Medinah Minerals Shareholder Letter
July 12, 2005

Dear Shareholders:

Both the May 16 and June 10, 2005 Shareholder updates describe the myriad of issues that had prevented Sr. Juan José Quijano, President, from producing an unencumbered title as to the properties for review by the prospective purchasers/funding groups. Management finds it necessary to present more in-depth detail on this matter and other issues. These explanations will provide a better understanding for Shareholders as to the work product and significant expenses that have been undertaken and completed to date. Given the arduously long timeframe, we understand it is difficult for you to wait for the final result, but we hope that these updates will give you a better knowledge of the process; the problems encountered, resolved and unresolved matters, and the reasons why things have taken their course and duration.

Mr. House and Mr. Godwin were elected as Directors on September 9, 2002 and functioned as President and/or Secretary for the Company until the Annual General Meeting (AGM) of May 17, 2004. During their term(s) of office, many serious financial and property-related issues arose which, without resolve, left Medinah in a compromised position. These issues were fully discussed at the May 17, 2004 AGM and firm instructions for resolution were issued by the Shareholders to the Management and Board of Directors. The entire Lipangue contract was in serious default and the Company’s creditors were in a position to force Medinah into bankruptcy.

All of these issues were brought to the attention of the former President and Secretary on many occasions and were not addressed. Further, no formal Director’s meetings were conducted during their terms and no contact was made with Juan José Quijano, a fellow Company Director and major creditor.

Mr. Price and Mr. Chapin, along with a Shareholder and creditor representative, traveled to Chile in late June 2004. The group spent a week with the newly elected President, Juan José Quijano and negotiated major agreements to salvage the Lipangue properties and to solve the major creditors claims, removing in excess of $8 million in debt from the Company ledgers.

More problems than originally anticipated by Management clouded the titles of the properties. Sr. Quijano is dealing with large companies who are very thorough in their research of potential acquisitions. Before entering into realistic negotiated terms with these companies, Sr. Quijano had to resolve several title discrepancy issues that would negate transactions. Therefore, although many earlier meetings were held, the real process of negotiating could only begin in earnest in January 2005.

Listed below are some of the expenses that have been paid by Sr. Juan José Quijano on behalf of the Medinah Shareholders:

• Critical land taxes due immediately to maintain title .......................................... $24,000
• Additional default taxes paid later .................................................................. $16,000
• Acquiring the North Road access ..................................................................... $6,000
• Negotiating and acquiring the South Road access and surface rights .................... $30,000
• Work to bring the molybdenum property (Concordia) current ................................ $6,000
  

We hope that from this report, you can understand more clearly some of the accomplishments and expenses that have been allotted and undertaken on your behalf. Current Management have reduced overhead costs to less than $6,000 per month from the prior +$20,000 per month and personally funded these expenses. These are the essential day-to-day operations of the Company that no one sees or considers as significant, but the costs add up and must be paid.

Medinah is now in a position to provide clear and decisive title opinions to major investors with whom Juan José Quijano is negotiating.

We are moving steadily ahead in these negotiations and as soon as we are able and free from any confidentiality restraints, Management will report developments on the joint venturing of the project properties.

July 12, 2005