Marathon's Optimized Reserve: Increased to 3.4 Million Ounces PGM+Au

TORONTO, Oct. 27 /CNW/ - Marathon PGM Corporation (TSX-MAR, "Marathon" or "the Company") announced today the optimized reserve estimate for its 100% owned Marathon PGM-Cu Project (the "Project"), located 10 km north of Marathon, Ontario. This new mineral reserve is part of the on-going optimization of the definitive feasibility study ("DFS") of the Marathon Project.

    
    Highlights:

    -   contained PGM+Au increased by 24 % to 3.4 million ounces
    -   contained Ag increased by 4.7 % to 4.23 million ounces
    -   contained Cu increased by 6.7 % to nearly half a billion pounds
    -   reserve tonnage increased by 15 % (up 11.8 million tonnes)
    -   projected mine life increased to 12 years
    -   20% decrease in strip ratio from 3.54 to 2.81
    

Phillip Walford, President and CEO of Marathon commented "The improved PGM grade and contained metals from a combination of new drilling, improvements in modelling and enhanced PGM recoveries. Obviously, we are excited to see what sort of impact these improved figures will have on the upcoming economics of the Project."

    
    Marathon Project 2009 Mineral Reserves

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                     Cu    Pd   Pt   Au   Ag
                                                     lbs  Ozs   Ozs  Ozs  Ozs
    Classif-           Cu     Pd    Pt    Au    Ag (mill- (000 (000 (000 (000
    ication  Tonnes    (%)  (g/t) (g/t) (g/t) (g/t) ions)  's)  's) 's)   's)
    -------------------------------------------------------------------------
    Proven 76,231,000 0.268 0.910 0.254 0.090 1.465 451  2,230  623 221 3,592
    -------------------------------------------------------------------------
    Prob-
     able  14,925,000 0.138 0.435 0.147 0.060 1.318  45    209   70  29   632
    -------------------------------------------------------------------------
    Total  91,156,000 0.247 0.832 0.237 0.085 1.441 496  2,439  693 250 4,225
    -------------------------------------------------------------------------
    Infer-
     red    4,128,000 0.147 0.326 0.105 0.045 1.230  13     43   14   6   163
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

The new mineral reserves are based on a new mine design completed by Micon International Limited ("Micon") using the most recent measured and indicated mineral resource estimate (please see Marathon press release dated August 20, 2009). The new open pit mine design was completed using Vulcan mine planning software based on an economic pit shell produced using Gemcom's Whittle pit optimization software. The optimal pit shell produced by the Whittle software was used as a guideline for the design of the engineered pit.

Open pit mining reserves were developed under the direction of "Qualified Person" Sam Shoemaker, B.Sc., AUSIMM of Micon.

Mine Design

The new mine design contains an increase of 11.8 million ore tonnes to a new total of 91.2 million tonnes of ore and 256.3 million tonnes of waste, giving a waste to ore strip ratio of 2.81 which compares to a strip ratio of 3.6:1 included in the December 2008 Feasibility Study.

Parameters used for the new mine design are tabulated below. These parameters were updated using the results from the on-going work undertaken on the updated DFS. This includes higher metallurgical recoveries derived from the most recent mini pilot plant run by Xstrata Process Support (please see Marathon press release dated June 1, 2009), revised metal prices and new mining and processing operating costs.

    
              ------------------------------------------------
              ------------------------------------------------
                 Item              Units           Expected
              ------------------------------------------------
                 Mining     C$/All Material Tonne     $1.51
               Processing   C$/Ore Tonne Processed    $6.47
                  G&A       C$/Ore Tonne Processed    $0.58
                Smelter     C$/Ore Tonne Processed    $3.44
                  Ag            US$/Troy Ounce       $12.00
                  Au            US$/Troy Ounce       $700.00
                  Cu            US$/Troy Ounce        $2.50
                  Pd            US$/Troy Ounce       $300.00
                  Pt            US$/Troy Ounce      $1,100.00
                $C/$US                ---             0.87
                  Ag          Flotation Recovery      74.5%
                  Au          Flotation Recovery      79.9%
                  Cu          Flotation Recovery      90.8%
                  Pd          Flotation Recovery      80.1%
                  Pt          Flotation Recovery      71.0%
              ------------------------------------------------
              ------------------------------------------------
                (1) Metal prices are 5 year trailing averages
    

Qualified Persons

The optimized Marathon DFS is being prepared by Micon under the supervision of Richard Gowans, P.Eng., the independent QP. Mr. Gowans is President and Principal Metallurgist with Micon. Mr. Phillip Walford, P.Geo., President and CEO of Marathon, is the Company's designated QP for the purpose of the DFS. Mr. Gowans and Mr. Walford have reviewed and approved the contents of this press release.

About Marathon PGM Corporation:

Marathon PGM Corporation is presently optimizing an earlier definitive feasibility study on the Marathon PGM-Cu deposit, which is expected to be completed in Q4. Marathon is also exploring resource development potential in the immediate vicinity of the Marathon deposit to expand mine life of the planned large tonnage, open pit mining operation. The Marathon deposit is one of the largest PGM-Cu reserves in Canada and is expected to grow with development of additional nearby resources. Marathon's optimized P+P reserve contains 2.44 million ounces of Pd, 693,000 ounces of Pt, 250,000 ounces of Au, 496 million lbs of Cu and 4.23 million ounces of Ag. 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.

%SEDAR: 00020574E

SOURCE MARATHON PGM CORPORATION

For further information: For further information: David Leng, P.Geo. Tel: (905) 537-5377 Fax: (416) 861-1925, dleng@marathonpgm.com

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MARATHON PGM CORPORATION

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