News

Marathon Gold Announces Closing of Financing

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

(figures in Canadian dollars)

TORONTO, March 1 /CNW/ - Marathon Gold Corporation (TSX: MOZ) (the “Company”) announced today the closing of its previously-disclosed bought deal financing through a syndicate of underwriters, led by Stonecap Securities Inc. and including Octagon Capital Corporation (collectively, the “Underwriters”). The Underwriters purchased, on a bought deal basis, 2,065,450 flow-through common shares (the “Flow-Through Common Shares”) of the Company at a price (the “Issue Price”) of $1.80 per Flow-Through Common Share. An additional 463,050 Flow-Through Common Shares were sold at the Issue Price by the Company directly on a non-brokered private placement basis, 335,512 of which were purchased by a wholly-owned Canadian subsidiary of Stillwater Mining Company. In total, 2,528,500 Flow-Through Common Shares were sold for gross proceeds to the Company of $4,551,300.

The gross proceeds from the sale of the Flow-Through Common Shares will be used for exploration at the Company’s Canadian exploration properties.

The Offering was made by way of private placement to accredited investors in all provinces of Canada. The Flow-Through Common Shares are subject to a four-month hold period.

This news release is not an offer of the securities for sale in the United States. The securities being offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements. Any public offering of the securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company or the Underwriters. and that will contain detailed information about the Company and its management, as well as financial statements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Toronto Stock Exchange) accepts responsibility for the adequacy or accuracy of this release..


About Marathon Gold Corporation:

Marathon Gold Corporation (“Marathon”) is one of Canada’s newest gold resource development companies, with projects located in the mining friendly province of Newfoundland and Labrador and now a project in the prolific Coeur d’Alene Mining District of Idaho. Marathon has a tiered project pipeline consisting of early stage exploration to advanced resource development projects which can be built into mineable reserves. Marathon is continually evaluating new gold resource development projects of merit that are located within the Americas. Marathon’s focused and low-cost approach to resource development and exploration has an established record of delivering rapid growth. Marathon is the operator of the Valentine Lake Project located in Newfoundland under a joint venture agreement with Mountain Lake Resources Inc. For more information visit: www.marathon-gold.com

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