RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
February 1, 2008
We continue this week with answering the most commonly asked questions, in no particular order.
Q) “why aren't the weekly shareholder questions and managements answers timely published on the company website?”
A) Last year, several shareholders suggested a “periodic” Q&A posting to the website that would assist in the information flow and we agreed to a trial period to assess the results. Generally, the comments have been favourable so the process has continued.
The compilation and completion of the Q&As is time consuming and, on occasion, we may be absent from the office or, alternatively, engrossed in other matters such as the preparation for the forthcoming Shareholders Meetings. Several times, Holidays such as the recent Martin Luther King holiday, have delayed the postings, but it is our intention to continue on a regular basis until at least the end of February.
Q) “I am sorry to say that my fellow shareholders and i are incredibly disappoint with the progress of the joint venture agreement.I have a friend who is in account that has been through at least 10 global deals where the cmplications included language issues govermant barriers regulatory matters and individuals that were egotistical and just extremely difficult to deal with.The culmination of some deals never took as long as medinah has been working on the jv.In some cases a deal was never signed however that proscess was rather quickly resolved and the parties moved on to something else.He has also never heard of a company announcing a shareholders meeting before the conclusion of a major deal that shareholders have waited for years to be completed.Arent you and the board apprehensive about facing a(mob)of angry people at the meeting? I was very exited and hopeful in october that we woud have a deal well before year end.however for the following reasonns i am assuming that a deal will never be concluded in the foreseeable future.Its the middle of the summer in chille already.It must take months to set up drilling etc.I would guess that no one will begin drilling in the horrific winters in the chilean mountans do we have to wait for the chileanspring? Gold is at a historic highs i dont thinck you can wait any longer.The chinese new year begins the end of this week.(assuming the deal is with the chinese)Nothing gets done during there 2 or 3 weeks of celabration.I do talk to many other shareholders and they share my frustrations.I know that my previous meessages was not posted on the q&a as have many of my associates messages .dont expect this to be posted either but i needed to put in writing.Ihope you can answer this message with some reassuring comments that can explain the reasons for the delays in the deal.If your property is so valueable why arent the parties breaking down the door to close a deal? As you can tell i am very frustrater and trying to keep my sanity about this matter.”
A) Management has been negotiating a Joint Venture Agreement of the Company's holdings at the Alto de Lipangue property in Chile. Negotiations have been frustrating for all and more costly than anyone anticipated. The reasons for this, amongst other things, are the size, complexity and costs associated with such a large discovery. Combined, the parties currently at the table have spent considerable funds in just their due diligence. This has not been undertaken without serious optimism and sincere interest and sometimes excitement at the prospect of participating in this great property. Such expenditures take time and obviously this has contributed largely to the difficulty of predicting when a deal finalizes.
Management has been questioned many times about the contents of offers. It is right and reasonable to request that information, however, as previously stated, not possible for us to disclose at this time. Everything must be in context. Some offers include more cash, some less cash but better or lesser longer-term benefits. Some offers may contain share exchange arrangements to benefit the companies as profits and expectations rise. Some are looking to large retained interests for Medinah and some lesser retained interests but larger cash payments. Some have proposed participation joint ventures, where Medinah reclaims all of its expenditures first before participating in the development costs. Some are proposing a 100% buy out with a large cash off but small NSR (net smelter returns). All of these offers are valid, industry standard-type agreements. It is highly time consuming, although an interesting task, to analyze and compare various and varying offers one to another.
Although the Alto de Lipangue is situated in the Andes, the maximum elevation is only 2,000 meters. With the rebuilding of the north road and the extension of the south road, weather does not really affect the exploration program for any significant period of time.
As we are operating in Chile, the Chinese New Year is not a factor.
Q) “You cannot even begin to imagine how angry some of the MDMN shareholders are getting over your silence, dead end rumours, and the endless delays. I can tell you this, judging from comments I have heard recently from some, the JV better be in place NLT the AGM or you will need security at the meeting and a good lawyer. Just figured you needed to know how far some of them have been pushed. IMHO, they are on the very verge of violence. You and JJ have already cost some hundreds of thousands of dollars by your silence. I hope you know what you are doing.”
A) While we understand your frustration, we assure you that we do not react to threats of violence or intimidation, nor will it assist the Company or its shareholders in concluding a satisfactory Joint Venture Agreement.
Q) “Can you give me an update as to what's going on with the JV? “
A) We are proceeding on a daily basis toward completing a Joint Venture Agreement as rapidly as possible.
Q) “Dear Mr. Price, I want to thank you for your time in talking with me on the phone yesterday. As an investor in Medinah Minerals it does bother me that you won't use the news wire for your announcements. Even though it seems by looking at your web site that you are conscious of your shareholders interest, by not posting news on the wire makes me wonder just how much. People like me are watching many stocks at the same time. We depend on the news wire for relevant information quickly regarding the companies we are watching. In depth research is done on a weekly or bi-weakly basis. For example you posted relevant news on your web site on 12/20/07, I didn t find it until 1/11/08. I also want to point out that your notice about the shareholder meeting is lacking the place for the meeting. It gives a time and a general locale but no address, this information is insufficient to book arrangements on attending the share holder meeting, and as I pointed out to you on the phone, by the time I will get the notice in the mail it will be too late to make arrangements to attend the meeting. Given this information I hope you will reconsider the merits of distributing this information over the news wire. Thank you again for your consideration…”
A) You will notice that on January 18, 2008, we posted the details of the forthcoming Shareholders Meeting. Pursuant to the revised statutes of the State of Nevada, we are only required to provide 10 days notice. However, the Company policy has always been to give as much prior notice as possible. We have set the record date of February 1, 2008 and the notices to all registered shareholders will be sent out shortly thereafter.
The cost of distribution via the news wire, with a very tight budget, limits the number of times we use this service.
Q) “Here is a question for you...Who are we dealing with that is too cheap to actually pay a translator to translate their own documents into all the appropriate languages? Hey, if I am Chinese and I am making a deal with a Canadian and a Chilean, I would not hand them a document written in Mandarin and tell him, "Hey, guys, take this home, see if you can get it translated by Monday, sign it, and mail it back. Hope your translators are good at translating "small print". Because if they get it wrong you will be in a world of hurt come payday. Hope to hear from you soon." Les, when are you guys going stop lying to us and just put out the NEWS? This is pathetic. Who do you REALLY think you are kidding Sir. Do you really believe that we are all that STUPID? And BTW, if you REALLY did get a document that was written in Chinese, you are dealing with the wrong people or your negotiator needs to go back to negotiating school.”
A) We have absolutely no idea where you got the notion that we received any documents in Mandarin. Another example of how rumours are toxic. All legal documents in Chile are in Spanish, signed in Spanish and registered with all applicable government agencies in Spanish. Since 1996, we have over 25 of these types of documents in our records. We translate each of them into English simply as a convenience, but the English translation is not an official document.
Q) “It has been explained to me that you get all your documents in Spanish, and Pam translates them into English using a computer program. I find this whole translation issue to be completely beyond belief. I am sorry. I am trying to stay positive, I really am. But look, if I am getting ready to hand you $30 Million to finalize a performance agreement between the two of us, and the fine tuned details of that agreement are spelled out in a document written in Chinese, or Japanese, or Spanish, or Greek, and I know, going in, that you do not speak any of those languages, TRUST ME PEOPLE, since it is MY $30 million dollars, LOOOOOONG before you EVER see that document written in Spanish or English, I will have my translators translate it into Spanish and English. And then MY OWN bilingual attorneys, NOT your $10 per hour SECRETARY, will go over EVERY SINGLE WORD of the translation, comparing it word by word with the original Chinese document to make 100% certain that I am accurately conveying to you EXACTLY what I am agreeing to, and EXACTLY what you are agreeing to, and EXACTLY what I will be giving you $30 Million dollars for, and EXACTLY what you are expecting from me once you get my money. and EXACTLY what I am expecting from you. IMO, ANYONE WHO WOULD BE STUPID ENOUGH TO LEAVE SUCH THINGS TO A COMPUTERIZED TRANSLATOR IS AN IDIOT!”
A) Another issue – my Executive Assistant’s name is Pamela, who toils daily on behalf of Medinah and its shareholders. She has been with us over 10 years. If you wish to heap abuse on me and call me an idiot, that’s what I get paid (?) the big bucks for. However, do not ever belittle her or her efforts!!!
As to the issue of Spanish contracts, you might remember that the Company President, Juan José Quijano, is a prominent mining lawyer in Chile, well versed in all aspects of mining and commercial law and fully understands Chilean legal contracts.
Q) “all our shares are held by in brockrage firms. and i am planing to aten stockholders meeting.will bringing mo. statements of firms? get us into meeting?and vote shares? we want to keep shares with brockrage. one million plus shares.”
A) The Depository Trust Corporation provides us with a listing of all brokerage firm holdings and as long as they are on the list and you provide your statement, we accept that as proof of ownership for the meeting purposes.
Q) “How do the brokerage houses receive proxy material for the upcoming AGM?”
A) The Depository Trust Corporation provides each brokerage firm with notice of the meeting and the applicable number of shares held for their clients (we also receive a copy). Any Shareholder may request from his/her broker a Proxy to vote at the meeting which amount is then deducted from the DTC Omnibus Proxy.
