Holding in Company

Medusa Mining Limited

("Medusa" or the "Company")

28 January 2011

Holding in Company

Medusa has been informed today that as of 10 January 2011 Rex Harbour and associates (which includes City Securities Limited, Harbour Foundation, Rex Harbour and Cead Trust) were interested in a total of 11,361,066 ordinary shares of nil par value in the Company which represents approximately 6.036% of the issued share capital of the Company. This represents a reduction in shareholding of 7,883,473 ordinary shares in the Company since the previous shareholding notification by Rex Harbour and associates.

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