Mining Company research board

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Could youplease analyze the following conversation that an MDMN shareholder had with Les Price via email (I presume).

Les and Greg,

Please provide a detailed explanation:

What is a Net Production Profit?

The company and/or Greg has used three words to describe our 30% share of the LDM (Net profits, FCI, and now Net Production Profit). This is separate from the 37.5% reference which has yet to be revised/corrected as a public update. The difference b/w a FCI and a Net Profit agreement is night and day. I can't believe that your legal counsel is allowing you to use both terms in public updates without reconcilation?

Shareholders are anxiously awaiting the public release of the LDM Chile contract and fairness opinion but, while we wait, please help me/us at least understand the math behind our ownership as this has become the main source of shareholder/value equity in the absense of ADL resolution.

Thank you in advance.

Les Price's response:

"Contract terms simple

Medinah minerals USA is entitled to 30 percent of all net production profits, defined as 30 percent of all net cheques received from The sale of ores, which generally is a cheque from enami with their deduction for smelting and transportation.

Medinah mining chile owns 20 percent of the total shares outstanding in ldm which is frozen at 100 shares. Bly virtue of Medinah minerals ownership of 50 percent of Medinah mining, there accrues to Medinah usa 20 percent of the net profits of ldm

Medinah mining chile is a free carried partner in ldm, not required to provide capital to the project.

Therefore for no capital outlay and no shares issuance to anyone, Medinah mining receives a 30 percent net production profit plus a share of the net profits from ldm. If you deduct from ldm profits the 30 percent paid to Medinah, the remainder, being 70 percent Medinah mining, in effect, retains 20 percent of 70 percent, which is 14 percent, of the net operating profits of ldm as calculated on a quarterly basis upon commencement of production. Adding the 30 percent with the half of the 14 percent, you come to a figure of 37 percent.

I cannot understand your continuing argument on this issue as Medinah minerals was not entitled to anything under this agreement. In negotiations with the funders of ldm chile and Juan Jose, it was agreed to give Medinah minerals a gift of 37 percent for nothing, when they were entitled to nothing period. It would be utterly amazing if you could find it within yourself to do anything to help the company"