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Midland Exploration Inc.: Midland Exploration Signs Option Agreement With North American Palladium for the Laflamme Gold Proper

^{Published on 2009-08-27 05:09:55, Last Modified on 2009-08-27 05:09:57 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - Aug. 27, 2009) - Midland Exploration Inc. ("Midland") (TSX VENTURE:MD) is pleased to announce the signing of a letter of agreement with North American Palladium Limited ("North American Palladium") for the Laflamme gold property. This property, currently held 100% by Midland, consists of 410 claims covering a surface area of about 220 square kilometres to the west of Lebel-sur-Quevillon in the Abitibi region of Quebec.

North American Palladium has the option to acquire 50% interest in the Laflamme Property over a period of four years for the following consideration:

- Cash payments totalling $100,000, including a $30,000 payment upon signing;

- Exploration expenditures totalling $1,000,000, including $300,000 in work expenditures during the first year (firm commitment).

North American Palladium will be operator. Following acquisition of an initial 50% interest, North American Palladium will have the option to acquire an additional 15% interest upon delivery of a bankable feasibility study.

The Laflamme Property is strategically located between the Sleeping Giant gold mine, which to date has produced more than 1,000,000 ounces of gold at an average grade of 11.44 g/t (source: IAMGOLD website), and the Comtois high-grade gold deposit held by Maudore, where uncut inferred resources are estimated at 524,000 ounces of gold in the Osbourne and Bell zones (source: May 2002 NI43-101 compliant technical report by Roscoe Postle Associates Inc.).

This new strategic acquisition is located in an area where a recent till sampling survey identified strong gold and copper anomalies, for which potential sources remain unexplained. Recently, the Ministere des Ressources naturelles et de la Faune du Quebec ("MRNF") identified a major gold and copper glacial dispersal train some 15 kilometres long defined by the presence of up to 20 chalcopyrite grains or more per kilogram in heavy mineral concentrates derived from the sand fraction (0.25 to 1.0 mm) of till samples. The train is also identified by the gold grade of the heavy till fraction, with grades as high as 0.35 g/t Au (95th percentile), peaking at 1.30 g/t Au (99th percentile). Major structures with anomalous gold values characterized by quartz-carbonate and tourmaline alteration also appear in the list of auriferous targets identified by the MRNF on the Laflamme Property.

This vast area has seen very little exploration work in the past. Only a few ground-based geophysical surveys and a few drill holes were done to follow up on airborne electromagnetic surveys.

Midland is proud to join forces with a major player such as North American Palladium, and is looking forward to the start of its first exploration program on this property.

About North American Palladium

NAP is a precious metals company that owns the Lac Des Iles mine, which produced platinum group metals for 15 years until October 2008 when it was placed on temporary care and maintenance due to low metal prices. Prior to the temporary shutdown, the mine had annual production of 270,000 ounces of palladium, 20,000 ounces of platinum and 20,000 ounces of gold. The Company also owns and operates the Sleeping Giant gold mine located in the Abitibi region of Quebec, which produced over 1 million ounces of gold from 1988-2008 at an average grade of 11.44 g/t. NAP expects gold production to resume in the fourth quarter of 2009 at an annual rate of 50,000 ounces. NAP benefits from operating in a politically stable jurisdiction with developed infrastructure and a history of innovation and excellence in mining. Please visit [ www.napalladium.com ] for more information.

About Midland

Midland targets the excellent mineral potential and the favourable investment climate of Quebec to make the discovery of new world-class deposits of gold, base metals and uranium. Midland is proud to count on reputable partners such as North American Palladium Limited, Agnico-Eagle Mines Limited, Osisko Mining Corporation, Soquem Inc. and Quest Uranium Corporation. Midland prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties. Midland is currently evaluating new opportunities and other projects in order to increase the portfolio of the Company.

This press release was prepared by Gino Roger, registered professional engineer and Qualified Person as defined by NI 43-101.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this 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.