Mr. Matt Manson reports

MARATHON GOLD ANNOUNCES 2023 FIRST QUARTER RESULTS

Marathon Gold Corp. has released its financial results for the three months ended March 31, 2023, and provided an update on the company's activities at the Valentine gold project in the central region of Newfoundland and Labrador.

First quarter financial results (all figures are in Canadian dollars unless otherwise noted):

• Cash and cash equivalents at March 31, 2023, of $130-million.
• Capital expenditures of $61-million for the three months ended March 31, 2023, including $52-million related to construction of the project.
• The project's cost to complete, including contingency, was estimated at $463-million at Oct. 31, 2022, and $403-million at March 31, 2023, reflecting a variance trend of over $4-million on the estimated cost at completion. Project construction costs incurred from Nov. 1, 2022, to the end of March, 2023, were $64-million, of a total $144-million committed. An aggregate $2.6-million of contingency had been drawn against a total contingency reserve of $38.9-million at March 31, 2023.
• Net loss of $900,000 for the three months ended March 31, 2023.

First quarter 2023 highlights:

• On Jan. 25, 2023, the company announced an amended and restated $225-million (U.S.) credit facility with Sprott Resource Corp. A first draw of $50-million (U.S.) was made on the facility in February, 2023.
• On Jan. 25, 2023, the company exercised an option to acquire 0.5 per cent of the 2-per-cent net smelter return royalty (NSR) on the project held by Franco Nevada Corp. (FNV) for $7-million (U.S.).
• Subsequent to the end of the quarter, the company announced that it has completed a socio-economic agreement with the Miawpukek First Nation.
• Subsequent to the end of the quarter, the company announced that George Faught, chairperson of the board of directors of Marathon, has decided not to run for re-election at the coming annual general and special meeting of shareholders (AGM) so that his position on the board is available to a new director whose election would result in the company satisfying its board gender diversity target of 30 per cent. Teodora Dechev has been nominated by the company to stand for election as a new independent director at the AGM. It is currently proposed that Peter MacPhail would be appointed the new independent chairperson of the board, subject to his re-election at the AGM and subsequent approval by the board.

Project key performance indicators (at March 31, 2023):

• In the first quarter of 2023, 149,289 hours of work have been completed at the site with zero lost-time incidents and zero reportable environmental incidents.
• A total of 440 persons were employed directly or contracted to the project. On the basis of voluntary declaration, 14 per cent of the persons employed by the company or contracted to the project are female, 5 per cent are indigenous persons, 4 per cent are visible minorities, 1 per cent are persons with disabilities, 24 per cent are residents of the six communities within the project's socio-economic area of influence, and 72 per cent are residents of the province of Newfoundland and Labrador.
• Overall completion at the project stood at 27 per cent compared with a plan of 26 per cent. Engineering progress stood at 71 per cent, procurement at 51 per cent and construction at 9 per cent.
• A total of 1.35 million tonnes of waste rock had been mined at the Leprechaun pit for construction purposes. In the month of March, 2023, mining productivity has averaged 11,815 tonnes per day, successfully supporting continuing civils work, including construction of haul roads and the project's process plant site.
• The project remains on schedule for ore delivered to the mill by the end of 2024 and first gold in the first quarter of 2025.

Factors affecting financial results for the three months ended March 31, 2023:

General and administrative expenses decreased from $2.33-million in the three months ended March 31, 2022, to $1.76-million in the three months ended March 31, 2023. The principal components of this decrease include decreases in professional and advisory fees related to the company's project financing and a decrease in share-based compensation expense due to a decrease in the number of stock options granted in the three months ended March 31, 2023, compared with the same period in 2022, offset partially by slight increases in salaries and wages and professional fees.

Finance income, net increased from $10,000 in the three months ended March 31, 2022, to $1.06-million in the three months ended March 31, 2023, primarily as a result of an increase in interest income due to a higher cash balance and higher interest rates compared with the same period in 2022, and a net increase in foreign exchange gains, offset partially by standby fees related to the company's lease agreement with Caterpillar Financial Services Ltd.

Deferred income tax expense decreased from $1.62-million in the three months ended March 31, 2022, to $20,000 in the three months ended March 31, 2023, due to an increase in deferred tax assets related to capitalized interest in the three months ended March 31, 2023, compared with the same period in 2022.

Capital expenditures were $47.53-million higher in the three months ended March 31, 2023, than the comparable period in the prior year primarily as a result of an increase in project construction capital spending and the repurchase of 0.5 per cent of the 2-per-cent NSR on the project from FNV. Major construction mobilization at the project commenced in January, 2023, and included the commencement of major civils work related to the process plant and principal facilities, mining of the Leprechaun pit for waste rock in support of construction of pads and haul roads, continued overburden removal and clearing and grubbing, further advancement of the permanent camp modules, continued road upgrades, and continued advancement of the construction of the project's 66-kilovolt power line connection to the Star Lake Generating Station.

Qualified persons

Disclosure of a scientific or technical nature in this news release has been approved by Tim Williams, FAusIMM, chief operating officer of Marathon, Paolo Toscano, PEng (Ontario), vice-president, projects, for Marathon, James Powell, PEng (Newfound and Labrador), vice-president, regulatory and government affairs, for Marathon and David Ross, PGeo (Newfound and Labrador), vice-president of geology and exploration for Marathon. Mr. Williams, Mr. Toscano, Mr. Powell and Mr. Ross are qualified persons under National Instrument 43-101. Roy Eccles, PGeo (Newfoundland and Labrador), of Apex Geoscience Ltd. is a qualified person for purposes of NI 43-101, is independent of Marathon and the Valentine gold project, and has reviewed and takes responsibility for the updated 2022 MRE prepared by John T. Boyd Company.

About Marathon Gold Corp.

Marathon is a Toronto-based gold company advancing its 100-per-cent-owned Valentine gold project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The project comprises a series of five mineralized deposits along a 32-kilometre system. A December, 2022, updated feasibility study outlined an open-pit mining and conventional milling operation producing 195,000 ounces of gold a year for 12 years within a 14.3-year mine life. The project was released from federal and provincial environmental assessment in 2022 and construction commenced in October, 2022. The project has estimated proven mineral reserves of 1.43 million ounces (23.36 million tonnes at 1.89 grams per tonne) and probable mineral reserves of 1.27 Moz (28.22 Mt at 1.40 g/t). Total measured mineral resources (inclusive of the mineral reserves) comprise 2.06 Moz (29.23 Mt at 2.19 g/t) with indicated mineral resources (inclusive of the mineral reserves) of 1.90 Moz (35.40 Mt at 1.67 g/t). Additional inferred mineral resources are 1.10 Moz (20.75 Mt at 1.65 g/t Au).

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