Midland and North American Palladium Identify New Area With Strong Gold Potential on Laflamme and Commence Ground Geophysical Surveys

MONTREAL, QUÉBEC--(Marketwire - July 25, 2012) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the start of ground-based geophysical surveys designed to follow up on several untested VTEM-type conductors located in an area recently identified as having very strong potential for gold discoveries. The Laflamme property is currently a 50/50 joint venture with North American Palladium Limited ("North American Palladium"), acting as project operator.

Several unexplained conductors were detected on the LaFlamme property during a helicopter-borne electromagnetic ("EM") survey conducted in the fall of 2009 by Geotech Ltd. using their versatile time domain EM system ("VTEM"). A recent analysis of the VTEM survey data has resulted in the selection of some of the VTEM conductors for ground follow-up. Prioritization of the selected conductors is based on geological similarities to a new gold zone discovered by Maudore Minerals located about 12 kilometres northwest of the Comtois gold deposit and less than 1 kilometre from the Laflamme property. Maudore reported grades of 71.7 g/t Au over 1.2 metres and 0.8 g/t Au over 40.8 metres (Source: Press release by Maudore Minerals dated June 6, 2012). The targeted conductors are located in a part of the LaFlamme property that has had very little prior exploration.

The follow-up program will include surface electromagnetic surveys to improve the characterization of the conductors and induced polarization ("IP") surveys to help validate additional geological and structural targets. This work will be carried out throughout the months of July and August, in preparation for a diamond drilling campaign slated to begin in September 2012.

The Laflamme property covers more than 50 kilometres of favourable stratigraphy and structures with potential for orogenic gold, volcanogenic massive sulphides (Cu-Zn) and magmatic Ni-Cu-PGE deposits associated with ultramafic rocks. This property was initially acquired in 2008 based on the presence of significant gold, copper and zinc anomalies in till, identified under the Octave project jointly led by the Ministère des Ressources Naturelles et de la Faune (MRNF) and the Geological Survey of Canada (GSC).

The Laflamme property now consists of 724 claims covering a surface area of about 370 square kilometres, about 25 kilometres northwest of the town of Lebel-sur-Quévillon in the prolific Abitibi region of Quebec.

About Midland Exploration

Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and rare earth elements. Midland is proud to count on reputable partners such as North American Palladium Limited, Agnico-Eagle Mines Limited, Osisko Mining Corporation, Aurizon Mines Limited, Japan Oil, Gas and Metals National Corporation and SOQUEM Inc. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.

About North American Palladium

NAP is an established precious metals producer that has been operating its flagship Lac des Iles (LDI) mine located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, and is currently undergoing a major expansion to increase production and reduce cash costs per ounce. NAP also operates the Vezza gold mine located in the Abitibi region of Quebec. The Company's shares trade on the NYSE Amex under the symbol PAL and on the TSX under the symbol PDL. For more information, please visit www.nap.com.

This press release was prepared by Mario Masson, P.Geo., VP Exploration for Midland and Qualified Person as defined by National Instrument 43-101. For more information, please consult the Company's website.

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.