Midway Gold Graduates to Development Stage on Strength of Feasibility Study at Pan Project, White Pine County, Nevada

Midway Gold Corp. ('Midway' or the 'Company') (MDW:TSX-V; MDW:NYSE-AMEX)
announces that it now qualifies as a Development Stage Entity under SEC
Guide 7 guidelines. Midway completed a detailed Feasibility Study on its
Pan gold project in White Pine County, Nevada that contains the
information necessary for the project to be deemed economically
feasible. A NI 43-101 technical report summarizing the Feasibility Study
has been filed under the Company′s profile on SEDAR. In addition, a mine
plan of operations has been submitted to the US Bureau of Land
Management (BLM) and the Nevada Department of Environmental Quality
(NDEP). The BLM has notified Midway that the plan has been deemed
complete, beginning an environmental study process.

Additionally, on January 1, 2012, the Company became an accelerated
filer according to SEC guidelines. Consequently, the Company is not
currently in compliance with the audit committee composition
requirements set forth in Section 803B(2)(a) of the NYSE Amex Company
Guide in that the Company only has two independent directors appointed
to the Company′s audit committee rather than three. On January 2, 2012,
the Company notified the NYSE Amex of its need to appoint a third
independent director and on January 4, 2012 the Company received
confirmation from the NYSE Amex regarding its obligations. As disclosed
in its November 11, 2011 press release, the Board intends to appoint a
third independent director to the Company′s audit committee in the very
near future and no later than by the Company′s next annual general
meeting of shareholders, ensuring compliance within the allowable cure
period set forth in Section 803B(6)(b) of the NYSE Amex Company Guide.

The results of a Feasibility Study (FS) for the Pan gold project in
White Pine County, Nevada demonstrated robust economics. The NPV of the
project accelerates from $123 million at $1,200/oz gold to $344M at
$1,900/oz gold. The IRR grows from 32% to 79% using the same range. Both
use a 5% discount rate and are after tax figures. The project has Proven
and Probable Mineral Reserves of 864,000 oz of gold within 48.3M tonnes
at a grade of 0.56 grams per tonne (gpt) gold.

Table 1.After Tax Project Economics at Selected Gold Prices
(US$)

Pan is an oxidized gold deposit with a low strip ratio (1.79:1),
mineable by open pit methods and treatable by heap leaching. These
parameters result in a low capex project with anticipated very favorable
economics. The mine plan used in the FS is based on producing 17,000
short tons of ore per day over an 8 year period. Ore will be crushed,
agglomerated, and placed on a heap leach pad. Gold recoveries are
estimated to average 75%; annual production is expected to exceed 81,000
oz of gold per year.

The capital costs to build the mine are estimated to be $99M which
includes $8.2M working capital and $6.8M contingency. The operating cash
cost is projected to be $585/oz which includes royalties, state taxes,
and a 5% contingency. The total production cost including capital is
projected to be $824/oz.

Mineral Reserves were based upon a design pit using Lerchs Grossmann
generated pit surfaces that maximize revenue based on a $1,200 per ounce
three-year trailing average price of gold. Cutoff grades of 0.21 gpt in
the South pit and 0.27 gpt in the North & Central pits produced the
project′s highest NPV.

Table 2:Total Pan Mineral Reserves, November 2011

Note: The tonnage and total ounces of gold were determined from the
statistical block model. Average grades were calculated from the tonnage
and total ounces and then rounded to the significant digits shown.
Calculations based on this table may differ due to the effect of
rounding.

The latest estimate of Mineral Resources is 1.13M oz of gold comprised
of 579,000 oz gold in 37M tonnes of 0.49 gpt gold in the Measured
category and 551,000 oz gold in 43M tonnes of 0.40 gpt gold in the
Indicated category using a 0.14 gpt gold cutoff grade (see NI 43-101
effective Sept. 1, 2011; filed Nov. 2, 2011). Mineral Resources are
inclusive of the Mineral Reserves reported above.

Mineralization at North Pan remains open at depth where many drill holes
have bottomed in mineralization. North Pan is also open to the north
where limited drilling shows that the gold zone continues below
post-mineral volcanics. At South Pan, the deposit remains open at depth,
to the south and to the east. Midway plans to complete 14,000 meters of
development drilling in 2012 targeted to further expand the Pan resource.

The FS and open pit Mineral Reserves and Resources were completed by
Gustavson Associates, LLC ('Gustavson?) of Lakewood, Colorado, with
Terre Lane and Donald E. Hulse acting as the Qualified Persons.

This release has been reviewed and approved for Midway by William S.
Neal (M.Sc., CPG), Vice President of Geological Services of Midway, a
'qualified person' as that term is defined in NI 43-101.

ON BEHALF OF THE BOARD

'Kenneth A. Brunk'

Kenneth A. Brunk, Director, President and COO

About Midway Gold Corp.

Midway Gold Corp. is a precious metals company with a vision to explore,
design, build and operate gold mines in a manner accountable to all
stakeholders while producing an acceptable return to its shareholders.
For more information about Midway, please visit our website at www.midwaygold.com
or contact R.J. Smith, Vice President of Administration, at (877)
475-3642 (toll-free).

Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements that
are not historical facts and include, but are not limited to, reserve
and resource estimates, estimated NPV of the project, anticipated IRR,
estimated strip ratio, anticipated mining methods at the project, the
estimated economics of the project, anticipated gold recoveries and
annual production, estimated capital costs, operating cash costs and
total production costs, planned development drilling and anticipated
expansion of the resource, and the outcome of the permitting process.
The forward-looking statements in this press release are subject to
various risks, uncertainties and other factors that could cause the
Company's actual results or achievements to differ materially from those
expressed in or implied by forward looking statements. These risks,
uncertainties and other factors include, without limitation risks
related to fluctuations in gold prices; uncertainties related to raising
sufficient financing to fund the planned work in a timely manner and on
acceptable terms; changes in planned work resulting from weather,
logistical, technical or other factors; the possibility that results of
work will not fulfill expectations and realize the perceived potential
of the Company's properties; uncertainties involved in the
interpretation of drilling results and other tests and the estimation of
gold reserved and resources; the possibility that required permits may
not be obtained on a timely manner or at all; the possibility that
capital and operating costs may be higher than currently estimated and
may preclude commercial development or render operations uneconomic; the
possibility that the estimated recovery rates may not be achieved; risk
of accidents, equipment breakdowns and labor disputes or other
unanticipated difficulties or interruptions; the possibility of cost
overruns or unanticipated expenses in the work program; risks related to
projected project economics, recovery rates, and estimated NPV and
anticipated IRR and other factors identified in the Company's SEC
filings and its filings with Canadian securities regulatory authorities.
Forward-looking statements are based on the beliefs, opinions and
expectations of the Company's management at the time they are made, and
other than as required by applicable securities laws, the Company does
not assume any obligation to update its forward-looking statements if
those beliefs, opinions or expectations, or other circumstances, should
change.

This press release, the feasibility study and the technical report
referred to in this press release use the terms 'resource', 'reserve',
'measured resources', 'indicated resources' and 'inferred resources',
which are terms defined under Canadian National Instrument 43-101 and
the Canadian Institute of Mining and Metallurgy Classification system.
Estimates of mineral reserves in the feasibility study and in this press
release are compliant with the definitions in the U.S. Securities and
Exchange Commission ('SEC?) Industry Guide 7.Previous estimates
of resources in the technical report referred to in this press release
have been prepared in accordance with NI 43-101 and differ from the
definitions in U.S. SEC Industry Guide 7. Under SEC Industry Guide 7
standards, a 'final' or 'bankable' feasibility study is required to
report reserves, the three-year historical average price is used in any
reserve or cash flow analysis to designate reserves and the primary
environmental analysis or report must be filed with the appropriate
governmental authority. Mineral resources are not mineral reserves and
do not have demonstrated economic viability. We advise investors that
while those terms are recognized and required by Canadian regulations,
the SEC does not recognize them. U.S. investors are cautioned not to
assume that any part or all of mineral deposits in these categories will
ever be converted into reserves as defined in the SEC's Guide 7. In
addition, 'inferred resources' have a great amount of uncertainty as to
their existence, and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred
mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the
basis of feasibility or pre-feasibility studies, except in rare cases.
U.S. investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally minable.
Accordingly, outside of the reserves reported in this press release and
in the feasibility study, disclosure in this press release and in the
technical reports referred to in this press release may not be
comparable to information from U.S. companies subject to the reporting
and disclosure requirements of the SEC.

Midway Gold Corp.

R.J. Smith, Vice President of
Administration

(877) 475-3642 (toll-free)

www.midwaygold.com