Exploration work carried out by Midway and Barrick Gold Exploration Inc., a wholly owned subsidiary of Barrick Gold Corporation (“Barrick”) on the Spring Valley property has been and continues to be dominated by drilling. Midway and Barrick have also conducted extensive geological mapping and surface geochemical sampling campaigns in the surrounding hills and have conducted limited geophysical surveys in the basin to guide drilling. Early exploration work by previous operators included small-scale surface geochemical and geophysical surveys and drilling.

The Spring Valley resource area has been drilled with a total of 672 holes totaling 603,731 feet, including 531 Reverse Circulation (RC) drill holes totaling 428,500 feet and 141 diamond core holes totaling 173,011 feet.

Environmental liabilities at the property are limited to the construction of drill pads and roads, drilling, closure and reclamation of the currently permitted drilling program. This program is bonded with NDEP and the BLM. As work plans detailing the work, and reclamation cost estimates utilizing the states Standardized Reclamation Cost Estimator (SRCE), or equivalent, are required, the bond is considered adequate for the liability. Other potential environmental liabilities include the inadvertent impact of an unidentified cultural site or the allowance of invasion by a weedy species. The potential for impacting a cultural site or allowing the invasion of weedy species is considered low given the requirements for cultural surveys and the BLM’s Standard Operating Procedures (SOPs), which include general protection procedures to preclude weedy invasion. The potential for impacts to rangeland, impacts due to a hazardous or solid waste release, impact to water resources or impacts to a wetland is considered extremely low given the permitting requirements, SOPs, and Barrick’s operating practices.

According to the NDOM, all mining operations in Nevada are required to have:

Midway and Barrick exploration activities are permitted under a Plan of Operations (PoO) approved by the BLM in July 2007, and Reclamation Permit No. 0258 approved by the NDEP in December 2006. All of the permits and approvals, and the bonds, were transferred to Barrick in 2009. A new or amended PoO will be required if disturbances beyond the currently approved 75 acres are necessary.

The Spring Valley property is accessed by Nevada State Route (SR) 50 (also known as Lovelock-Unionville Road), which extends eastward from US Interstate 80 at exit 119. SR 50 also serves as the main access to the Rochester Mine until a turnoff at Spring Valley Pass. Once in Spring Valley, access to the various parts of the Property is by dirt road. Alternatively, access is possible from the Buena Vista Valley to the east through Spring Valley Canyon on SR 50.

The nearest town to the Property is Lovelock, Nevada, which is situated along US Interstate 80 and hosts a population of 1,895 (Census 2012 data). The nearest city is Reno, Nevada, approximately 120 miles to the southwest, which hosts a population of 231,027 (Census 2012 data).

Power lines cross the property and ground water is abundant as evidenced by artesian wells in the main area of drilling. There is an adequate workforce in the surrounding region and the town of Lovelock. Northern Nevada is home to many gold mining operations with all associated support and supplies.

Barrick contracted with McClelland labs in Sparks, Nevada to complete a detailed metallurgical testing program on thirteen drill core composites from Spring Valley. The composite samples representing four rock types and three oxidation states were tested by column leaching, bottle roll and gravity methods. The composites were from a total of 355 split diamond drill core intervals, each interval representing approximately five feet. Grades of the composite samples ranged from 0.21 grams per tonne (gpt) to 5.07 gpt (0.006 oz/t to 0.148 oz/t); nine of the samples had grades less than 1.03 gpt (0.030 oz/t). The reported gold grades were determined by metallic screen fire assays. Column leach tests simulating heap leach conditions were conducted over 260 days, and yielded gold recoveries from 46% to 98% for all materials tested.

In December 2005, samples from eight drill holes were submitted for metallurgical testing at McClelland Laboratories Inc. in Sparks, Nevada by Midway. Select samples were combined to produce 19 composites for Gravity Recoverable Gold (GRG) testing. The composite samples were sequentially milled to progressively finer sizes, the resulting material (or gravity tailings after the first grind size) was processed using a laboratory Nelson Concentrator. The resulting concentrate and tailings were then assayed to determine gravity recovery of gold versus grind size. Testing in this way provides an estimate of the maximum recoverable gold values by gravity concentration. Recoveries for nine composites with head grades greater than 0.030 oz/st gold were between 67.5% and 96.5%.

The test samples described above are considered representative of the mineralization of the deposit as a whole. As of the date of this report, there are no processing factors that could have a significant effect on potential extraction.

Zachary J. Black, SME-RM, an associate Resource Geologist with Gustavson is responsible for the estimation of the mineral resource herein. Mr. Black is a qualified person as defined by NI 43-101 and is independent of Midway and of Barrick. Gustavson estimated the mineral resource for the Spring Valley Project from drill-hole data, using controls from the main rock types and implicit grade shells with an Ordinary Kriging (“OK”) algorithm.

Gustavson received the exploration drill hole database on September 20, 2013. Drill hole data, including collar coordinates, down hole surveys, sample assay intervals, and geologic logs, were provided in a secure Microsoft Access database and as CSV files. The database is managed by Barrick under the Exploration, Development, and Joint Operating Agreement. A small number of additional drillholes have been completed by Barrick since the database was closed, but the results have not yet been received by Midway or by Gustavson. Gustavson does not expect that a few additional infill drillholes will materially impact the resource estimation.

The present database has been updated to include the remaining 2010, 2011, 2012, and the available 2013 drill holes, which were completed since the previous mineral resource estimate. The drill hole database contains gold assay analytical information for 112,858 sample intervals from core, RC, and mud rotary drilling methods.

A visual evaluation of the assay and geologic data in cross-section and plan view, in conjunction with the proximity analysis, reveals that while it is difficult to substantiate lithologic or alteration based domaining, there exists a significant spatial correlation between the higher grade samples and disseminated mineralization. It is Gustavson’s opinion that the statistical analyses justify the use of a grade boundary at +0.003 oz/t, as a proxy for the mineralized alteration selvages and vein zones, and domaining the resource within this grade boundary is both reasonable and appropriate.

The mineral resource estimate for the Spring Valley Project is summarized in Table 1-1. This mineral resource estimate includes all drill data available to Midway and Gustavson as of the effective date of this report, and has been independently estimated by Gustavson. Mineral resources are not mineral reserves and may be materially affected by economic, environmental, permitting, legal, socio-economic, marketing, political, or other factors. In Table 1-1, mineral resources are reported above a +0.006 oz/t Au cut-off, assuming the three year trailing average gold price of US$1,537 per ounce. This cut-off reflects the potential economic, marketing, and other issues relevant to an open pit mining scenario based on a carbon recovery process following cyanide heap leaching. Gustavson cautions that economic viability can only be demonstrated through prefeasibility or feasibility studies.

Table 1-1 Mineral Resource Statement for the Spring Valley Project

Pershing County, Nevada, Gustavson Associates, LLC, August 1, 2014

Note * based on discussion of cutoff presented above, material below 0.006 oz/t is not considered resource for the purposes of this report. 0.004 oz/t cutoff is presented for informational purposes and for consistency with prior reports. Note: Values may not sum due to rounding.

 There are no known environmental liabilities on the Spring Valley project.

The Spring Valley deposit is hosted within structurally prepared zones within a porphyry intrusion and overlying felsic volcanic rocks. Overall deposit geometry suggests that primary mineralizing fluid flow is related to steeply dipping, N20E to N30E- trending, deep-seated faults. Mineral emplacement is localized within structural preparation along these faults, as well as on contact horizons, deformation structures, and within permissive host rocks within a local graben /basin. The mineralization is associated with relatively thin, crystalline quartz veins that have large alteration selvages. In areas of dense quartz veining, the alteration selvages coalesce into regions of pervasively altered and veined rock.

The property has been explored using a variety of techniques including mapping, geophysical surveys, and geochemical sampling. The Spring Valley resource area has been drilled with a total of 672 holes totaling 603,731 feet, including 531 Reverse Circulation (RC) drill holes totaling 428,500 feet and 141 diamond core holes totaling 173,011 feet.

All drill intervals were first assayed by a 30 gram fire assay and mineralized intervals have been systematically re-assayed using MSFA. Where available, the MSFA numbers were utilized in the resource estimate. The project data is stored in a secure database. Assay and geology data have been checked for accuracy for all programs prior to 2009, and spot checked in the Barrick programs from 2009 through 2013.

Gustavson is of the opinion that exploration activities, drilling, and analytical procedures are being conducted in manner that meets or exceeds industry best practice.

Gustavson has reviewed the QA/QC assay programs and believes the programs provide adequate confidence in the data. Sample standard failures and the samples associated with erroneous blank samples have been reanalyzed prior to the completion of this Report and the results are comparable to the original assay.

The Spring Valley project mineralized material is potentially amenable to both gravity and heap leach recovery methods.

The test samples described in the Mineral Processing and Metallurgical testing item of this Technical Report are representative of the mineralization of the deposit as a whole. As of the date of this report, there are no processing factors that could have a significant effect on potential extraction.

Gustavson received original assay certificates in pdf and comma delimited format for all samples included in the current drill hole database. A random manual check of 1,210 samples within the database against the original certificate revealed 3 total errors. The results of the analysis indicate that the data imported into the database matches the certificates 99.7% of the time with a confidence interval of ± 0.56% at a 95% confidence level. Gustavson considers the database adequate for estimation of mineral resource estimation purposes.

Within the main portion of the deposit, drill density is within 150 foot spacing, which is adequate to describe measured and indicated resources, given the variogram and the relative continuity of the resource estimate. However, some areas of the deposit are still in need of infill holes. Closer spaced drilling in these areas will be required to further upgrade the resource classification. Additionally there are areas of the project which are open to expansion of extents of mineralization.

Gustavson recommends the following program to advance the Spring Valley Project towards eventual development.

Gustavson recommends that Midway complete a scoping study (PEA) on the project to evaluate proposed mining and processing methodologies, and economics associated with the implementation of various crushing, grinding, heap leach, and gravity recovery circuit combinations. The PEA should be completed to 43-101 standards and designed to support Midway’s reporting requirements as an independent issuer.

Gustavson understands that Barrick is undertaking systematic relogging of the drilling including trace element analysis in an effort to refine the geologic and alteration model for the deposit. Gustavson recommends that Midway maintain a level of engagement in the relogging parameters and process in order to facilitate information transfer and share interpretive insights. The results of this logging should be considered in any resource updates moving forward.

Existing metallurgical studies have established that gold at Spring Valley is amenable to cyanidation and to gravity separation. Gustavson recommends that additional metallurgical studies be completed to evaluate the mix of mineral processing methods best suited for the mineralization at Spring Valley. The evaluation should include the study of conventional cyanidation at different crush sizes, as well as the impact of gravity concentration at different steps in the process stream. Testwork should include samples of mineralization of various alteration and oxidation types.

Gustavson recommends that the existing Golder pit slope analysis and geotechnical studies be reviewed to identify critical geotechnical areas and to define a geotechnical exploration program to support final design parameters. The Golder geotechnical studies should form the basis for mine design for the proposed PEA. Additionally, Gustavson recommends that the preliminary hydrogeological studies be reviewed to determine critical path to support project water needs, secure remaining required water rights, and address potential pit dewatering concerns. This information should be included in the support of a proposed PEA.

Gustavson recommends that continued work towards meeting the requirements of the State of Nevada to permit a mine on public land should include in the short term:

• Finalize Class III Cultural Survey report;
• Endangered Species Act (ESA) and other biological requirements; and
• Ongoing collection and evaluation of environmental baseline data.
• Installation and monitoring of groundwater monitoring as recommended for hydrologic models and baseline studies.

Continued exploration diamond core drilling should be targeted in three areas within and adjacent to the immediate mineral resource area:

• Infill and step out drilling at the furthest south extent of drilling near the flanks of Gold Mountain.
• Exploration drilling along the Wabash fault that bisects the main Spring Valley resource. Extensions of this fault to both the east and west of the main resource have the potential to host mineralization that has not yet been tested. Placer gold is common along the trace of the fault to the SE.
• Infill and step out drilling targeting the lower Felsic Porphyry unit at depth in the main resource area, to the northern extents of the project and along the eastern Limerick fault.

September 9, 2014

8

Midway Gold Corp. Spring Valley Project

Certificate of Authors NI 43-101 Technical Report on Resources

• Limited infill drilling, primarily in those areas where substantial in-pit inferred mineralization has been identified, or in areas of high potential for pit expansion.

Under the terms of the Joint Venture Agreement, Barrick has assumed the responsibility for the exploration and development activities. The Spring Valley Joint Venture has a project development budget which includes most of the recommendations listed above. The SVV project is operated by Barrick, with 75% of the costs borne by Barrick, and the remainder by Midway Gold.

Table 1-2 presents the 2014-2015 development and exploration budgets for the Spring Valley Venture, as well as budget line items for Midway based on the recommendations described above.

Table 1-2 Proposed Budget

Gustavson Associates, LLC (Gustavson) was commissioned by Midway Gold Corp. (Midway) to prepare an update to the Mineral Resources and resulting Technical Report on Resources for the Spring Valley Project (or the Project) site in Pershing County, Nevada. The purpose of this report is to present the findings of the resource estimation in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101), NI 43-101 Form F1, and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) “Best Practices and Reporting Guidelines.” This Technical Report is part of an ongoing effort by Midway to develop the Spring Valley Project.

This report is prepared to fulfill Midway’s disclosure requirements to the Toronto Stock Exchange. It should be noted that this report is independent of and distict from any parallel resource estimates or scoping studies being carried out by the Spring Valley Venture, or by Barrick as operator.

Items 15 through 22 of Form 43-101F1 (Mineral Reserve Estimates, Mining Methods, Recovery Methods, Project Infrastructure, Market Studies and Contracts, Environmental Studies, Permitting and Social or Community Impact, Capital and Operating Costs, and Economic Analysis, respectively) are not required for a Technical Report on Resources and are not included in this report.

The Qualified Persons (QP’s) responsible for this report are:

• William J. Crowl, R.G., QP MMSA, Vice President, Mining, Gustavson is a QP as defined by NI 43-101 and is responsible for Sections 1-8, and 15-19.

• Deepak Malhotra, PhD., SME-RM, President, RDi is a QP as defined by NI 43-101 and is responsible for Section 13.

Gustavson Associates representatives William J. Crowl and Zachary J. Black visited the Spring Valley Project on October 24, 2013. While on site, Mr. Crowl and Mr. Black conducted general geologic field reconnaissance and discussed in detail core drilling operations, sampling, and transportation with Barrick and Midway personnel. Mr. Crowl visited the Spring Valley project again on June 18^th, 2014 and directly observed drilling and sampling practices at the project site. For the 2014 drill program, core splitting and sampling are being carried out at Barrick’s Turquoise Ridge Facility. Accordingly, Mr. Crowl visited Turquoise Ridge on June 17^th 2014 to directly observe the splitting and sampling procedures being employed for the 2014 Spring Valley drill program.

The information, opinions, conclusions, and estimates presented in this report are based on the following:

• Information and technical data provided by Midway;
• Observations made by Qualified Persons on site;
• Review and assessment of previous investigations;
• Assumptions, conditions, and qualifications as set forth in the report; and
• Review and assessment of data, reports, and conclusions from other consulting organizations and previous property owners.

Gustavson sourced information from referenced documents as cited in the text and those summarized in Section 19, References, of this report.

This report was completed based upon information available at the effective date of this report, August 1, 2014.

Unless stated otherwise, all measurements reported here are in imperial units, tons are short tons, and currencies are expressed in constant US dollars. Precious metal content is reported in troy ounces per short ton (oz/t).

Common Units

Metric Conversion Factors (divided by)

Abbreviations

During preparation of this report, Gustavson fully relied upon information provided by Midway regarding property ownership, mineral tenure, permitting, and environmental liabilities as described in Items 4 and 5 of this report.

Midway relies upon the accuracy and completeness of data provided by Barrick pursuant to the Exploration, Development, and Joint Operating Agreement dated March 9, 2009.

Based on the review conducted in 2011 and the further efforts documented in this report, Gustavson considers that the data provided by Barrick is sufficient for the purposes of a resource estimate.

The Spring Valley property is located in Pershing County, Nevada 20 miles northeast of Lovelock within the Spring Valley Mining District. It is situated three miles north of the Rochester silver-gold mine in the Humboldt Range. The Spring Valley deposit lays 100% within the Spring Valley area of interest and is within the control of Midway and Barrick’s joint venture (the “Spring Valley Venture”). The Participants directly control approximately 10,140 gross acres on 642 contiguous unpatented lode and placer mining claims plus 1,550 gross acres of fee land.

The Property is located on the USGS Lovelock 1:100,000 scale topographic map and the USGS Rochester and Fitting 1:24,000 scale, 7.5 minute series quadrangle maps. It is centered at latitude 40° 20’ North and longitude 118° 08’ West. The principal area of known mineralization on the Spring Valley property is located within the southern half of Sections 34 and 35, Township 29 North, Range 34 East (T29N, R34E) Mount Diablo Base and Meridian (MDBM). Mineralization also occurs at the Limerick target in Section 4, Township 28 North, Range 34 East (T28N, R34E) MDBM; at the Golden Gate target in Section 8, T28N, R34E; and at the American Canyon target in Section 14, T28N, R34E.

Unpatented mining claims are kept active through payment of a maintenance fee due on 31 August of each year. A complete list of claims is presented in Appendix A.

On March 9, 2009, Midway and Barrick Gold Exploration Inc., a wholly owned subsidiary of Barrick Gold Corporation (“Barrick”), signed an agreement for the exploration, development, and eventual joint operating activities at the project. On Nov 15, 2013, Barrick completed the $38 million expenditure required to earn a 70% interest at Spring Valley. As of Feb 24, 2014, the companies completed formation of the joint venture (the “Spring Valley Venture”) with Barrick holding a 70% interest and Midway holding a 30% interest.

On July 9, 2014, Midway elected to have Barrick carry Midway to a production decision and arrange financing for Midway’s share of mine construction expenses. The carrying and financing costs plus interest are to be recouped by Barrick from 90% of Midway’s share of production once production has been established. Accordingly, upon completion of construction of the mine, Barrick will earn an additional 5% (75% total interest.)

The property agreements for the Spring Valley project are summarized in the table below. The table documents the nature of title, obligations to retain the property, royalties, payments, and expiration dates of the agreements. Claims are unpatented mining claims on land administered by the Bureau of Land Management.

Table 4-1 Summary of Spring Valley Property Agreements

Environmental liabilities at the property are limited to the construction of drill pads and roads, drilling, closure and reclamation of the currently permitted drilling program. This program is bonded with NDEP and the BLM. As work plans detailing the work, and reclamation cost estimates utilizing the states Standardized Reclamation Cost Estimator (SRCE), or equivalent, are required, the bond is considered adequate for the liability. Other potential environmental liabilities include the inadvertent impact of an unidentified cultural site or the allowance of invasion by a weedy species. The potential for impacting a cultural site or allowing the invasion of weedy species is considered low given the requirements for cultural surveys and the BLM’s Standard Operating Procedures (SOPs), which include general protection procedures to preclude weedy invasion. The potential for impacts to rangeland, impacts due to a hazardous or solid waste release, impact to water resources or impacts to a wetland is considered extremely low given the permitting requirements, SOPs, and Barrick’s operating practices.

According to the NDOM, all mining operations in Nevada are required to have:

Spring Valley Venture exploration activities are permitted under a Plan of Operations (POO) approved by the BLM in July 2007, and Reclamation Permit No. 0258 approved by the NDEP in December 2006. All of permits and approvals, and the bonds, were transferred to Barrick in 2009. A new or amended POO will be required if disturbances beyond the currently approved 75 acres are necessary.

The latest NDEP/BLM Annual site inspection was conducted July 8^th, 2014. No issues were reported by the agencies.

Water for exploration drilling is supplied by two water wells drilled under a temporary grant of water rights from the Nevada Division of Water Resources. The current 180 Day permit is in effect as of April 17^th, 2014.

Table 4-2 provides a general summary of permits required by Federal State and Local government entities for mining or milling operations in the state of Nevada.

Table 4-2 Agency Permits and Authorizations*

* Permits listed are general in nature; all items listed are not necessarily specific to Midway or Barrick.

** Local permits presented are general in nature.

Barrick continues to move forward with conducting environmental studies on the project property. Gustavson knows of no other significant factors or risks that may affect access, title, or the ability to perform work on the Spring Valley property.

The Spring Valley property is accessed by Nevada State Route (SR) 50 (also known as Lovelock-Unionville Road), which extends eastward from US Interstate 80 at exit 119. SR 50 also serves as the main access to the Rochester Mine until a turnoff at Spring Valley Pass. Once in Spring Valley, access to the various parts of the Property is by dirt road. Alternatively, access is possible from the Buena Vista Valley to the east through Spring Valley Canyon on SR 50.

The nearest town to the Property is Lovelock, Nevada, which is situated along US Interstate 80 and hosts a population of 1,895 (Census 2012 data). The nearest city is Reno, Nevada, approximately 120 miles to the southwest, which hosts a population of 231,027 (Census 2012 data).

The climate in the Spring Valley area is typical for northwestern Nevada. Average monthly high temperatures range from 82 to 94° F in the summer and 42° to 55° F in the winter. Yearly rainfall averages approximately 6 inches with nearly uniform distribution from October through June. July, August, and September are typically hot and dry months; December, January, and February receive the bulk of the snowfall (Desert Research Institute, 2010).

Exploration and operations are possible year round, although snow levels in winter and wet conditions in late autumn and in spring can make travel on dirt and gravel roads difficult.

Power lines cross the property and ground water is abundant as evidenced by artesian wells in the main area of drilling. There is year-round road access directly to the project via Nevada state highway 50. The interstate (I80) runs approximately 10 miles west of the property. There is an adequate workforce in the surrounding region and the town of Lovelock. Northern Nevada is home to many gold mining operations with all associated support and supplies. 

Coeur Mining’s Rochester operation is situated on adjacent claims to the south of the Spring Valley Project and has the necessary infrastructure to support their operation on site. Electrical power is supplied to the site by a public utility company (NV Energy) via a 69KV overhead transmission line.

Emergency services, including law enforcement, are located approximately 25 miles from the site in Lovelock. Regulatory and other off-site services are located throughout the county and region and are typical of standard United States agencies.The Spring Valley Venture controls sufficient surface rights within Spring Valley and the lower Buena Vista basin to support an open pit operation and the associated waste rock disposal and heap leach facility.

Spring Valley is a large (approximately two square miles) intermontane basin in the central part of the Humboldt Range. The valley floor slopes gently to the east and ephemeral streams on its surface drain into Spring Valley Canyon at its eastern margin. Elevation at the Property ranges from 5,120 to 6,040 feet above mean sea level and the topographic relief can be characterized as gentle to moderate.

Vegetation is typical of the Basin and Range physiographic province. The Property is covered by sagebrush, grass, and various other desert shrubs.

Proposed mining operations at Spring Valley will require significant water rights for dust reduction, exploration drilling, process water, as well as potable water for domestic use and site facilities.  The Spring Valley Venture has identified properties within the Buena Vista Valley with sufficient water rights to support mine operations and is in the process of securing such rights.  Regulatory approval will be required to modify the water rights for use by the mine.

Gold, silver, lead, mercury, copper, antimony, and sericite-pyrophyllite have been produced from the Spring Valley Mining District since its discovery in 1868 (Tingley, 1992). Placer gold was discovered in 1875 and was worked extensively during the period 1880-1890 (Johnson, 1977). The placers are said to have been the most productive in Nevada: placer production from Spring Valley and American Canyons were estimated at $10 million (Ransome, 1909). The gravel deposits were up to 100 feet in depth or more and the gold recovered from them was generally coarse, though fine-grained gold was present and likely more abundant (Johnson, 1977).

The Wabash lead-silver mine, located on the eastern margin of the Property, was worked during the period of 1935 to 1938. Production recorded for 1938 was 170 tons of ore containing 1 oz gold, 6,774 oz silver, 651 lb copper, and 9,514 lb lead (Johnson, 1977). Mineralization at the Wabash mine consists of argentiferous galena and sphalerite in the matrix of intensely brecciated rocks in a fault zone.

Modern exploration at Spring Valley began in 1996 by Kennecott. Four reverse circulation (RC) holes, totaling 2,220 feet, were drilled across the basin in an effort to discover the source of the placer gold in Spring Valley Canyon. Hole KSV-2 intersected 40 feet grading 0.023 oz/t gold at the southeast edge of what is now known as the Pond Zone.

Echo Bay acquired the property in 2000 and drilled ESV-2, intersecting 145 feet grading 0.075 oz/t gold. Subsequent drilling by Echo Bay focused on step-out drilling from ESV-2, coring the mineralized zone and drilling exploration targets to the northwest. During the 2001-2002 drill campaign, Echo Bay completed 19 RC holes totaling 10,940 feet and 2 diamond drill (DDH) holes totaling 1,653 feet.

There were no historic mineral resources estimated for the Spring Valley project prior to Midway’s acquisition of the property.

The Spring Valley property is located in the Humboldt Range, a north-south oriented, up-thrown fault block (horst) bounded on the west by the Humboldt River valley and on the east by Buena Vista Valley. Quaternary alluvial deposits fill the intermontane basins and alluvial valleys.

The bedrock geology of the Humboldt range within 20 miles of the Spring Valley property consists of Triassic shales and carbonate rocks, a thick sequence of Permo-Triassic intermediate to felsic volcanic rocks, and a north-south trending belt of Tertiary volcanic rocks (Figure 7-1). Triassic leucogranite and Cretaceous granodiorite locally intrude the Permo-Triassic volcanic package.

The oldest rocks exposed in the central Humboldt Range are a series of Permo-Triassic volcanic and metavolcanic rocks, named the Koipato Group, that include, from oldest to youngest, the Limerick Greenstone, the Rochester Rhyolite, the Weaver Rhyolite, and their intrusive equivalents (rhyolite porphyry and leucogranite). The Koipato Group is interpreted as representing bimodal volcanism in a back-arc setting that was subsequently accreted onto the continental margin (LeLacheur et al., 2009). Contacts of the Koipato Group with the Triassic Natchez Pass and Prida Limestones to the north, west and on the eastern flank of the range are all fault contacts. Cretaceous granodiorite locally intruded the Permo-Triassic units. Quaternary alluvial and colluvial deposits unconformably overlie the older bedrock units. North-south, north-northwest, and north-northeast normal faults are the dominant structural features in the region.

The Humboldt Range in the region surrounding the Spring Valley project is well-mineralized. Styles of mineralization in the central Humboldt Range include base and precious metal vein and vein-stockwork mineralization and Tertiary sediment-hosted gold deposits. Examples of vein/vein stockwork systems include Spring Valley, Rochester, Nevada Packard, the Unionville district and the Dun Glen district. Examples of Tertiary sediment-hosted gold mineralization in the region include Florida Canyon, Relief Canyon, Standard, and Willard.

Figure 7-1 Geology of the Humboldt Range

The known Spring Valley mineral system is beneath an intermontane basin filled with post-mineral Quaternary alluvial deposits, thereby masking the bedrock geology immediately overlying or containing the mineralization. At the scale of the Spring Valley property position, the bedrock units are distributed in blocks aligned approximately north-south. The bedrock geology is dominated by the Limerick Formation in the western one-third of the property, the Rochester Formation in the central and eastern half of the property, and the Natchez Pass Limestone in the extreme northeast corner of the property (Figure 7-2). At this scale, the geology is segmented by a number of faults: a relatively older north to northeast trending set including the West Spring Valley, Limerick and Black Ridge Faults; and, northwest trending, steeply dipping cross faults with oblique or lateral offsets that displace the older north to northeast trending faults. The West Spring Valley fault is interpreted as a steeply east dipping normal fault, whereas the Black Ridge and Limerick faults are interpreted as moderate to high angle normal faults with westerly dips. The Limerick fault may be listric in character, with flattening dip at depth. East-west and northeasterly faults are also mapped, but are not part of the predominant fabric on the property.

The bedrock geology beneath the Quaternary alluvial cover has been interpreted and compiled by Midway and other workers based on drill hole information. The surficial and subsurface bedrock geology within the Spring Valley intermontane basin is described below as modified from Stiles (2008), LeLacheur et al. (2009), Neal (2004), and Neal & LeLacheur (2010).

The Spring Valley basin is completely covered by between 50 and 375 feet of Quaternary alluvium, consisting mainly of valley fill gravels and mud flow deposits (Figure 7-2). Bedrock geology beneath the alluvium features northeast trending felsic volcanic and volcaniclastic rocks intruded by a feldspar porphyry intrusion at depth (Figure 7-2). The rhyolitic vent complex is interpreted as coeval with development of the Rochester and/or Weaver Rhyolites, and is thereby believed to be Triassic in age.

Structures in the alluvium covered area are interpreted primarily from logging of drill core and chips and, to a lesser degree, from geophysical surveys, mapping and projection of faults observed in the hills surrounding the basin. Faults within the area covered by alluvium are difficult to document, and are inferred from offsets in geologic units and/or trends of mineralized/altered zones and gold grade distributions. Many faults appear to have complex, long-lived histories, and may have developed prior to or at the time of emplacement of the Spring Valley rhyolitic vent complex, with reactivations during accretion of the Koipato Group, and Basin and Range development. Many structures thereby appear syn- to late-mineral relative to alteration, mineralization and intrusion. The lack of detail regarding the timing and location of significant structures impacts the modeling of the associated gold mineralization, making determination of modeling domains difficult. Gustavson recommends a better understanding of the structural geology and its impact on the distribution of mineralization, alteration and rock types be developed.

Figure 7-2 Bedrock Geology Map of the Spring Valley Project

Lithologies recognized under the alluvium covered area at the Spring Valley prospect are shown in conceptual cross section in Figure 7-3, and are listed below.

Alluvial gravels with coarse angular clasts of local lithologies cover much of the intermontane basin. Gold mineralization, possibly placer deposits, has been identified in places at the base of this unit but this mineralization is not included in the mineral resource estimate.

The Limerick Greenstone is comprised of a thick pile of intermediate to mafic flows and interbedded volcaniclastic sediments. The base of the sequence is not exposed on the project. Felsic sills and dikes intrude the greenstone. Small felsic flow domes of the Rochester Rhyolite are present in the upper part of the Limerick sequence.

At Spring Valley, the Limerick Greenstone can be divided into an upper greywacke, andesite flows, and intrusive gabbro. The upper greywacke is a fine- to coarse-grained, gray-green, chlorite-altered sandstone and mudstone. It has local cross bedding and variable thicknesses of fining-upward sequences that are common to submarine turbidite deposits. Thin interbeds of boulder-to-cobble conglomerate become increasingly common toward the top of the unit.

Underlying the greywacke is dark gray to black, fine-grained, conchoidally fractured andesite. This andesite has local phenocrysts of hornblende or plagioclase. Lithophysae are locally common. A dark green, fine grained mafic intrusive or gabbro is observed within the andesitic sequence. These sills or dikes contain fine crystals of hornblende and/or pyroxene and, less commonly, plagioclase. No large bodies of this unit have been identified to date.

All of the greenstone rocks have a weak metamorphic overprint of gray sericite, gray-green chlorite, and minor green epidote. The green coloration is caused by a strong chlorite content that may have formed as a regional propylitic alteration. Foliation is poorly developed on the east side of Spring Valley. A more pronounced phyllitic foliation is observed on the west side of the valley. Veins and local replacement pods of calcite are common and may be related to mineralization. Quartz-carbonate-chlorite veining is common. The chlorite in the veins appears to be psuedomorphs after tourmaline. These veins do not usually carry gold.

The Rochester Rhyolite is comprised of massive and flow banded rhyolite flows, flow domes, tuffs, tuffaceous sediments, and a coarse, volcanic-derived breccia interpreted to be part of a diatreme vent or eruption apron. All of these rocks have a high K-feldspar content. Felsic dikes and sills which are found throughout the Rochester are thought to be intrusive equivalents to the volcanic flows.

Lithologies identified from drilling within the Rochester at Spring Valley include:

The upper rhyolite is a dark brown to orange, massive rhyolite. Small plagioclase phenocrysts, larger K-feldspar phenocrysts and, rarely, small quartz phenocrysts are in a matrix of microcrystalline quartz and K-feldspar. Thin interbeds of tuffaceous sandstones or conglomerate are common. K-feldspar spherulites (up to 3 cm across), lithic fragments (up to 1-2 cm across), and more rarely, flow-banding are locally present within the unit. Perlitic cracks in the matrix were observed in thin section. In outcrop, this unit is locally bleached, or moderately sericitized, and weathers to a burnt brown color. The top of the unit has been removed by erosion, but in the area drilled the remaining unit is between 250 and 300 feet thick.

Directly beneath the upper rhyolite is 50 to 150 feet of white to gray-brown thinly bedded siltstone or fine sandstone. It is locally cross-bedded and has local graded bedding. Distribution of the siltstone in drill holes suggests it was deposited in a shallow lake or sea that formed between flow events. The unit contains abundant fine grained, disseminated tourmaline needles.

The WT rhyolite is a dark gray, dark purple or dark-brown banded rhyolite that is a distinctive marker horizon in parts of the project. The unit is characterized by distinctive irregular and discontinuous flow banding that is often contorted. The flow banding forms from layers of darker gray microcrystalline quartz and K-feldspar alternating with lighter gray layers of mostly microcrystalline K-feldspar

The planar orientation of the flow banding where measured in outcrop or seen in oriented core commonly strikes 170°-190° with a near vertical dip. This is nearly perpendicular to the bedding orientation. In portions of the project area, the upper part of this unit is a massive, gray, lithic rhyolite with barely visible flow banding. Near mineralized areas, the flow banding is very pronounced where it is exaggerated by hydrothermal alteration.

Underlying the WT Rhyolite is a breccia with large rounded to subangular clasts in a matrix of smaller rock fragments. It is largely clast-supported, and poorly sorted. Clasts include fragments of silicified limestone and a variety of intrusive and extrusive igneous rocks not seen elsewhere in Spring Valley, as well as local units. In one area, the breccia cuts upward through the WT rhyolite and part of the siltstone. Fragments of these rock types were observed deeper in the breccia. This feature was interpreted as a diatreme and was the focus of drilling in the early stages of the project. Adjacent to the pipe, breccia is conformably overlain by the WT rhyolite and is interpreted to be an eruption apron. The base of the breccia has been obliterated by intrusion of feldspar porphyry.

The Rochester Rhyolite and Limerick Greenstone were intruded by a shallow, hypabyssal intrusion that underlies the volcanic rocks throughout most of Spring Valley. The intrusion has distinct feldspar phenocrysts in a fine-grained matrix and has been designated as the feldspar porphyry (FP). The top of the intrusion is very irregular and includes apophyses that form sills and dikes that extend into faults, and along contacts of the Limerick and Rochester rocks. The eastern margin of the intrusion formed a west-dipping dike along the Limerick fault between the Limerick Greenstone and Rochester Rhyolite. This dike is strongly mineralized.

Hand samples of the feldspar porphyry intrusion are dark brown or gray, with medium-grained, white feldspar phenocrysts in an aphanitic matrix. Fine-grained, black biotite phenocrysts are also usually present. The feldspar porphyry has not been dated isotopically, but textures and composition are similar to the Rochester Rhyolite. Other workers (Wallace, 1969) have mapped similar rocks in surface outcrop as being coeval with the Rochester Rhyolite.

West of Spring Valley a swarm of quartz feldspar porphyry sills cut the Limerick Greenstone. The sills have feldspar phenocrysts in a greenish aphanitic groundmass and locally contain fine grained quartz phenocrysts. Many of the sills have sericitic alteration and fine grained disseminated limonite after pyrite cubes. The sills consistently host sheeted quartz and quartz-tourmaline veins, some with anomalous gold values. These sills are similar in character to the dike on the eastern margin of the deposit area that grades into the feldspar porphyry in zones of strong alteration and gold mineralization.

Intrusive bodies of biotite-feldspar porphyry and plagioclase porphyry are found north and east of Spring Valley. These are thought to be related to the feldspar porphyry or Rochester Rhyolite, but are not mineralized nor well studied.

Several small intrusive bodies east of the resource area are believed to be late-Cretaceous to Tertiary in age. Small exposures of hornblende diorite, monzonite, and granodiorite are surrounded by hornfelsed volcanic rocks. The hornblende diorite is a fine-grained porphyritic intrusion. The amphiboles are relatively unaltered and surrounded by a thin rim of ragged biotite. The amphiboles are intergrown with plagioclase and pyroxene phenocrysts in a fine-grained groundmass of plagioclase microlites and K-feldspar, with accessory magnetite. The magnetic signature of the hornblende diorite suggests that it could be over 800 meters across in the subsurface. Hornblende diorite with strong yellow-green sericite alteration of the hornblende has been observed adjacent to feldspar porphyry in deep drill samples on the east side of the gold occurrence.

Figure 7-3 Conceptual Cross Section of Lithologies (Modified from Chadwick, 2012)

Figure 7-3 (Continued), Legend (Modified from Chadwick, 2012)

Quartz veining, alteration, and gold mineralization at Spring Valley are irregularly distributed throughout the favorable host rock area. Large intervals of dense quartz veining and pervasive alteration are interspersed with unmineralized and less strongly altered country rock.

Gold has been observed in quartz veins and in adjacent alteration selvages as disseminated free gold. Free gold is likely deposited on fracture surfaces as well. Relatively coarse gold (30 to 90 microns) is common and can be observed as free gold liberated by drilling (Figures 7-4 to 7-6). Most quartz veinlets are in the ½ inch to 4 inch size range with associated alteration selvages of a few feet to tens of feet wide, varying to areas of dense quartz veining with pervasive alteration.

The quartz veins are translucent, intergrown, coarse quartz crystals with few if any open spaces or fissures. In combination with the relatively much larger alteration selvages, the character of these veins suggests a mesothermal or plutonic origin. Epithermal-style veins have not been observed at Spring Valley.

Quartz veins commonly contain pyrite (2-10%), less commonly galena and traces of sphalerite, magnetite and visible gold. From a limited amount of trace element data collected from drill samples, there are low levels (a few tens of parts per million above background) of anomalous lead, zinc, and arsenic associated with the gold mineralization.

There are several distinct types of alteration at Spring Valley, as listed below:

3) Very strong clay and clay filled breccia formation;

Gold zones are most pronounced in the quartz-sericite-pyrite zones and in the pervasive argillic zones, although gold is found in every alteration type.

Other types of alteration include quartz-tourmaline, and potassic. Tourmaline occurs as disseminated crystals in sediments and the diatreme breccia and as quartz-tourmaline veins. While gold is found in some quartz-tourmaline veins, tourmaline generally is not correlated with the gold. Locally, the introduction or remobilization of potassium is seen by fresh overgrowths on feldspar or fine secondary biotite. This potassic alteration style may be much more extensive than currently understood due to the high potassium content of the Rochester Rhyolite which may mask the introduction of new potassium as an alteration product.

Carbonate alteration of the Limerick Formation greenstone rocks was observed locally adjacent to the Limerick fault. No direct correlation of carbonate alteration with gold mineralization was noted.

Figure 7-4 Coarse Gold from SV08-435 Drilled in the Big Leap Zone

Figure 7-5 Coarse Gold from SV08-410 at 310’

Figure 7-6 Coarse Gold from SV08-436 Drilled at the South End of the Big Leap

The gold mineralization forms an irregularly-shaped cap encompassing at least the upper portions of the feldspar porphyry and significant volumes of the overlying or adjacent lithologies. The feldspar porphyry contact is very irregular. It was emplaced into a series of faults and irregular contacts, and may have been displaced by later fault movements. Overall the mineralization trends N20E to N30E and has the appearance of plunging 5-10 degrees to the north, though some of this plunge may be due to later fault-block subsidence.

Mineralization has been intercepted in drilling over a strike length of 7,500 feet and is open in both strike directions. Mineralization averages about 2,300 feet wide. The shallowest mineralization is found at the top of bedrock beneath 50 feet of alluvium. Deep core drilling has intersected gold mineralization as deep as 1,500 feet below the surface.

Quartz vein strike and dip directions recorded from oriented drill core show several distinct orientations. The most prominent orientation strikes N74E, dipping 60 degrees south. This principle vein orientation is oblique to the overall trend of the gold mineralization at Spring Valley.

The Spring Valley deposit is hosted within a porphyry intrusion and overlying felsic volcanic rocks. Gold mineralization was controlled by steeply dipping, N20E to N30E- trending, deep-seated faults, as well as at contacts, deformation structures, and in permissive host rocks within a local graben. The mineralization is associated with relatively thin, crystalline quartz veins that have large alteration selvages. In areas of dense quartz veining, the alteration selvages coalesce into regions of pervasively altered and veined rock.

There are characteristics of the deposit which are similar to porphyry-hosted systems, but there are significant differences. There are also characteristics similar to orogenic type gold deposits, possibly related to accretion of the Koipato group. (Neal & LeLachleur, 2010). It is possible that there are multiple fluid phases influencing gold deposition in the system. Additional work is needed to better define the source of mineralizing fluids and to refine the deposit model.

Gold has been detected in gravels immediately above the bedrock-alluvium contact, indicating that placer gold deposits exist at and above the paleo-bedrock surface. Gustavson has not included an evaluation of the alluvium hosted deposits in this report.

Exploration work carried out by MGC and Barrick on the Spring Valley property has been and continues to be dominated by drilling. MGC and Barrick have conducted extensive geological mapping and surface geochemical sampling campaigns in the surrounding hills and have conducted limited geophysical surveys in the basin to guide drilling. Early exploration work by previous operators included small-scale surface geochemical, geophysical surveys and drilling.

The Spring Valley property was explored by previous operators from 1996 to 2002. A summary of exploration drilling by Kennecott and Echo Bay at Spring Valley is provided in the drilling summary, Item 11. In addition to drilling, Echo Bay used geophysics, surface mapping, and rock chip sampling to explore the property and define drill targets.

MGC has been active in all phases of exploration work on the Spring Valley property since acquiring the project in 2003, and prior to consummating the exploration agreement with option to joint venture with Barrick Gold Exploration Inc. in early 2009. Surface geochemistry, geologic mapping, and geophysical surveys have all helped to identify drill targets both proximal to the Spring Valley discovery and in new exploration targets spread over the property.

Rock and soil sampling were carried out largely on the margins of the Spring Valley discovery area. An extensive program of over 5,000 soil samples was completed over the property in 2006 and 2007. Soils were sieved to the -10+80 mesh size fraction and assayed at ALS Chemex for gold by standard fire assay methods on a 30g subsample and an additional 50 elements by aqua regia digestion of a 0.5 gram subsample and ICP finish.

Rock chip samples were taken during reconnaissance geological traverses, prospect mapping and target delineation. Between 2003 and 2009, MGC collected a total of 1540 rock samples. Rock chip samples were crushed to 70% passing 2mm with a nominal 250 gram split pulverized to 85% passing 75μm, and assayed by the same procedures as the soil samples.

Geological mapping was completed by MGC geologists and consultants covering six square miles surrounding the Spring Valley prospect area. Detailed mapping of selected exploration target areas has also been carried out. Mapping helped clarify the property geological setting, identified structural trends helpful in targeting drilling, and identified prospective areas for follow-up exploration work.

Geophysical surveys have included a CSAMT survey in 2003, and ground based gravity and magnetic surveys. J.L. Wright Geophysics of Spring Creek, Nevada, interpreted the results.

Several anomalous features were interpreted to represent silicified bodies at depth (Wright, 2004).

The results of the geophysics, geologic mapping and geochemical surveys have helped to identify additional exploration targets on the property peripheral to the Spring Valley resource..

Barrick has conducted additional exploration programs at Spring Valley from 2009 to 2013. This has included additional geologic mapping, collecting additional rock chip and soil samples as well as drilling.

Exploration at Spring Valley has been directed at identifying areas for resource expansion and new resource discovery. Numerous exploration targets outside of the resource area have been identified based on the results of soil and rock sampling, analysis of geophysical data, and improved geological mapping. Many of these targets remain untested by drilling and an expansion of the current permit boundary is needed to test them.

Examples of exploration targets include:

This section provides a synopsis of all drilling conducted on the Spring Valley resource area. The Spring Valley resource area has been drilled with a total of 672 holes totaling 603,731 feet, including 531 Reverse Circulation (RC) drill holes totaling 428,500 feet and 141 diamond core holes totaling 173,011 feet (see Table 10-1).

Table 10-1 Summary of Drilling Campaigns in the Spring Valley Resource Area

Note: Core footage includes RC pre-collar footage

* Managed by Global Geologic Services on Midway’s behalf

** Diamond core drill hole totals are inclusive of pre-collar drilling length

Figure 10-1 shows the distribution of drilling in the Spring Valley resource area. Mineralization defined in the Spring Valley resource area remains open along the N20E-S20W trend to the north, south and at depth.

Figure 10-1 Spring Valley Project Area Drill Hole Location Map

The following information about Midway drilling is extracted from LeLacheur et al. (2009).

Drilling conditions at Spring Valley are optimal. Sites were constructed by digging a sump and, if necessary, by leveling a pad for the drill. Only rarely was more significant construction required for drill sites. Almost all holes were collared in valley fill alluvium with the water table generally between 20 to 30 feet below the surface. Water was present in nearly all holes and increased in amount with depth. Bedrock was between 50 feet and 500 feet below the surface, but was generally between 200 and 300 feet deep. The zones of highly fractured rock increased with clay and brecciated zones encountered near structures. Drilling at Spring Valley was conducted predominantly (~80%) using RC methods.

RC drilling conducted by Midway was carried out using tricone bits, first to get through clay layers in the alluvium, then to enhance drill penetration below the water table. RC holes were drilled with 5 3/8 inch to 5 5/8 inch bits. The holes were generally cased only in the top 20 feet.

The majority of Barrick RC holes in areas with alluvial cover were drilled by mud rotary to the alluvium-bedrock interface. Thereafter, RC drilling was carried out using tricone bits. The only exceptions to this approach were for holes sited on bedrock exposures, where a down-hole hammer would be employed until significant water was encountered. RC holes were drilled with 5³/₈ inch to 5⁵/₈ inch bits.

Midway diamond core holes were pre-collared with an RC drill to the alluvium-bedrock contact. The hole was then cased to the bedrock. Core holes have largely been drilled with HQ (2½ inch) size core, though three holes were drilled with PQ (3³/₈ inch) size core in 2006. All 2008 core was oriented to enable the collection of structural data. Core recovery has in general been good, but core loss increased when the rock was highly fractured and brecciated. In 2008, modifications to the use of drilling muds resulted in significant improvements in recovery, especially in the highly fractured and brecciated zones.

Barrick diamond drill holes were drilled by mud rotary to the alluvium-bedrock interface, and were cased to the bedrock. Thereafter, RC drilling using a tricone bit was continued if the expected mineralized zone was at greater depth. Otherwise, the diamond drill core tail was initiated at the bedrock interface. Core holes have largely been drilled with HQ (2½ inch) size core, with reduction to NQ (1^7/8 inch) core as necessary.

Collar locations from the 2006-2008 drill campaigns were surveyed by TNT Exploration (TNT) of Reno, Nevada using a survey quality GPS. Collar locations from the 2004-2005 drill campaign originally surveyed by hand-held GPS were also surveyed by TNT in 2006. Most pre-2004 collar locations (84%) were located by a surveyor while the remainder were surveyed by hand-held GPS (16%). Collar locations for all of the Barrick (2009-2013) drilling campaigns were surveyed by a professional land surveyor, using a survey quality GPS.

Significant down-hole deviation has been observed in drilling at Spring Valley. Of holes drilled prior to 2004, only Echo Bay drill holes ESV-14 to ESV-19 and core holes SVC-1 and SVC-2 were surveyed down-hole. Other Echo Bay holes were not surveyed. Between 2004 and 2006, holes deeper than 500 feet were generally surveyed down the hole. In 2008, all but two completed holes were surveyed down-hole. International Directional Services (IDS) of Elko, Nevada and Major Directional Services of Salt Lake City, Utah were contracted to do the down-hole surveys. All Barrick RC and diamond drill holes were down-hole surveyed by IDS using a gyroscopic survey instrument.

Drilling at the Spring Valley project has occurred over an area approximately 10,500 feet in a N20E-S20W direction and up to 3,000 feet wide. The drilling has defined a gold resource 7,500 feet in strike length by 2,300 feet wide. Additional exploration and step-out targets remain untested.

The Spring Valley gold resource has a strong NNE linear trend. That trend can be projected to the NE into an area of NNE trending faults with soil gold anomalies. This structural setting is similar to the main resource area and represents a significant target for expansion of the resource. Drill testing to the north has been limited by the boundary of the drill permit.

Barrick drilling to the south of the resource identified several smaller pods of gold mineralization. The largest of these is at the furthest south extent of drilling near the flanks of Gold Mountain. Drill testing to the south has also been limited by the boundary of the drill permit. This southern mineralization remains open with no drilling further south.

The Wabash fault is a NW-SE trending fault that bisects the main Spring Valley resource. Extensions of this fault to both the east and west of the main resource have the potential to host mineralization that has not yet been tested. Placer gold is common along the trace of the fault to the SE. This target has not been tested to date.

A lower Felsic Porphyry unit is mineralized at depth in the main resource area. Additional infill drilling is needed throughout the deposit to better define this deeper part of the resource. On the east side of the deposit, the host rock can be followed from depth back to the surface. There is potential for the lower Felsic Porphyry to be found close to the surface in areas not yet drilled.

The Spring Valley gold system contains appreciable free gold, at all gold grades of mineralization. This has been discussed and analyzed in previous technical reports (Ristorcelli, 2003; Griffith and Ristorcelli, 2004; Wakefield and Seibel, 2006; Wakefield and Kuhl, 2008; LeLacheur et al., 2009; and Crowl, Hulse, Baker, Lane and Malhotra, 2011.

Midway and Barrick have established the practice of first assaying all samples with a 30 gram fire assay and then all mineralized intervals were systematically re-assayed using Metallic Screen Fire Assay (MSFA). Where available, the MSFA numbers were utilized in the resource estimate. Appropriate QA/QC procedures were followed. The project data is stored in a secure database. Assay and geology data have been checked for accuracy for all programs prior to 2009, and spot checked in the Barrick programs from 2009 through the 3^rd quarter of 2013.

Sampling consultants F. Pitard in 2004 and Dr. Dominque François-Bongarçon in 2007, recommended analyzing very large samples to address the nugget effect in sampling. Midway investigated the possibility of analyzing very large samples with ALS Chemex, a commercial laboratory. The recommended sample size was too large for their sample preparation equipment so each sample would have had to be sub-divided up to 5 times, with each subsample assayed separately. Potential for significant errors was considered to be high. As a result, these recommendations were not implemented.

The following information about Midway sampling is extracted from Wakefiled and Kuhl (2008) and LeLacheur et al. (2009).

RC samples were collected in a five gallon bucket lined with large micro-pore bags marked with the sample number. The five gallon bucket was placed inside a wide, low profile tub designed to catch any fine grained cuttings in the overflow water. At the conclusion of a sample interval, the water in the bucket and tub was decanted, the overflow material in the tub was washed into the sample bag in the bucket and the bag was sealed. A nominal sample weight of 15 kg was taken to aid in getting an accurate assay in a coarse gold environment. In 2008, RC samples averaged 13.29 kg.

RC samples were laid out on the ground at the drill site, allowed to drain, and brought back to the Lovelock facility at the end of each drill shift by Midway Resources personnel. In Lovelock, samples were stored in secure bins until picked up and transported to Winnemucca by the commercial laboratory for preparation and assaying.

2003

Gold assays for the 2003 drilling campaign were performed by BSI Inspectorate of Reno, Nevada using a standard FA with a two assay ton sub-sample size and with the final concentration determined by AAS. Assays returning greater than 2.0 g/t (0.088 oz/t) gold were re-assayed by fire assay with a gravimetric finish. Metallic screen gold fire assays were performed on most mineralized intervals by ALS Chemex of Reno, Nevada.

ALS Chemex performed metallic screen fire assays using a 100 micron screen (150 mesh) on one kilogram sub-samples of re-split coarse reject. The assay of the coarse (+150 mesh) material was weight averaged with two assays of the fine (-150 mesh) material.

2004-2005

Several labs assayed drill hole samples from the 2004-2005 drilling campaign. American Assay Laboratories (AAL) were used to assay holes SV04-52 to SV04-66, Inspectorate were used to assay holes SV05-67c to SV05-79, and ALS Chemex to assay holes SV05-80 to SV05-166. Coarse rejects of select samples were resubmitted to AAL and Inspectorate for metallic screen assay. All three of these laboratories are located in Reno, Nevada. AAL is an ISO 17025 registered laboratory.

Blank results (Figure 11-1) for gold by fire assay were found to be acceptable. A total of nine assays reported greater than 0.025 g/t gold (0.001oz/t, five times the lower detection limit) out of the total 428 blank samples assayed during this period. Only two of these were greater than 0.125 g/t (0.004 oz/t) gold.

Figure 11-1 2006 – 2007 Blank Results

An analysis of SRM results (Figures 11-2 through 11-6) by AMEC (2008) shows that the accuracy of ALS Chemex gold assays is acceptable. A total of 780 SRMs were included with project samples from the 2006-2007 drill campaign. Approximately 88% of assay results fall within ±10% of the recommended value for all SRMs assayed. No significant bias was observed in the SRM results. Assay results falling more than 10% from the recommended value were flagged and remediated directly with ALS Chemex.

Figure 11-2 2006 – 2007 Standard MEG055 Results

Figure 11-3 2006 – 2007 Standard MEG160 Results

Figure 11-4 2006 – 2007 Standard MEG200 Results

Figure 11-5 2007 Standard MEG067 Results

Figure 11-6 2007 Standard MEG045 Results

Analysis of the results from the coarse duplicates found a higher than normal level of variance between assays, likely because of the amount of coarse gold in the samples. A total of 458 duplicates were assayed as part of the 2006-2007 drill campaign.

These gold assays are acceptably accurate for purposes of mineral resource estimation.

2008

Midway employed a QA/QC program that consisted of inserting blanks, SRMs and coarse duplicates into the sample stream at the rate of one in 25 project samples. Coarse duplicates were also delivered to the Inspectorate American lab in Reno, NV for preparation and assay.

Of the total of 247 blanks analyzed in 2008, there were 6 failures for a failure rate of 2.4%. Only 2 samples were above the 0.025 level and only a single value exceeded the 0.125 level. In the case of failures above a 0.025 level, the sampling protocol requires a rerun of the blanks and the surrounding assays. The results of the reruns found no significant error. There is no significant carry-over contamination affecting the 2008 assays.

Commercial SRMs from Ore Research (Figures 11-7 and 11-8) were used to monitor gold assay accuracy. Approximately 88% of assay results fell within ±10% of the recommended value for all SRMs assayed. A total of 325 SRM’s were inserted into the assay stream and a total of 34 failures were reported, 22 of which were deemed significant enough to require re-assay of a range of samples above and below the failure. In each case the re-runs were comparable to the initial assays. Two SRM’s were utilized: a “low-grade” value SRM at 1.02 g/t gold and a “high grade” SRM at a 3.63 g/t gold value. The low-grade SRM was biased low by 9%, but the high grade SRM demonstrated no bias.