Santiago, Chile., June 19, 2006. . . Medinah Minerals, Inc. and Medinah (Chile) announce today that a New Party Letter of Intent Joint Venture Agreement has been signed to develop the Las Dos Marias claims and adjacent properties.  The operator of the joint venture to complete the bulk sample production shaft as proposed by Paul Jones, P.Geo., will be Medinah Gold, Inc.  The purchaser of the property is Goldstate Corp., a Nevada Corporation.

LAS DOS MARIAS PROPERTY

Previously, Las Dos Marias property exploration included diamond drilling that intersected a very high-grade gold section of six (6) meters width containing in excess of three (3) ounces gold per ton. This finding was examined by Paul Jones, P.Geo, with recommendations received that suggested a bulk sample production shaft to the seventy six (76)-meter level in the area of the drill hole DM99-02 to produce a bulk sample of the high-grade ore and allow access to the main system.

A.C.A. Howe International Limited had recommended this project as a potential target for shear zone hosted gold mineralization, as well as a strata bound skarn replacement copper mineralization project.

Regional geology maps show an extensive area of hydrothermal alteration, centered on the shear that extends south from the middle of the property, about two (2) kilometers to the granodiorite contact.

The main shear roughly follows the base of Quebrada Durazno range within the Las Dos Marias property boundaries which can be traced over a total strike length of about 700 metres (traced through surface outcrops, diamond drill holes, and extrapolated along strike through IP/Resistivity results).

As reported by A.C.A. Howe International Limited, Las Dos Marias drill hole number DM99-02, between approximately sixty six (66) and seventy three (73) meters noted the analytical results of two consecutive, one (1)-meter samples taken by the property vendors geologist, between sixty eight (68) and seventy (70) meters, yielded 61.77 and 122.2 grams gold/per ton.  A quarter core repeat sample by A.C.A. Howe International Limited of the second sample, between sixty nine (69) and seventy (70) meters, returned a spectacular value of 455.02 grams gold/per ton across one (1) meter.

A 1.5 meter channel chip sample taken by A.C.A. Howe International Limited in the manto adit across an inter bedded sequence of partially oxidized skarnified limey sediments and siliceous volcanics revealed minor amounts of copper oxide mineralization and traces of finely disseminated pyrite and chalcocite that yielded 1.96% copper.  Based on this finding, the analytical result and the occurrence may be a wide, potentially bulk mineable copper resource opportunity.

The agreement, among parties, calls for an immediate expenditure of $500,000 for the bulk sample production shaft and a further $1,500,000 in regional geological evaluations.  The Medinah group will earn 10% of net profits until the original capital is repaid and 30% thereafter as well as receive initially two million (2,000,000) common shares of Goldstate’s stock and an additional two million (2,000,000) shares annually pursuant to contract.

The Joint Venture agreement is subject to formal and final documentation to be agreed upon between the various companies’ management, Boards of Directors, and solicitors/lawyers, and to be fully executed on or before June 30, 2006.

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As of September 27, 2006 - Goldstate Corp. has failed to provide formal documentation to conclude the terms proposed under the June 15, 2006 agreement that was to be completed by June 30, 2006.  As well, Medinah retained the right to introduce third parties to the proposal.

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