Marathon Gold Corporation (TSX: MOZ) is pleased to report that it has purchased for cancellation the historical 7.5% net profit interest royalty  that covers certain mineral resource areas at the Company’s Valentine Gold Project in central Newfoundland.

As consideration for the NPI Royalty, Marathon paid C$500,000 in cash and issued 1,341,607 common shares (having an approximate value of C$4 million based on the 5-day VWAP) at closing to the Reid Newfoundland Company Limited the private third-party vendor. Marathon has agreed to pay additional cash consideration of C$3 million to Reid upon the formal release of the Project from both the applicable provincial and federal environmental assessment processes, including receipt of final Ministerial or Cabinet approval, as appropriate, and confirmation that the Project has satisfied the terms of the respective provincial and federal environmental assessment processes and that the Project may proceed to permitting for mine construction, subject to conditions.

Matt Manson, President and CEO, commented: “The NPI Royalty that we purchased today relates to certain properties at the Valentine Gold Project referred to as the “Reid Lots”. These properties were initially granted to the Reid Newfoundland Company Limited in the early part of the last century in connection with the development of the Newfoundland railway. The NPI Royalty, which was initially reserved in 1905 and amended in 1948 to provide for a 7.5% net profits interest royalty on all minerals, continues to apply today in the areas of the Leprechaun and Sprite Deposits and part of the Berry Deposit. Our acquisition of the NPI Royalty for cancellation is another key milestone as we progress the Valentine Gold Project towards a construction decision, and we are happy to welcome Reid as a Marathon shareholder.”

About Marathon

Marathon is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 20-kilometre system. An April 2021 Feasibility Study outlined an open pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.40 Moz (29.68 Mt at 1.46 g/t) and Probable Mineral Reserves of 0.65 Moz (17.38 Mt at 1.17 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 1.92 Moz (32.59 Mt at 1.83 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.22 Moz (24.07 Mt at 1.57 g/t). Additional Inferred Mineral Resources are 1.64 Moz (29.59 Mt at 1.72 g/t Au). Please see Marathon’s Annual Information Form for the year ended December 31, 2020 and other filings made with Canadian securities regulatory authorities and available at www.sedar.com for further details and assumptions relating to the Valentine Gold Project.