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RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
July 20, 2007
Further to our commitment to answer shareholders questions,
we continue this week with answering the most commonly asked
questions, in no particular order.
Q) Will there soon be an opportunity for the broad market
to learn about Medinah's progress through major media press
release?
A) We are contracted with a media company to commence a professional
informational program at the appropriate time.
Q) How are you going to handle the shorts? How is the short
position affecting the JV and negotiations?
A) Shorts are a natural function of any market and are much
more regulated than previously. Nowadays, if you sell a stock,
you must deliver or buy back in. Shorts do not affect joint
ventures and negotiations, as Medinah negotiations do not
involve any percentage or stock interest in the company.
Q) Could you please outline some of the parameters that
have been given to interested parties?
A) The parameters of the proposed agreements with the various
interested parties are in accordance with generally accepted
industry norms, but cannot be publicly discussed at this
time.
Q) It appears based on shareholder updates that Juan is
meeting with representatives from more than a dozen major
companies, developing contracts, acting as tour guide on
numerous trips to the Alto, and going back and forth to Southern
Chile to be part of the Madre De Dios project. We know he
has many other obligations such his pear plantations etc.
He sounds like a very busy man indeed. What assistance, if
any, is Juan getting to accomplish these tasks? Does he have
administrative and secretarial support? Does he any warm
bodies at all helping him with closing a deal? If not, what
can be done, if any thing, to get Juan the assistance he
needs to accomplish his tasks as quickly as possible?
A) Juan José Quijano works timelessly for Medinah
and has numerous backup resources to cover his many operations.
His resource pool and many years experience as an attorney,
mining property owner and vendor allows him to function efficiently
at the level of serious negotiations with the majors.
Q) The company has made reference to a acquiring a 9% interest
in a in a project in the southern gold fields of Chile. Is
this a free-carried interest? Did the company have to pay
for it? If not, how/why did they obtain this interest?
A) Medinah received its interest in 9% of a Southern gold
field project of Chile, as reported, as compensation for
past assistance during the evaluations and development of
the property. Medinah is not obligated to contribute financially.
Q) Management and the Board of Directors
are pleased to announce that Bruce Turner, World renowned
mining executive and business consultant, and board director
of several publicly traded companies has elected to become
even more actively involved with Medinah Minerals, Inc.
Mr. Turner will take on a very prominent role as an Advisory
Board Member to Medinah s Management and the Board of Directors.
Mr. Turner will assume an integral role in assisting Medinah
s President, Juan José Quijano Fernández,
with funding matters, contractual negotiations, finalization
of infrastructure issues, and joint venturing implementations
relative to the Alto de Lipangue property. Is Bruce Turner
no longer involved with Medinah? If not, why did he leave?
A) Mr. Turner was instrumental in introducing Medinah to
several potential Joint Venture partners and recommending
certain areas of expansion and development on the Alto de
Lipangue property. Subsequently, Mr. Turner acquired his
own venture in Chile and is now actively developing his mining
properties.
Q) If MDMN is dealing with 12 majors
and is extremely close to a JV, why "discussions with investment bankers"?
A) During the past 2 years, several investment-banking groups
have expressed an interest in Medinah. As company policy,
we decided that a Joint Venture agreement with a reputable
major mining company was preferable to Medinah. However,
it is comforting that we do attract the attention of financial
institutions interested in our property and our company.
Q) How much money has MDMN and CDCH spent on the property?
Does both companies plan on spending more to prove up the
property and if no please explain? What make MDMN property
different from any other claim with your 17 drills does it
show a considerable find?
A) From the date of the original acquisition of the Alto
de Lipangue properties, Medinah and its associates have expended
in excess of $15 million on the properties. This includes
road building and surface access, trenching, staking and
surveying, extensive IP surveys and other geological services,
property service and maintenance, diamond drilling of 25
holes, percussion drilling, assaying and numerous professional
geology evaluations. As this property is very extensive and
the drilling to date has indicated a significant ore body
open in all directions and to depth, considerable additional
work must be done to delineate the total property potential.
Q) Is the company going to reply to the letter from Russell
Godwin dated July 17, 2007?
A) On July 17, 2007 Russell Godwin, past President, Secretary
and Director of Medinah, sent a letter to Management of Medinah
Minerals, Inc. and Cerro Dorado, Inc. stating in part that
he is an Executor of the Estate of Gordon House and that
he has been given the debts supposedly owed by Medinah to
House. No documentation accompanied the letter.
Godwin states that because Medinah has not paid all alleged
debts to Gordon House, the January 15, 2001 report by House
on the Alto de Lipangue claims is proprietary and that Godwin
now withdraws approvals for Medinah to use these documents.
He further says that Medinah is not entitled to make any
deals with third parties using any information gained from
these documents and that third parties must be notified that
they are not permitted to use this information.
Legal Counsel is of the opinion that the letter has no force
or effect in law. Gordon House, at the times in question,
was a Director, Officer and employee of the Company. He was
not an independent consultant, which is fully disclosed in
his reports, and therefore any work done for the Company
is owned by the Company and not Gordon House. There are no
proprietary rights. As well, House provided written permission
to use any reports he provided prior to and including January
2001 and it cannot be revoked 6 years later by a third party.
All debts purportedly owed to Gordon
House were discussed with him on many occasions by Company
CEO, Les Price. The present recorded and agreed amount
on Company records is $33,541.91. In 2005, when he was
very ill, Gordon advised that the debts were not an issue
and that the Company should complete a major deal on the
properties before paying any debt owed. This portion of
the debt is not disputed and will be paid to the Estate
at a mutually agreed-upon time. A Director’s
Resolution signed by House and Godwin covers this issue and
prescribes a simple 10% interest charge be applied.
At the May 17, 2004 AGM, all matters
of debt were addressed and the Shareholders gave instruction
for their handling. Unanimous consent of over 200 million
voting shares instructed the new Board of Directors to
deal with the debts of the company, as they have. As the
outgoing Board of Directors, Godwin and House had the opportunity
to openly deal with any debt claims that they had at that
time and before the Shareholders. They did not. Of further
confusion was their statement in that meeting that they
had held several Directors’ meetings
but had never, during their entire tenure, spoken with their
third Director, Juan José Quijano Fernández.
This may bring into question, why Godwin has never presented
the Company with legal documentation for his claims of debts.
One has to wonder which Directors were selected to approve
which agreements.
Godwin is claiming about $150,000 to be paid to him for the
House inheritance. No valid contract, approved invoices
or other accounting documentation been provided by Godwin
to explain or ratify this claim despite repeated requests
from the Company. There is no record in the Company files
of this debt being owed and it is the Company’s position
that this claim is without merit.
The Company intends at the time of funding via a major agreement
on the properties, to pay to the Estate of Gordon House all
legitimate debts of record along with the previously agreed
10% simple interest calculation.
Management of Medinah is suspect of the intent of this demand
letter as, almost as soon as the Company received the letter,
it was posted on the Internet. Calls came into the office
immediately from outraged Shareholders, some of whom understand
U.S. law and the full meaning of non-proprietary.
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