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Midland Exploration Signs Final Agreement With Agnico-Eagle for Its James Bay Gold Properties

Posted on: Wednesday, 27 February 2008, 09:00 CST

Midland Exploration Inc. ("Midland") (TSX VENTURE: MD) is pleased to announce the signing of a final agreement with Agnico-Eagle Mines Ltd ("Agnico-Eagle") for its gold properties located in the James Bay Area, an area likely to become soon a major gold district in Quebec after the Abitibi Belt. These gold properties are currently held 100% by Midland Exploration Inc. A letter of agreement was signed in October 2007 (see press release dated October 16, 2007).

Agnico-Eagle can acquire 50% of Midland's interest during a four-year period under the following conditions:

- Cash payment of $50,000 upon signing the agreement with additional payments of $250,000 for a total of $300,000 over four years. The first payment of $50,000 was made by Agnico-Eagle.

- Exploration expenditures of $600,000 in the first year (firm commitment) with additional expenditures of $3,900,000 for a total of $4,500,000 over four years.

Midland will be the initial operator until Agnico-Eagle acquires 50% interest in the project. Upon acquiring 50% interest, the company will have the option to increase its undivided interest in the project from 50% to 65% over a period of three years, by solely financing a bankable feasibility study on the James Bay Gold project or by solely assuming all mining operations on the project, earning 1% additional interest for every $1,000,000 spent on the property (up to 15% by spending $15 million).

This agreement covers areas with similar geological and geochemical features as those observed in the vicinity of the Eleonore major gold discovery made by Virginia in 2004-05. Midland properties are located near the contact between volcanic-plutonic units of the La Grande Subprovince and metasedimentary units of the Opinaca Subprovince. This contact is recognized as a favourable setting for gold mineralization in the northeast Superior Province. The Eleonore gold deposit, recently acquired by Goldcorp, is also located along this favourable contact.

The Midland properties are associated with first order, isolated or combined strong unexplained gold, arsenic and antimony lake-bottom sediment anomalies. Historically, following up by prospecting these types of geochemical anomalies led to the discovery of several new attractive gold showings and deposits in the James Bay Area. Midland and Agnico-Eagle are currently planning and coordinating their upcoming exploration program on this gold project. Fieldwork should commence as soon as the snow clears.

About Midland Exploration

Midland's strategy to discover new world-class gold, base metal, and uranium deposits is based on Quebec's excellent mineral potential and favourable investment climate. Midland is proud to work with reputable partners such as Agnico-Eagle Mines Limited, Breakwater Resources Limited, Soquem Inc. and Quest Uranium Corporation. The Company quickly implemented its business plan during the second half of 2007, by signing four important agreements totalling nearly $16,000,000 in work commitments and $1,000,000 in payments over four years. Management is currently considering other opportunities and other projects in order to expand the Company's portfolio. Midland prefers to work in partnership and intends to quickly secure new agreements to this effect for its newly acquired properties.

Gino Roger, P. Eng., is the qualified person who has reviewed the content of this news release.

This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in Midland's periodic reports including the annual report or in the filings made by Midland from time to time with securities regulatory authorities. Midland undertakes no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 Contacts: Midland Exploration Inc. Gino Roger President and Chief Executive Officer 450-420-5977 450-420-5978 (FAX) gino.roger@midlandexploration.comwww.midlandexploration.com

SOURCE: Midland Exploration Inc.

Source: MARKET WIRE

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