Market Analysis, Investments and Trades: For Rent

[TraderRich]

MDMN Update with some BEEF!

MEDINAH MINERALS INC.
JUAN JOSÉ QUIJANO FERNÁNDEZ
ABOGADO
Shareholder Update – August 19, 2011

Dear Shareholders:

Management of Medinah Minerals (Chile) S.A. has, today, issued a demand performance time frame to the Joint Venture Agreement partners to complete the initial funding portion of the signed JVA Agreement. This final extension period mandates that the JVA partners must release the JVA funding within 20 working days from August 19, 2011. The previous extension periods granted to the Joint Venture Agreement partners, have not, as yet, resulted in the JVA partners continuing efforts to complete the funding provision of the Agreement.

While the JVA partners, pursuant to Non-Disclosure and Non-Circumvention legal mandates, will not allow disclosure of their names and/or proprietary information, the terms of the intended JVA transaction can now be released. The JVA calls for a $74,000,000 (seventy-four million) dollar entry purchase for only 30% percent of the Altos de Lipangue Limitada holding(s). The JVA terms are as follows:

1. Initial tranche of net $24,000,000 (twenty-four million) dollars.

2. $14,000,000 (fourteen million) dollars are allocated for exploration; $10,000,000 (ten million) dollars to Medinah Minerals (Chile) S.A. property owners.

3. Upon completion of the exploration phase and receipt of a qualifying geological report(s), a further tranche of $50,000,000 (fifty million) dollars to Medinah Minerals (Chile) S.A. property owners.

4. Additional funding, after exploration and qualification of "proven reserves" to full-scale production of up to $500,000,000 (five-hundred million) dollars.

5. There is NO stock consideration, past, present or future, attached or conditioned to the benefit of the Joint Venture Agreement partners.

6. There has been NO additional drilling done on the Altos de Lipangue property by Medinah Minerals (Chile) S.A. or the JVA partners. All 28 drill holes, either drilled to depth or abandoned, were completed previously.

Señor Juan José Quijano, representing Medinah Minerals (Chile) S.A., negotiated the retention of a 70% continuing ownership in the Altos de Lipangue claims. Medinah Minerals, Inc. (USA) retains a 50% ownership interest in Medinah Minerals (Chile) S.A. In order to understand Medinah Minerals (Chile) S.A.'s reluctance to issue such a demand ultimatum, one needs to understand the tremendous retained benefits the Joint Venture Agreement would provide to Medinah Minerals (Chile) S.A. and Medinah Minerals, Inc. (USA) shareholders as compared to many previous Joint Venture proposals.

Should the present JVA partners fail to release the long-awaited funding, Medinah Minerals (Chile) S.A. will vacate the deal and seek compensations. Contingent offers are now being received and reviewed. As current metal prices have increased in valuation the “intended reserves,” verified through a host of prior appraisal entities, shows an enhancement of the value of the Altos de Lipangue property holdings. But, the valuations are still in the ground and must be further defined through exploration and property development.





Juan José Quijano Fernández
President/CEO


http://www.medinah-minerals.com/