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


                        Medusa Mining Limited

                         Exercise of options

Medusa Mining Limited ("Medusa" or  "the Company") announces that  it
has today issued:

*          750,000 new ordinary shares of nil par value in the
  Company, following the exercise of options by certain employees of
  the Company at an exercise price of Aus$0.7128 per share; and
*          190,000 new ordinary shares of nil par value in the
  Company, following the exercise of options by certain employees of
  the Company at an exercise price of Aus$1.25 per share.

The new ordinary shares will  rank pari passu with existing  ordinary
shares and application will be  made for 940,000 new ordinary  shares
to be admitted to trading  on AIM, which is  expected to occur on  16
November 2009.

Following the issue  of the new  ordinary shares, the  Company has  a
total of 169,781,960 ordinary shares of nil par value in issue.

For further information, please contact:


Medusa Mining Limited                   +61 8 9367 0601
Geoffrey Davis, Managing Director
Roy Daniel, Finance Director

Fairfax I.S. PLC                        +44 (0)20 7598 5368
Nominated Adviser / Joint Broker
Ewan Leggat

Mirabaud Securities Limited             +44 (0)20 7321 2508
Joint Broker
Peter Krens

Lothbury Financial                      +44 (0)20 7011 9411
Michael Padley / Libby Moss

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