Mining Play of 2007

 http://www.cerrodorado.com/News_071107.html

SHAREHOLDER UPDATE

July 11, 2007

Dear Shareholders:

The Board of Directors of Cerro Dorado, Inc. conducted a conference call on July 9, 2007 with our associate in Santiago, Chile, Mr. Juan Jose Quijano Fernandez. As you may know, Mr. Quijano is our appointed representative to negotiate with the major mining companies which have expressed an interest in our properties. The discussion was comprehensive and gave each participant an opportunity to discuss the current situation and the state of negotiations which have been ongoing. All of our questions were satisfactorily answered, and specific details were openly presented. As a Board of Directors, we would like to state that we have been aware of the delays which have been experienced in this process, but at the same time we now understand some of the reasons for these delays.

We can state that five or six consortiums or partnerships consisting in the aggregate of twelve (12) major mining companies, some of the world’s largest, are actively in negotiations with Mr. Quijano. Each of the major companies has been informed by Mr. Quijano as to the financial parameters required by Cerro Dorado management in order to effect a deal. With these base line parameters known to all parties, the negotiations continue in earnest. Each of these groups, being public companies, have requested confidentiality and non-disclosure assurances from the management of Cerro Dorado as well as our associate company, Medinah Minerals, Inc. While we as a board have been apprised as to the names and present state of negotiations with each of these groups, we are not permitted to reveal any significant details of these negotiations.

Being that it is now winter in Chile, snow and rain on the mountain are forcing site visits to be made by helicopter. As a result, further delays in finalizing any of these ventures are possible but not anticipated.

We continue to place our priority with those majors which have been investigating our property the longest and which are closest to presenting offers. Several of these firms are deeply invested in our project, having expended considerable funds for road building, exploratory and other investigative work. We are encouraged and confident that the company is closer to the fruition of these efforts than at any time in the past, yet we cannot predict exactly the course of these events. We will, however, update this website as often as it is appropriate under the restrictive circumstances we have been asked to observe. We thank Mr. Quijano for his intense efforts over these many months, and we especially thank you, our shareholders, for your continued patience and support.

Sincerely,

The Board of Directors
Cerro Dorado, Inc.