Mr. Matt Manson reports

MARATHON GOLD FILES UPDATED TECHNICAL REPORT FOR THE VALENTINE GOLD PROJECT PRE-FEASIBILITY STUDY

Marathon Gold Corp. has filed an updated technical report in accordance with National Instrument 43-101 -- Standards of Disclosure for Mineral Projects for the Valentine Gold Project in central Newfoundland, available on SEDAR.

The technical report is entitled "NI 43-101 Technical Report & Pre-Feasibility Study on the Valentine Gold Project, Newfoundland and Labrador, Canada" and has been prepared by Ausenco Engineering Canada Inc. with an effective date of April 18, 2020.

The Valentine gold project prefeasibility study (PFS) supports an open-pit mining operation with low initial capital cost and high rate of return over a 12-year mine life (see Marathon news release dated April 6, 2020). Highlights include:

• After-tax IRR (internal rate of return) of 36 per cent and NPV (net present value) 5 per cent of $472-million (Canadian) ($354-million (U.S.)) based on $1,350-(U.S.)-per-ounce gold price, increasing to 55 per cent and $769-million (Canadian) ($577-million (U.S.)) at $1,650 (U.S.)/oz gold;
• Initial capital cost (capex) of $272-million (Canadian) ($205-million (U.S.)), yielding a favourable after-tax NPV 5 per cent/capex ratio of 1.74. Life-of-mine (LOM) capital of $545-million (Canadian) ($409-million (U.S.));
• After-tax payback of 1.8 years;
• 12-year mine life, with average gold production of 175,000 oz/year in years one to nine from the processing of high-grade mill feed, and 54,000 oz/year in years 10 to 12 from the processing of low-grade stockpile;
• LOM average total cash costs of $633 (U.S.)/oz and all-in sustaining costs of $739 (U.S.)/oz;
• Proven and probable mineral reserves of 1.87 million ounces (41.05 million tonnes at 1.41 g/t Au). Measured and indicated mineral resources, which are inclusive of the mineral reserves, are 3.09 million oz (54.9 million t at 1.75 g/t Au). Additional inferred mineral resources are 960,000 oz (16.77 million t at 1.78 g/t Au);
• Mill capacity of 6,800 tpd (2.5 Mtpa) during years one to three based on gravity leaching, expanding to 11,000 tpd (4.0 Mtpa) in year 4 based on gravity flotation leaching with LOM average gold recovery of 93 per cent;
• Simplified execution strategy based on open-pit mining, conventional milling and thickened tailings deposition, with no heap leaching.

The PFS was completed by Ausenco Engineering Canada Inc. as lead consultant. Moose Mountain Technical Services acted as mining consultant, APEX Geoscience Ltd. as geological consultant, Golder Associates Ltd. as tailings consultant, Stantec Consulting Ltd. as environmental consultant and Terrane Geoscience Inc. as geotechnical consultant. The Valentine gold project mineral resource estimate (see Marathon Gold news release dated Jan. 20, 2020) was prepared by John T. Boyd Company. The mineral reserve estimate was prepared by Moose Mountain Technical Services.

Qualified person

Disclosure of a scientific or technical nature in this news release has been approved by Robbert Borst, CEng, chief operating officer of Marathon Gold. Mr. Borst has verified the data disclosed including sampling, analytical and test data underlying the information contained in this news release. This included a site inspection, drill database verification and independent analytical testwork.

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 advancing its 100-per-cent-owned Valentine gold project located in central Newfoundland, one of the top mining jurisdictions in the world. The project comprises a series of four mineralized deposits along a 20-kilometre system. An April, 2020, prefeasibility study outlined an open-pit mining and conventional milling operation over a 12-year mine life with a 36-per-cent after-tax rate of return. The project has estimated proven and probable mineral reserves of 1.87 million oz (41.05 million t at 1.41 g/t Au) and total measured and indicated mineral resources (inclusive of the mineral reserves) of 3.09 million oz (54.9 million t at 1.75 g/t Au). Additional inferred mineral resources are 960,000 oz (16.77 Mt at 1.78 g/t Au). Please see the technical report dated April 21, 2020, for further details and assumptions relating to the Valentine gold project.

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