Rye Patch Gold Corp.
TSX VENTURE : RPM

Rye Patch Gold Corp.
Midway Gold Corp.
TSX VENTURE : MDW

Midway Gold Corp.

August 21, 2007 15:08 ET

Rye Patch Gold Corp. Acquiring the Jessup Project, Nevada From Midway Gold Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 21, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Rye Patch Gold Corp. ("Rye Patch Gold") (TSX VENTURE:RPM) and Midway Gold Corp. ("Midway") (TSX VENTURE:MDW) are pleased to announce the following:

Rye Patch Gold has agreed to acquire all of Midway's right, title and interest in the Jessup project located in Churchill County, Nevada. Midway, through its plan of arrangement with Pan-Nevada Gold Corporation ("Pan-Nevada Gold"), acquired the Jessup project in early 2007.

The Jessup project is comprised of a total of 36 unpatented mining claims owned by Midway; one patented mining claim; and 99 unpatented mining claims held by Midway under leases with the various claim owners. The Jessup project is located in the historic Jessup mining district.

A resource estimate for the Jessup project was prepared by Mine Development Associates (MDA) in February 1998, which reported 8,376,000 tons with a grade of 0.024 oz Au/ton, amounting to approximately 200,000 ounces of gold. The cut-off grade used for the estimate was 0.010 oz Au/ton.

This estimate was not classified under any of the categories of measured, indicated and inferred resources under National Instrument 43-101 ("NI 43-101") and is considered a historical estimate under NI 43-101. Rye Patch Gold considers the reported numbers to refer to an aggregate resource incorporating all categories of measured, indicated and inferred resources. Rye Patch Gold is not treating this historical estimate as a NI 43-101 defined resource by a qualified person and cautions that this historical estimate should not be relied upon.

Pan-Nevada previously commissioned MDA to prepare a comprehensive technical report to update the resource calculation on the Jessup project based on data drawn from Pan-Nevada's prior work on the property. This technical report will be completed for Rye Patch Gold and filed on SEDAR when available.

As consideration for Midway's sale of the Jessup project to Rye Patch Gold, Rye Patch Gold is to issue to Midway on the closing date of the acquisition a total of 2,000,000 units ("Units") of Rye Patch Gold, each Unit comprising of one common share ("Share") of Rye Patch Gold and one-half of one non-transferable common share purchase warrant ("Warrant"), with each whole Warrant entitling Midway to purchase one Share for a period of 24 months from the closing date of the purchase and sale of the Jessup project at an exercise price of Cdn.$1.00. The Shares comprising the Units will be subject to resale restrictions for up to 2 years from the closing date.

In addition, Rye Patch Gold will reimburse Midway for costs incurred in connection with the Jessup project in the amount of approximately US$252,000, which includes advance royalty payments to underlying claim owners and claim maintenance fees.

Closing of the sale of the Jessup project is subject to the receipt of TSX Venture Exchange approval and the satisfaction of other customary closing conditions.

William C. (Bill) Howald, CEO and President of Rye Patch Gold Corp. commented, "The acquisition of the Jessup project is exactly along the lines of our Nevada strategy to bring resource-based projects into the Company's portfolio. The Jessup property is located near Interstate 80 at the Jessup exit and will allow Rye Patch to increase its portfolio of properties along the I-80 corridor. This accumulation of resource-based projects along the main transportation artery of Nevada has potential to fill unused milling capacity for the major gold miners in Nevada."

"Our strategy of finding, developing and selling high-grade deposits near the I-80 corridor can potentially fit the needs of the Nevada based gold miners."

Alan Branham, President and CEO of Midway Gold stated, "Midway has chosen to focus our exploration efforts on our developing resources at Spring Valley, Pan, and Midway, along the major gold trends. Midway currently has a total of seven drill rigs exploring the expansions of these three prospective projects. We wish Rye Patch success in their plans at Jessup."

The underlying lease obligations in respect of 96 unpatented claims on the Jessup project involve making monthly advance royalty payments of US$6,000 in 2007, increasing by US$1,000 per month in each successive year until it reaches US$9,000 per month in 2011 and continues thereafter at that amount. These claims are subject to a production royalty in favour of the lessor of between 1% and 3.5% depending on the average quarterly price of gold, and all advance royalty payments may credited towards any payments of the production royalty. These claims are also subject to a 1.6% net smelter return royalty in favour of a prior claim owner. Rye Patch Gold may purchase these properties (subject to the 1.6% net smelter return royalty) by paying the lessor US$2 million if the option is exercised by May 12, 2008, US$2.5 million if the option is exercised by May 12, 2009 or US$3 million if the option is exercised by May 12, 2010, less all advance royalty payments previously paid to the lessor.

The underlying lease obligations in respect of 3 unpatented claims on the Jessup project involve making advance royalty payments of US$8,000 in 2008, US$9,000 in 2009, US$10,000 in 2010, and US$10,000 for each year thereafter. These claims are subject to a 2% production royalty in favour of the lessor, and all advance royalty payments may be credited towards any payments of the production royalty. Rye Patch Gold may purchase one-half of the production royalty interest (1%) at any time during the term of the lease for US$1 million, less all advance royalty payments previously paid to the lessor.

The underlying lease obligations in respect of the one patented claim on the Jessup project involve making annual advance royalty payments of US$5,000 in 2008 up to and including 2010, US$10,000 in 2011 up to and including 2015, US$20,000 in 2016 up to and including 2020 and US$30,000 in 2021 and US$30,000 for each year thereafter. This claim is subject to a 5% production royalty in favour of the lessor in respect of precious metals, and all advance royalty payments may be credited towards any payments of the production royalty. Rye Patch Gold may purchase this claim and one-half of the production royalty interest (2.5%) at any time during the first five years of the lease for US$250,000.

Rye Patch Gold Corp. is a Nevada-focused and discovery-driven company building a sizeable inventory of gold assets in the mining friendly state of Nevada, USA. The Company's seasoned management team is engaged in acquisition, exploration and development of quality resource-based gold deposits. Rye Patch Gold is developing its primary asset - the advanced-stage Wilco project located within the Humboldt Gold Trend in west-central Nevada, and is now acquiring the Jessup project in Churchill County, Nevada.

Midway Gold Corp. is a precious metals exploration company, listed as a Tier 1 issuer on the TSX Venture Exchange under the symbol "MDW". Midway focuses on the creation of value for shareholders by aggressively exploring and developing high-grade, quality precious metal resources in stable mining areas.

Rye Patch Gold Corp.

On behalf of the Board of Directors

William C. (Bill) Howald, CEO & President


Midway Gold Corp.

On behalf of the Board of Directors

Alan Branham, CEO & President

The securities to issued by Rye Patch Gold Corp. have not and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or the securities laws of any state of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption therefrom under the 1933 Act and the securities laws of all applicable states.

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

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