Marathon Gold Announces Closing of C$34.5 Million Bought Deal Financing

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, May 26, 2020 (GLOBE NEWSWIRE) -- Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to announce that it has completed its previously announced bought deal prospectus offering of 23,000,000 units (the “”Units”) of the Company at a price of C$1.50 per Unit for the aggregate gross proceeds of C$34,500,000, which includes the exercise in full of the underwriters’ over-allotment option. The Offering was conducted by a syndicate of underwriters co-led by Canaccord Genuity Corp., Sprott Capital Partners and RBC Capital Markets and including Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Beacon Securities Limited, Haywood Securities Inc. and Laurentian Bank Securities Inc.

The Company intends to use the net proceeds from the Offering to continue the permitting, development, and exploration of the Valentine Gold Project, as well as for working capital and general corporate purposes.

When including the net proceeds of the Offering, Marathon’s cash balance is now over C$50 million leaving the Company well positioned to advance the Valentine Gold Project through to a potential construction decision targeted for the second half of 2021.

This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Marathon

Marathon (TSX:MOZ) is a Toronto based gold company advancing its 100%-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 Pre-Feasibility Study outlined an open pit mining and conventional milling operation over a twelve-year mine life with a 36% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.3 Moz (26.3 Mt at 1.52 g/t) and Probable Mineral Reserves of 0.6 Moz (14.8 Mt at 1.23 g/t) and Total Measured Mineral Resources (inclusive of the Mineral Reserves) of 1.9 Moz (31.7 Mt at 1.86 g/t) and Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.19 Moz (23.2 Mt at 1.60 g/t). Additional Inferred Mineral Resources are 0.96 Moz (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.