RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
October 5, 2007

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

Q)     “1. On pinksheets.com the short interest for MDMN for September is listed as 168,490 shares.  Of course that figure only includes legitimate short sales, not naked short selling.  Will it ever be possible to calculate the amount of naked short selling for this or any other stock?”

”2. Recently the MDMN website was changed- on the home page a link to the tranfer agent's website was added.  Can you comment on why this was done?”

”3. Many shareholders are concerned that even after news of a joint venture is released, the stock price will not go up as much as it should because of continuing naked short selling.  In other words, there will never be anything that will stop naked short selling.  I understand that there are consultants who are experts in designing strategies to combat naked short selling.  Does Medinah plan to use such a consultant?”

“4. Because the process of obtaining a joint venture has continued about a year longer than originally expected, many shareholders are in need of some assurance that a JV will be completed by some definite date and the process will not continue indefintely.  After so much time it starts to feel like the process will go on indefintely,  and indefintely feels a lot like forever.  Without violating the non-disclosure agreements you are under, is there anything you can tell shareholders right now to give them some assurance that a JV will be completed by a definite date?  Are all the offers that will be considered in?  Can you at least give us a target date for when a final decision will be made?  Thanks for all your hard work.”

A)     1.  I am not aware of any reliable method of calculating daily or cumulatively of a “naked short” position.  The arduous and expensive “call back of share certificates” as completed by Medinah in 2001 gives you a snapshot of the positions at one particular date in time only.

2.  This was done to assist shareholders in dealing with the Transfer Agent for registration, lost certificates, legend removal, change of address, etc.

3.  Yes.  One has to be very careful in dealing with the “experts” as only a limited few are knowledgeable and trustworthy.  We are fortunate to have available one of the leading authorities on illegal naked short selling.

4.  The company has established and delivered to potential suitors, definite time frames for completion of offering memoranda for finalization.

Q)     “I have held Medinah stock for almost 10 years.  The fact that Medinah is still a viable company shows an amazing amount of perserverance.  I have never seen so many whiney people as I have on your question and answer page.  If these people aren't able to hold on long term, they should find an investment vehicle that is more suitable to them.“

A)     Medinah has survived through some very trying times because of the value of our discovery in Chile, many loyal shareholders, and a dedicated Management team.  The length of time to complete a Joint Venture Agreement frustrates many shareholders, but we are striving to deliver the best possible agreements for this company and its 6,000 shareholders as quickly as possible.

Q)     “While message boards in general are a waste of time, someone just sent me the following, which I find very disturbing if we do not hear a rebuttal from LKeslie Price or MDMN : from Raging Bull I believe.  By: forensicauditor   LESLIE PRICE & MEDINAH are to receive an 11 years "accumulated LEGAL - JUDICIAL PRESENT"...  get ready for FIREWORKS!!!!!”

A)     “Forensicauditor” is one of the many aliases Jorge Lopehandia uses to post numerous messages on the Raging Bull forum and many other similar sites for a number of companies.

In 1996, Jorge Lopehandia introduced us to several landowners who had properties near Barrick’s workings commonly known as “Mina Pascua”.  Upon reviewing the limited geological data available and the uncertainty of the land titles, Medinah did not proceed further.  Subsequently, Barrick did make an agreement with the landowners and the question of that contract and the titles to the lands has been subject to many court claims, both in Chile and in Canada.  Neither Medinah nor Les Price has been party to any of these suits.

Jorge Lopehandia contests that Medinah consorted with Barrick against the landowners, which is totally untrue and which has never been asserted by any parties to the numerous lawsuits.  As well, Barrick in Canada obtained several judgements against Lopehandia for slanderous and malicious untrue claims.  Jorge Lopehandia does not appear anywhere in the Chilean court documents as a landowner or legal representative of the landowners.

There are numerous other issues with Lopehandia ranging from 1996 to 1999 that were all adjudicated in Medinah’s favour.  The Company had to ban him from our offices and publish in the news media that he did not represent our Company in any matter whatsoever.  We have not heard from him since.  We have not seen any of his “legal-judicial present” nor do we anticipate any.

Reference – June 6/2004 “Cyber Libel” man fined.

Q)     “Could you please explain what exactly your talking about in the shareholder update.  I asking about the tax situation why would it come up in the final hour?  If JJ is such a great lawyer on mining law wouldn't he have realized this earlier?  I really doubt mining laws and tax laws would be under your NDA so could you please clarify this or better yet put it on the website exactly what your trying to resolve?”

A)     Compliance with the various laws of Chile has been of utmost importance to Medinah and the corporations have been structured to comply with and utilize all statutes of Chile.  The first most important issue was the legal ability to import capital into Chile and the return of said capital without attaining taxation penalties.  This was accomplished very early in the investment process at a considerable cost.

We have now addressed the next issue, that being the longer-term treatment of option payments, return of profits, retained interest, etc. so as to minimize the future taxation when funds are remitted into the United States.

Q)     “In past work done on the Alto de Lipangue property many high gold assays were reported. For example, Robert Cinits of ACA Howe reported that a re-check of the drill intersection of a vein on the Las Dos Marias property returned huge assays in excess of 400 g/t gold. The Alto De Lipangue property is also ajacent to the Fortuna de Lampa owned by Cerro Dorado Inc, which has a long history of gold production and has returned great assays during surveys by Cerro Dorado.”

”Most of the news in the last couple of years reflects the increase of property boundaries, some molybdenum reports and a focus on a copper porphyry.”

”Don't get me wrong, a copper porphyry is fantastic but don't we also have information inferring a potentially expansive gold deposit at Alto? With the gold market as robust at is currently is and the price of gold moving to record heights, is it not a good idea to report again that the company is involved in this market?”

”Also, are the new additions of land merely to provide a buffer area for mining or are they also probable additional mining ground with ore deposits?”

A)     You are correct in your comments regarding the strong evidence of gold mineralization throughout the Alto property, bounded by the Dos Marias on one side and the Fortuna de Lampa on the other.

Q)     “In your Sept. 28th update  you state: "Management has mandated that the final preferred list of companies  present formal offers that involves the final level towards closing. A formal offer is one that if agreed to and signed by Medinah Management, is binding upon the other party".  What is your next step if your mandate is rejected and none of the narrow list of "majors" present you a FORMAL OFFER?”

A)     As reported earlier, Medinah has been negotiating for some considerable time with 12 interested parties and recently prioritized our efforts to concentrate on the four most advanced potential Joint Venture participants.  In the unlikely circumstance that we did not complete a satisfactory agreement with one of these, we would move to the next step with the remainder.

Q)     “I'm an investor in Medinah Minerals. Just wondering how much  longer do you think it will take to actually complete the JV/buyout? Will it be weeks or months? I'm also hearing that something will be posted on the gazzette in Chili next week. Will that include names and terms of the offers already in?”

A)     The DL 600 banking authority uses the term the “Official Gazette”.  In some countries, like Chile, publication in the Official Gazette is a condition for official documentation to come into effect and be released in the public domain.  In the governments of Commonwealth countries, a gazette is an official journal that publishes the texts of the new laws and government decisions and other such notifications to the public. 

The posting in the Gazette in Chile contains nothing about any Joint Venture Agreements under consideration.

Q)     “Would it possible to update shareholders in the following manner?  Medinah is waiting on a formal offer from one of the majors, we have given them until October (date) 2007, after which time if none of these majors presents a formal offer management is prepared to go with plan B,C, or D.  If Plan A then this is our time frame of events, if Plan B then this is our schedule of events, if Plan C then this is our schedule of events.”

A)     Each of the potential Joint Venture participants have timelines to present formal offers; however, as we were dealing with 12 separate groups, in all different stages of due diligence, involving numerous trips to the property to examine the workings and geological sampling, and all with different dates on Non-Disclosure and Non-Compete agreements, there is not a common formalization date.  We anticipate “Plan A” completing in October.  In the unlikely event “Plan B” is necessary, this should complete in November.