Marathon PGM Corporation

March 27, 2006 09:36 ET

Marathon Announces Financial Results for 2005

TORONTO, ONTARIO--(CCNMatthews - March 27, 2006) - Marathon PGM Corporation ("Marathon" or "the Company") (TSX VENTURE:MAR) announced today its audited financial results for the year ended December 31, 2005.


- Completion of a private placement financing in March 2005 generating net proceeds of $1.7 million.

- Successful 2005 drilling campaign comprising 14,000 meters of diamond drilling over 102 holes.

- Subsequent to the end of the year, release of a new 43-101 compliant estimate showing a significant increase in measured and indicated resources over the March 2005 resource.

Financial Highlights

Marathon's financial condition improved in 2005. As at December 31, 2005, Marathon had working capital of $2.8 million, compared to $0.9 million at December 31, 2004. This was a result of a private placement completed in March 2005 and conversions of options and warrants that generated a total of $4.9 million after costs.

Marathon's net loss for the year ended December 31, 2005 was $1,245,132, or $0.13 per share, compared to $308,333 ($0.07 per share) in 2004. The Company increased the scope of its operations in the year and incurred higher expenditures in connection with staff and occupancy costs, professional fees, and investor relations costs. Non-cash expenses associated with stock-based compensation for directors, officers and consultants increased substantially as a result of the increase in the price of Marathon's shares.

Expenditures on the Company's Marathon PGM-Cu project totaled $2,278,345 in 2005, compared to $790,652 in 2004.

This summary of financial highlights should be read in conjunction with Marathon' audited financial statements for the year ended December 31, 2005 and the related Management's Discussion and Analysis, both of which are available on The Company's Web site may be found at

About Marathon PGM-Cu Project

Marathon has a 100% interest in the Marathon PGM-Cu Project, located about 10 km north of the town of Marathon, Ontario. As announced in its press release dated February 27, 2006, the Company has completed a revision of the mineral resources attributable to this project. This resource estimate was prepared by Eugene Puritch, P. Eng., an independent mining consultant and a Qualified Person for the purposes of National Instrument 43-101, and resulted in measured and indicated resources of 40 million tonnes 1.07 g/t palladium, 0.29 g/t platinum, 0.10 g/t gold and 0.36% copper, with an additional inferred resource of 4.6 million tonnes grading 1.06 g/t palladium, 0.33 g/t platinum, 0.12 g/t gold and 0.31% copper. A detailed technical report on the property will be filed on Sedar shortly.

On Behalf of the Board of Directors,

"Phillip C. Walford" or Investor Relations

Phillip C. Walford Bay Street Connect

President, CEO & Director Gus Garisto

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

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