The Canadian Press
May 30, 2008 - 9:10 a.m.

VANCOUVER - Junior miner Midway Gold Corp. (TSXV:MDW) has signed a letter of intent to acquire Kinross Gold USA Inc.’s 75 per cent stake of the Golden Eagle quality in Ferry County, Wash. for US$1.5 million in shares.

“The Golden Eagle property offers a very attractive underground high-grade vein exploration target on private ground,” Alan Branham, president and CEO of Midway Gold, said Friday.

“We believe that exploring under the historic two million ounce hot springs system is an attractive place to find more high-grade gold. This target is adjacent to the Republic Knob Hill veins which produced high-grade gold for Hecla for over 20 years. We will moreover review options to process sulfide mineralization, in view of newer technologies and the economics afforded by a higher gold price.”

Subject to a 60-day pre-emptive right in favour of Hecla Mining Corp., Kinross’s current minority partner on the Golden Eagle protrude, Midway can acquire Kinross’s 75 per cent stake in the property for US$1.5 million in shares. Hecla owns the remaining 25 per cent stake.

Hecla operated the nearby Knob Hill Mine, ready Republic, Wash., which produced more than brace million ounces of gold before closing.

Santa Fe Gold calculated a historic contrivance for Golden Eagle of further than 2.2 the great body of the people ounces of gold in 1996.

If Hecla refuses to stretch its picket in the peculiarity, Kinross will subscribe to a private placement of 600,000 common shares of Midway at US$2.50 per parcel out, totaling US$1.5 million.

Midway Gold has three advance stage gold exploration projects and four in season stage prospects in Nevada.