MEDINAH MINERALS Question & Answers
October 14, 2009
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: For the past two years while the company has been developing the Alto de Lipange project and negotiating a sale/ JV, how has the company survived financially? There have to be various daily expenses to be paid.
A: The Company continuously works at reducing all expenses, operational & contractual, to the lowest possible “burn rate” amount to service the necessary needs of Medinah and maintain its property interests. Until anticipated cash flow materializes the Directors and shareholders continue to fund Medinah’s operations.
Q: Have the insiders contributed cash and if so, how are they being compensated?
A: The Directors and shareholders have contributed significant cash to the Company as summarized in the Schedule below, showing cash advances and capital shares issued since December 31, 2008. The funds are advanced from time to time and as approved by Management, the Board of Directors and shareholders in 2004, accrue interest at the rate of 10% per annum.
Q: There have been rumours persisting about a group of "brokerage connected" individuals spreading falsehoods about the company and soliciting the involvement of other shareholders in their attacks. What is their purpose or point? Do they have any credibility at all or is it just another gang of bashers?
A: Medinah Minerals, Inc. is aware of “unsubstantiated rumors” relating to a certain group of “brokerage connected” individuals and their associates attempting to discredit the Company in order to influence the market for their own purposes and, as well, to discredit the Directors and Officers of the Company.
The Company’s position is that these individuals have unknown and unverified agendas, lack any credibility, and the value of the Company’s property interests will long survive such attempts to discredit persons associated with Medinah Minerals, Inc.
Q: Who is answering the Q&A issues posed to the Company?
A: Management and the Board of Directors.
Q: From December 31, 2008 until June 30, 2009, the issued Medinah Minerals shares increased by some 10 million shares, who were these shares issued to, and where was there any money received for them?
A: See Schedule attached to Question 2.
Q: How long would a Chilean "title opinion" be good for?....weeks, a month, longer??? I know in most real estate transactions the bank will not honor a title opinion if older than 30 days.
A: Official Government Title Opinions are updated by publication every six (6) months. In Chile, there is a registry in each mining district and you must visit the offices in each of these districts to determine any Governmental mining Title changes between publications. So the answer is Title clearance takes a very short period of time.
Q: As reported on the website, are the September 2009 ending numbers for the last financial quarter or cumulative from Jan. 1, 2009?
A: The September 30, 2009 Statement of Income & Expenses spans the “entire” calendar year of 2009.
Q: Good morning. Today is the middle of October and spring has sprung in Santiago, Chile area. What is in the plan for the next 60 days in regard to the mountain efforts and JV announcment???
A: Since the first week of October, the weather has steadily improved and the roads appear to have survived the winter in relatively good repair. Our Company President/CEO, Juan José Quijano, continues every effort and means to finalize a Joint Venture Agreement for the Alto de Lipangue property. Señor Quijano will soon provide an updated progress report on immediate past and forthcoming activities.
Q: Do we employ a geologist who took up residence at the base of the mountain?
A: A contract geologist, who works for Medinah Minerals, Inc. from time to time on a per-diem basis, has recently purchased a property near the base of the Alto de Lipangue property. He is an independent geologist who travels worldwide, but remains interested in the Alto de Lipangue property and will be employed as an independent consultant to Medinah Minerals, Inc. from time to time as required.
