Marathon's Enhanced Resource: Metal, Grade and Tonnes Are All Up



    TORONTO, Aug. 20 /CNW/ - Marathon PGM Corporation ("Marathon") is pleased
to announce an updated in-pit resource estimate, which is part of the on-going
optimization of the definitive feasibility study ("DFS") of the Marathon
Project. Marathon elected to optimize the DFS in light of improved
metallurgical recoveries, higher metal prices and capital reductions. The
updated in-pit resource has an increase in measured, indicated ("M&I") and
inferred resources and an increase in total resources, containing 3.63 million
ounces of PGM and gold and 625 million pounds of copper.

    
    Highlights:

    -   Marathon's updated in-pit M&I resource contains 2.58 m ounces of Pd
        (up 10.3% over the 2008 resource), 769 k oz of Pt (up 5.4%), 280 k
        ounces of Au (up 10.3%), 625 m lbs of Cu (up 8.3%) and 5.5 m oz of Ag
        (up 8.3%) with only a 4.7% increase in tonnes
    -   announced improved metallurgical recoveries - Pd up 3%, Pt up 8% and
        Au up 7%
    -   95.1% of in-pit resource is greater than $13.50/tonne NSR cut-off
    -   both the indicated and inferred tonnages were greatly reduced due to
        higher resolution of the new resource model
    

    Phillip Walford, President and CEO of Marathon commented "We have
successfully improved both the resource classifications and the metal content.
This expanded resource is the base for a new mine plan and new resources
currently underway. It is important to note that the metal prices being used
are lower than the present prices with the exception of palladium."

    
    Updated Total In-Pit Resource above $6.63/tonne NSR Cut-Off(1,2)
    -------------------------------------------------------------------------
                      Optimized Mineral Resource (2009)
    -------------------------------------------------------------------------
    Category        Million     Pd      Pt      Au     Cu      Ag       Rh
                    tonnes     g/t     g/t     g/t     %      g/t      g/t
    -------------------------------------------------------------------------
    Measured         92.0     0.82    0.24    0.09   0.29    1.68    0.006
    -------------------------------------------------------------------------
    Indicated         9.8     0.54    0.20    0.08   0.22    1.71    0.006
    -------------------------------------------------------------------------
      Measured
       + Indicated  101.9     0.79    0.24    0.08   0.28    1.68    0.006
    -------------------------------------------------------------------------
    Inferred          0.6     0.41    0.17    0.07   0.22    1.43    0.004
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   Contained Metal
    -------------------------------------------------------------------------
    Category         Pd oz    Pt oz   Au oz   Cu lb  Ag oz   Rh oz
                     (000)    (000)   (000)  million (000)   (000)
    -------------------------------------------------------------------------
    Measured        2,414      706     256     578  4,961      17
    -------------------------------------------------------------------------
    Indicated         170       62      24      47    542       2
    -------------------------------------------------------------------------
      Measured
       + Indicated  2,583      769     280     625  5,503      18
    -------------------------------------------------------------------------
    Inferred            8        3       1       3     27       0
    -------------------------------------------------------------------------
    

    Resource Model

    In order to better represent the geology of the Marathon deposit, a new
block model was constructed which used an unfolding technique on the sample
search ellipsoid. This approach allows a search ellipsoid to better reflect
the actual trend of the mineralization. In addition, smaller block sizes were
used in the mineralized zones to further help delineate the overall potential
resource. A typical example of the results using the 2008 block model is shown
here for palladium (http://www.marathonpgm.com/images/5450-2008.jpg).
    The 2009 block model provided a much higher resolution. Looking at the
same section shows the difference in the two models
(http://www.marathonpgm.com/images/5450-2009.jpg).
    Other changes between the previous block model and the new one includes
slightly improved metal prices and improved metallurgical recoveries. Waste
was also modeled in the new block model so grades of waste material could also
be predicted and used during mine planning activities.

    Mineral Resource Parameters

    Micon International ("Micon") estimated this new in-pit resource using an
average external NSR cut-off of C$13.50 per tonne (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 $3.46/t (based on per
tonne milled) are included in the NSR value. Metal prices used in Micon's
estimate were Cu $US 2.50/lb, Au $US700/oz, Pt $US1,100/oz, Pd $US300/oz and
Ag $US12/oz. The US/CDN exchange rate was $0.87. The metal prices and exchange
rate utilized were based on approximate 5.5 year trailing average metal
prices. Concentrate recoveries were Cu 91%, Au 80%, Pt 71%, Pd 80% and Ag 71%,
based on recent metallurgical results. An additional low grade resource was
defined between an NSR cut off of C$6.63/tonne and $13.50 /tonne. 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.

    
    Appendix:

    In-Pit Resource above $13.50/tonne NSR Cut-Off(1,2)
    -------------------------------------------------------------------------
                      Optimized Mineral Resource (2009)
    -------------------------------------------------------------------------
    Category        Million     Pd      Pt      Au     Cu      Ag       Rh
                    tonnes     g/t     g/t     g/t     %      g/t      g/t
    -------------------------------------------------------------------------
    Measured         87.8     0.85    0.25    0.09   0.29    1.70    0.006
    -------------------------------------------------------------------------
    Indicated         9.1     0.56    0.20    0.08   0.23    1.74    0.006
    -------------------------------------------------------------------------
    Measured +
     Indicated       96.9     0.82    0.24    0.09   0.29    1.70    0.006
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred          0.5     0.44    0.18    0.08   0.23    1.50    0.004
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   Contained Metal
    -------------------------------------------------------------------------
    Category         Pd oz    Pt oz   Au oz   Cu lb  Ag oz   Rh oz
                     (000)    (000)   (000)  million (000)   (000)
    -------------------------------------------------------------------------
    Measured        2,382      694     251     568  4,797      16
    -------------------------------------------------------------------------
    Indicated         164       60      23      45    511       2
    -------------------------------------------------------------------------
    Measured +
     Indicated      2,545      753     274     613  5,309      18
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Inferred            7        3       1       3     24       0
    -------------------------------------------------------------------------



    Low Grade In-Pit Resource between $6.63 & $13.50/tonne NSR Cut-Off (1,2)
    -------------------------------------------------------------------------
                      Optimized Mineral Resource (2009)
    -------------------------------------------------------------------------
    Category        Million     Pd      Pt      Au     Cu      Ag       Rh
                    tonnes     g/t     g/t     g/t     %      g/t      g/t
    -------------------------------------------------------------------------
    Measured          4.2     0.24    0.09    0.04   0.11    1.21    0.002
    -------------------------------------------------------------------------
    Indicated         0.7     0.26    0.10    0.04   0.10    1.35    0.002
    -------------------------------------------------------------------------
    Measured +
     Indicated        4.9     0.24    0.01    0.04   0.11    1.23    0.002
    -------------------------------------------------------------------------
    Inferred          0.1     0.26    0.01    0.04   0.12    1.01    0.002
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
                                   Contained Metal
    -------------------------------------------------------------------------
    Category         Pd oz    Pt oz   Au oz   Cu lb  Ag oz   Rh oz
                     (000)    (000)   (000)  million (000)   (000)
    -------------------------------------------------------------------------
    Measured           32       13       5      10    163       0
    -------------------------------------------------------------------------
    Indicated           6        2       1       2     31       0
    -------------------------------------------------------------------------
    Measured +
     Indicated         38       15       6      12    195       0
    -------------------------------------------------------------------------
    Inferred            1        0       0       0      3       0
    -------------------------------------------------------------------------
    (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.
    

    Qualified Persons

    The revised in-pit resource was prepared by Sam Shoemaker, of Micon
International under the supervision of Richard Gowans P.Eng., the independent
qualified person (QP). Mr. Gowans is President and Principal Metallurgist with
Micon International Limited ("Micon"). Mr. Phillip Walford, P.Geo., President
and CEO for Marathon, is the Company's designated QP for the purposes of the
DFS. Mr. Gowans and Mr. Walford have reviewed and approved the contents of
this press release.

    About Marathon PGM Corporation:

    Marathon is currently optimizing an earlier definitive feasibility study
on the Marathon PGM-Cu deposit, which was completed in December of 2008.
Marathon also has development and exploration stage properties in southeastern
Manitoba and western Newfoundland, respectively. Marathon's management plans
to build on its experience through the advancement of its properties and by
examining other strategic opportunities.

    CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

    Except for statements of historical fact relating to Marathon, certain
information contained herein constitutes "forward-looking statements".
Forward-looking statements include statements that are predictive in nature,
depend upon or refer to future events or conditions, or include words such as
"expects", "anticipates", "plans", "believes", "considers", "intends",
"targets", or negative versions thereof and other similar expressions, or
future or conditional verbs such as "may", "will", "should", "would" and
"could". We provide forward-looking statements for the purpose of conveying
information about our current expectations and plans relating to the future
and readers are cautioned that such statements may not be appropriate for
other purposes. By its nature, this information is subject to inherent risks
and uncertainties that may be general or specific and which give rise to the
possibility that expectations, forecasts, predictions, projections or
conclusions will not prove to be accurate, that assumptions may not be correct
and that objectives, strategic goals and priorities will not be achieved.
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, 2008.
    Other than as specifically required by law, we undertake no obligation to
update any forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the occurrence of
unanticipated events, whether as a result of new information, future events or
results otherwise.

    
    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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MARATHON PGM CORPORATION

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