Marlin Gold Mining Ltd. Enters Into New Mining Contract to Double Mining Rate

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 8, 2016) -

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Marlin Gold Mining Ltd. (TSX VENTURE:MLN) ("Marlin") is pleased to announce that it has executed a new mining contract that will nearly double the Company's mining rate at its La Trinidad mine in Sinaloa, Mexico. The new contract has a minimum tonnage guarantee of 1.5 million tonnes per month, which is nearly twice the current mining rate. Fleet mobilization has commenced, and we expect to be mining with this new fleet in early March. This will allow Marlin to begin accessing the high grade HS Zone of its La Trinidad mine in the second quarter of 2016. The Company has 4.2 million tonnes of waste to remove at La Trinidad, at which time the high grade HS Zone will make Marlin one of the lowest cost operations globally.

Management was fortunate to use this prolonged downturn in the precious metals space to procure a nearly new fleet that was recently in use at one of Mexico's two largest gold mines.

The cost of the mining contract is US$1.50 per tonne of material moved indexed to a Mexican diesel price of US$0.73 per liter. Current Mexican diesel prices are approximately US$0.65 per liter, which is nearly twice as much as international markets. Based on current prices, the Company expects to pay approximately US$1.45 per tonne of material moved, and as Mexico begins the process of energy liberalization, this number could potentially be materially lower. This compares favorably to the US$1.59 per tonne that we are currently paying our current contractor, at far lower tonnage rates.

Marlin is currently negotiating with our current mining contractor on their fleet demobilization, and we wish them well on their future endeavors.

About Marlin Gold

Marlin is a TSX-V publicly-listed company with properties located in Sinaloa and Arizona, U.S.A. Marlin's priority is to advance its properties toward commercial production and enhance shareholder value through financial optimization, namely through the growth of its wholly-owned subsidiary, Sailfish Royalty Corp. The La Trinidad property, which hosts the Taunus gold deposit, declared commercial production on November 1, 2014. An NI 43-101 mineral resource estimate and preliminary economic assessment for the Taunus gold deposit can be found at www.sedar.com or at www.marlingold.com.