Marlin Amends Mining Contract to Significantly Reduce Mining Costs and Achieves Commercial Production at La Trinidad

VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 11/13/14 — Marlin Gold Mining Ltd. (TSX VENTURE: MLN) (“Marlin” or the “Company”) is pleased to announce a material improvement to its mining contract for the La Trinidad mine in Sinaloa, Mexico. Beginning immediately, Marlin will pay its mining contractor a monthly flat rate irrespective of total tonnes moved with an agreed upon monthly minimum tonnage. Marlin has been mining over 1.1 million tonnes per month over the last two months and now that the rainy season appears to have subsided, this has since increased to a rate of 1.3 million tonnes per month in November. At this run-rate, Marlin–s mining expenditures for mining, loading, drilling, haulage, diesel and explosives will be approximately $1.05 per tonne for at least the next six months.

To formalize this contract amendment, and subject to all necessary TSX-Venture exchange approvals, Marlin has agreed to prepay a full month of the mining contract and issue to its mining contractor a maximum of 1,200,000 shares of Marlin–s common stock, ensuring that Marlin and its contractor will be aligned as we continue to advance the La Trinidad mine. This mining initiative will allow Marlin to focus on its high stripping requirements for 2015 as we accelerate development of the high grade HS Zone at the lowest possible cost; this will have the effect of bringing in additional ounces to the mine plan that would have otherwise been deemed uneconomic at US$1,150 gold. To fund the prepayment and for general working capital, entities controlled by Wexford Capital, Marlin–s controlling shareholder, have agreed to enter into a US$3 million unsecured facility (the “Facility”). The Facility will mature one-year from the first anniversary of the initial advance and will accrue interest daily at a rate of 15% per annum. All waivers and consents necessary to complete this facility have been received from Marlin–s senior lender, Sprott Resource Lending Partnership, in return for 100,000 common shares of Marlin–s common stock.

John Brownlie, CEO of Marlin states, “I cannot stress enough how impactful this contract amendment is to our mining operations. When Eldorado Gold Corp. (“Eldorado”) mined La Trinidad in the late 1990–s they left over potentially economic mineralization at the Taunus pit, but the bulk of our high grade deposit is located at depth, so costs were always going to be elevated in the first year of commercial operations. This contract amendment allows us to focus on pit development, where we can get to the high grade portion of the pit in early 2016 with a significantly lower cost profile”.

Commercial Production Commences at La Trinidad Despite Historic Rains

Marlin is also pleased to announce the beginning of commercial production at La Trinidad. We have spent the last five months working through weather related start-up issues, and we expect operations to continue to ramp up as we have now entered the dry season. Approximately 1,500 millimeters of rain have fallen on our property since the start of the rainy season, which is more than double the normal rain accumulation for this time of year. Prior to the rainy season, we left the historical Taunus pit flooded to use for process water while we constructed our permanent facilities which are now complete. The additional rain water exceeded our in-pit pumping capacity which impeded access to the lower mining levels, so most of our recent development work consisted of ramp development on the west side of the pit. In September we hired a local high volume pumping contractor out of Mazatlan, and our pit is now fully dewatered. Additionally, management has started constructing water course diversions for some of the local arroyos to avoid water infiltration to the pit during next year–s rainy season at minimal cost.

Consumable costs were higher than budget because of the rain, although they are now tracking closer to budget as the rains have subsided. Despite these challenges, we were able to ship over 1,000 troy ounces of gold in September with an additional 1,600 troy ounces through November 3rd. Our crusher has been averaging approximately 3,200 tonnes per day, delivering a specified sub 3/8th inch product to the leach pad, and we continue to debottleneck our crushing unit which is now focused on the tertiary crusher. A second tertiary crushing unit is now at site, which we are renting for approximately $15,000 per month, and we expect to be operating at significantly higher than 4,000 tonnes per day capacity by the end of the year.

To date, approximately 7.2 million tonnes of material have been moved from the pit, with most of that material being pre-strip waste. The expanded Taunus pit began at 124 meters above sea level, and we are now mining the 94 meter level using six meter benches. The bottom of the historical Taunus pit is at the 88 meter level, which contains the resource left over by Eldorado. We expect to begin mining the 88 level by December, although extensions of the Eldorado zone are currently being mined which have been providing a relatively continuous source of material for the crusher.

About Marlin Gold

Marlin Gold is a publicly-listed company on the TSX Venture Exchange with properties located in Sinaloa and Zacatecas, Mexico. Marlin–s priority is to advance its properties toward commercial production and enhance shareholder value through financial optimization, namely through the growth of its wholly-owned subsidiary, Sailfish Royalty Corp. The La Trinidad property, which hosts the Taunus gold deposit, had a first gold pour on February 28, 2014. A NI 43-101 resource estimate and preliminary economic assessment for the Taunus gold deposit can be found at or at .

Wexford Capital is an “insider” (as defined in applicable securities laws) of the Company. Pursuant to Multilateral Instrument 61-101, the Facility is considered a “related party transaction”. The Facility is exempt from the requirements to obtain a formal valuation or minority shareholder approval, as the fair market value of the facility represents less than 25% of the Company–s market capitalization. The facility was considered and approved by the board of directors of the Company, other than the directors of the Company who are also affiliated with Wexford, who abstained from such approval. There was no materially contrary view or abstention by any director approving the facility.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary statement regarding forward-looking information

This news release contains –forward-looking statements– within the meaning of applicable securities laws. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by words such as the following: expects, plans, anticipates, believes, intends, estimates, projects, assumes, potential and similar expressions. Forward-looking statements also include reference to events or conditions that will, would, may, could or should occur, including in relation to statements regarding the timing of reprocess of material and production from La Trinidad. These forward-looking statements are necessarily based upon a number of estimates and assumptions that, while based on management–s expectations and considered reasonable at the time they are made, are inherently subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from logistical, technical or other factors; the possibility that results of work will not fulfill projections/expectations and realize the perceived potential of the Company–s projects; uncertainties involved in the interpretation of drilling results and other tests and the estimation of gold resources; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of environmental issues at the Company–s projects; the possibility of cost overruns or unanticipated expenses in work programs; the need to obtain permits and comply with environmental laws and regulations and other government requirements; fluctuations in the price of gold and other risks and uncertainties, including those described in the Company–s current Annual Information Form filed on SEDAR at . As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this release. Unless required by law, Marlin has no intention to and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Marlin Gold Mining Ltd.
John Brownlie

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