Medinah Minerals (MDMN)

[Hurricane_Rick]

SHAREHOLDER UPDATE (Reposted with corrected news link)
November 28, 2012

Dear Medinah Shareholders:

Compania Minera LDM Chile is pleased to provide an update of its activities at the Company's 100%-owned Las dos Marias property holding near Santiago, Chile. This specific LDM claim is being developed exclusively by Compania Minera LDM Chile, but Medinah Mining Chile retains a 20% ownership interest in the LDM Chile Company and Medinah Minerals, Inc. retains a 30% net interest in this property's production. It should be noted that the remaining nine Las dos Marias claims, owned by Medinah Mining Chile, are subject to a first right of refusal obligation to Amarant Mining Ltd., pursuant to contractual obligations contained in the sale of the 1,508 claims at Altos de Lipangue.

In the past, the Compania Minera LDM Chile described its mining environment that has surrounded the tunneling project designed to intersect two previously identified high-grade gold/copper discoveries. A skarn zone that lies just below surface and strikes across the LDM Chile property envelops the two mining targets. The initial tunneling has proven to carry significant ore-grade material of plus 5 grams of gold per tonne. Additionally, 7% copper grades have been noted. The ore material is being stockpiled in preparation for shipping to the Enami Refinery for the recovery of gold values.

An area has been constructed proximate to the base of the Alto de Lipangue plateau. Ore is presently being regularly trucked from the mining operation to this location where Enami will send their massive highway rigs for December scheduled pick-ups. Security measures have now been put in place to guard the ever-growing stockpile from theft or interference. Using the minimum calculation of 5 grams of gold per tonne at S56 per gram, the minimum valuation of the skarn material stockpiled is $1.4 million for every 5,000 tonnes of ore-grade material. Company geologists followed the skarn zone on surface for at least 185 meters, for widths in excess of 50 meters and open to depth and strike. The approximate known depth is 40 meters. One cubic meter of ore material weighs between 2.5 to 2.9 tonnes. There are substantially more tonnes of material to be extracted and refined and there are also the high-grade gold zones that will grade significantly higher than the skarn material. LDM Chile cannot accurately estimate the exact tonnage of the high-grade gold/copper material.

In a previous drill program on the LDM Chile site a section of the property, two separate two-meter wide mineralized veins were discovered that returned assays from 61.77 to 455 grams of gold per tonne. In the current work program, designed to tunnel into and intercept these veins, the veins were found to be contained in a defined skarn that is reported to carry up to 14 grams of gold per tonne. This skarn has been continually traced underground and on surface for nearly 200 meters. Previously our Company Mining Engineer, Paul Jones, calculated a valuation of 15 meters of only the high-grade vein material averaging say 80 grams of gold per tonne that would return $6 million at today's gold prices.

Compania Minera LDM Chile now has a signed refining contract with Enami and the first load of ore will be processed shortly. Metallurgical testing of the ore was done previously and LDM Chile now has a refining schedule for the gold material processing. Medinah Mining Chile management previously reported the discovery by their independent Geologist of very high-grade copper material in old Spanish workings uncovered as tunneling intersected old drifts and galleries. Several assays returned surprisingly high results of up to 7% copper over a sampling area of 100 meters. This copper material will be scheduled for processing when Enami is ready for copper runs at their refinery. The LDM Chile Company Geologist has been exploring the extent of the high-grade copper zone and is preparing a report recommending a mining approach best suited for capturing these deposits. During his investigations he discovered various extensions to the zone and reported as follows:

"Yesterday I was at the LDM property again. This time I was able to reach the end of the old tunnel below the old mining operations. It is full of pyrite and at the end, copper oxide is leaching from above, possibly from the manto. If this is confirmed then the manto structure has a big extension. This new discovery confirms that small scale mining works in the manto should be done to test the overall structure.

As I was exploring the copper zones I discovered a new gold vein at the end of the old tunnel. I have sent samples to the lab from both areas."

Once again, and it seems each time we extend our work into this plateau, it surprises us with new discoveries.

LDM Chile project managers have been instructed to develop an extraction plan in the encountered ore bearing zones. This will be concurrent with the ongoing mining operations drifting towards the final high-grade gold target.

The tunnel work is currently less than 20 meters from the targeted DDH-002 which returned documented assays in excess of 400 grams of gold per tonne.

Senor Juan Jose Quijano Fernandez
President/CEO

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