PERTH, WESTERN AUSTRALIA -- (Marketwire) -- 10/18/12 -- Medusa Mining Limited ("Medusa" or the "Company")(ASX:MML)(LSE:MML), through its Philippines operating company Philsaga Mining Corporation is pleased to advise that the Baguio Shaft was re-commissioned last week, with an increased haulage capacity of 350 tonnes per day (up previously from 250 tonnes per day).

The Saga Shaft reached its target depth of 350 metres in the first week of September. With the plat cut and prepared, work on excavation of the loading chute, work shop areas and other facilities are well underway. The new winder and skips for the Saga Shaft are scheduled to be commissioned late in December.

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