Marathon Gold : MOZ - Q3 2021 - Financial Statements

Condensed Interim Consolidated Financial Statements

For the Three and Nine Months Ended September 30, 2021 and 2020

RESPONSIBILITY FOR CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The accompanying condensed interim consolidated financial statements of Marathon Gold Corporation and all information in this financial report are the responsibility of the Board of Directors and Management. The condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), including International Accounting Standard ("IAS") 34 - Interim Financial Reporting and, where appropriate, include management's best estimates and judgments.

Management maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use, and that financial information is timely and reliable. However, any system of internal control over financial reporting, no matter how well designed and implemented, has inherent limitations, and may not prevent or detect all misstatements.

The Board of Directors is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the condensed interim consolidated financial statements.

The Board of Directors carries out this responsibility principally through its Audit Committee. The Board of Directors appoints the Audit Committee, and all of its members are independent directors. The Audit Committee meets at least quarterly with Management and the auditors to review internal controls, audit results, accounting principles and related matters. The Board of Directors approves the condensed interim consolidated financial statements on recommendation from the Audit Committee.

/s/ Matthew L. Manson	/s/ Hannes P. Portmann
Matthew L. Manson	Hannes P. Portmann
President and Chief Executive Officer	Chief Financial Officer & Business Development

Toronto, Canada

November 9, 2021

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TABLE OF CONTENTS

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ……..……………………………………………………….	3
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS …………………………….	4
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS …………..………………………………………………………………	5
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ….……………………………………………………………	6
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS …………………………………………………………………………………………………………………………………………..	7
2. BASIS OF PRESENTATION ……………………………………………………………………………………………………………………………………………	7
3. SUMMARY OF ACCOUNTING POLICIES ………………………………………………………………………………………………………………………	8
4. MINERAL EXPLORATION AND EVALUATION ASSETS ……………………………………………………………………………………………………	9
5. PROPERTY, PLANT AND EQUIPMENT ………………………………………………………………………………………………………………………….	10
6. LEASE LIABILITY …………………………………………………………………………………………………………………………………………………………	10

1. INCOME TAXES …………………………………………………………………………………………………………………………………………………………. 11
2. SHARE CAPITAL …………………………………………………………………………………………………………………………………………………………. 12
3. WARRANTS ……………………………………………………………………………………………………………………………………………………………….. 13
4. SHARE-BASEDCOMPENSATION ………………………………………………………………………………………………………………………………. 14
5. (INCOME)/LOSS PER COMMON SHARE ……………………………………………………………………………………………………………………. 18
6. GENERAL AND ADMINISTRATIVE EXPENSE ………………………………………………………………………………………………………………. 18
7. SALARIES, WAGES AND BENEFITS …………………………………………………………………………………………………………………………….. 19
8. FINANCE INCOME, NET ……………………………………………………………………………………………………………………………………………. 19
9. OTHER INCOME ……………………………………………………………………………………………………………………………………………………….. 19
10. SUPPLEMENTAL CASH FLOW INFORMATION ……………………………………………………………………………………………………………. 20
11. RELATED PARTY TRANSACTIONS ………………………………………………………………………………………………………………………………. 20

18. SUBSEQUENT EVENTS ……………………………………………………………………………………………………………………………………………… 20

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MARATHON GOLD CORPORATION

Condensed Interim Consolidated Statements of Financial Position (Unaudited - Stated in thousands of Canadian dollars)

						As at			As at
			Notes		September 30,			December 31,
					2021			2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	104,814	$	51,653
Amounts receivable					1,664			844
Prepaids and deposits					1,451			600
Total Current Assets					107,929			53,097
MINERAL EXPLORATION AND EVALUATION ASSETS	4			132,021			104,645
PROPERTY, PLANT AND EQUIPMENT	5			1,070			856
Total Assets			$	241,020	$	158,598
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payable and accrued liabilities			$	2,702	$	2,383
Lease liability	6			214			143
Flow-through share tax liability	8			3,178			243
Total Current Liabilities					6,094			2,769
LONG	TERM LEASE LIABILITY		6			598			550
DEFERRED SHARE UNIT LIABILITY	10			1,966			1,676
RESTRICTED SHARE UNIT LIABILITY		10			496			90
DEFERRED TAX LIABILITY	7			4,998			6,986
Total	Liabilities					14,152			12,071
SHAREHOLDERS' EQUITY
SHARE CAPITAL	8			251,613			162,451
WARRANTS	9			-			4,500
CONTRIBUTED SURPLUS					15,327			14,955
DEFICIT					(40,114)			(35,419)
ACCUMULATED OTHER COMPREHENSIVE INCOME					42			40
Total Shareholders' Equity					226,868			146,527
Total Liabilities and Shareholders' Equity					241,020		$	158,598

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

Approved by the Board of Directors
/s/ George D. Faught	/s/ Matthew L. Manson
George D. Faught	Matthew L. Manson
Director	Director

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MARATHON GOLD CORPORATION

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss (Unaudited - Stated in thousands of Canadian dollars, except per share data)

					Three Months Ended			Nine Months Ended
					September 30,			September 30,
		Notes		2021			2020			2021			2020
	EXPENSES
	General and administrative expense	12		$	2,587	$	1,619	$	6,782	$	4,766
	Exploration expense				23			25			23			25
	Finance income, net	14			(104)			(29)			(102)			(183 )
	Other income	15			(50)			(33)			(145)			(112)
	Loss before tax			$	2,456	$	1,582	$	6,558	$	4,496
	Deferred income tax (recovery)/expense	7			(3,708)			499			(1,863)			(352)
	Net (Income)/Loss			$	(1,252) $	2,081	$	4,695	$	4,144
	Items that may be reclassified subsequently to Net
	(Income)/Loss:
	Currency translation adjustment				(25)			19			50			(10)
	Comprehensive (Income)/Loss			$	(1,277) $	2,100	$	4,745	$	4,134
	Net (Income)/Loss Per Share
	Basic and diluted	11		$	(0.005) $	0.011	$	0.020	$	0.022
	Weighted average common shares outstanding - basic				244,138			191,010			235,240			184,783
	('000)
	Weighted average common shares outstanding - diluted				251,331			191,010			235,240			184,783
	('000)

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

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