Midway Continues Permitting At Pan Project

DENVER, CO - Midway Gold Corp. reported results for the period ended September 30, 2013. At the Pan Project in White Pine County, Nevada permitting continues to advance with the Bureau of Land Management (BLM) incorporating public comments from the Draft Environmental Impact Statement (DEIS) into the final EIS. Permitting remains on schedule with a Record of Decision expected in 2013 and production planned for 2014. Midway announced preliminary results from bulk sample metallurgical test work indicates run of mine methods will work in initials years at the Pan project.

At the Gold Rock Project also located in White Pine County, Nevada a mining Plan of Operations submitted to the BLM was declared complete, starting the Environmental Impact Statement (EIS) process. Gold Rock is scheduled to be the Company's second operating gold mine.

At the Spring Valley Project in Pershing County, Nevada Barrick is continuing their earn-in expenditures to increase their joint venture interest in the property to 70%. Drilling in 2013 focused on in-fill drilling in the main resource area to upgrade the quality of the resource for future reserve calculations. Midway expects Barrick to complete the 70% earn-in near the end of 2013 approximately a year ahead of schedule. Barrick completed their 2013 drill program in Q3 ahead of schedule.

Corporate - The target of reaching production from the Pan project during the second half of 2014 has driven the majority of the Company’s operating expenses, leading to logical expense increases as the Company gets closer to construction on and production from the Pan project. The operating loss of $3,964,571 for the quarter ended September 30, 2013 was primarily due to mineral exploration expenditures of $1,605,572, salaries and benefits of $1,163,197 and legal, audit, and accounting costs of $581,840.

Mineral exploration expenditures were driven by permitting activities at the Gold Rock project as well as salaries and labor costs across all the Company’s projects. Salaries and benefits have increased period over period as a result of increased employee headcount at the corporate and field offices. The Company incurred legal, audit and accounting costs primarily related to its graduation to the TSX exchange from the TSX Venture exchange as well as costs for financial advisory services in relation to the investigation of Pan project financing options. The Company realized other expense of $291,878 in the current quarter related to a loss of $1,259,322 on foreign currency exchange translation, offset by a gain of $988,443 on the change in the fair value of derivative liabilities. As the Company’s stock price fluctuates, it will continue to recognize changes in the fair value of derivative liabilities, thereby resulting in non-cash gains or losses.

As of September 30, 2013, the Company had a cash balance of $58,373,402 with working capital of $54,109,319. Consistent with the Company’s plans to move from a development stage company to a gold production company, its working capital balance will fluctuate as the Company uses its cash to fund exploration, development activities and other operating expenses. In order to achieve planned production of the Pan project, the Company will be continuing to seek additional financing.