Confirmation Of Berry Regulatory Assessment Process Proceeding To Plan

TORONTO - Marathon Gold Corporation has received confirmation from the Impact Assessment Agency of Canada (IAAC) that changes to the Valentine Gold Project to accommodate an open pit and associated infrastructure at the Berry Deposit do not constitute a new Designated Project, and as such do not require a new impact assessment under the Impact Assessment Act (IAA). This means that the assessment and subsequent permitting of the Berry Complex can proceed as previously anticipated, comprising an Environmental Assessment (“EA”) of a “new undertaking” by the provincial regulator, and a modified Decision Statement by the federal regulator. Consistent with previous guidance and the Project’s December 2022 Updated Feasibility Study, Marathon anticipates these review processes will be completed during 2023 and 2024, well in advance of the scheduled commencement of mining at Berry in the second quarter of 2025.

In September 2020, Marathon submitted an Environmental Impact Statement (EIS) for the Project to IAAC and the Newfoundland and Labrador Department of Environment and Climate Change, EA Division, (NLDECC) pursuant to the requirements of the Canadian Environmental Assessment Act (2012) and the NL Environmental Protection Act, respectively. The scope of assessment for the EIS included two mining pits and related infrastructure (the Marathon and Leprechaun Complexes), a Processing Plant, a Tailings Management Facility, and associated site facilities (the two-pit project). The Valentine Gold Project was released from the provincial EA process on March 17, 2022, and the federal EA process on August 24, 2022. Mine construction commenced in October 2022, and permitting for specific site activities has continued throughout the mine development process in accordance with the construction schedule. At the end of June 30, 2023, overall permitting progress stood at 89% complete.

In December 2022 Marathon released results of an Updated Feasibility Study for Valentine based on the addition of a third open pit and associated infrastructure at the Berry Complex (the three-pit project). Marathon filed environmental assessment registration materials for Berry to the NLDECC and IAAC on August 11, 2023, following the completion of an effects assessment and consultation with both the provincial and federal regulators, Indigenous groups, communities, and stakeholder organizations.

The Berry Complex is subject to regulatory review requirements to identify, assess and mitigate potential environmental effects during all project phases, including construction, operation, decommissioning, rehabilitation and closure, and post-closure. Provincially, the addition of the Berry Complex is considered a new undertaking requiring a provincial EA. This EA has now commenced with the filing of registration materials. Federally, and as now confirmed by IAAC, the addition of the Berry Complex is considered a change to the Designated Project referenced in the August 2022 Decision Statement of the Minister of Environment and Climate Change Canada, and potential amendments to the Decision Statement will now be considered. However, IAAC has informed Marathon that the Minister is not permitted to amend the Decision Statement to change the decision itself, and no new impact assessment under the terms of IAA will be required.