MEDINAH MINERALS Question & Answers
February 4, 2009
Question & Answer postings are compiled from time to time, as an information source as to company actions and/or activities. Q&A posts will continue in the post-Joint Venture Agreement phase concerning Company activities, to provide ongoing information for the benefit of Medinah Minerals shareholders.
Q: Has there been any work done relative to Medinah’s 15 percent interest in the recently acquired polo claims?
A: A highly qualified Geological team has been on the property for several weeks and is preparing a full Geological Report along with recommendations as to the next step of development. An interested major participant has requested permission to visit and determine if the property is economically viable. This visit is scheduled for March 10, 2010.
Q: How has Medinah Minerals, managed to pay their accounts and remain in business with absolutely no income?
A: The Directors and Angel Shareholders have continued to fund the Company as they have done for several years. Recently, considerable funds were required to attend to such matters as the Registration and Updating of Pink Sheets, required for dissemination of Company information, as well as ongoing Legal Fees, Corporate Fees, Office and Website Fees, Transfer Agent Fees, etc. Additionally, extensive funds were required for ongoing Property Maintenance, Road Access Rights, Property Access Rights, Geological Costs, Road Rehabilitation Maintenance, and Taxes etc. The December 31, 2009 Annualized Financial Statements detail certain of these expenditures and show that Directors and Angel Shareholders funding for the calendar year 2009 exceeded $400,000.
Q: What happened to the los dos Marias project?
A: Detailed studies were carried out to determine the most advantageous method(s) of mining and producing from the gold structures that is now complete. This, after having to guarantee Chilean Miners safety issues, Environmental Issues, and the alteration of the vertical and horizontal adits to accommodate drainage and “best case” capture values. Contracts, contingent on the above matters, are now being finalized.
Q: Why has it taken this long (many years) to complete a joint venture agreement on the altho de lipangue property?
A: On Medinah’s website, posted under Projects, there is a detailed document prepared by Dr. Jim DeCosta dated February 18, 2008. We refer you to the entirety of the treatise, but emphasize reading of Paragraph 5 where he outlines, from his experience, and as related from many Junior Mining Exploration entities, the time frames one anticipates in dealing with multi-billion dollar “major” mining companies. Señor Juan José Quijano has responded to every request from the potential Joint Venture participants in compliance with Chilean law in prompt fashion and legal format. Señor Quijano has, on several occasions, deemed that Medinah was closing in on a Joint Venture Agreement deal (JVA). Unfortunately, to date, he has been unable to finalize a JVA deal.
Q: When and with whom will a joint venture agreement be completed?
A: While the parties to the Proposed Agreements have been determined, the Company remains legally bound by Non-Disclosure Agreements. The Company is not withholding information from shareholders. The Company is complying with legalities. The Company was, in the past, cited for negligence in posting information about a potential JVA partner. Based on our “jumping the gun,” the potential JVA suitor rescinded their interested negotiations and left the bargaining table. The Company does not wish to be seen as a violator of Corporate Governance by violating the terms and conditions of a Non-Discloser Agreement. Señor Juan José Quijano continues to negotiate with the parties, their lawyers and representatives, providing information as they require in a spirited effort to finalize an Agreement. Upon the conclusion of any Agreement, the Company will issue the appropriate News Releases immediately on the official Company website. Of note, any dissemination of information not officially presented on the Company website has no validity and should be deemed hearsay and non-credible.
