Holding in Company

Medusa Mining Limited

("Medusa" or the "Company")

4 January 2011

Holdings in Company

Medusa has been informed today that as of 30 December 2010 Vanguard Precious Metals and Mining Fund was beneficially interested in a total of 13,550,000 ordinary shares of nil par value in the Company which represents approximately 7.19% of the issued share capital of the Company and an increase in shareholding of 2,150,000 ordinary shares since the previous notification by Vanguard Precious Metals and Mining Fund as announced in November 2010. The registered owner of the 13,550,000 ordinary shares is JPMorgan Chase Bank, N.A.

Contact details:

Medusa Mining Limited

+61 8 9367 0601

Geoffrey Davis, Managing Director

Roy Daniel, Finance Director

Fairfax I.S. PLC

+44 (0)20 7598 5368

Financial Adviser / Broker

Ewan Leggat / Laura Littley

Lothbury Financial Services Limited

+44 (0)20 7868 2567

Michael Padley / Libby Moss