MEDUSA MINING LIMITED‌‌‌‌‌‌‌‌‌‌‌

ABN: 60 099 377 849

Unit 7, 11 Preston Street

Como WA 6152

PO Box 860

Canning Bridge WA 6153

Telephone: 618-9367 0601

Facsimile: 618-9367 0602

Email: [email protected] Internet: www.medusamining.com.au

ANNOUNCEMENT

5 October 2015

INVESTOR PRESENTATION LONDON - 5th to 9th OCTOBER 2015‌

Medusa Mining Limited ('Medusa' or the 'Company'), through its Philippine affiliate, Philsaga Mining Corporation ('PMC'), provides the Investor Presentation for London during 5th to 9th October 2015, to be presented by Chief Operating Officer, Mr Rob Gregory.

The key points in the presentation are:

• As highlighted in the graph below, broken ore inventory build-up since January 2015 is now stabilised at the optimum level of between 60,000 to 70,000 tonnes;

• The grade of the ore drawn from the stopes has improved to 8.43 g/t gold at 31 August (from 7.20 g/t gold at 30 June 2015);

• Mill grades are trending upwards towards the 2015 reserve grade of 7.3 g/t gold;

• There are no changes to the production guidance of between 120,000 to 130,000 ounces for FY2015-16;

• The AISC is expected to improve steadily; and

• Indicated Resources and Probable Reserves levels have been maintained after mine depletion of 105,000 ounces for FY2104-15.

  
  

  Stope Inventory and Grades Drawn Excludes development ore
  70,000	10
  60,000	8
  50,000	6
  40,000	4
  30,000	2
  20,000	0

  
  

  Inventory Tonnes

  Stope Grades

  STOPE INVENTORY STOPE GRADES

  Geoff Davis, CEO of Medusa, commented:

  
  

  'I am pleased to report that we are approaching the forecasted stope grades at the mine within the time-frame previously provided.

  
  

  Our focus continues on cost reductions and we expect to see significant improvements over time. There are currently two major Capex projects in progress, the Tailings Storage Facility 5 which is expected to be completed shortly and the Service Shaft which is progressing on schedule and within budget.'

  
  

  JORC COMPLIANCE - CONSENT OF COMPETENT PERSONS

  Medusa Mining Limited

  Information in this report relating to Exploration Results and Mineral Resources has been directed and reviewed by Mr Gary Powell, and is based on information compiled by Philsaga Mining Corporation's Co-O mine-site technical personnel. Mr Powell is a member of The Australian Institute of Geoscientists and the Australasian Institute of Mining and Metallurgy. Mr Powell is Manager Geology and Resources, and is a full time employee of Medusa Mining Ltd, and has sufficient experience which is relevant to the styles of mineralisation and type of deposits under consideration and to the activities for which he is undertaking to qualify as a 'Competent Person' as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Powell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

  Carras Mining Pty Ltd

  Dr Spero Carras of Carras Mining Pty Ltd has acted as Independent Auditor of the Mineral Resources, and in this capacity Carras Mining Pty Ltd carried out parallel studies to validate the Mineral Resources estimated by Philsaga Mining Corporation's Co-O mine-site technical personnel. Dr Carras is a Fellow of the Australasian Institute of Mining & Metallurgy and has more than 30 years of experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Carras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

  Cube Consulting Pty Ltd

  Mr Mark Zammit of Cube Consulting Pty Ltd has conducted a high level review of the mineral resource estimation methodology. Mr Zammit is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Zammit consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

  
  

  DISCLAIMER

  This announcement contains certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements.

  Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements.

  Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Medusa, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements.

  Actual results, performance or outcomes may differ materially from any projections and forward-looking statements and the assumptions on which those assumptions are based.

  You should not place undue reliance on forward-looking statements and neither Medusa nor any of its directors, employees, servants or agents assume any obligation to update such information.

  
  

  Gold producer focused on organic growth in the Philippines

  
  

  INVESTOR PRESENTATION

  
  

  OCTOBER 2015

  CAPITAL STRUCTURE

  
  

  SHARE CAPITAL

  • Ordinary Shares: 207,794,301

  • Unlisted Options: 4,200,000

  • Market Capitalisation (as at 30 September 2015) ~ A$79M

    
    

    SUBSTANTIAL SHAREHOLDERS (as at 30 June 2015)

  • Paradice Investment Management Pty Ltd 5.40%

  • Dimensional Fund Advisors LP 5.00%

CASH ON HAND (at 30 June 2015) US$14.2M

2

PRODUCTION STATISTICS

3

Philippines Focused

• Strategic land holding along well- mineralised Diwata Range

• Growing production at Co-O Mine by:

  • Increasing tonnage

  • Improving head grades

  • Improving efficiencies

  • Reducing costs

    
    

• Organic growth by;

  • Developing Bananghilig to production

  • Advancing Guinhalinan to Feasibility Study

4

Co-O MILL RECOVERIES AND UTILISATION

• Design Capacity 2,500 tpd (2015 average 2,160 tpd, per day operated)

  
  

• Recovery FYQ2-2015 at 94% (Metallurgical test work optimum 95%)

  
  

• New tailings storage facility construction in progress (completion Q3-2015)

  
  

• Grid power at mine and mill (100% standby diesel power at mine and mill)

  Co-O MINE

  
  

• 25 year Mining License 2008

  (renewable by another 25 years)

• Hand held narrow vein mining

• Shrink stopes - steep veins

• Room & pillar - shallow veins

• Internal shaft to Level 10 installed.

  
  

  • 10 levels at 50 metre spacing

    • ~ 60 priority headings

    • ~ 100 stopes

    • 98 Battery Locomotives

    • ≥ 1,500 metres development per month (21,150 metres for full year)

      STOPING METHODS

      
      

      SHRINK STOPE

      
      

      90% of Ore 10% of Ore

      7

      LEVEL 8 SHAFT

      
      

      • Skip size: 4.8 tonnes

      • Double deck man-cage: 24 men

• Combined mine haulage capacity approximately 60,000 tonnes per month

8

CURRENT HOISTING CAPACITY

9

CONTINUOUS IMPROVEMENTS

Tramming

• Installation of tramming loops at L8 Shaft loading hoppers allowing continuous one way traffic

• Underground fleet increased to 98 battery locomotives and 290 mine cars which will be increased to 400 over medium term to allow empty return cars to be left at work places

• Non-stick lining to mine cars being trialed to reduce carry-back and speed up dumping at ore bins

  Ventilation

• Second 85kW axial fan being installed parallel to existing 85kW axial fan

• New ventilation district Levels 6-10 established with vent raises 60% complete. New 225kw centrifugal fan ordered which will be operational December quarter 2015

  Stope Protocols

• New payment system based on breakage adopted

• Stope grades increased 50% thus far

  Inventory Tonnes

  Dewatering

• Dirty water (up to 20% solids) pumping system being installed

  Internal Shafts

• Internal shafts being developed on ore to access Levels 9 and 10 with minimal waste development

  Advanced Mine Planning Software

• All mine planning undertaken in 3D wire-framing

10

Stope Grades

Stope Inventory and Grades Drawn

Jan-15

Feb-15

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

STOPE INVENTORY STOPE GRADES