Medusa Mining Limited: Operations Update

COMO, WESTERN AUSTRALIA--(Marketwired - Jan. 21, 2014) - Medusa Mining Limited ("Medusa" or the "Company") (MML.AX)(MML.L), through its Philippine operating company Philsaga Mining Corporation, wishes to announce the following:

There has been an intense Low Pressure System situated over the southern section of Mindanao for the past two weeks resulting in heavy rains, which has caused extensive flooding. Several sections of the highway from Davao to the mine site are inaccessible as a result of flooding.

At the Company's operations, incessant rain has caused slippages and landslides in several areas around the mine and as a precautionary measure, the Company has ceased all mining activities.

There have been no reported injuries.

The Company will release updates as and when the situation changes.

ABN: 60 099 377 849