Marathon Gold : Q1 2022 Financial Statements

Condensed Interim Consolidated Financial Statements For the Three months Ended March 31, 2022 and 2021

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/ Julie L. Robertson
Matthew L. Manson	Julie Robertson
President and Chief Executive Officer	Chief Financial Officer

Toronto, Canada

May 12, 2022

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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 PREPARATION ……………………………………………………………………………………………………………………………………………	7
3. SUMMARY OF ACCOUNTING POLICIES ………………………………………………………………………………………………………………………	8
4. MINERAL EXPLORATION AND EVALUATION ASSETS ……………………………………………………………………………………………………	8
5. PROPERTY, PLANT AND EQUIPMENT ………………………………………………………………………………………………………………………….	10
6. LEASE LIABILITY …………………………………………………………………………………………………………………………………………………………	10

1. CREDIT FACILITY ……………………………………………………………………………………………………………………………………………………….. 11
2. SHARE CAPITAL …………………………………………………………………………………………………………………………………………………………. 12

9. SHARE-BASED COMPENSATION ………………………………………………………………………………………………………………………………… 13

1. LOSS PER COMMON SHARE …………………………………………………………………………………………………………………………………….. 16
2. GENERAL AND ADMINISTRATIVE EXPENSE ………………………………………………………………………………………………………………. 16
3. SALARIES, WAGES AND BENEFITS …………………………………………………………………………………………………………………………….. 16

13. FINANCE INCOME, NET …………………………………………………………………………………………………………………………………………… 17

1. OTHER INCOME ……………………………………………………………………………………………………………………………………………………….. 17
2. SUPPLEMENTAL CASH FLOW INFORMATION ……………………………………………………………………………………………………………. 18
3. RELATED PARTY TRANSACTIONS ………………………………………………………………………………………………………………………………. 18

17. SUBSEQUENT EVENTS ……………………………………………………………………………………………………………………………………………… 18

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MARATHON GOLD CORPORATION Condensed Interim Consolidated Balance Sheets (Unaudited - Stated in thousands of Canadian dollars)

						As at		As at
			Notes			March 31,		December 31,
					2022			2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents			$	72,453		$	87,177
Amounts receivable					1,772			2,069
Prepaids and deposits					1,568			1,382
Other current assets	7			4,998			-
Total Current Assets					80,791			90,628
MINERAL EXPLORATION AND EVALUATION ASSETS	4			165,895			148,095
PROPERTY, PLANT AND EQUIPMENT	5			2,364			2,050
Total Assets			$	249,050		$	240,773
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade payable and accrued liabilities	7	$	8,383		$	3,544
Lease liability		6			382			291
Flow-through share tax liability	8			898			3,178
Total	Current Liabilities					9,663			7,013
LONG TERM LEASE LIABILITY	6			1,183			927
DEFERRED SHARE UNIT LIABILITY	9			1,992			2,381
RESTRICTED SHARE UNIT LIABILITY	9			598			713
DEFERRED TAX LIABILITY					8,577			4,676
Total Liabilities					22,013			15,710
SHAREHOLDERS' EQUITY
SHARE CAPITAL	8			256,278			251,936
CONTRIBUTED SURPLUS					17,022			15,574
DEFICIT					(46,290)			(42,486)
ACCUMULATED OTHER COMPREHENSIVE INCOME					27			39
Total Shareholders' Equity					227,037			225,063
Total Liabilities and Shareholders' Equity			$	249,050		$	240,773

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)

				For the Three Months Ended
				March 31,
	Notes		2022			2021
EXPENSES
General and administrative expense	11		$	2,325	$	1,709
Finance income, net	13			(100)			(26)
Other income	14			(42)			(36)
Loss before tax				2,183			1,647
Deferred income tax expense				1,622			995
Net Loss			$	3,805	$	2,642
Items that may be reclassified subsequently to net loss:
Currency translation adjustment				12			10
Comprehensive Loss			$	3,817	$	2,652
Net loss per share
Basic and diluted	10		$	0.01	$	0.01
Weighted average common shares outstanding - basic and diluted (000s)				254,272			212,474

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

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