Medusa Mining Limited: New Co-O Mill Permit Granted

PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 10/18/12 -- Medusa Mining Limited (ASX: MML)(LSE: MML) wishes to advise that its Philippines operating company, Philsaga Mining Corporation has been granted the Environmental Clearance Certificate ("ECC") for the new Co-O Mill, which permits it to process 2,500 tonnes per day of ore.

Construction of the new Co-O Mill remains on schedule for commencement of operation in mid-CY 2013.

DISCLAIMER

This announcement may contain 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.

ABN: 60 099 377 849

Contacts:

Australia

Medusa Mining Limited

Peter Hepburn-Brown

Managing Director

+61 8 9367 0601


United Kingdom

Fairfax I.S. PLC

Ewan Leggat/Laura Littley

Financial Adviser and Broker

+44 (0)20 7598 5368