RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
August 15, 2008
We continue this week with answering the most commonly asked questions, in no particular order.
Q) “Setting aside any speculation on the possible identity of the JV partner, is there ANY cause to be concerned that the commencement of the Olympic Games may present any impediments to continued dialogue between us and the JV partner (and more optimistically, a prompt conclusion/finalization of contract details and even an announcement of terms of a JV agreement). And if so, will we have to wait until after the Olympic Games are concluded before everyone will be "back to the table" to resume discussions ?? Thank you in advance for your response.”
A) This is not an issue. Discussions continue uninterrupted.
Q) “for what it is worth i find it somewhat disingenuous when MDMN abandons a favorable negotiating strategy for which, presumably, it could have closed 8 months ago(which it had going last December of 07)in the hopes of achieving a better result because of new developments. In the meantime there could be some world event or country event which destabilizes the host country or the JV partner country that kills the deal for good. IMO, it is a little irresponsible to bet the ranch on reaching a situation which may be jeopardized by events out of the control of MDMN rather than GETTING IN THE GAME WHEN THE GETTING IS GOOD and working to make the subsequent result the best it can be. I'm getting tired of no results. Please comment on this philosophy and why shareholders should embrace it.
Today gold was down $36.00 TO A yearly low of $821 as well as other mineral comomodities to be mined in our properties loosing significatnt ground and declining intheir values. based on this fact and the coninuing downward trend for these commodities how does that affect the negotiations and have we already lost significant leverage because of these losses?
Thank you for your kind understanding...I look forward to the responses to these issues and wish you professionals all the best in your efforts to achieve value for us/all shareholders.”
A) Your comments are well received. Assuming favourable results for ongoing exploration and development, a property of this size and type would have a life span well exceeding 20 years. During that period, metal demand and pricing will fluctuate many times. I understand our potential Joint Venture partners, who are very conservative, discount current markets in excess of 50% for their valuations. We are all anxious to conclude a meaningful agreement as quickly as possible and continue to work to that end.
Q) “I was pleased to learn that Stifel Nicolaus And Company Inc., a mutual fund with a value of $760 million, recently bought 430,000 shares of MDMN. Even though the size of the purchase was not huge, it certainly adds credibility for Medinah to have been found by its first institutional investor. Are you expecting any other institutional investors to take positions in MDMN prior to the announcement of a completed joint venture agreement? Are you expecting additional purchases of MDMN by Stifel Nicolaus? And finally, can you comment on how Stifel Nicolaus became aware of MDMN?”
A) We are pleased to learn from you of such investors, but we cannot comment on their purchase or anyone else’s.
Q) “is there any intention on paying a divident after the jv is signed?”
A) One of the purposes of the Shareholders Meeting, to be held when a Joint Venture Agreement is completed, is to receive from the shareholders, their input into the future policies of the company including, but not limited to, the possibility of a dividend.
Q) “I passed your response on to the interested parties. thank you for the Q&A today. Very helpful in keeping things on the positive side. I was wondering if I can expect you to answer the two questions that I sent to you in my eMail of about two weeks ago that was a follow-up to your first response regarding the signing scenario. I will not repeat them here, but you may recall that the questions were regarding clarification of whether the BOD resolutions will be REQUIRED BEFORE the JV can become effective, and whether or not faxed copies of those resolutions would be acceptable or will the originals have to be returned to Chile first?”
A) Faxed copies of the Board of Directors Resolutions are acceptable and the originals do not have to be returned to Chile. The authorities necessary to complete any Joint Venture Agreement are in place.
