Golden Eagle Property Acquired

HELENA, MT - Midway Gold Corp. reported that it has acquired a 100% interest in Eagthe Golden Eagle property in Ferry County, Washington.
Alan Branham, President and CEO of Midway Gold, stated that "we are pleased to have been able to come to an agreement with both Kinross and Hecla to acquire 100% of the property. The Golden Eagle property offers a very attractive underground high-grade vein exploration target on private ground. We believe that exploring under the historic two million ounce hot springs system is an attractive place to find more high-grade gold. This target is adjacent to the Republic Knob Hill veins which produced high-grade gold for Hecla for over 20 years. We will also review options to process sulfide mineralization, in view of newer technologies and the economics afforded by a higher gold price. The ability to explore the deeper targets combined with the strategic access to Kinross' nearby mill is a bonus that could add value to any new oxide ounces discovered on the property."
On May 28, 2008 Midway entered into a letter of intent to acquire a 75% interest in the Golden Eagle property from a subsidiary of Kinross for US$1,500,000. Kinross retained a 2% net smelter returns royalty and was granted a first right of refusal to toll mill ore from the Golden Eagle property at their Kettle River Mill. Midway subsequently entered into a letter of intent to acquire Hecla Limited's 25% interest in the property for a cash payment of US$483,333. Both Kinross and Hecla declined their pre-emptive rights against each other's interests and the transactions closed on August 1, 2008.
Midway completed the acquisition of the Golden Eagle property through a wholly-owned subsidiary created to hold the property ("Spin-co").
The company's address is 600 Lola Street, Suite 10, Helena, MT 59601, (406) 475-9595, fax: (406) 475-9596, email: [email protected].