Midway Gold Corp.

Midway Gold Corp.

February 29, 2008 08:00 ET

Midway Gold Announces 2008 Plans for Nevada Projects

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 29, 2008) - Midway Gold Corp (the "Company") (TSX VENTURE:MDW)(AMEX:MDW) announces plans to drill 250 holes in 2008 to test 30 targets on 7 properties in Nevada. Total footage is expected to be over 168,000 feet of reverse circulation and core drilling.

"Midway is developing a pipeline of projects, ranging from new discoveries to projects moving toward development." said Alan Branham, President and CEO of Midway Gold Corp. "We have budgeted $15 million in 2008 to bring the Midway underground project to a development stage, to bring the Pan project to pre-feasibility, and to expand new discoveries on the Spring Valley, Afgan, Monte, Thunder Mountain, and Burnt Canyon properties. We plan to aggressively move our existing projects forward while continuing to seek and develop outstanding new opportunities."

Exploration and development work is planned on seven properties. A summary of the Company's current project portfolio and proposed work for 2008 is listed below in order of most advanced to the newest exploration project.

Midway Underground; Nye County, Nevada

The Midway project is a high grade epithermal quartz-gold vein system situated between the Round Mountain mine and Goldfields, Nevada. Bonanza gold veins occur in a series of parallel northwest-trending vein clusters for a 1.5 mile distance. The best previously reported gold intercept was 2.5 feet of 119 opt (ounce per ton) gold within 17 feet that averaged 34.7 opt gold from the Midway vein. Weighted average grades and widths of the veins targeted for a bulk sample are shown in the table below:

Discovery Weighted Average Average Vertical Strike
Zone Vein Grade (opt gold) Width (ft) (ft) Length (ft)
Midway Vein 4.387 5.9 280 370
Rochefort 1.296 4.0 324 422
Dauntless East 0.772 4.6 349 443
Dauntless HW 0.991 8.6 231 150
Dauntless FW 0.478 12.4 198 152

In January 2008 the Company submitted a Plan of Operations for an underground mining operation to the Bureau of Land Management (BLM) and the Nevada Division of Environmental Protection (NDEP). Plans call for a 3000 foot inclined adit (underground tunnel) that will provide access to high grade portions of 14 gold veins in the Discovery Zone. A 50,000 ton bulk sample and metallurgical testing will help determine the true grade of the veins, help delineate reserves, and move the project toward production. Gold recovered from the bulk sample will offset a portion of the development cost of the decline. If there are no unexpected delays, the Company hopes to reach the Discovery gold zone in late 2009.

In 2008, the Company plans to drill 2,200 feet in 16 holes for geotechnical tests and to evaluate planned facility sites. Drilling is currently underway on the project with one core rig. Baseline studies for permitting are in progress. Pump tests are underway for groundwater hydrology studies. Additional work will support environmental studies for permitting and to finalize underground development plans. A NI 43-101 compliant report dated February 2005 is available for this property.

Pan Project, White Pine County, Nevada

The Pan project is a sediment-hosted gold deposit on the prolific Battle Mountain-Eureka gold trend in Nevada. It is an oxide deposit exposed on the surface with simple metallurgy. In 2007, the Company drilled 35,510 feet in 113 holes. Four new gold zones were discovered at Nana, Barite, Wendy, and Boulders. Drill results at Boulders extended gold for 1,300 feet under volcanic outcrop at North Pan. Drill results at Barite and Wendy extended gold at South Pan by 400 feet south and 300 feet east respectively. The Nana zone, 4,000 feet northwest of North Pan, represents a new exploration opportunity.

A large scale soil survey identified four previously unknown gold-arsenic anomalies with no previous exploration drilling. Results from a recently completed detailed gravity survey have also outlined several new targets areas. As a result, additional claims were staked bringing the property position to 15 square miles.

The Company plans to drill 54,000 feet in 100 holes at Pan in 2008. This will include confirmation drilling to initiate a scoping study for pre-feasibility, especially where previous holes bottomed in mineralization. Step-out drilling will continue to test expansions of new gold discoveries from 2007. Exploration drilling will test new targets under volcanics and those identified by soils and geophysics. A NI 43-101 compliant report dated January 2005 is available for this property.

Spring Valley, Pershing County, Nevada

The Spring Valley project is a diatreme/porphyry hosted gold system beneath pediment gravels. The Company drilled 102,000 feet in 2007 to expand the West Diatreme and North Hill zones and to test the Deep Porphyry potential. Limited in-fill drilling was completed on the Pond, Porphyry, and Sill zones. These zones form a coherent gold trend 3,500 feet long and 3,500 feet wide that has been tested to a depth of 1,400 feet. The mineralization remains open to the northeast, southwest and at depth. An additional 10,850 feet were drilled on the Limerick, American Canyon, King David, and Golden Gate satellite targets. Drilling is planned to follow-up gold and silver intercepts on three of these targets.

An updated resource estimate was announced for Spring Valley in January, 2008. A gold grade block model was developed by AMEC E&C Services, Inc. (AMEC) of Sparks, Nevada to estimate a gold resource with a Lerchs-Grossmann (L-G) optimization shell using a gold price of $650 per ounce. The model left a large number of grade blocks outside of the L-G optimization shell, and the Company is working with AMEC to refine the grade model and to identify areas where additional drilling could bring known mineralization into the resource.

The Company plans to drill 90,000 feet in 100 holes in 2008 for a combined program of in-fill, step-out, and exploration drilling. In-fill drilling will target adding ounces to subsequent resource estimations. Step-out drilling will focus on the West Diatreme target and the North Hill target. Exploration drilling will test 8 outlying targets identified by geologic mapping, soil sample surveys, rock chip anomalies, and geophysical anomalies. Exploration targets include the Fitting target where strong arsenic-antimony soil anomalies occur over altered thin-bedded limestone adjacent to a metal-rich range front fault. The Gold Mountain target is an altered rhyolite flow dome with structurally controlled gold zones identified over an area 3800 feet by 2,800 feet. In addition to drilling, initial development work including metallurgical testing, hydrologic assessment, and acid rock characterization is planned. A NI 43-101 compliant report dated June 2006 is available for this property. An updated NI 43-101 report will be complete in March 2008.

Afgan Project, Eureka County, Nevada

The Afgan project is a sediment-hosted gold target on the Battle Mountain-Eureka trend near Eureka, Nevada. Gold has been intercepted in drilling on either side of a broad area covered by volcanic rocks. Drilling in 2007 intercepted 85 feet of 0.039 opt gold in AF07-05 and 60 feet of 0.023 opt gold in AF07-02 on the south side of the target. A new gold zone with 25 feet of 0.016 opt gold in BC07-04 was intercepted on the Big Cyndi target two miles to the north. Prospective host rocks underlie the volcanic cover between these targets and provide an attractive target with substantial size potential.

Evaluation of this target is still in process. Work for 2008 in currently being planned, and may include geophysical surveys and drilling up to 16 holes to test targets identified to date. A NI 43-101 compliant report dated April 2004 is available for this property.

Monte Project, White Pine County, Nevada

The Monte property has been expanded to 14 square miles on the Battle Mountain-Eureka gold trend. The property includes and surrounds the Easy Junior open pit gold mine operated by Alta Bay in the 1980s. This is a sediment hosted gold system in highly prospective host rocks. Two other partially drilled gold targets occur on the property. The Pilot shale-Devils Gate limestone have been the host rocks of several major gold deposits in the region and there is over six miles of these prospective host rocks that remain untested at Monte.

The Company plans to drill 16,000 feet in 20 holes in 2008 to test targets at Monte. A gravity and ground magnetic survey was completed in January on the southern end of the property. Evaluation of this data is in progress. Geologic mapping, soil sampling and rock sampling programs are planned.

Thunder Mountain, Nye County, Nevada

The Thunder Mountain project is a high grade quartz-adularia-gold vein and breccia target approximately 6 miles southeast of the Midway project gold system. In 2007 drilling, TM07-04 encountered 5 feet of 1.187 opt gold within 20 feet of 0.342 opt gold in silicified volcanic breccia. This was a 50 foot off-set of a previously drilled intercept of 10 feet of 1.93 opt gold within 30 feet of 0.705 opt gold. Additional drilling is needed to determine the extent of mineralization and true width.

The Company drilled 1,120 feet in four holes, on this target in January 2008 to follow up on these high grade intercepts. Results are pending.

Burnt Canyon, Pershing County, Nevada

The Burnt Canyon project is a new volcanic hosted gold exploration target located between the historic Seven Troughs high grade gold district and the million ounce Wildcat gold resource of Allied Nevada. The property was acquired in late 2007 and has exploration targets identified for high grade gold veins and low grade disseminated gold in altered tuffs. In addition, a gold bearing jasperoid along the range front has identified a pediment target to the east.

The Company plans to drill 4,000 feet in 10 holes in 2008 to test targets at Burnt Canyon. Preliminary soil, gravity, and ground magnetic surveys were completed in January and results are being evaluated. Drill holes will be targeted using this data and a program of geologic mapping currently being planned.

Midway Gold Corp. is a precious metals exploration company, listed on the American Stock Exchange and on the TSX Venture Exchange under the symbol "MDW." Midway's focus is creating value for shareholders through the discovery and development of quality new precious metal resources in politically stable mining areas. The Company has three advance stage gold exploration projects and four early stage exploration project that control over 60 square miles of mineral rights along four major gold trends in Nevada. Additional information on Midway Gold Corp and these projects can be found at: www.midwaygold.com

This release has been reviewed and approved by Bill Neal, (M.Sc. and CPG), a "qualified person" as that term is defined in National Instrument 43-101.


Alan Branham, President and CEO

This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the timing of our exploration and drilling programs; timing of the preparation of our preliminary economic assessment, geological models, mine plan and definitive feasibility study; expectations related to enhancing resource grades; financing plans and the availability of future financing for our projects; anticipated results of our exploration, and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. We do not undertake to update forward-looking statements.

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

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