MEDINAH MINERALS INC.
QUESTIONS & ANSWERS – August 31, 2011
Q: Are positive developments progressing during the final 20 working-day funding extension period that was granted to the investing company?
A: All parties to the Agreement, with specificity to the release of the funds to finally activate the Joint Venture, are working diligently with every professional entity.
Q: What happened to the POLO matter?
A: International Copper Company Chile, Ltd. (ICC) dispatched its geological team to the POLO claims to assess the potential of the property. Unfortunately, their assessment time frame was hampered by weather and was not completed before the Winter snowfall. The property owners extended the option period for completion as soon as weather permits. Medinah Minerals, Inc. (USA) has a 15% carried interest in the POLO claims, but no operational, or directional part in the Agreement among the parties.
Q: If the present Joint Venture Agreement does not result in the immediate release of funds, do we have any alternative contingences?
A: Señor Juan José Quijano has continued to make himself available to previous and new contingent groups expressing interest as to the Alto de Lipangue project. But, Medinah Minerals (Chile) S.A. cannot vacate nor abandon the original Joint Venture Agreement provisions unless, and not until, the original parties forfeits or defaults as to the funding requirement of their exclusivity contract final extension period.
Q: What happened to the proposal to put the Las Dos Marias property into production?
A: Paul Jones, Mining Engineer and professional Geologist, wrote a report on May 17, 2004 (refer to "Projects" at www.medinah-minerals.com), recommending construction of an 80-meter production shaft to mine the minor ore intersection at the 45-meter level ($88.45 per tonne at $380 per ounce) and the high-grade sections at the 75-meter level ($1,492.92 per ton at $380 per ounce) as discovered in DM99-02. Present gold prices potentially increase these commodity values considerably but require an extraction production operation.
Current Chilean mining regulations requires both a production adit to be driven to intersect the high-grade section (122.2 gm gold/tonne) and a safety shaft for an emergency exit of personnel.
Presently a financing/production proposal from an interested Group has been received and a more extensive exploration/development proposal is advancing from an international mining company.