Mr. Matt Manson reports

MARATHON GOLD PROVIDES PROGRESS REPORT ON VALENTINE PRE-FEASIBILITY STUDY AND MINERAL RESOURCE UPDATE

Marathon Gold Corp. has provided an update on the continuing prefeasibility study for the Valentine gold project in central Newfoundland and the associated mineral resource update.

Prefeasibility study update

The prefeasibility study (PFS) is being conducted by Ausenco Engineering Canada Inc. as lead consultant. Moose Mountain Technical Services are acting as mining consultant, Golder Associates Ltd. as tailings consultant, Stantec Consulting Ltd. as environmental consultant and Terrane Geoscience Inc. as geotechnical consultant.

Trade-off studies have now been completed to determine the optimum scope and development plan for the project. The October, 2018, preliminary economic assessment outlined a mine plan where higher-grade material was to be processed at a three-million-tonne-per-year mill while lower-grade material was to be processed on a three-million-tonne-per-year heap leach pad. With an emphasis on rate of return and initial capital cost, the PFS will present a simpler mine plan based on a single stream of ore feeding a conventional mill with no heap leach. The company is also evaluating the opportunity to initiate production utilizing a smaller capacity mill, exploiting the project's higher-grade near-surface ore, followed by mill expansion to provide for higher longer-term throughput. On a relative basis, this approach is expected to reduce preproduction capital costs, improve the project's economics and reduce its environmental footprint, all while retaining a strong gold production profile. The PFS remains on schedule for delivery in the second quarter of 2020.

Mineral resource update

The updated mineral resource estimate for the Valentine gold project is being prepared by John T. Boyd Company. This work is being undertaken in association with RPA Inc., which is providing peer review and risk analysis.

The 2019 infill drill program at the Marathon and Leprechaun deposits was completed in October and final assay results were received in November. The new mineral resource estimate will incorporate a total of approximately 270,000 metres of drilling and 190,000 assay results, 25 per cent of which have been prepared by metallic screening. Once completed, it will represent the most rigorous and constrained estimate of mineral resources to date for the project, with improved controls on geological continuity and grade distribution based on a drill spacing that now averages 10 to 15 m over the most significantly mineralized areas.

The new mineral resource will also employ an approach designed to maximize the confidence of estimate of the high-grade, open-pit resources at Marathon and Leprechaun that are to be prioritized in the new mine plan contemplated in the PFS. The Marathon and Leprechaun mineral resource models will include subdomaining by grade for the first time, expected to result in significantly improved geostatistical rigour in the estimate. Using this approach, high-grade open-pit mineral resources for direct mill feed will be defined with a bottom cut-off grade of 0.7 gram per tonne, and more marginal low-grade material between 0.3 and 0.7 g/t will be defined in contemplation of stockpiling and potential processing later in the mine life.

Preparation and peer review of the updated mineral resource estimate, employing this larger database and enhanced modelling approach, remains continuing at this time and is now expected to be completed early in the new year rather than by year-end as previously indicated.

Qualified person

Disclosure of a scientific or technical nature in this news release was prepared under the supervision of Robbert Borst, CEng, chief operating officer of Marathon. Marathon's exploration programs are conducted under the supervision of Sherry Dunsworth, MSc, PGeo (NL), senior vice-president of exploration. Both are qualified persons under National Instrument 43-101.

Acknowledgments

Marathon acknowledges the financial support of the Junior Exploration Assistance Program, Department of Natural Resources, government of Newfoundland and Labrador.

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.

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