NOTICE OF NO CORPORATE ASSOCIATIONS

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:  admin@medusamining.com.au 
      Internet:www.medusamining.com.au <http://www.medusamining.com.au/>
 
25 January 2010
 
                      NOTICE OF NO CORPORATE ASSOCIATIONS
 
It  has come  to Medusa  Mining Limited's  ("Medusa" or the "Company") attention
that  there  have  been  articles  in  the  media  creating  the impression of a
connection  between Medusa and  other listed companies  within the gold sector.
 
We wish to advise that the Company has NO corporate association, affiliation nor
involvement with any such entity, and any contrary impression is entirely false.
 
ABOUT MEDUSA MINING LIMITED
Medusa Mining Limited("Medusa" or the "Company"), a public company listed on the
ASX,  AIM and the TSX, is an  Australian based gold producer, focussed solely on
the Philippines.
With  current mineral resources comprising  Indicated 580,000 ounces of gold and
Inferred  1,310,000 ounces of gold,  Medusa's corporate strategy  is to become a
mid tier 300,000 to 400,000 ounce per year, low cost gold producer.
The   Company   is  currently expanding  its high  grade  Co-O  Mine  operations
(Indicated  Resources 580,000 ounces of gold inclusive  of a Probable Reserve of
500,000 ounces  of  gold,  and  Inferred  Resources  660,000 ounces  of gold) to
increase  its forecast  production to  100,000 ounces per  year in  2010, and is
conducting   near  mine  exploration to  assess  the  possibilities  of  further
expansion  to 200,000 ounces per year.  Current cash  costs at the Co-O Mine are
approximately US$200 per ounce.
 A  pipe-line of deposits is now  being established with the Bananghilig Deposit
(Inferred  Resource  of  650,000 ounces  of  gold)  recently  added and which is
expected to expand, potentially in conjunction with nearby discoveries.
Further  potential upside exists in the discovery of substantial copper deposits
within the tenement holding of > 800km2.
For further information please contact:
 
  Australia
 
  Medusa Mining Limited                      +61 8 9367 0601
 
  Geoffrey Davis, Managing Director
 
  Roy Daniel, Finance Director
 
  United Kingdom
 
  Fairfax I.S. PLC                           +44 (0)20 7598 5368
 
  Nominated Adviser/Joint Broker
 
  Ewan Leggat
 
  Lothbury Financial                         +44 (0)20 7011 9411
 
  Michael Padley/Libby Moss
 
  Canada
 
  Nicholas Sayce, Investor Relations         +1 416 822 4404
 
[HUG#1376714]