SHAREHOLDER UPDATE
Alto de Lipangue, Chile
May 17, 2007

Dear Shareholders:

Contract negotiations regarding the Company's Alto de Lipangue claims near Santiago, Chile are now in the final phases. This has been a long and arduous process but we feel confident that "the end is near".  Company President, Sr. Juan José Quijano is wrapping up final details and changes to documents with the major companies involved.

Management of Medinah is pleased to inform the shareholders that they have been negotiating the acquisition of an interest in a project in the southern gold fields of Chile.  This is a potentially rapid cash flow situation that can bring significant revenues to the company on a regular and reliable basis.

Two members of our professional geological team will conduct their examination and testing of the project in the second week of June 2007.  The valuation of the properties is not an issue as we have completed that on prior occasions.

We will be updating shareholders on a more regular basis as we finalize the contracts on the Alto de Lipangue project.

On behalf of the Board of Directors,