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MEDINAH ENERGY INC. FILES LAWSUIT IN U.S. AGAINST DAYTON

  Mining Corporation  Business Editors  LAKE ELSINORE, Calif.--(BUSINESS WIRE)--July 20, 1998-- Medinah Energy Inc. a Nevada Corporation, Plaintiff, has filed a complaint against Dayton Mining Corporation (DAY.- TSE & AMEX), a corporation; Dayton Mining (U.S.), a Nevada Corporation, DOES 1-5; Black Corporation 1-5; Defendants, in the SECOND JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA IN AND FOR THE COUNTY OF WASHOE on July 17, 1998 at 12:33 p.m., Case No. CV98=04476.  Wherefore Plaintiff prays for judgment against Defendants and each of them as follows:  1.   For judgment in favor of Plaintiff and against Defendants and  each of them, on all claims set forth herein.  2.   For general damages in favor of Plaintiff in a sum in excess of  $50,000,000 U.S. from each Defendant.  3.   For special damages according to proof at the time of trial.  Plaintiff will amend this complaint to conform to proof at the  time of trial.  4.   For punitive damages in favor of Plaintiff in a sum in excess of  $100,000,000 U.S. from each Defendant.  5.   For attorney's fees, costs and expenses incurred herein.  6.   For such other and further relief as the court deems just and  proper. Dated this 17th day of July, 1998, Michael J. Morrison,  Esq., Attorney for Plaintiffs.  In further developments regarding the Company's Churumata lease properties in Andacollo, Chile, mine tailings that represent a substantial value in gold have been removed from the property. These tailings are an asset of Medinah under an agreement with the lessor of the property. Extensive testing and metallurgical evaluation of this  ore has been done by Medinah. Bulk samples of several tons of tailings material were taken and analyzed in 1997 in North America. A criminal investigation into this matter, has been presented to the courts in Chile, by the property owner, Ms. Gumercinda Olivos Araya. Named in the investigation is General Manager of the Chilean subsidiary company of Dayton Mining Corporation, Mr. Rex Outzen.  Medinah Energy Inc. has retained Sr. Juan Jose Quijano, Doctor of Mining Law, of Santiago, Chile, as legal council for the company's affairs in Chile. Sr. Quijano has commenced an investigation into the Andacollo properties and will take any actions necessary to defend the rights of the Company.  On behalf of the Board of Directors Per: Larry Regis, President    
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