Drill Program Begins At Pan Gold Project 

DENVER, CO - Midway Gold Corp. reported the start of renewed drilling at its Pan Project in White Pine County, Nevada. Drill plans include 6,500 meters of reverse circulation (RC) drilling and 600 meters of diamond core drilling. This 2011 expansion drilling will follow up on Midway's 2010 drilling that identified higher gold grades and a possible new gold zone. The deposit is still open to the North, the South and at depth. Mineralization between the proposed North and South Pan open pits will also be tested for possible continuity with the proposed open pits.

Midway is advancing the Pan Project toward possible production by as early as 2013. Engineering and permitting activities are underway to support a Prefeasibility Study planned for completion during the first quarter of 2011. A portion of the 2011 drilling will test for undiscovered mineralization beneath proposed mine facilities. A 2010 Preliminary Economic Assessment ("PEA") of the Pan Project reported a Measured and Indicated Mineral Resource of 38.8 million metric tonnes containing 682,000 ounces of gold with a grade of 0.55 grams per tonne ("gpt"), at a 0.14 gpt gold cutoff grade. The PEA reported that the Net Present Value of Pan, at a 5% discount rate and a gold price of $1,200 per ounce, is $109 million and that the pre-tax Internal Rate of Return is 41%. The company's address is 8310 South Valley Highway, Englewood, CO 80112, (720) 979-0900, fax: (720) 979-0898, email: [email protected].