Fatality Underground

MEDUSA MINING LIMITED

13 February 2014

FATALITY UNDERGROUND

(ASX & LSE: MML)

Medusa Mining Limited ("Medusa" or the "Company"), through its Philippines operating company Philsaga Mining Corporation regrets to inform that a fatal accident happened at the Co-O underground mine yesterday, 12 February 2014.

The incident occurred in a stope on the 5 level where a contract miner and his two assistants were cleaning up around an ore pass. Initial investigation reveal that the cause of the incident was the result of a dislodged large rock that hit an assistant, firstly knocking him down the ore pass and then unfortunately landing on the employee's abdominal region at the bottom of the ore pass.

The assistant was rescued and immediately taken to the company hospital for medical treatment for multiple abrasion and blunt abdominal trauma. He was then transported the Davao Regional Hospital in Tagum Hospital for hospitalisation but was pronounced dead on arrival.

All relevant Government departments have been notified and the Company is providing a full range of support services to the deceased's family.

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