Mr. Kenneth Brunk reports

MIDWAY UPDATES PAN DEVELOPMENT AND OUTLINES KEY 2013 MILESTONES

Midway Gold Corp. would like to provide a 2012 year-end review of the Pan gold mine project and a road map for the year ahead. The Pan project is an open pit mining, development stage project in eastern Nevada with an expected 2014 production date.

A letter from Ken Brunk -- chairman, president and chief executive officer of Midway

Two thousand thirteen will be a transformational year for Midway. The beginning of a new year provides an opportunity to share with our shareholders the successes of a year past and the company's plans for the next. This letter highlights 2012 accomplishments and outlines our priorities for the coming year. Throughout this year we plan to share updates on our projects and provide greater detail on the "when" the "why" and the "how," which combined are the true backbone for continued success. Key 2012 accomplishments for the Pan project:

• Permitting is on schedule and well positioned for construction in 2013 and production in 2014;
• Continued engineering and testing activities to better understand project economics;
• Successful capital raise of $70-million at a significant premium to market.

Pan permitting

Pan, our flagship project, is an oxidized, Carlin-type gold deposit that will be an open pit, heap leach mine. During 2012 Midway worked diligently to advance Pan to be ready for 2013 construction and for production in mid-2014.

We have advanced well into the NEPA permitting process. Progress in 2012 includes:

• Selection of our third party contractor which specializes in mining activity in Nevada to draft the environmental impact statement;
• Publication in the Federal Register pursuant to the EIS notice requirements;
• Holding multiple public scoping and informational meetings;

During the next three quarters, Midway plans to:

• Notify the public when the draft EIS for Pan has been published in the Federal Register;
• Address additional comments as needed for the final EIS and the final positive record of decision.

Midway is committed to the more detailed EIS process rather than the simpler EA process because it is one example of our commitment to build a responsible, forward-thinking, long-term business. Not only does this mean meeting and exceeding regulatory requirements, but also not taking any shortcuts in our processes. We will provide updates on this process as we complete the remaining milestones to our record of decision.

Engineering, operations and equipment

Our engineering and operational team are preparing for the next phase of our growth. The team's 2012 focus included:

• Optimizing pit plans and mining equipment needs;
• Continuing gold recovery tests on bulk samples from the mining area;
• Working with Jacobs Engineering Group Inc., a world-class construction and engineering company to detail and refine the design of the project.

Midway's goal has been to develop streamlined construction schedules that enhance cost-effectiveness. We believe you will all see the positive benefits of these efforts as 2013 unfolds.

Between now and the fall of 2013, Midway will be placing the orders for our long-lead-time equipment for Pan, such as the main electrical substation, front-end loaders for mining and heap leach operational equipment. We will negotiate supply contracts for the diesel fuel, reagents and other consumables needed for Pan's operation in 2014. Our goal is to ensure that we have the materials at cost effective prices to meet our business plan in a timely manner.

Financing

Midway's financial team successfully raised $85-million in 2012 demonstrating the strength of our business in very difficult markets. This capital will be used to build the Pan project and to provide working capital to continue our overall operations. Seventy million dollars of capital was raised as a preferred stock transaction with our strong financial partner, Hale Capital. The team's goal was to limit common shareholder dilution and to avoid hedging.

Since that financing, we have been working with several banks and with Caterpillar Equipment to secure the balance of the financing needed to finance Pan's production and operations until Pan is cash flow positive. This effort is advancing at a steady pace and we fully anticipate having agreements in place this summer with the funds being drawn after receipt of permits this fall.

The team and the community

We have great properties, but one of our most important resources is our people. We will be operating our own mines and not contracting out our labour, allowing us to better manage and control our operations. Mines are built by people and the Midway team that continues to grow is experienced, driven and truly a joy to work with. It is a pleasure to acknowledge their hard work, dedication and commitment to the company.

This recognition is important at both the operations and the community level. Our team in Ely, Nev., has gone above and beyond to take part in local activities and events. Their participation continues to strengthen our relationship with the local community and we would like to recognize their efforts. To name a few:

• Safe and sober grad night volunteers;
• Sponsorship of a half court shot event with the White Pine County High Basketball program;
• Donation of football and basketball uniforms;
• Sponsorship of the White Pine Gymkhana 4-H horsemanship;
• Provided five scholarships to students -- two athletic and three academic;
• Participated in the White Pine County fair including sponsorship of the WPC horse races;
• Purchased a beef, lamb and pig at the WPC 4-H Livestock Show and donated a beef to the local senior centre;
• For this kind of enthusiasm and dedication we are very thankful.

The road forward

Two thousand thirteen will be an exciting year for our shareholders, as we focus on completing the permitting process that will allow the commencement of construction in 2013 and of mining operations in 2014. Our current cash and facilities we are putting in place will finance these activities. The Midway story is a strong one that is gaining momentum with each new milestone. Two thousand twelve was indeed an important year in advancing our projects and we look forward to updating you on the progress in the coming weeks and months ahead.

And to you, our shareholders, thank you for your continued support this past year. On behalf of the team at Midway, we look forward to a successful, transformational and rewarding 2013.

On behalf of the board

Kenneth A. Brunk

Kenneth A. Brunk, chairman, president and CEO

We seek Safe Harbor.