Marathon Gold Acquires Mountain Lake Resources

Mountain Lake Resources Inc. (TSXV:MOA) signed a binding arrangement agreement with Marathon Gold Corporation (TSX:MOZ) whereby Marathon will acquire all of the outstanding common shares of Mountain Lake. The transaction will consolidate Mountain Lake and Marathon’s respective 50% interests in the Valentine Lake Project in Newfoundland, Canada, resulting in Marathon becoming the 100% owner of the project.

Transaction Highlights:

• The Share Consideration values Mountain Lake at $0.30 per share, representing a 20% premium to Mountain Lake’s pre-announcement closing price on May 23, 2012 and a 20.6% premium based on the 10 day volume weighted average prices of each company, excluding the value of Spinco
• The Arrangement enables Mountain Lake shareholders to participate in the upside potential of a consolidated Valentine Lake Project, as well as Marathon’s Golden Chest
• The Spinco Consideration enables Mountain Lake shareholders to retain equity exposure to 100% of the Glover Island (gold), 100% of Little River (gold+/-antimony) and 100% of the Bobby’s Pond (base metals) exploration properties through their Spinco shares.

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