Medusa Mining Limited: Record Interim Financial Results

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MLL.TO	3.37	0.00

COMO, WESTERN AUSTRALIA--(Marketwire - Feb. 24, 2010) - Medusa Mining Limited (ASX:MML - News; AIM:MML)(TSX:MLL -News), is pleased to present its interim financial results for the six months to 31 December 2009, the highlight of which is a record half-yearly Net Profit After Tax ("NPAT") of US$28.3 million.

HIGHLIGHTS FOR THE SIX MONTHS:

Financials

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Key Results              Unit   Dec 2009   Dec 2008 Variance    (%)
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Revenues                  US$    $41.3 M    $15.8 M  $25.5 M 161 %
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EBITDA                    US$    $31.5 M     $9.6 M  $21.9 M 228 %
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EBIT                      US$    $28.3 M     $8.0 M  $20.3 M 254 %
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NPAT                      US$    $28.3 M     $9.4 M  $18.9 M 201 %
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EPS (basic)               US$     $0.168     $0.065   $0.103 158 %
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Cash at bank & deposit    US$    $35.5 M     $4.0 M  $31.5 M 788 %
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-   Record half-yearly Net Profit After Tax ("NPAT") of US$28.3 million, up
201% from US$9.4 million in the prior corresponding period, representing
basic earnings of US$0.168 per share on a weighted average basis;
-   A 228% increase in half-yearly Earning Before Interest, Tax,
Depreciation and Amortization ("EBITDA") of US$31.5 million for the six
month period to December 2009 (six months to December 2008: US$9.6
million);
-   Revenues increased by 161% to a record US$41.3 million, primarily due to
increased gold production and a higher price received on sale of gold.
Medusa is an un-hedged gold producer and received an average gold price
of US$1,047 per ounce from the sale of 39,162 ounces of gold for the six
month period to December 2009 (six months to December 2008:19,144 ounces
at US$812 per ounce);
-   The Company is debt free and had a cash balance of US$35.5 million at 31
December 2009.

To view the Revenues (US$) bar graph, please visit the following link:http://media3.marketwire.com/docs/MML0224A.jpg.

Operations

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Key Results             Unit   Dec 2009   Dec 2008 Variance   (%)
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Production               ozs     39,162     19,144   20,018 104%
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Cash costs               US$       $189       $225      $36  16%
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Gold price received   US$/oz     $1,047       $812     $235  29%
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-   The Company produced a record 39,162 ounces of gold for the half-year,
an increase of 20,018 ounces or 105% from the previous corresponding
period, at an average grade of 16.65 g/t gold (six months to December
2008: 12.71 g/t gold);
-   Average cash costs for the half-year down 16% to US$189 per ounce,
compared to the prior previous corresponding period's costs of US$225
per ounce;

To view the Production (ounces) bar graph, please visit the following link:http://media3.marketwire.com/docs/MML0224B.jpg.

Phase II of the Company's expansion programme to produce 100,000 annualised ounces is on schedule, and the incremental benefits of that expansion are flowing through as evidenced by the record gold production of 39,162 ounces for the last six months.

Outlook

The forecast gold production for the fiscal year to 30 June 2010 has been revised upwards from 86,000 ounces to 89,000 ounces at an anticipated average cash cost of US$190 per ounce.

A breakdown of actual and forecasted production ounces and cost per ounce by quarters for the last six quarters and the remaining two quarters of this fiscal year is highlighted in Graph 1.

To view Graph 1, please visit the following link: http://media3.marketwire.com/docs/MML02241.jpg.

Geoffrey Davis, Managing Director of Medusa, commented:

"The Company has regularly broken its production targets on a quarterly basis and I am extremely pleased with the total of 39,162 ounces for the half year. This record production coupled with a healthy gold price received, has contributed to a record half-yearly net after tax profit figure of US$28.3 million. Furthermore, the very low production costs of around US$190 per ounce should be highlighted.

Remarkably this has all been achieved through a period of intense re-development of the Co-O Mine and associated infrastructure, and with the expansion programme now complete, our team can concentrate on optimising current production levels at the Co-O Mine, and also focus on increasing output via the addition of new projects as the Company grows into a mid-tier gold producer".

The complete Half Year Report for End December 2009 is available for viewing on our website www.medusamining.com.au