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FSC / Press Release


Midway Gold Signs Cooperative Agreement with Town of Tonopah


Denver, CO US, February 17, 2011 /FSC/ - Midway Gold Corp. (MDW - TSX Venture, MDW - NYSE - Amex)(the "Company") has signed a Memorandum of Understanding with the Town of Tonopah, Nevada ("Tonopah") for continued cooperation with regards to development of the Company's Midway Project located in Nye County, Nevada and nearby to Tonopah's municipal water well fields.


"We are encouraged to sign an agreement that sets forth a cooperative framework for developing Midway's mining project and for supporting Tonopah's efforts to provide clean and safe drinking water alongside economic development and benefits for the community," said Ken Brunk, President and COO of Midway. "After we complete further exploratory drilling and engineering studies, we anticipate bringing the Midway project to commercial production. Throughout the mine life, the project will bring significant economic benefits to Tonopah and Nye County in the form of job training, direct and indirect employment, taxes and fees, construction spending, and sustaining capital investments."


The agreement provides for mutual information sharing between Midway and Tonopah's engineers for baseline studies and designs, development of water rights for the benefit of Tonopah, and cooperation to reduce redundant facilities. It is anticipated that definitive work plans between Midway and Tonopah will be constructed in the spirit of this agreement.


This release has been reviewed and approved by Richard D. Moritz, (B.Sc., MBA), Vice President of Project Development, and a "Qualified Person" as that term is defined in National Instrument 43-101.


ON BEHALF OF THE BOARD

"Ken Brunk"

Ken Brunk, Director, President and COO


About Midway Gold Corp.


Midway Gold Corp. is a precious metals company with a vision to design, build, and operate mines in a manner accountable to all stakeholders while producing an acceptable return to its shareholders. Midway controls over 65 square miles of mineral rights in the western United States; four advanced projects include: Spring Valley, Pan, Golden Eagle, and Midway. Two early stage exploration targets are Gold Rock and Burnt Canyon. For more information about Midway, please visit our website at http://www.midwaygold.com/">www.midwaygold.com or contact R.J. Smith, Manager of Corporate Administration, at (877) 475-3642 (toll-free).