HIGHLIGHTS OF THE FINANCIAL YEAR

FINANCIALS

                                                                           
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Key Results       30 June 2010   30 June 2009       Variance            (%)
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Revenues              US$94.6M       US$42.8M       US$51.8M           121%
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EBITDA                US$73.7M       US$30.4M       US$43.3M           142%
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Adjusted                                                                   
underlying                                                                 
EBITDA(i)             US$79.6M       US$30.4M       US$49.2M           162%
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NPAT                  US$65.8M       US$28.5M       US$37.3M           131%
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Adjusted                                                                   
underlying                                                                 
NPAT(i)               US$71.7M       US$28.5M       US$43.2M           152%
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EPS                   US$0.378       US$0.187       US$0.191           102%
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Adjusted                                                                   
underlying EPS                                                             
(i)                   US$0.412       US$0.187       US$0.225           120%
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(i) As a result of a timing issue, bullion awaiting shipment at year end   
that relate to current year's production has been re-classified from       
revenue to inventory at cost to comply with Australian Accounting          
Standards. This timing issue has had a material reduction of US$5.893      
million to current year's profit. Refer Note 6 under Notes to the Financial
Statements of the 2010 Annual Report. Subsequent to year end the bullion   
has been shipped and sold in July 2010 and proceeds relating to the sale   
has been received.                                                         
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--  Earnings before interest, tax, depreciation and amortisation ("EBITDA")
    of US$73.7 million, up 142% (adjusted underlying EBITDA of US$79.6
    million, up162%); 
    
--  Earnings per share ("EPS"), of US$0.378 on a weighted average basis,
    based on NPAT of US$65.8 million, up 102% (adjusted underlying EPS of
    US$0.412, up 120%); 
    
--  Revenues increased 121% to a record US$94.6 million, 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$1,100 per ounce from the sale of 64,020 ounces of gold for the year
    (adjusted underlying revenues totalled US$102.2 million, up 139%); 
    
--  The Company remains debt free and had total cash and bullion of US$55.8
    million at year end (2009: US$26.5 million). The adjusted underlying
    cash and bullion figure was US$63.4 million. 
    

OPERATIONS

Co-O MINE

--  The Company produced a record 89,679 ounces of gold for the year, an
    increase of 41,810 ounces or 87% from the previous year's production of
    47,869 ounces, at an average recovered grade of 16.52 g/t gold (2009:
    13.30 g/t gold) and cash costs(i) of US$184 per ounce (2009: US$213 per
    ounce). 

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(i) Cash costs refers to the cost of gold produced (net of development costs) and includes royalties and local taxes of US$46 per ounce for the year (2009: US$40 per ounce).

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--  The budget for the forthcoming fiscal year is to produce 100,000 ounces
    at cash costs of around US$190 per ounce. 

RESERVES AND RESOURCES

                                                                            
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Co-O Reserves                  Jun 2010          Jun 2009          Variance 
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Probable reserves               505,000           500,000             5,000 
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Co-O Resources                 Jun 2010          Jan 2010          Variance 
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Indicated resources             603,000           580,000            23,000 
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Inferred resources              898,000           660,000           238,000 
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Bananghilig Resources          Jun 2010          Jun 2009          Variance 
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Inferred resources              650,000           650,000                 - 
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--  Gold reserves at Co-O increased marginally to 505,000;  
    
--  Co-O's gold resources at year end comprised of 603,000 indicated
    resource ounces and 898,000 inferred resource ounces, representing
    increases of 23,000 ounces and 238,000 ounces within the indicated and
    inferred categories respectively.     

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EXPLORATION

--  Contiguous tenement package maintained at greater than 800km2; 
    
--  Budgeted exploration for 2011 fiscal year of $21.0 million (2010 actual:
    US$18.9 million);     

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--  Exploration highlights at Co-O include: 
    
    --  discovery of new veins and extensions to known veins; 
        
    --  extension along strike to approximately 1,500 metres; 
        
    --  extension across strike to approximately 500 metres;  
        
    --  demonstrating that mineralisation extends to over 500 metres below
        the mine's adit entrance; and 
        
    --  estimation of a Conceptual Exploration Target (ii) for the Co-O Mine
        of between 3 and 7 million ounces of gold. 
        
--  At the Bananghilig disseminated gold deposit, drilling has commenced
    prior to establishing reserves as a basis for a feasibility study; 
    
--  At the Lingig copper prospect, drilling has identified a coherent body
    of basalt-hosted mineralisation requiring further drilling; 
    
--  Scout drilling is being planned at the newly discovered Usa copper-gold
    porphyry target; and 
    
--  At Saugon, re-drilling of the First Hit Vein is in progress.