Golden Predator Mines Inc.

Golden Predator Mines Inc.

November 13, 2008 09:40 ET

Golden Predator to Receive $1 Million; Additional $1 Million to Come

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 13, 2008) - Golden Predator Mines Inc. (TSX:GP) ("the Company") announces that it will receive CDN $1 million plus accrued interest from Midway Gold Corp. ("Midway") pursuant to amendment and early repayment of a loan facility provided by the Company to Midway earlier this year.

On July 17, 2008, Golden Predator and Midway Gold Corp. announced that the two companies entered into a term sheet describing the principal terms of a proposed business combination. On September 15, 2008 the term sheet expired and the business combination did not proceed.

Pursuant the term sheet, Golden Predator agreed to provide a loan facility of $5 million to Midway that could be drawn in installments of $1 million. On August 28, 2008 Golden Predator advanced $2 million of the facility to Midway. In exchange for the advance, Midway issued a promissory maturing with interest at prime plus 2% on July 16, 2009.

Golden Predator and Midway have mutually agreed to release each other from all matters related to the Term Sheet and Midway has agreed to pre-pay Golden Predator $1,000,000 of the loan amount advanced, together with accrued interest. Midway further agreed to apply 50% of the proceeds of any warrants exercised pursuant to the private placement, closed on November 12, 2008, to the pre-payment the balance of the loan amount advanced. The balance of the note, if any, is payable no later than July 16, 2009.

Golden Predator is a tungsten and gold mining company focused on mineral development in Nevada and surrounding states. The company intends to augment its position in the domestic tungsten business through high grade gold development and production. Its current principal project is the Springer Facility, a 1,000 ton per day mine and mill complex built by the General Electric Company between 1979 and 1982. While it had a 13-year mine life at time of construction, GE only operated the facility for eight months when it ceased production in 1982 and placed Springer on care and maintenance due to falling tungsten prices. Golden Predator is in the process of re-commissioning the mill, and when completed, it will be the only operational tungsten mill in the United States.

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