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Marathon Resources Ltd is an exploration company with projects located in South Australia and Victoria prospective for copper, gold, base metals and uranium. The Company's focus is on the Paralana Mineral System that includes Mt Gee, one of Australia's largest undeveloped uranium deposits.

Marathon listed on ASX on 17 March 2005.

Marathon announced on 2 September 2008 a revised, indicated and inferred resource for the Mt Gee uranium deposit of 51 million tonnes averaging 615 parts per million U₃O₈ (cut-off grade 300ppm), yielding 31,400 tonnes of contained U₃O₈. The estimate was an increase from the earlier estimate released in June 2008 of 46.1Mt of mineralisation at 651ppm for 30,030 tonnes of contained U3O8, also at the same cut-off grade of 300ppm.

A 73-hole drilling program was completed in March 2007, with a further 27 diamond drill holes drilled into the Mt Gee deposit in late 2007 and early 2008. The results were consistent with Marathon's mineralisation model.

A scoping study conducted by Coffey Mining Pty Ltd has determined that underground mining is the best solution from both an environmental and economic perspective.

The scoping study assessed:

• an operation processing approximately 1.5 million tonnes per annum at 760 ppm U₃O₈.
• production of about 900 tonnes per annum of U₃O₈ using conventional atmospheric tank leaching (or slightly less using heap leaching).
• a mine life of 13 years.

Additional metallurgical testing needs to be completed, and further geotechnical data accumulated, before accurate processing and mining conclusions can be reached. We have commenced discussions with both State and Federal government departments responsible for mining approvals regarding the necessary permitting process we will need to undertake in preparation for mining Mt Gee. No, Mt Gee is not in a National Park. South Australia has a number of National Parks including those in the Flinders Ranges. The National Parks in the Flinders Ranges are:

1. The Flinders Range National Park – this Park occupies much of the central Flinders Ranges.
2. The Gammon Ranges National Park – this Park occupies the far north of the Flinders Ranges and south-west of Arkaroola.
3. Mount Remarkable National Park - This park is in the southern Flinders Ranges and lies between the shores of Spencer Gulf and the mountainous regions surrounding Wilmington to the north and Melrose to the south.

The nearest National Park to Mt Gee is the Gammon Ranges however this is some distance away to the south-west. Mt Gee is contained within the Arkaroola Pastoral Lease which has been declared a sanctuary under the South Australian National Parks and Wildlife Act 1972. However this does not preclude mining operations from taking place at Mt Gee. It will be a consideration that the Minister for Urban Planning and Development will have regard to in an assessment of any proposal for mining operations at Mt Gee. Yes, minerals can be mined at Mt Gee which is within the Environmental Class A Zone of the “Land not Within a Council Area (Flinders)” Development Plan.

There are certain Principles of Development Control within the Zone which will require Marathon to present detailed information to address these provisions before any mining will be allowed. Such information will be the result of extensive research and planning and will be presented to the Minister for Urban Planning and Development for his approval.

Marathon's preferred option of mining at Mt Gee will be via an underground mine which will assist in protecting the current landscape and natural environment of the Zone. Although Mt Gee is registered on the Australian Heritage Database (“the AHD”) once again it does not preclude mining operations from taking place.

The implications of Mt Gee being on the register are that it is another matter that the Minister for Urban Planning and Development and Minister for Minerals Resources Development will need to take into account when assessing the proposal and whether or not to grant it approval.

It is important to note though that the definition of “Registered” on the AHD means:

“The place is in the register of the National Estate. Although some places may be legally registered because they are within a larger registered area they may not necessarily possess intrinsic significance.”

Further the statement of significance in relation to Mt Gee indicates that “…Fluorescent quartz is common and often associated with uranium material, some also rare. This uranium mineralisation is of potential importance”. This may indicate that uranium mining of economic importance at Mt Gee is something that will be allowed despite it being registered.

The information produced and provided to address the Principles of Development Control for the Environmental Class A Zone (see above) would be referred to by any Minister when considering whether to allow mining operations at a place which is on the National Estate List.

Please refer to our section on Uranium for more information about the metal and the industry. Marathon Resources supports the safe export of uranium in line with Australian government regulations and international safeguards as monitored by the Australian Safeguards and Non-Proliferation Office (http://www.asno.dfat.gov.au/) and the International Atomic Energy Agency (http://www.iaea.org/).

Mining in Australia is undertaken in accordance with the requirements of the Code of Practice on Radiation and Protection in the Mining and Milling of Radioactive Ores. This ensures radiation is below acceptable levels.

Marathon is listed on the Australian Securities Exchange under the stock code of MTN. To purchase or sell shares in the Company it is necessary to contact an ASX approved broker. For information on Marathon's current board of directors, please refer to Our People The current share price of MTN shares may be obtained from the Australian Securities Exchange or from our Shareholder Information page. No dividend payments have been made by Marathon Resources as all funds are committed to developing the Company's projects. The Company may review this policy at a later date. To change your address details, send signed written authorisation to the share registry, Computershare Registry Services Ltd, quoting your shareholder reference number. Computershare Registry Services Pty Ltd, Level 5, 115 Grenfell Street, Adelaide, South Australia, 5000. Telephone: 1300 556 161 (from overseas, phone 61 3 9415 4000). Annual Reports are sent to all Marathon shareholders around October each year, unless they have requested otherwise. A copy of the latest Annual Report may be obtained from this website, or by contacting the share registry. Please contact the share registry if you do not wish to receive a copy of the Annual Report. Please email any other questions to Kelly Oswald-Jacobs kelly@marathonresources.com.au, or Belinda Hill bhill@marathonresources.com.au.

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