Significant Upgrade in Resource At Spring Valley Project

DENVER - Midway Gold Corp. reported substantial resource growth at its Spring Valley project, located in Pershing County, Nevada. The Company has updated the mineral resource estimate to include the 2011-2013 drill results. Midway’s independent consulting engineers, Gustavson Associates, have determined that this drilling has resulted in a 102% increase in Measured & Indicated (M&I) ounces to 4.37 million ounces, as well as a 20% increase in the M&I gold grade. In addition, the drilling has resulted in an inferred resource now totaling 1.07 million ounces. Midway also announced its decision to become a 25% joint venture partner, to be carried to production by Barrick free of any additional payments or capital outlays.

We are thoroughly impressed with the continued growth and the significant quality upgrade at Spring Valley, said Ken Brunk, President and CEO of Midway. The accelerated progress on the project continues to give us confidence that Spring Valley has the potential to be a world-class gold mine in the near future. The three drill rigs on site continue to be focused on in-fill drilling and will likely have an even greater future impact on ounce quality as we move forward to completion of a pre-feasibility study in the fall of 2015. The $9 million drilling program and the $8.4 million commitment currently being spent on all of the various engineering and permitting activities speaks to the merits of the project. We are happy to have Barrick as our joint venture partner and pleased to see 2014s major progress.

Barricks 2014 project budget is $17.4 million, which includes $9 million for continued in-fill drilling and $8.4 million for preparation of an internal pre-feasibility study and other related project development expenditures. Planned development activities will include additional metallurgical studies, hydrological studies, environmental baseline studies, and geotechnical wall rock stability studies required for mine planning.

Beyond the resources added by the infill program, Spring Valley has excellent growth potential and exploration upside. The current resource remains open to the south, to the northwest and at depth. A cross-section provides a view of this growth potential by showing an extended lateral resource growth achieved through step-out drilling between 2011 and 2014. Looking west, this cross-section illustrates the growth in the resource to the north and to the south since the 2011 resource estimate. Additionally, a number of high potential drill targets outside of the current resource area have been identified.