RESPONSE TO SHAREHOLDERS
Q&A WEBSITE
October 12, 2007

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

Q) “Hello Les could you please clear up this point. Some shareholders think that an application has been made to the Chilean government for approval and also a tax rate decision that will be handed down sometime around Oct 11. I have also heard that the decision has already been given and the contract is now being drawn up that includes this decision. Are one of these correct or is there another explanation that makes this clearer. Thanks once again for your efforts.”

A) The taxation implications have been satisfactorily resolved with all formal documentation now submitted. This does not contain, as it is a separate division of the government, any application to the Chilean Government of any agreement, proposed or otherwise, from any Joint Venture proposals. Negotiation with the parties and their “Aborgatos” will continue in earnest next week.

Q) “By all indications, the final date for the completion of the pending JV is near. However, I am concerned that in every conversation I have ever had with you over the past two years, you have always given the same optimistic time table. You have in fact been saying that the deal was a few weeks or at the most, a few short months away for well over a year. Can you please explain why your time table has been so pathetically inaccurate? And why should we believe you now? Lest you misunderstand my intent, I will be buying 50K more shares tomorrow.”

A) I understand your frustrations concerning the time lines to finalize a Joint Venture Agreement. It has taken considerably longer to complete than anyone anticipated, but I assure you, the Company is proceeding as rapidly as possible.

Q) “What is the current issued shares of Medinah as of Sept.30th,2007”

A) Subject to minor adjustments, when the September 30, 2007 Financial Statements are completed by the Accountant and published, the figure will be 512,135,301.