Medusa Mining announces Co-O Drilling Update

Medusa Mining, through its Philippines operating company Philsaga Mining Corporation, announced an update of tsoda roast gold orehe Co-O Mine surface and underground drilling undertaken from 31 March 2012 to 30 June 2012.

Surface drilling since 31 March 2012 continues to provide resource infill and extension information for mine planning mainly to the east of the Oriental Fault, including the multiple East Agsao Veins and veins associated with the Roysan Vein. Two surface drill rigs are drilling to the west of the Oriental Fault and four on the east side of the fault.

Underground drilling continues to confirm vein continuity. Recent statistical studies indicate that 3 to 5 holes out of every 10 holes in a particular vein are required to return ore-grades to indicate that the vein will be mineable.

Peter Hepburn-Brown, Managing Director of Medusa, commented:

"The Co-O Mine drilling continues to deliver high grade intersections. These drill results are the last set of results for this financial year that will be incorporated into the annual resource estimate.

"I am pleased to report that for the first time we are achieving significant vein intersections to the west of the Tinago Fault which truncates the known veins at the western end of the mine. Whilst assays are awaited, in EXP 167 the veins are identical to the veins in the mine area. Continued success in extending the vein system westwards may have a significant positive impact on the future mine plans.

"Drilling at the current rate will continue for the foreseeable future."