Midway Provides 3rd Quarter Update on Spring Valley Project Including Step-Out Drilling Results and Earn-In Update

Midway Gold Corp. ('Midway' or the 'Company') (MDW:TSX-V; MDW:NYSE-MKT)
is pleased to report on the continued development at Spring Valley,
where Barrick Gold Exploration Inc. ('Barrick?) is earning into Midway′s
multi-million ounce gold project in Nevada.

Ken Brunk, Midway′s President and CEO said 'We are very happy with
Barrick′s continued progress at our Spring Valley project. We
have consistently reported positive drill results at Spring Valley and
this update is no exception. Of equal consequence, based on the rate of
Barrick′s expenditures through the third quarter, we anticipate that
they will complete their 60% earn-in well ahead of schedule in early
2013.'

Drilling Highlights

Step-out drilling within the quarter has demonstrated that the Spring
Valley gold system continues for 1.5 km to the south of the current
resource area, providing further evidence of the potential to expand the
resource base. Highlights included:

• SV12-59510.7 meters of 2.43 gpt gold, including 3.0 meters
  of 6.89 gpt gold
• SV12-59638.1 meters of 1.30 gpt gold, including 1.5 meters
  of 13.75 gpt gold

An infill drill program within the existing deposit boundaries has
continued to increase the certainty of the current resource, including
several intercepts well in excess of the current resource grade.
Highlights included:

• SV12-561c 18.6 meters of 6.79 gpt gold
  
  and 118.9
  meters of 2.33 gpt gold, including 17.1 meters of 8.06 gpt gold

• SV12-583c 58.8 meters of 1.06 gpt gold, including 1.5 meters of
  12.00 gpt gold
• SV12-584c36.3 meters of 1.92 gpt gold, including 3.2 meters
  of 14.67 gpt gold
• SV12-59427.4 meters of 1.68 gpt gold, including 1.5 meters
  of 12.79 gpt gold

Additionally, drilling at the northerly extent of the resource area
indicates the potential for expansion of the resource to the north and
at depth.

Earn-In Update

Barrick has accelerated their rate of expenditures to earn-in to
Midway′s Spring Valley project, where Barrick can earn a 60% interest in
the project by completing expenditures totaling US$30 million before
December 31, 2013. Projected expenditures by Barrick in 2012 amount to
$10.2M, which combined with spending through 2011 of $17.7M at Spring
Valley (see April 11, 2012 press release), would bring total cumulative
expenditures by Barrick to approximately $27.9M by the end of 2012.
Based on the rate of expenditures through the third quarter of 2012, it
is expected that Barrick will complete their earn-in of 60% of the
Spring Valley project by early 2013. Barrick may further elect to spend
an additional $8 million on or before December 31, 2014 for a total
expenditure of $38 million to increase their ownership interest in
Spring Valley to 70%.

Development Activity

Within the quarter, additional development drilling has gathered
metallurgical, hydrological and geotechnical data to be used in a
scoping-level economic evaluation. Metallurgical samples were collected
for a second round of metallurgical testwork that is currently in
progress. Hydrological work is underway to better characterize
groundwater conditions for a potential open pit. Further development
activities included potential pit slope stability studies, mine facility
design, seismic hazard analysis, and humidity cell tests.

Q3 Drill Results

Table 1 lists Spring Valley′s drill results as calculated by Midway from
data provided by Barrick. During the third quarter, Barrick completed
3,072 meters of reverse circulation (RC) and 2,387 meters of core
drilling. This drilling included four core holes used for metallurgical
sampling, four holes for geotechnical testing (SV12-611c to 614c), and
eight water-monitoring wells (SV12-600w to 608w). Total drilling for the
year through the third quarter is 11,834 meters of RC and 6,240 meters
of core. Figure 1 below shows the locations of drill holes listed in
Table 1 in relation to the current Spring Valley resource estimate.

Reverse circulation drilling was conducted by Hard Rock Drilling of
Elko, Nevada. Core drilling was conducted by TonaTec Exploration of
Mapleton, Utah. Drill hole numbers ending with a 'C' indicate core
holes. Samples were assayed by ALS-Chemex Labs, in Sparks, Nevada using
30 gram fire assay methods (FA) and by metallic screen assay methods
(MS). Results reported represent thickness along the trace of the drill
hole and do not necessarily represent true thickness. Intervals may not
match to the nearest tenth due to arithmetic rounding.

Figure 1.Drill Hole Map ? Q3 2012 Drill Results

Spring
Valley Project, Nevada

To view Drill Hole Map ? Q3 2012 Drill Results Spring Valley Project
Nevada please click on the following link:

http://www.usetdas.com/pr/midwaymap1dec212012.jpg

About Spring Valley

Spring Valley is a large porphyry-hosted gold system, located about 20
miles northeast of Lovelock in Pershing County, Nevada. A May 2011
updated resource estimate released by Midway reported 2.16 million
ounces of gold in the combined Measured and Indicated categories (144.8
million tonnes at a grade of 0.46 gpt Au), plus an additional 1.97
million ounces of gold in the Inferred category (103.9 million tonnes at
a grade of 0.59 gpt Au). Resources are reported at a cut-off grade of
0.14 gpt Au. The estimate was prepared for Midway by Gustavson
Associates, LLC of Lakewood, Colorado (see Midway press release dated
May 2, 2011) and includes drilling completed by Barrick in 2009 and
2010. An updated Technical Report dated November 29, 2012 clarified some
of the language contained within the report, but did not change the
resource estimates.

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, Chairman, President and CEO

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 assuring return on shareholder investments. For more
information about Midway, please visit our website at www.midwaygold.com

Neither the TSX Venture Exchange, its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
nor the NYSE MKT 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.

Cautionary note to U.S. investors concerning estimates of reserves
and resources: This press release and the technical reports 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 resources in this press release and in the technical report
referred to in this press release have been prepared in accordance with
NI 43-101 and such definitions differ from the definitions in U.S.
Securities and Exchange Commission ('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. The SEC normally only permits issuers to report mineralization
that does not constitute SEC Industry Guide 7 compliant 'reserves' as
in-place tonnage and grade without reference to unit measures. It cannot
be assumed that all or any part of mineral deposits in any of the above
categories will ever be upgraded to Guide 7 compliant reserves.
Accordingly, 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.

To view this press release as a webpage, please click on the
following link:

http://www.usetdas.com/pr/midwaydec212012.htm

Midway Gold Corp.

R.J. Smith, (877)475-3642 (toll-free)

Vice
President of Administration