Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au

TORONTO, Oct. 20, 2011 /CNW/ - Marathon Gold Corporation ('Marathon' or the 'Company')

'The discovery of these spectacular coarse-gold bearing, multiple stacked hanging-wall quartz veins are highly encouraging and increase the economic viability of the Leprechaun Gold Deposit,' said Phillip Walford, President and CEO of Marathon Gold Corporation. 'The highest grade grab samples were collected from hanging wall veins located 100 m from the sediment contact and our trenching efforts have continued to expand the strike length of the mineralized corridor to more than 2.1 km, including the Leprechaun Gold Deposit. Armed with these grab samples, we are keen to continue our exploration efforts in this prolific zone.'

The high grade gold samples were collected from outcrop of newly exposed quartz-tourmaline-pyrite-gold multiple stacked quartz veins (Plate 4 and 5). These gold-bearing veins form part of the larger gold-mineralized alteration zone, newly named the J. Frank Zone, which currently extends over an area in excess of 850 m in length and 250 m in width, and is located up to 1.5 km southwest along strike from the current resource boundary of the Leprechaun Gold deposit. Historical trenching did not intersect these new veins. Drilling is planned to commence within the next two weeks.

This new zone has been named in honor of Mr. Jim Frank, Chairman of Marathon Gold Corporation, who passed away on Saturday, October 15, 2011. Mr. Frank was the founder of Marathon PGM Corporation, the predecessor company to Marathon Gold Corporation. Mr. Frank has played an integral role in the development of both companies. He will be remembered for his tireless energy, dedication and guidance in making both companies a success. Mr. George Faught, Director of Marathon Gold Corporation, has been appointed the interim Chairman. Mr. Faught is a well -known mining executive with considerable financial experience.

Highlights:

        --  High grade grab samples consisting of quartz-tourmaline-pyrite
            with coarse visible gold returned assays of up to 581.88 g/t
            Au, 287.95 g/t Au, 152.75 g/t Au and 88.60 g/t Au

        --  The newly exposed quartz-tourmaline-pyrite-gold stacked veins
            occur 100 m into the hanging-wall, above the structurally
            controlled contact with the Rogerson Lake conglomerate

        --  The J. Frank Zone now extends over an area at least 850 m by
            250 m in size, and together with the Leprechaun Gold Deposit,
            forms a gold-mineralized corridor in excess of 2.1 km in strike
            length

        --  Ongoing prospecting and stripping continues to exposes
            additional quartz veining along strike and into the hanging
            wall, and

        --  Channel sampling continues in the new J. Frank Zone; assays
            pending.

TABLE 1: Top Assays for Grab Samples from the expanded J. Frank Zone, SW of Leprechaun Gold Deposit

     ___________________________
    |Tag_#|E_N83 | N_N83 |Au_g/t|
    |_____|______|_______|______|
    |7392 |485026|5355402|581.88|
    |_____|______|_______|______|
    |7385 |485045|5355408|287.95|
    |_____|______|_______|______|
    |7393 |485024|5355400|152.75|
    |_____|______|_______|______|
    |6977 |485078|5355425|88.60 |
    |_____|______|_______|______|
    |7395 |485088|5355429|39.46 |
    |_____|______|_______|______|
    |7389 |484977|5355383|27.64 |
    |_____|______|_______|______|
    |6975 |485057|5355411|27.22 |
    |_____|______|_______|______|
    |7394 |485033|5355405| 4.83 |
    |_____|______|_______|______|
    |6978 |485083|5355422| 2.12 |
    |_____|______|_______|______|
    |7396 |485087|5355428| 1.21 |
    |_____|______|_______|______|

*Grab samples are selective by nature and are unlikely to represent average grades of the deposit

All of the samples were analyzed at Eastern Analytical Laboratory Ltd., in Springdale, Newfoundland. Samples were assayed using lead collection fire assay with AA (atomic absorption) finish. Due to the coarse nature of the gold at the Leprechaun Gold Deposit, the metallic screening method is used on economically important intersections using standard fire assay techniques. The reported values in this release are fire assay results.

About the Valentine Lake Joint Venture

The Valentine Lake Joint Venture is a 50/50 joint venture between Marathon Gold and Mountain Lake. The Leprechaun Gold Deposit is situated at the south-western end of the Valentine Lake Project, and the Valentine East Gold Zone is located 13 km along strike running in a north-easterly direction.  The J. Frank Zone, which currently extends over an area in excess of 850 m in length and 250 m in width, is located up to 1.5 km southwest along strike from the current resource boundary of the Leprechaun Gold Deposit. These gold occurrences form part of a 23 km long, highly prospective gold-bearing mineralized corridor. Marathon is the operator of the Joint Venture, and the companies have agreed to jointly fund a $6 million budget in 2011 that includes a planned 25,000 m of drilling.

Leprechaun Gold Deposit

The Leprechaun Gold Deposit has a (news release, December 16, 2010) NI 43-101 compliant Measured and Indicated Resource of 3,284,000 tonnes grading 2.62 g/t gold for a total estimated 277,000 ounces of gold. The inferred mineral resource is 4,409,000 tonnes grading 2.01 g/t gold for an estimated 285,000 ounces of gold.  This resource was estimated using a 0.5 g/t gold minimum cut-off over a 3 m minimum width. The Leprechaun Gold Deposit is open at depth and along strike with 74% of the current Measured and Indicated ounces occurring within 150 m of surface.

Sherry Dunsworth, M.Sc., P. Geo., VP of Exploration, Marathon's Qualified Person, has reviewed the contents for accuracy and has approved this press release on behalf of Marathon.

About Marathon Gold Corporation

Marathon Gold Corporation is one of Canada's newest gold resource development companies, with projects located in the mining friendly province of Newfoundland and Labrador together with a project in the prolific Coeur d'Alene Mining District of Idaho.  Marathon has a project pipeline consisting of early stage exploration to advanced resource development projects. Marathon is continually evaluating new gold resource development projects of merit that are located within the Americas.  Marathon's focused and low-cost approach to exploration and resource development has an established record of delivering rapid growth.  For more information visit: www.marathon-gold.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to Marathon Gold, certain information contained herein constitutes 'forward-looking statements'. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'plans', 'believes', 'considers', 'intends', 'targets', or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may', 'will', 'should', 'would' and 'could'. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes.  By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold's public filings, which may be accessed at www.sedar.com.  Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results otherwise. 

SOURCE Marathon Gold Corporation

Image with caption: 'Figure 1 - Plate 4 - Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au (CNW Group/Marathon Gold Corporation)'. Image available at: http://photos.newswire.ca/images/download/20111020_C5841_PHOTO_EN_5105.jpg

Image with caption: 'Figure 1 - Plate 5 - Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au (CNW Group/Marathon Gold Corporation)'. Image available at: http://photos.newswire.ca/images/download/20111020_C5841_PHOTO_EN_5106.jpg

Image with caption: 'Plate 1 - Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au (CNW Group/Marathon Gold Corporation)'. Image available at: http://photos.newswire.ca/images/download/20111020_C5841_PHOTO_EN_5102.jpg

Image with caption: 'Plate 2 - Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au (CNW Group/Marathon Gold Corporation)'. Image available at: http://photos.newswire.ca/images/download/20111020_C5841_PHOTO_EN_5103.jpg

Image with caption: 'Plate 3 - Marathon Gold Discovers New Hanging-Wall Gold Bearing Quartz Veins with Grab Samples Assaying up to 581.88 g/t Au and 287.95 g/t Au (CNW Group/Marathon Gold Corporation)'. Image available at: http://photos.newswire.ca/images/download/20111020_C5841_PHOTO_EN_5104.jpg

Marathon Gold Corporation

CONTACT: Marathon Gold Corporation



Jennie Guay

Investor Relations Manager

Tel: 1-416-987-0714

Email:jguay@marathon-gold.com