MEDINAH MINERALS Question & Answers
May 4, 2010
Question & Answer postings are compiled from time to time, as an information source as to company actions and/or activities. Q&A posts will continue in the post-Joint Venture Agreement phase concerning Company activities, to provide ongoing information for the benefit of Medinah Minerals shareholders.
Q: What can we expect to happen with the tender offer received over a month ago? Are there other offers? When can we expect that an offer will be accepted by the company?
A: As your President/CEO, I must caution that I cannot disclose any aspect of our JVA negotiations that might violate the various Non-Disclosure Agreements with parties. At present, I can report that all interested parties are working through the issues, in total harmony, to conclude the best possible Joint Venture Agreement. When the JVA is finally completed the results will be published on the both the official Medinah company and Pink Sheets websites.
Q: Why are there conflicting rumors and reports of Medinah’s activities in Chile?
A: Please do not put faith into rumor mills, manufactured written information, or diatribe on non-sanctioned websites. Any statement or reference attributed to individuals or related to company matters without credible verification on the official company website should be deemed as erroneous. Further, Medinah also publishes company information on Pink Sheets' website at www.otcmarkets.com.
Q: How many different parties is the company meeting with that are considered “Major?”
A: Several well-known international mining companies and their associated partnerships are actively and extensively examining data. Each of these parties has expressed interest in participating in the Alto de Lipangue property. Any party that did not meet the requirements of financial mandates and long-term commitment to the project were dismissed. Each of the parties presently engaged in negotiations are entirely worthy and capable of carrying the project to completion.
Q: Are there differences in the deal aspects among the JVA suitors?
A: Yes, there are monetary up-front differences, NSR (net smelt reserves) percentage hold differences, action timetable differences, as well as further exploration and mining operational schedule differences contained in the negotiations with the different JVA parties. The negotiations are very time consuming and complex.
Q: Are there any legal matters that would hold up the final JVA deal?
A: Medinah Minerals, Inc. is not the subject of any known adverse litigation.
Q: Is there any progress with the company’s 5% holding in the Pumillahue claim?
A: The series of earthquakes in Chile did cause some damage to the tunneling of the third phase. The Pumillahue officials are working to complete the third tunnel phase which is necessary to pave the way for the future production phase.
Q: Any progress on the POLO claims?
A: Medinah Minerals, Inc. has a 15% stake in the POLO claims. Two groups have initiated a geological workings program inside the properties. They will be on site again on May 23. Each has stated they will produce their own geological and engineering assessment reports. Medinah has requested a copy of the report(s). When the reports are received, the results will be posted both on the Medinah and Pink Sheets websites.
Q: What happened to the Las dos Marias project?
A: Late in 2009, and early 2010, the intention of company Management was to feature the Las dos Marias property as an independent production entity. Various JVA potential partners have requested that the Las dos Marias project not be a “stand alone” issue, but be included as an added deal point matter in the Alto de Lipangue negotiations. At this point, the Las dos Marias production project is the subject of JVA terms and conditions negotiations. As this matter is fully determined the results will be posted on the official company website.
