Issue of Unlisted Options

Medusa Mining Limited

("Medusa" or the "Company")

4 July 2011

Issue of Unlisted Options

Medusa advises that it has today issued 575,000 unlisted options exercisable at $8.10 per option with an expiry date of 3 July 2014 ("Options").

The Options have been issued to selected Philippines based employees in recognition for dedicated service to date as well as providing an incentive for future dedicated and ongoing commitment and service to the Company.

Contact details:

Medusa Mining Limited

+61 8 9367 0601

Geoffrey Davis, Chairman

Fairfax I.S. PLC

+44 (0)20 7598 5368

Financial Adviser / Broker

Ewan Leggat / Laura Littley