Medusa Mining

Medusa Mining Limited (“Medusa” or the “Company”), a public company listed on the ASX is an Australian based gold producer, focused solely in the Philippines. On 22 December 2004 the Company announced it had completed a Heads of Agreement to merge with Philsaga Mining Corporation (“Philsaga”) which owned the high grade, underground, narrow vein Co-O Gold Mine. Philsaga was a privately owned Filipino corporation. On 4 December 2006 the merger was completed, and the Company commenced redeveloping the Co-O Mine with an initial production target of 40,000 ounces per year. In September 2007 the Company decided to expand the production capacity by commencing a Phase 1 expansion to increase production to 60,000 ounces annualised by the third quarter of 2009. Phase I was completed ahead of schedule by 31 March 2009 with annualised production of approximately 65,000 ounces in the quarter. Phase 2 expansion to annualised production of 100,000 was completed in the March quarter 2010, on schedule. In 2012, the Company commenced its Phase 3 expansion to upgrade the mine hoisting capacity with the L8 shaft construction and to construct a new mill with 2,500 tpd capacity. Commissioning of the mill was completed in the March Quarter 2014. In April 2015, the Company commenced the construction of a service shaft for all men and materials which will improve the hoisting capacity of the L8 shaft. This should be completed mid-calendar year 2016. The Company’s current mineral resources and ore reserves are reported in accordance with the guidelines of the JORC Code 2012 (Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves). Refer to announcements of 4 and 25 September 2015, the September 2015 Quarterly Report, and the 2015 Annual Report. Reporting of Mineral Resources under JORC Code 2004 guidelines gave an estimate of the volume of in-ground mineralisation above a certain cut-off grade (3 g/t gold at Co-O) and had a reasonable expectation of being mined.