Midland Exploration Inc.
TSX VENTURE : MD

Midland Exploration Inc.

October 16, 2007 09:00 ET

Midland Exploration Options its James Bay Gold Properties to Agnico-Eagle

MONTREAL, QUEBEC--(Marketwire - Oct. 16, 2007) - Midland Exploration Inc. ("Midland")(TSX VENTURE:MD) is pleased to announce the signing of a letter of agreement with Agnico-Eagle Mines Ltd ("Agnico-Eagle") for its gold properties located in the James Bay Area, an area likely to become soon the next best gold district in Quebec after the Abitibi Belt. These gold properties are currently held 100% by Midland Exploration Inc.

Agnico-Eagle can acquire 50% of Midland's interest during a four-year period under the following conditions:

- Cash payment of $50,000 upon signing the agreement with additional payments of $250,000 for a total of $300,000 over four years.

- Exploration expenditures of $600,000 in the first year (firm commitment) with additional expenditures of $3,900,000 for a total of $4,500,000 over four years.

Midland will be the initial operator until Agnico-Eagle acquires a 50% interest in the project. Upon acquiring a 50% interest, Agnico-Eagle will have the option to increase its undivided interest in the project from 50% to 65% over a period of three years, by solely financing a bankable feasibility study on the James Bay Gold project or by solely assuming all mining operations on the project, earning 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

This agreement covers areas with similar geological and geochemical features as those observed in the vicinity of the Eleonore major gold discovery made by Virginia in 2004-05. Midland properties are located close to the contact between volcanic-plutonic units of the La Grande Subprovince and metasedimentary units of the Opinaca Subprovince. This contact is recognized as a favourable criterion for gold mineralization in the northeast Superior Province. The Eleonore gold deposit, recently acquired by Goldcorp, is located as well along this favourable contact.

The Midland properties are associated with first order, isolated or combined strong unexplained gold, arsenic and antimony lake-bottom sediment anomalies. Historically, following up by prospecting these types of geochemical anomalies led to the discovery of several new attractive gold showings and deposits in the James Bay Area. Midland and Agnico-Eagle look forward to the upcoming start of a first phase exploration program on this gold project.

About Midland

Midland's strategy to discover new gold and base metal deposits is based on Quebec's excellent mineral potential and favourable investment climate. Midland further intends to be pro-active in 2007 in the acquisition of new mineral exploration properties in Quebec. The Company recently signed two important agreements with Breakwater Resources Ltd for the Weedon and Zinc Gatineau projects. Management is currently considering other opportunities and other projects in order to expand the Company's portfolio. Midland prefers to work in partnership and intends to quickly secure new agreements to this effect for its properties acquired in 2007.

Gino Roger, P.Eng., is the qualified person who has reviewed the content of this news release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities. Midland undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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