Mr. Matthew Manson reports

MARATHON PROVIDES UPDATE ON EXPECTED MILESTONES AT THE VALENTINE GOLD PROJECT

Marathon Gold Corp. has provided an update on upcoming milestones concerning the exploration and development of the Valentine gold project in central Newfoundland. In summary:

• Mineral resource updates for both the Leprechaun and Marathon deposits to be completed in the fourth quarter. Infill drilling has been completed at the Leprechaun deposit, and both infill and exploration drilling are continuing at the Marathon deposit. Exploration drilling in the Sprite zone gap area will commence in September.
• Valentine prefeasibility study team to be fully established by September, with completion forecast for early in the second quarter of 2020. The prefeasibility study is expected to result in the declaration of the project's maiden mineral reserve.
• The Valentine gold project has been registered with the relevant provincial and federal regulatory agencies, and an anticipated 24-month assessment period has begun. The provincial review committee has been established, and guidelines for an environmental impact statement (EIS) are expected in October. Federal guidelines for the EIS were issued in July and, of note, Marathon has been informed that, at the federal level, the project's assessment will proceed under normal course without the requirement for a panel review.

Matt Manson, president and chief executive officer, commented: "The Valentine gold project is a large and growing gold resource in one of the best mining jurisdictions of the world. It can be developed with conventional open-pit mining and milling methods, and offers a strong gold production profile and rate of return. We are advancing the project towards production through parallel programs of resource growth, advanced mining study, and environmental assessment. The 2019 infill drill program has demonstrated new mineralization both within and adjacent to the existing resource shells, and we expect this will result in a positive impact on the project's mineral resource estimate. This revised resource update will be incorporated into the prefeasibility study, which will also provide an opportunity to calibrate the project's optimum scope and development plan prior to the commencement of a full feasibility study. Under the now initiated environmental assessment process, Marathon will seek to outline a project that is respectful to its location, the environment, impacted local communities and regional stakeholders. The Valentine gold project has the potential to make a significant contribution to the people and economy of Newfoundland and Labrador."

Drilling and resource estimation

During 2019 the company has undertaken an extensive program of infill and resource conversion drilling on the main mineralized corridors of both the Leprechaun and Marathon deposits. This drilling has successfully established continuity of mineralization within the existing mineral resource shells and extended the areas of known mineralization. A positive impact on the existing mineral resource estimate is anticipated. Drilling has been completed in the Leprechaun area, and is expected to continue in the Marathon area through September, at which time two rigs will be moved to the Sprite zone gap area. Drilling results will be reported as they are received.

The updated mineral resource estimate will utilize the more than 55,000 metres of new drilling that has been completed at the Leprechaun and Marathon deposits in the last 12 months. It is expected that the updated estimate will be released in the fourth quarter, following the completion of all necessary quality assurance/quality control protocols, the processing of all mineralized core samples by metallic screen fire assay, and peer review.

Based on the October, 2018, preliminary economic assessment, the Valentine gold project is currently estimated to contain 45.1 million tonnes of measured and indicated mineral resources at a grade of 1.85 grams per tonne containing 2.68 million ounces of gold, and 26.9 million tonnes of inferred mineral resources at a grade of 1.77 g/t containing 1.52 million ounces of gold. Both the Leprechaun and Marathon deposits are open along strike and to depth. Readers are cautioned that the preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Prefeasibility study

The full team of lead and specialized subconsultants for the Valentine gold project prefeasibility study (PFS) is expected to have been appointed by September. The PFS will incorporate the updated mineral resource estimate and is expected to result in the declaration of the project's maiden mineral reserve. The PFS will incorporate a trade-off study designed to assess the optimum scope, value and execution strategy for the project, and will incorporate an updated production schedule, facilities design, operating and capital cost estimates, and an optimum process design based on the results of continuing metallurgical testing. The PFS is expected to take approximately six months to complete, with results expected early in the second quarter of 2020.

Permitting and environmental assessment

The Valentine gold project is subject to regulation under the environmental protection regimes of the Canadian Environmental Assessment Act and the Newfoundland and Labrador (NL) Environmental Protection Act. Marathon filed a project description with both the Canadian Environmental Assessment Agency (CEAA) and the NL Department of Municipal Affairs and Environment (NLDMAE) on April 5, which was accepted into a formal environmental assessment (EA) process on April 16.

As expected, the CEAA issued a determination for a project environmental impact statement on May 31, and issued guidelines for the EIS on July 18. Marathon has been informed that the CEAA will request the EIS to proceed under normal course without the requirement for a panel review, which is an extended process often required for projects of significant environmental impact or public concern.

In parallel with the CEAA, and also as expected, the NLDMAE issued a determination for a project EIS on June 13. NLDMAE guidelines for an EIS are expected to be received by Oct. 9, following a 120-day period to allow departmental and public consultation. The establishment of NL EA committee for the Valentine gold project was announced on July 3, which will be the principal forum for project review, consultation and, ultimately, ministerial approval.

In support of the EA process, Marathon will engage in a comprehensive program of impact assessment on wildlife and fish habitat, water and air quality, third party co-located infrastructure, and communities. Much of this program, in the form of environmental baseline studies, commenced with the first exploration drill programs in 2010. Formal stakeholder engagement with the communities of Buchans, Millertown and Grand Falls-Windsor, as well as the Qualipu and Miawepukek (Conne River) first nations commenced in March, 2019.

Completion and submission of the EIS are scheduled for mid-2020, and the complete Valentine gold project EA process is expected to take approximately 24 months.

Qualified person

Disclosure of a scientific or technical nature in this press release was prepared under the supervision of Sherry Dunsworth, MSc, PGeo (Newfoundland), the senior vice-president of exploration and a qualified person under National Instrument 43-101.

About Marathon Gold Corp.

Marathon is a Toronto-based gold company rapidly advancing its 100-per-cent-owned Valentine gold project located in central Newfoundland, one of the top mining jurisdictions in the world. The Valentine gold project comprises a series of mineralized deposits along a 20-kilometre system of gold-bearing quartz-tourmaline-pyrite veins. The project is accessible by year-round road and is in close proximity to the provincial electrical grid. To date, four gold deposits at Valentine have been delineated, including the large Leprechaun and Marathon deposits.

Acknowledgments

Marathon acknowledges the financial support of the junior exploration assistance program, department of natural resources, and the government of Newfoundland and Labrador.

We seek Safe Harbor.