MD 38 614240 912815 -47 237 NCV 1 187.90 0.30 65.56
MD 39 614240 912850 -58 205 Jereme 209.70 0.20 64.56 (*)
NCV 3 233.55 0.45 33.24 (*)
MD 40 614173 912951 -52 245 NCV 4 312.90 1.70 10.19 (*)
NVC 5 324.25 1.80 10.41 (*)
MD 41 614240 912849 -65 205 Jereme 240.60 1.00 198.84 (*)
NCV 3 261.55 1.35 75.98 (*)
MD 43 614273 912908 -60 221 Jereme 277.90 0.40 19.74 (*)
NCV 2 360.07 0.60 6.06 (*)
NCV 1 383.50 2.15 58.88 (*)
MD 44 614212 912983 -54 209 Jereme 262.80 1.95 15.39 (*)
NCV 3 270.45 0.70 42.29 (*)
NCV 2 359.60 0.50 18.23 (*)
NCV 1 376.90 0.20 57.19 (*)
NCV 4 413.60 4.50 20.05 (*)
NCV 5 436.90 1.90 79.05 (*)
Notes: McPhar Geoservices Inc. assays are quoted when available; (*) Awaiting
check assays from McPhar; and MD 28, 32 and 34 results previously reported.
Sampling and Assaying

All samples were taken from mainly HQ sized and some NQ sized drill core. The
selected sample intervals were halved by diamond saw and half the core was
bagged, numbered and sent to the Company laboratory. In a small number of cases
to confirm the geological logging, the selected interval was re-split and 1/4
core re-submitted for assay.

Initial sample preparation and assaying was undertaken at the Company's on-site
laboratory. Samples were dried at 105(o)C for 6 to 8 hours, crushed to less
than 1.25 cm by jaw crusher, re-crushed to less than 3 mm using a secondary
crusher followed by ring grinding of 700 to 800 grams of sample to nominal less
than 200 mesh. Barren rock wash is used between samples in the preparation
equipment. The samples were assayed by fire assay with Atomic Absorption
Spectrometer (AAS) finish on a 30 gram sample. All assays over 5 g/t gold were
re-assayed using gravimetric fire assay techniques on a 30 gram sample.

The majority of samples which contained more than 0.5 metres at more than 2 g/t
gold are re-assayed by McPhar Geoservices Phils Inc ("McPhar"), a NATA and ISO
9001/2000 accredited laboratory in Manila for the purpose of JORC Code compliant
resource estimations. The pulps are airfreighted to McPhar who fire assay 30
grams of sample using AAS finish and a selected number of samples are checked
using gravimetric fire assay techniques.

When reporting results, where available, the McPhar assays are given priority
over the Company laboratory's results.

Maps and cross sections which accompany this announcement can be viewed in the
ASX version of the announcement on the Company's website:
www.medusamining.com.au

The information in the above announcement was compiled by Geoff Davis, who has
sufficient experience which 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
"Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves". Geoff Davis consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.

Enquiries:

Medusa Mining Limited +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director

Ambrian Partners +44 (0)20 7776 6417
Richard Brown / Richard Greenfield

Bankside Consultants +44 (0)20 7367 8888
Michael Padley / Louise Davis
This information is provided by RNS
The company news service from the London Stock Exchange