Marathon Resource Sustained Despite Higher Operating Costs at 3.41 million ounces of PGM and gold, 5.39 million ounces of Ag and 595 million pounds of Cu



    TORONTO, Oct. 9 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company") is pleased to announce an updated in-pit resource estimate for the
Marathon PGM-Cu Project (the "Project"). The Company's 2008 drill program was
designed to increase the quantity of measured and indicated resources and
total resources. This program led to an increase in measured and indicated
(M&I) and inferred resources and an increase in total resources, containing
3.41 million ounces of PGM and gold and 595 million pounds of copper. The new
resource includes silver and rhodium, which have not been included in the
economics of the deposit in the past but will be included in the upcoming
Definitive Feasibility Study ("DFS"). These metals have been recovered during
metallurgical testing. This in-pit resource will be used as the basis for a
Definitive Feasibility Study, which is on schedule for completion during 2008.
The metal prices used for the reserves will be more conservative and the
mining costs will be higher than the resource, therefore the reserves will be
less than this resource estimate.
    Phillip Walford, President and CEO of Marathon commented "This resource
has resulted in an increase in classification confidence however the global
resource in tables 4 and 5 demonstrates the effectiveness of the exploration
program led by David Good, VP Exploration. The Global resource is now 125
million tonnes M&I. That coupled with the M&I resource at Geordie Lake gives
Marathon a global resource of over 150 million tonnes in the M&I
classification. This is a very large resource to draw upon."
    Marathon's 2008 drill program was designed to increase the proportion and
total size of M&I resources. The Company drilled 81 holes totaling 18,168
metres during 2008, which when added to the prior drilling brings the total to
152,522 metres. An updated NI 43-101 resource estimate was completed by
independent mining consultants and Qualified Persons, Eugene Puritch, P.Eng.,
Tracy Armstrong, P.Geo., and Antoine Yassa, P.Geo. of P&E Mining Consultants
Inc. of Brampton, Ontario ("P&E").

    
    Table 1. Resource above $13.50/tonne NSR Cut-Off (excluding low grade)
    ----------------------------------------------------------------------
    -------------------------------------------------------------------------
             P&E Oct 2008 Resource,  All Zones within Pit Shell
    -------------------------------------------------------------------------
    Category     Tonnes      Pd      Pt        Au       Cu     Ag       Rh
               millions     g/t     g/t       g/t        %    g/t      g/t
    -------------------------------------------------------------------------
    Measured       64.0    0.83    0.24      0.09     0.31    1.7    0.006
    -------------------------------------------------------------------------
    Indicated      21.4    0.76    0.27      0.09     0.23    1.7    0.008
    -------------------------------------------------------------------------
    Measured +
     Indicated     85.4    0.81    0.25      0.09     0.29    1.7    0.006
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred        1.7    0.59    0.19      0.08     0.23    2.3    0.005
    -------------------------------------------------------------------------

    ---------------------------------------------------------------
                               Contained Metal
    ---------------------------------------------------------------
    Category      Pd oz   Pt oz   Au oz     Cu lb    Ag oz  Rh oz
                   (000)   (000)   (000)  million     (000)  (000)
    ---------------------------------------------------------------
    Measured      1,708     494     185       437    3,498     12
    ---------------------------------------------------------------
    Indicated       523     186      62       109    1,170      6
    ---------------------------------------------------------------
    Measured +
     Indicated    2,231     680     247       546    4,668     18
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Inferred         32      10       4         9      126    0.3
    ---------------------------------------------------------------


    Table 2. Additional Low Grade Resource between $6.63 & $13.50/tonne NSR
    Cut-Off
    -----------------------------------------------------------------------
    -------------------------------------------------------------------------
             P&E Oct 2008 Resource,  All Zones within Pit Shell
    -------------------------------------------------------------------------
    Category     Tonnes      Pd      Pt        Au       Cu     Ag       Rh
               millions     g/t     g/t       g/t        %    g/t      g/t
    -------------------------------------------------------------------------
    Measured        5.5    0.30    0.11      0.05     0.15    1.5    0.003
    -------------------------------------------------------------------------
    Indicated       6.5    0.31    0.14      0.05     0.13    1.3    0.003
    -------------------------------------------------------------------------
    Measured +
     Indicated     12.0    0.30    0.12      0.05     0.14    1.4    0.003
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred        1.0    0.35    0.11      0.05     0.14    1.7    0.003
    -------------------------------------------------------------------------

    ---------------------------------------------------------------
                               Contained Metal
    ---------------------------------------------------------------
    Category      Pd oz  Pt oz    Au oz     Cu lb    Ag oz  Rh oz
                   (000)  (000)    (000)  million     (000)  (000)
    ---------------------------------------------------------------
    Measured         53      19       9        18      265    0.6
    ---------------------------------------------------------------
    Indicated        65      29      10        19      272    0.6
    ---------------------------------------------------------------
    Measured +
     Indicated      118      48      19        37      537    1.2
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Inferred         11       4       2         3       55    0.1
    ---------------------------------------------------------------

    (1) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability. The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, taxation, sociopolitical, marketing, or other relevant issues.
    (2) The quantity and grade of reported inferred resources in this
        estimation are conceptual in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.
    

    P & E estimated this new in-pit resource including the 2008 drilling
using an average external NSR cut-off of C$13.50 per tonne (See Table 1.)
(based on processing costs of $6.05/t, G&A $0.58/t, and mining costs of
$6.87/ore tonne). Concentrate shipping, smelter treatment and refining charges
of $3.66/t (based on per tonne milled) are included in the NSR value. Metal
prices used in P&E's estimate were Cu $US 2.50/lb, Au $US650/oz, Pt
$US1,200/oz, Pd $US350/oz and Ag $US12/oz. The US/CDN exchange rate was $0.90.
The metal prices and exchange rate utilized were based on approximate 42 month
trailing average metal prices at Aug 31, 2008. Concentrate recoveries were
Cu 91%, Au 73%, Pt 63%, Pd 77% and Ag 70%, in line with metallurgical
recoveries reported in 2008 by SGS Lakefield. An additional low grade resource
was defined between an NSR cut off of C$6.63/tonne and $13.50 /tonne (see
Table 2.) This low grade NSR cut-off of $C6.63/tonne was derived from the
internal cut-off grade that consists of $6.05/tonne processing costs and
$0.58/tonne G&A costs.
    The mineral resources in this press release were estimated using the
Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on
Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM
Standing Committee on Reserve Definitions and adopted by CIM Council December
11, 2005.
    Tonnages were calculated using a bulk density of 3.08 tonnes per cubic
metre as determined by SGS Canada from samples taken by Eugene Puritch, P.Eng.
Model grade blocks were sized at 6.0 m wide by 12.5 m long by 6.0 m high.
Inverse distance squared (ID(2)) interpolation was used to determine grade
block values.
    This mineral resource contains a portion that belongs to the Benton
Resources Corp. JV which accounts for an approximate 150 metre northerly
extension to the main Marathon PGM deposit. This extension contains
approximately 5 million tonnes of resources as shown in the following table
which is included within the total project resource in tables 1 and 2 above.

    
    Table 3. Resource Estimate for Benton Resources Corp. JV @
    $6.63/tonne NSR Cut-Off (included in Tables 1 and 2 above)
    -------------------------------------------------------------
    -------------------------------------------------------------------------
             P&E Oct 2008 Resource,  All Zones within Pit Shell
    -------------------------------------------------------------------------
    Category     Tonnes      Pd      Pt        Au       Cu     Ag       Rh
               millions     g/t     g/t       g/t        %    g/t      g/t
    -------------------------------------------------------------------------
    Measured        3.8    0.94    0.28      0.11     0.29    2.3    0.004
    -------------------------------------------------------------------------
    Indicated       0.8    0.56    0.20      0.07     0.20    1.6    0.004
    -------------------------------------------------------------------------
    Measured +
     Indicated      4.6    0.87    0.27      0.10     0.28    2.2    0.004
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred       0.02    0.56    0.19      0.07     0.17    1.7    0.003
    -------------------------------------------------------------------------

    ---------------------------------------------------------------
                               Contained Metal
    ---------------------------------------------------------------
    Category      Pd oz   Pt oz   Au oz     Cu lb    Ag oz  Rh oz
                   (000)   (000)   (000)  million     (000)  (000)
    ---------------------------------------------------------------
    Measured        115      34      13        24      281    0.5
    ---------------------------------------------------------------
    Indicated        14       5       2         4       41    0.1
    ---------------------------------------------------------------
    Measured +
     Indicated      129      39      15        28      322    0.6
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Inferred        0.4     0.1     0.1       0.1      1.1   0.01
    ---------------------------------------------------------------


    The global resources are the resources not constrained by the pit shell.
They include the in-pit resources as well those outside it. More favourable
economic conditions can result in some of this material now not in the pit
shell being included as economic conditions change for the better. This can
occur when capital costs are paid back and operating cost are reduced or metal
prices increase.

    Table 4. Global Resource Estimate for Marathon Project and
    Benton Resources Corp. JV above $13.50/tonne NSR Cut-Off
    ----------------------------------------------------------
    -------------------------------------------------------------------------
             P&E Oct 2008 Resource,  All Zones without Pit Shell
    -------------------------------------------------------------------------
    Category     Tonnes      Pd      Pt        Au       Cu     Ag       Rh
               millions     g/t     g/t       g/t        %    g/t      g/t
    -------------------------------------------------------------------------
    Measured       72.2    0.82    0.24      0.09     0.30    1.8    0.006
    -------------------------------------------------------------------------
    Indicated      32.8    0.75    0.27      0.08     0.22    1.7    0.008
    -------------------------------------------------------------------------
    Measured +
     Indicated    105.0    0.80    0.25      0.09     0.28    1.8    0.006
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred        5.1    0.55    0.21      0.08     0.21    2.1    0.006
    -------------------------------------------------------------------------

    ---------------------------------------------------------------
                               Contained Metal
    ---------------------------------------------------------------
    Category      Pd oz   Pt oz   Au oz     Cu lb    Ag oz  Rh oz
                   (000)   (000)   (000)  million     (000)  (000)
    ---------------------------------------------------------------
    Measured      1,903     557     209       478    4,178     14
    ---------------------------------------------------------------
    Indicated       791     285      84       159    1,793      8
    ---------------------------------------------------------------
    Measured +
     Indicated    2,694     842     293       637    5,971     22
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Inferred         90      34      13        24      344      1
    ---------------------------------------------------------------


    Table 5. Global Resource Estimate for Marathon Project and Benton
    Resources Corp. JV between $6.63 & $13.50/tonne NSR Cut-Off
    -----------------------------------------------------------------
    -------------------------------------------------------------------------
             P&E Oct 2008 Resource,  All Zones without Pit Shell
    -------------------------------------------------------------------------
    Category     Tonnes      Pd      Pt        Au       Cu     Ag       Rh
               millions     g/t     g/t       g/t        %    g/t      g/t
    -------------------------------------------------------------------------
    Measured        7.9    0.28    0.11      0.05     0.15    1.7    0.003
    -------------------------------------------------------------------------
    Indicated      12.6    0.31    0.14      0.05     0.13    1.4    0.004
    -------------------------------------------------------------------------
    Measured +
     Indicated     20.5    0.30    0.13      0.05     0.14    1.5    0.003
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred        3.4    0.30    0.11      0.05     0.14    1.7    0.003
    -------------------------------------------------------------------------

    ---------------------------------------------------------------
                               Contained Metal
    ---------------------------------------------------------------
    Category      Pd oz   Pt oz   Au oz     Cu lb    Ag oz  Rh oz
                   (000)   (000)   (000)  million     (000)  (000)
    ---------------------------------------------------------------
    Measured         71      28      13        26      432      1
    ---------------------------------------------------------------
    Indicated       126      57      20        36      567      2
    ---------------------------------------------------------------
    Measured +
     Indicated      197      85      33        62      999      3
    ---------------------------------------------------------------

    ---------------------------------------------------------------
    Inferred         33      12       5        10      186    0.3
    ---------------------------------------------------------------

    (1) Mineral resources which are not mineral reserves do not have
        demonstrated economic viability. The estimate of mineral resources
        may be materially affected by environmental, permitting, legal,
        title, taxation, sociopolitical, marketing, or other relevant issues.
    (2) The quantity and grade of reported inferred resources in this
        estimation are conceptual in nature and there has been insufficient
        exploration to define these inferred resources as an indicated or
        measured mineral resource and it is uncertain if further exploration
        will result in upgrading them to an indicated or measured mineral
        resource category.
    

    Exploration at Marathon in 2008 focused on deep drilling in the central
Main Zone, infill drilling between the Main and Southern Resource areas and on
step out drilling of the W Horizon. In addition, drilling traced the
mineralization to the north and down dip on the Benton property.
    Dave Good, VP of Exploration remarked "The success of the 2008 program at
Marathon is in large part due to the hard work of our exploration crew. The
next step is to expand the resource at Geordie Lake with a drill program to
commence in the winter of 2009."
    All exploration work is being performed under the guidance and
supervision of Dr. David Good, P.Geo., VP of Exploration of the Company, a
professional geologist and Qualified Person as defined by National Instrument
43-101. Dr. Good has approved the contents of this press release.

    About Marathon PGM Corporation:

    Marathon is in the process of completing a definitive feasibility study
on the Marathon PGM-Cu deposit, which is nearing completion. Marathon also has
development and exploration stage properties in southeastern Manitoba and
western Newfoundland and Labrador. Marathon's management plans to build on
this focus through the advancement of its properties, focusing on resource
development and by examining other strategic PGM and base metal opportunities
within Canada.

    Cautionary Statement Regarding Forward Looking Information:

    Except for statements of historical fact relating to the Company, certain
information contained herein constitutes "forward-looking statements".
Forward-looking statements are frequently characterized by words such as
"plan," "expect," "project," "intend," "believe," "anticipate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These risks and uncertainties include but are not limited to those
identified and reported in Management's Discussion and Analysis for the year
ended December 31, 2007. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
forward-looking statements.

    
    On Behalf of Marathon PGM:

    "Phillip C. Walford"
    Phillip C. Walford, P.Geo.
    President, Chief Executive Officer
    Tel: +1.416.987.0711
    gen@marathonpgm.com
    

    %SEDAR: 00020574E




For further information:

For further information: David Leng, P.Geo: Tel: (416) 849-3432, Fax:
(416) 861-1925, dleng@marathonpgm.com

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