RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
July 2, 2008

We continue this week with answering the most commonly asked questions, in no particular order.

Q)  “Hello, in your opinion, when do you feel the JV will be concluded and announced?  Are we looking at something that could possibly take weeks, months or years.  I think a "ballpark" time frame could be acceptable to give.  Thanks.

A)  As we have stated numerous times, we are working diligently toward continuing a rewarding Joint Venture Agreement as soon as possible.  The complexity of such an Agreement dictates that we fully understand all terms and conditions and we are confident that our potential Joint Ventures partners share our vision for the Lipangue property.

I cannot state when completion will occur, but I am also not aware of any impediment to an early finalization.

Q)  “Hello, when can we expect to see MDMN move to "transparent" on Pink Sheets?  Could this be considered as the "final step" with getting Medinah's Pink Sheets business in order before the joint venture is finalized?  Thanks.”

A)  We have taken the first step toward upgrading our Pink Sheet listing and we are now moving forward on the next leg.

This has nothing to do with finalizing a Joint Venture Agreement.

Q)  “So in football terms, back in January Seattle was at Green Bay with the score tied 21, there's 36 seconds to play in the 4th.  Seattle has the ball on the Green Bay 1-yard line and it’s first down with none of the Seattle’s timeouts used... where are we at now?  Has Seattle won the game and are just waiting for the officals to bring them the trophy?”

A)  The touchdown we scored the first try.  It is now in the “review” stage.

Q)  “You may answer this inquiry in the next company Q and A or respond privately by direct email.

We shareholders urgently need an update on the state of the negotiations for the JV for the Alto de Lipangue property.  It has been many weeks since the last official word on the status of the JV negotiations.  Reports from company officials at the last AGM indicated that we were  going to close a JV agreement "soon".  The April 17th letter to Shareholders stated that "We have moved another giant step toward closing a contract on the Lipangue...", and as recently as the June 6th Q and A we were advised that "The potential Joint Venture Agreements are proceeding forward every day, with no impediments and details will be announced when an agreement is finalized."  Yet, so far, no finalized deal has been reported, and no official status update or progress report to shareholders has been made.

We (that is to say the company management team) have been working on getting an agreement for a very long time.  It seems like we have been proceeding with trying to finalize final details of a JV since January of this year.  While  I appreciate that agreements with multinational parties and large organizations can take a while to put together, the time now seems inordinately long.  To put it bluntly, what is taking so long to finally put this deal to bed?

At the AGM JJ Quinones advised that we had an offer of 150 million Euros and 15% of production on the table, and which he characterized as being an exceptional deal in the mining world.  If it was so good, why haven't we taken it and gotten the drills turning on the property?

I appreciate that the negotiations are taking place under a non-disclosure agreement. I also appreciate that company management is consciensiously working to get absolutely the best deal possible for the company, and that can also make the negotiation process lengthier.

However, as time passes the value of the company's shares seems to be coming under increasing pressure.  As I write this, I have to observe that the stock price of Medinah closed at the low of the day and at a multi-week low, and the stock of Cerro Dorado closed at a multi-month low.  Weak share price is NOT indicative of positive news being imminently announced, and so I felt obliged to write and ask for as detailed an update as can possibly be given.  Accordingly, I would ask for as detailed a report as you can disseminate at this time , with specifics on the status of JV negotiations, and if a deal has been consummated subject to any conditions or clearing some impediment, on either side, what are they and when will they likely be lifted, cleared or removed.

I know that this has been a long road and I have no doubt that you, Sr. Quinones and other company officials are working as hard and effectively as possible to get a good deal done.  However, the long wait is very frustrating, and what we have been advised previously about submitted offers and negotiations  makes it difficult to understand why a deal has yet to be consummated and announced.  It would be a great help to me and many other belegured shareholders to have some detailed information on the status of negotiations and a realistic idea of when a deal might finally be done.  Any information you can provide in this regard would be greatly appreciated.

I look forward to hearing from you soon.”

A)  Thank you for the detailed comments.  The Directors are taking this into consideration and will publish a formal update on progress shortly, meaning by the week of July 21.