Marathon PGM Corporation

May 30, 2006 07:30 ET

Marathon Announces Financial Results for Q1 2006

TORONTO, ONTARIO--(CCNMatthews - May 30, 2006) - Marathon PGM Corporation ("Marathon" or the "Company") (TSX VENTURE:MAR) is pleased to announce its financial results for the three months ended March 31, 2006. The Company's unaudited interim financial statements and Management Discussion and Analysis for the period can be found on the Company's web site at and on Sedar at

Operational Highlights:

- Release of new 43-101 compliant resource estimate on the Company's 100% owned Marathon PGM-Cu Project

- Expansion and consolidation of the Company's land holdings with the purchase of the Dunlop property, bringing the project to a total of 4,585 hectares

Financial Highlights:

The Company's financial position remained strong at March 31, 2006, with cash and term deposits of $2,699,865 compared to $2,735,540 at December 31, 2005. The lack of substantive change in the Company's cash position is the result of proceeds of $241,000 received from the collection of a long-standing receivable and an additional $151,000 received from the conversion of outstanding warrants and stock options, which effectively funded the operating cash flows of the Company in the period.

The Company's loss for the three months ended March 31, 2006 amounted to $591,945 compared to $104,073 in the same period in 2005. The increased loss was driven primarily by a charge of $382,759 for stock options vesting in 2006, compared to $18,850 in 2005; professional fees, which increased from $6,130 to $37,493; and increased costs associated with salaries and management fees.

About the Marathon PGM - Cu Project

The Company has a 100% interest in the Marathon PGM - Cu Project, located about 10km north of Marathon, Ontario. As announced previously, the Company has completed a revised resource estimate t on the property in compliance with the provisions of National Instrument 43-101. This report was completed by P&E Mining Consultants Inc. and was filed on Sedar on March 28, 2006.

On behalf of the board of Directors,

"Phillip C. Walford"

Phillip C. Walford, President, Chief Executive Officer and Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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