RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
August 8, 2008
We continue this week with answering the most commonly asked questions, in no particular order.
Q) “Is there any possibility of having the next shareholder's meeting Webcast over the Internet, for those not able to attend in person?”
A) That is not a problem. The last Shareholder Meeting on February 24, 2008 was carried directly via the web and also by video for distribution to interested parties.
Q) “This question focuses on what will happen after the (hopefully) inevitable and immediate announcement of the JV is made. It is widely understood that Medinah expects exploratory drilling on the Alto de Lipagnue property to commence within one month of the signing of a JV. My question regarding this is, what assurances are we going to have, other than the good word of our partner, that they will indeed comply with this provision? Specifically, does the contemplated JV require our partner to post a performance bond backing up their word, or do we have the right to commence drilling operations on their behalf (sending them the bill) if they balk, or some other protective provision? As you no doubt will agree, this is a key area of concern and it would be very reassuring to have an understanding of what is being contemplated WRT this issue. Thanks for entertaining this question.”
A) As in any contract, there are default provisions and penalties for non-compliance in any terms of the proposed Joint Venture. This does not extend to the right to assume operational control unless the defaults were determined to be major enough to void the entire contract.
Q)
"1) On a percentage scale how close do you feel we are to completing and announcing a joint venture agreement? 100% being we should see something next week, 90% would be this month, etc, etc.
2) The company has stated that directly after a joint venture is completed there will be an AGM, at the AGM will there be explanation as to why this has taken so long and will there be something done to give back to the shareholder?
3) Does the company still plan on doing a buyback of it s shares?
4) Currently are the figures still the same in the deal that is being done? (150 mil euros, 15% retained interest).
5) Has there been more shares issued that we are unaware of?
6) When is Les scheduled to go to Chile next?
7) Does Les plan on being present for the signing of the joint venture with the major?
8) Is the company going to give the major that will be involved in the joint venture a certain amount of our shares as part of the deal?
9) Does the company plan on PR ing the crap out of the deal to maximize the pps after the deal is anounced?
10) Do you feel that a buyout is in the cards down the road? If so, how far down the road?
11) Does the company (MDMN) plan on expanding its team , adding employees to expand and grow the company after the joint venture is completed and announced?
12) Would there be a possibility that MDMN and CDCH would ever merge to become one company?
13) Does you wife still ask you every day if your ship has come in yet ?
Thanks”
A)
1) No comment
2) A Shareholders information meeting will be convened to fully disclose all matters pertaining to a Joint Venture Agreement and to discuss the future plans of the Company. This will not be an AGM.
3) Yes
4) Yes
5) No
6) No comment
7) No comment
8) Negotiable after completion of any proposed Joint Venture Agreement
9) A PR firm in the United States is retained to commence an informational program.
10) Possible.
11) For the shareholders to decide
12) Highly unlikely
13) Several times each day.
