Mr. Craig Pearman of Midlands Minerals reports

MIDLANDS MINERALS ANNOUNCES FURTHER HIGH-GRADE SILVER INTERCEPTS AT PARLOZI

Midlands Minerals Corp. has released new high-grade silver assays from the Plandiste prospect on its Parlozi project in Serbia and completed its initial commitment to Reservoir Minerals Inc., allowing the company to appraise the next phase of exploration work.

Highlights

• Drilling at the Plandiste prospect, the first of six untested targets, intersected seven zones of old underground workings and three additional unmined, mineralized structures. New drill results over apparent thicknesses at Plandiste include:
  • 178 grams per tonne silver and 1.0 per cent lead over 2.30 metres (216 g/t silver-equivalent);
  • 210 g/t silver and 0.9 per cent lead over 1.40 metres (241 g/t silver-equivalent);
• Drilling successfully validated the intercepts in the historic resource at the Parlozi prospect.
• The company is currently reviewing the exploration work that would be required to advance the project from the information obtained in the phase 1 work program.
• Midlands currently has $2-million in the treasury.

Craig Pearman, president and chief executive officer of Midlands, stated: "This drill program has achieved its purpose in providing the company an opportunity to further evaluate the Parlozi project in a cost-effective and sound manner, and meeting the minimum spend commitment. It has enabled us to take significant steps forward in our geological modelling and we continue to see evidence for a large polymetallic mineralization system. The company is currently appraising the implications of these phase 1 drill results on a phase 2 exploration program and operational budget which will be the subject of a future release."

Drill program

Subsequent to the news release of Sept. 3, 2014, two additional core holes for 451.7 metres completed the first phase of exploration. Core drilling in phase 1 has therefore totalled 1,714.4 metres in six drill holes and exceeded the drill commitment to Reservoir by 214.4 metres.

Parlozi prospect

Drill hole 14-PA-004 tested the updip extension toward surface of the polymetallic mineralization at distance from the Parlozi historic resource. A hydrothermal breccia zone of 4.8 metres thickness, and averaging 0.78 per cent lead and 0.32 per cent zinc, was intersected at a downhole depth of 67.9 metres close to the zone of the ancient surface workings at Parlozi. In addition, 14-PA-004 also intersected a zone of 1.4 g/t gold over 0.7 metre at a downhole depth of 173.7 metres. The mineralization in the drill hole is interpreted as distal and is not representative of the mineralization in the area of the historic resources.

Drill hole 14-PA-001 had previously successfully confirmed the presence of multiple high-grade veins combined with wide zones of carbonate replacement mineralization in the area of the historic resource (reported in the press release of Sept. 3, 2014) with intercepts over apparent widths of:

• 291 g/t silver, 2.2 per cent lead and 0.2 per cent zinc over 2.45 metres from 154.0 metres (458 g/t silver-equivalent);
• 174 g/t silver, 2.5 per cent lead and 3.8 per cent zinc over 2.95 metres from 301.65 metres (340 g/t silver-equivalent);
• 299 g/t silver, 1.1 per cent lead and 0.3 per cent zinc over 5.10 metres from 534.4 metres (373 g/t silver-equivalent).

In 1986, a resource estimate at the Parlozi prospect based on 10 of the drill holes (totalling 4,507.8 metres) was reported in a report by Radulovic titled "Geological-economic evaluation of ore bearing structure Parlozi in Babe deposit on the level of prospecting exploration" (unpublished report from Serbian Ministry of Mines and Energy). The historical resource estimate is based on five mineralized horizons along a strike length of approximately 450 metres and between 200 and 500 metres below surface. This historical resource classified as C1 plus C2 resources in accordance with the Yugoslav reporting system, is estimated to contain 6.5 million tonnes at an average grade of 4.1 per cent lead, 2.1 per cent zinc, 0.3 per cent copper and 130 g/t silver. This historical resource estimate was not estimated under the guidance of National Instrument 43-101 and does not meet the Canadian Institute of Mining, Metallurgy and Petroleum definition standard. A qualified person as defined by NI 43-101 has not undertaken sufficient work to classify these figures as mineral resources or mineral reserves, and additional drilling is require to do so. Midlands is not treating them as current mineral resources or mineral reserves. The historical resource estimate is only considered as relevant as a guide to future exploration.

Plandiste prospect

Drill hole 14-PA-005 was added to the drill program following recent structural analysis which indicated the possibility that 14-PA-002 and 14-PA-003 may not have fully tested the downdip extension of the high-grade mineralization that was sampled in an adit (671 g/t silver and 20.8 per cent lead over six metres) and reported in the press release of May 13, 2014.

Drill hole 14-PA-005 successfully intersected 10 separate structures, all of which are interpreted to be zones of mineralization. Seven of these intersections are represented as underground workings, and an additional three newly defined mineralized structures were intercepted which returned the composite assays listed in the table.

                          DRILL HIGHLIGHTS AT PLANDISTE

Hole ID         From       To Interval    Pb    Zn    Cu     Ag    Au   AgEq
                  (m)      (m)      (m)   (%)   (%)   (%)  (g/t) (g/t)  (g/t)

14-PA-005     136.60   137.70     1.10  3.51  0.02  0.02   64.8  0.07  162.4
14-PA-005(i)  171.20   173.50     2.30  1.03  0.12  0.02  177.8  0.12  216.0
14-PA-005     187.00   188.40     1.40  0.91  0.10  0.00  210.0  0.09  241.4

Drill intervals are apparent thicknesses.
Additional drilling is required to establish true thicknesses. 
Silver-equivalents are based on the rounded average of each metal price over 
the last five years (2009 to 2013), assuming 100-per-cent recovery: 
$2,100/tonne lead; $2,000/t zinc; $7,300/t copper; $25.0/ounce silver;
$1,350/ounce gold.
(i) Mine fill material was intersected in underground workings. It is 
interpreted as collapsed material from the top of the workings.

Drill hole 14-PA-005 therefore drilled through a zone of intense historical mining, of significantly greater importance than recorded in any historical data. This has provided useful information on the focus of the historical mining at Plandiste and makes a significant contribution to the developing geological model at the Plandiste prospect. It is anticipated that subsequent to, and pursuant on results from a ground geophysical survey, the swarm of interpreted mineralized structures intercepted by hole 14-PA-005 at Plandiste would need to be drilled in future to obtain clean intercepts away from historic mining. Importantly, it appears that the Plandiste intercepts represent distal mineralization which provides added encouragement to test Plandiste to depth in phase 2 drilling.

Other targets

Midlands is currently obtaining quotes for an induced polarization (IP) geophysical survey to cover the southern prospects of the Parlozi licence (Kukac, Maxim, Gomilice and Glavcine exploration targets). These data will be merged with the individual phase 1 geophysical surveys that were already completed over the Plandiste and Parlozi prospects. These surveys, in combination with structural mapping, would precede and facilitate phase 2 drill planning.

Systematic quality assurance/quality control protocols are followed on the project including insertion of duplicate, blank and standard samples in all sample batches. The samples were submitted to SGS laboratory located in Bor, Serbia, for preparation and assaying for gold using a standard 30-gram fire assay method with atomic absorption finish. Sample pulps with 85 per cent of content lower than 75 microns were analyzed at SGS laboratory in Bor as well for 49 elements using ICP-MS following digestion by four acids. Samples with results greater than 100 grams per tonne silver or greater than 1 per cent lead, zinc or copper in the ICP-MS results were reanalyzed using four-acid digestion and atomic absorption finish.

Additional information is found on SEDAR in the updated independent technical report on the Parlozi property prepared in compliance with NI 43-101 filed on April 24, 2014. Dr. Dominique Fournier, EurGeol, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information and data included in this press release.

                 COMPREHENSIVE TABLE OF PARLOZI DRILL INTERCEPTS

                             Inter-
Hole           From      To    val    Pb    Zn    Cu    Ag    Au Pb+Zn  AgEq
                 (m)     (m)    (m)   (%)   (%)   (%) (g/t) (g/t)   (%) (g/t)

14-PA-001     63.10   67.70   4.60  1.42  0.05  0.11  10.5  0.94  1.47
including     63.10   63.60   0.50  2.91  0.10  0.12  57.8  5.32  3.01
14-PA-001    154.00  156.45   2.45  2.21  0.19  0.71 291.4  0.73  2.40 457.9
14-PA-001    209.80  210.90   1.10  0.45  0.22  0.23  82.0  0.54  0.66 148.9
14-PA-001    262.30  262.80   0.50  7.35  4.51  0.08  37.0  0.15 11.86
14-PA-001    283.90  295.75  11.85  1.03  2.22  0.02  17.1  0.02  3.25
including    291.10  295.75   4.65  1.77  3.95  0.03  30.1  0.02  5.72
and          292.10  294.65   2.55  2.22  5.64  0.04  42.4  0.03  7.85
14-PA-001    301.65  304.60   2.95  2.52  3.81  0.03 173.9  0.05  6.33 340.3
including    301.65  302.60   0.95  6.10  9.53  0.05 506.0  0.14 15.63 914.8
14-PA-001    377.70  384.10   6.40  1.66  1.81  0.01  19.9  0.17  3.47
including    377.70  378.50   0.80  5.23  1.05  0.02  43.0  0.15  6.28
and          381.40  384.10   2.70  2.38  3.97  0.02  33.6  0.14  6.35
14-PA-001    419.00  420.70   1.70  2.76  2.66  0.04  40.2  0.11  5.42
14-PA-001    434.00  438.70   4.70  2.42  2.26  0.02  33.9  0.12  4.68
including    434.70  435.55   0.85  6.43  6.40  0.03  77.0  0.22 12.83
14-PA-001    504.00  510.50   6.50  1.16  1.13  0.07  61.8  0.09  2.29 131.9
including    509.75  510.50   0.75  0.98  0.18  0.21 170.0  0.07  1.16 222.7
14-PA-001    516.55  517.35   0.80  1.84  2.55  0.23 120.0  0.06  4.39 256.0
14-PA-001    534.40  539.50   5.10  1.15  0.26  0.11 298.9  0.51  1.41 372.9
including    537.00  539.50   2.50  2.00  0.50  0.08 567.2  0.96  2.51 691.4
14-PA-001    609.00  615.50   6.50  1.71  1.43  0.35 102.8  0.09  3.14 219.6
14-PA-001A    60.20   71.60  11.40  1.09  0.05  0.34  40.7  0.40  1.14
including     61.40   64.60   3.20  1.24  0.04  0.17  18.9  1.10  1.28
and           61.40   63.00   1.60  1.75  0.06  0.31  31.0  2.12  1.81
and           65.50   66.40   0.90  1.77  0.03  0.36 197.0  0.15  1.80
14-PA-001A    73.60   75.20   1.60  2.01  0.07  0.03  35.2  0.51  2.08
14-PA-001A    90.20   93.40   3.20  1.93  0.19  0.05  15.7  0.15  2.12
14-PA-002     93.10   95.40   2.30  2.46  0.15  0.01  25.5  0.07  2.61
14-PA-003    136.90  139.00   2.10  4.25  0.07  0.02 355.3  0.18  4.32 480.1
including    137.90  139.00   1.10  5.30  0.09  0.04 623.0  0.24  5.39 779.9
14-PA-004(1)  67.90    72.7   4.80  0.78  0.32  0.03  3.47  0.12  1.10
14-PA-004    173.70  174.40   0.70  0.23  0.23  0.00   0.7  1.40  0.46
14-PA-005    136.60  137.70   1.10  3.51  0.02  0.02  64.8  0.07  3.53 162.4
14-PA-005(2) 171.20  173.50   2.30  1.03  0.12  0.02 177.8  0.12  1.15 216.0
14-PA-005    187.00  188.40   1.40  0.91  0.10  0.00 210.0  0.09  1.01 241.4

The composite is calculated as a silver-equivalent based on the rounded
average of each metal price over the last five years (2009 to 2013):
$2,100/t Pb; $2,000/t Zn; $7,300/t Cu; $25.0/ounce Ag; $1,350/ounce Au. Only
composites greater than 150 g/t AgEq (silver-equivalent in g/t multiplied by
metres of intercepts) are listed. Drill intervals are apparent thicknesses.
(1) Intercept below the 150 g/t AgEq m cut-off.
(2) Mine fill material was intersected in underground workings. It is
interpreted as collapsed material from the top of the workings.

We seek Safe Harbor.