Midway Gold Updates Pan Mine Modeling

DENVER, CO - Midway Gold Corp. reported results on modeling work at the Pan Gold Mine in Nevada. Completion of the updated mineral resource study for Pan allows the company to move forward with optimizing the mine plan, updating reserves and making operational changes that will allow us to advance the Pan Mine.

The improved understanding of the geologic controls on mineralization resulted in a significant change in the classification of the Pan Resource from Measured and Indicated into the Inferred category. Future drilling should enable Midway to move inferred ounces to measured and indicated ounces. A comparison of the 2015 Updated Mineral Resource Estimate with the 2011 Mineral Resource Estimate is provided in the tables below.

The updated mineral resource for the Pan Project is estimated by Gustavson Associates, LLC to be 35.9 million tonnes grading an average of 0.44 g/t Au classified as a measured and indicated mineral resource. An additional 13.9 million tonnes grading an average of 0.31 g/t Au are classified as an inferred mineral resource. All of the estimated resources are based on a 0.14 g/t cutoff.

Production continues to ramp up with about 4,300 ounces of gold produced to date. We currently have about 36,000 contained ounces of gold on the heap leach pad and most of the pad is currently under leach.

Bill Zisch, Midway's President & CEO commented, "Completing the update of the resource at Pan provides us with a foundation for maximizing the performance of the Pan Mine and confirms the grade of the deposit. We are in the process of developing the optimal mine plan for Pan and initiating a drill program to expand the ore body. Our planned exploration activities include expansion drilling in the North and South extensions of the South Pan Pit where surface geologic mapping and sampling have demonstrated surface gold mineralization that has not yet been drill tested. We also plan to complete in-fill drilling in the Deep Wendy Zone. The updated model has been through extensive quality reviews as well as a comparison with production results and we are confident that it provides a good estimate of the deposit's resources."

Gustavson has completed a revised mineral resource estimate for the Pan Mine. Midway reported that the 2015 mineral resource estimate includes the addition of about 44,000 feet of reverse circulation (RC) drilling and 5 additional diamond drilled core holes in comparison to the 2011 mineral resource estimate. In addition, recent operating experience has improved the understanding of the controls on mineralization. Both the new data and the updated geologic interpretation have been considered in the estimation and classification of mineral resources. Recent operating experience has also improved the understanding of controls of mineralization in the deposit and has enhanced the updated mineral resource model and methods used in the mine's ore control system. This data has been utilized in the estimation and classification of mineral resources.

The "reasonable prospects for economic extraction" requirement referred to in NI 43-101 was tested by designing a series of conceptual open pit shells using Datamine NPVS software. After review of several scenarios considering different metal prices, Gustavson applied a long-term gold price of US$1,500/oz. This price considers the 4-year trailing average gold price of US$1,462/oz and a review of recently published resource estimates based on US$1,500/oz pit shells.