Mr. Jim Kirke reports

MARATHON GOLD ANNOUNCES Q2 2019 FINANCIAL RESULTS

Marathon Gold Corp. has provided its financial results for the three and six months ended June 30, 2019. Following the completion of the updated preliminary economic assessment (PEA) on the Valentine gold project in October, 2018, and a successful financing transaction in February, 2019, Marathon's focus is on the development of the Valentine gold project through the completion of a prefeasibility study (PFS) and ultimately to a construction decision. The appointment of Matt Manson as president and chief executive officer of Marathon effective Aug. 19, 2019, strengthens the management team in areas that will be critical as the company progresses from permitting and feasibility studies through to financing and mine development.

Highlights

Sale of net smelter royalty to Franco-Nevada

On Feb. 21, 2019, Marathon completed the sale of a 2-per-cent net smelter returns royalty (NSR) to Franco-Nevada Corp. for proceeds of $18-million. This attractive transaction is anticipated to finance Marathon's exploration and technical work through to completion of the PFS and was pursued rather than an equity financing to manage the dilution of shareholders. The FNV NSR includes a 0.5-per-cent buy-back provision that allows Marathon to reduce the royalty to 1.5 per cent prior to Dec. 31, 2022, at a cost of $7-million (U.S.).

Financing and liquidity

At June 30, 2019, Marathon's cash position was $15.8-million compared with $3.7-million at Dec. 31, 2018, reflecting the sale of the FNV NSR.

Infill drilling program

Following on from successful 2018 drilling programs at the Marathon and Sprite deposits, Marathon's 2019 infill drilling program is in progress with completion expected in the third quarter of 2019. This program is being carried out primarily on the main mineralized corridors of the Marathon and Leprechaun deposits with two concurrent objectives, both of which are directly connected to maximizing the conversion of resources into reserves upon completion of the PFS:

• To further confirm Marathon's geological models for the Marathon and Leprechaun deposits by demonstrating the lateral continuity of the QTP-gold veining along and across strike as well as to depth within the mineralized corridors of each deposit;
• To increase measured and indicated resources for the project, both by continuing to upgrade existing inferred resources in each deposit into the measured and indicated categories and by expanding the resources associated with the Leprechaun and Marathon deposits.

To June 30, 2019, Marathon completed 109 holes covering 30,191 metres in the two deposits, representing approximately 67 per cent of the infill drilling planned for the year. Results to date are expected to achieve both objectives noted above and increase gold grades in the measured and indicated categories. Upon completion of the infill drilling program, Marathon will complete an updated mineral resource estimate in the fourth quarter to support the PFS.

Metallurgy

Marathon completed column testing on 12 samples of mineralized lower-grade material from the Leprechaun and Marathon deposits in May, 2019. This work, which was undertaken to assess potential heap leach recoveries, returned extraction rates of 72 per cent for the Leprechaun deposit and 65 per cent for the Marathon deposit. These results are well in excess of the 59-per-cent recoveries assumed in the updated PEA and will improve the overall economics of the project.

Mill recovery tests on higher grade material from the Leprechaun and Marathon deposits are continuing with encouraging results, with completion expected by the end of the third quarter of 2019.

Environment and stakeholder engagement

Marathon filed an environmental assessment (EA) registration/project description with the Newfoundland and federal governments on April 5, 2019, which was subsequently accepted into the formal EA review process on April 16, 2019. These documents are posted by both governments for public review and comment and are reviewed by the various regulatory departments to determine if, and to what extent, further EA is required. As expected, both levels of government determined that further EA work is required for the project in the form of an environmental impact statement (EIS). Various baseline studies and assessment-related work have already commenced in support of developing the EIS.

Marathon commenced formal stakeholder engagement in March, 2019, beginning with public meetings in the closest communities to the project, including Buchans, Millertown and Grand Falls-Windsor, to brief residents, municipal governments, and other local stakeholders on the status of the project and Marathon's plans. Subsequently, Marathon has commenced consultation with the Qualipu and Miawepukek (Conne River) first nations and other stakeholder groups which have interests in the proposed Valentine gold project. Consultation with all stakeholders will continue as Marathon advances the EA, permitting and engineering components of the project.

Results of operations

The results of operations for the three and six months ended June 30, 2019, and 2018 are summarized in the attached table.

                                                                   Three months ended June 30, Six months ended June 30,
                                                                             2019        2018           2019       2018
Expenses                                                                                                              
General and administrative expenses                                      $762,299    $378,315     $1,345,478   $861,945
Other income -- royalties related to gold sales by the Golden Chest mine  (28,007)    (18,241)       (54,351)   (18,241)
Interest income                                                           (69,424)          -        (96,942)         -
Interest expense                                                              281           -            497          -
Foreign exchange loss (gain)                                                   88      10,132         (6,499)     4,907
Loss before tax                                                           665,237     370,206      1,188,183    848,611
Income tax expense (recovery)                                              88,171     175,403        192,955   (135,748)
Loss for the period                                                       753,408     545,609      1,381,138    712,863
                                                                                                                       

This press release should be read in conjunction with Marathon's condensed interim consolidated financial statements for the periods ended June 30, 2019, and 2018 and the related management's discussion and analysis, both of which are available on SEDAR.

Cautionary statement

The updated PEA was prepared in accordance with National Instrument 43-101. Readers are cautioned that the PEA is preliminary in nature. It 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 economic results reflected in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified person

This press release has been reviewed by Phillip Walford, PGeo. Mr. Walford is a qualified person in accordance with NI 43-101 and has approved the contents of this press release on behalf of Marathon.

About Marathon Gold Corp.

Marathon is a Toronto-based gold company rapidly advancing its 100-per-cent-owned Valentine gold camp located in Newfoundland and Labrador, one of the top mining jurisdictions in the world. Marathon has confirmed the feasibility of the Valentine gold camp, which currently hosts four near-surface NI 43-101 compliant, mainly pit-shell-constrained deposits with measured resources totalling 16.6 million tonnes at a grade of 2.18 grams per tonne containing 1,166,500 ounces of gold, indicated resources totalling 28.5 million tonnes at a grade of 1.66 g/t containing 1,524,900 oz of gold and inferred resources totalling 26.9 million tonnes at a grade of 1.77 g/t containing 1,531,600 oz of gold.

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