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Mandalay Resources Corp. Oct. 2014 Investor Presentation

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Information about Mandalay Resources Corp. Oct. 2014 Investor Presentation
Investor Relations

Published on October 15, 2014

Author: MandalayResourcesCorp

Source: slideshare.net

Description

Mandalay Resources October 2014 Investor Presentation
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1. OCT 2014 DELIVERING VALUE AND GROWTH

2. Forward-looking Statements This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of mine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things: exploration results or production results not meeting management’s expectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward looking statements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 28, 2014 and in its final prospectus dated September 2, 2014, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Quality Control and Assurance Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101. The exploration program at Costerfield is supervised by Chris Gregory (Member, Australian Institute of Geoscientists accredited Chartered Professional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical information contained in this presentation. The exploration programs on the Cerro Bayo and La Quebrada projects are supervised by Ronald Luethe (Member: American Institute of Professional Geologists and an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person as defined under National Instrument 43-101. Mr. Luethe visits the Cerro Bayo and La Quebrada projects often, supervises the collection and interpretation of scientific and technical information contained in this presentation. Dr. Mark Sander (Member: AusIMM), President of Mandalay, has visited the Costerfield, Cerro Bayo, and La Quebrada projects several times during 2010, 2011, 2012 and 2013 and has supervised the preparation of this presentation. He has also visited the Challacollo project in 2013 and 2014. All currency references in US$ unless otherwise indicated 2

3. A Profitable and Growing Dividend-Paying Company We create exceptional shareholder value through the acquisition of undervalued assets that can rapidly become cash generative, self fund exploration, establish and maintain high operating margins and return cash to shareholders within a planned period of time. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement. TIMELINE 15,854 63,351 107,941 126,908 253,796 520,175 633,000 771,500 1,000,000 800,000 600,000 400,000 200,000 0 • Costerfield, Australia • Gold & Antimony 200,000 150,000 100,000 50,000 0 2010 2011 2012 2013 2014 Oz Au Eq. YEar-End Reserves Production 2009 200 150 100 50 Oz Au Eq. Annual 2010 • Cerro Bayo, Chile • Silver & Gold 2013 • Challacollo, Chile • Silver & Gold 2014 • Björkdal, Sweden • Gold $3.2 $11.1 $20.6 $92.2 $171.8 $166.9 $1.7 $32.0 $79.9 $67.7 0 2010 2011 2012 2013 2014 (1H) US$ MM Revenue, EBITDA & Dividends (1)The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA should not be considered by an investor as an alternative to net income or cash flow as determined in accordance with IFRS. (2)Annual cash dividend paid quarterly, based on 6% of the Company’s trailing quarter’s 3 gross revenue and the future cash requirements of the Company (3) Refer to notes on Mineral Reserves in the Appendix (4) Refer to notes on gold equivalent ounces in the Appendix (5) Not including Elgin Reserves Production & Reserves Revenue EBITDA Dividends $83.0 $32.4 $8.0 Reserves Production 141,000 – 156,000 E

4. Value Creation Track Record Index (August 4, 2009 = 100) Mandalay Resources Peers (1) S&P/TSX Composite Index S&P/TSX Global Mining Index 550 500 450 400 350 300 250 200 150 100 50 250 200 150 100 400 350 300 250 200 150 100 (1) Peer group includes: Endeavour Silver, First Majestic Silver, Fortuna Silver, McEwen Mining, and Primero Mining (2) Includes dividends paid and average SIB benefit to shareholders Share prices as at Oct 10, 2014 4 Mandalay: 257% (total return(2)) Peers: 95% TSX Composite: 29% TSX Mining: -23% Q4 2009 - New Management Team (Mills, Sander & Swarup) 50 Index (August 4, 2009 = 100) Gold Gold: 26% 50 Index (August 4, 2009 = 100) Silver Silver: 18%

5. Capital Structure and Ownership – Post Elgin Shares, options, and warrants as at Oct 10, 2014 Millions (Except Share Price Information) Share price (Oct 10, 2014 - close) (C$) 1.00/shr Shares Outstanding 392.8 Options(1) 17.4 Warrants(2) 15.7 Fully Diluted Shares Outstanding 426.1 Market Capitalization (C$) 392.8 Cash and Cash Equivalents (US$) 69.0 Total Debt (US$) 60.0 Total Enterprise Value(3) (US$) 360.2 (1) Exercise price: C$0.255 - C$1.13; Expiry date: Dec 7, 2014 - Mar 24, 2019 (2) Exercise price: C$0.31 - C$0.465; Expiry date: Nov 30, 2014 (3) Assuming C$ 1 = US$ 0.94 5 (4) As of September 10, 2014, the directors and executive officers of the Corporation, as a group, beneficially owned, or controlled or directed, directly or indirectly, approximately 125,908,112 Common Shares, representing approximately 32% of the outstanding Common Shares Major Shareholders(4) Holders % Shares (Million) West Face Capital 23.2% 91.0 Sentry Investments 10.1% 39.7 Plinian + Management 8.4% 33.0 Sprott Asset Management 8.2% 32.3 Baker Steel Capital Managers 3.8% 15.0 GMT Capital 3.2% 12.5

6. Operational Locations and Tradeflows Mining friendly operational jurisdictions with strong customer base 6

7. Resource and Reserves Growth 40,000,000 30,000,000 20,000,000 10,000,000 Ag (cont. oz) M&I Resources(1) 60,000,000 40,000,000 20,000,000 0 Ag (cont. oz) 2010 2011 2012 2013 P&P Reserves(1) 300,000 200,000 100,000 600,000 400,000 200,000 0 Au (cont. oz) Au (cont. oz) 2010 2011 2012 2013 30,000 20,000 10,000 40,000 30,000 20,000 10,000 0 Sb (cont. t) Sb (cont. t) 2010 2011 2012 2013 20,000,000 15,000,000 10,000,000 5,000,000 Ag (cont. oz) 800,000 600,000 400,000 200,000 (1) Refer to notes on Mineral Resources and Mineral Reserves in the Appendix 20 15 600 400 200 0 Cu (MMlbs) Cu (MMlbs) 2012 2013 0 2010 2011 2012 2013 0 Au (cont. oz) 2010 2011 2012 2013 20,000 10,000 0 Sb (cont. t) 2010 2011 2012 2013 324,313 oz Au P&P from Elgin Acquisition Inferred Resources(1) 0 2010 2011 2012 2013 0 2010 2011 2012 2013 0 2010 2011 2012 2013 10 2012 2013 7

8. Strong Annual Production Growth 15,854 160,000 120,000 80,000 40,000 Total MND Production (AuEq oz) Costerfield Production Antimony (Sb) Gold (oz) (2014E) 8 Silver (oz) 109,337 1,318,655 2,911,595 3,145,537 3,000,000 – 3,200,000 4,000 3,000 2,000 1,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2010 2011 2012 2013 2014E 7,661 6,678 334 18,036 Gold (oz) 12,244 17,089 28,758 21,482 32,000 – 37,000 23,000 – 27,000 40,000 30,000 20,000 10,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2010 2011 2012 2013 2014E 0 2010 2011 2012 2013 2014E Cerro Bayo Production (2014E) 1,106 1,571 2,481 3,275 3,500 – 3,800 0 2010 2011 2012 2013 2014E Björkdal Production (2014E) 20,000 15,000 10,000 5,000 0 Gold (oz) 2010 2011 2012 2013 2014E 8,000 – 10,000 oz Au attributable to MND, in Q4 2014E 63,351 107,941 126,908 0 2010 2011 2012 2013 2014E Refer to notes on gold equivalent ounces in the Appendix 8,000 - 10,000 141,000 - 156,000

9. Current Mandalay Performance Current Operational Performance (Q3 2014) Q3, 2014 2013YE Q3, 2013 2012YE Saleable Silver oz produced 823,379 3,145,537 733,659 2,911,595 Saleable Gold oz produced 18,990 50,240 14,442 35,125 Saleable Antimony t produced 1,000 3,275 966 2,481 Current Financial Performance (Q2 2014) Q2, 2014 2013YE Q2, 2013 2012YE Net Cash/All-in Cost/oz Ag at Cerro Bayo, $ 5.83 / 12.08 6.84 / 12.07 6.12 / 11.54 5.67 / 10.70 Net Cash/All-in Cost/oz Au Eq. at 989 / 1,278 819 / 1,062 917 / 1,178 1,112 / Costerfield, $ 9 1,304 EBITDA, $ million 16.4 67.7 11.0 79.9 Net Income, $ million 4.9 29.4 3.1 41.7 Cash and cash equiv., $ million 69.0 33.5 23.9 17.3

10. Acquisition of Elgin Mining 10 Acquisition Details  MND acquires 100% of the outstanding common shares of Elgin Mining  Elgin shareholders will receive in exchange for each Elgin share: o C$0.37 cash; or o 0.4111 of an MND common share Subject to pro-ration to a max. of 50,000,000 shares and max. of C$27 million cash Offer Value  Total equity value of approx. C$70 million  85% premium to Elgin’s last close on the TSX on June 3, 2014 (C$0.20)  53% premium to Elgin’s 20-d VWAP on the TSX on June 3, 2014 (C$0.24) Mandalay Acquired 100% of Elgin Mining in September 2014 Benefits to Mandalay Shareholders:  Acquired the Björkdal Gold Mine, adding a third producing and cash flowing mine, to Mandalay’s portfolio  Increases and diversifies Mandalay’s production profile by adding Björkdal’s annual production of ~50koz Au to Mandalay’s current production rate  Accretive to Mandalay shareholders on all major metrics  Opportunity to generate additional value through Mandalay’s demonstrated capabilities to grow production, lower costs, and increase reserves to Björkdal’s operations in the near-term  Provides Mandalay with positive EBITDA and cash flow at current gold prices and current AISC levels at Björkdal  Includes large resources and excellent exploration potential for potentially long mine life and/or significant organic growth profile

11. Björkdal Gold Mine: Overview Land package 20,378 hectares Ownership 100% 2013 gold production 46,946 oz 2014E gold production 8,000 – 10,000 oz (Q4 2014E production attributable to Mandalay) P&P Reserves(1) 7.6 Mt @ 1.33 g/t Au Plant recoveries (2013) Au: 87.5% 2013A Cash costs/oz Au $1,097 11 1 Refer to notes on reserves in the Appendix

12. Björkdal Value Creation Plan 12 Introduce best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits Goal: Allow for a revised mine plan that improves planned delivered grades from mine to mill, so more gold will be produced from the current capacities, resulting in an expected decrease in cost per ounce Goal: Margin expansion by producing more gold at reduced cost per ounce from the same, largely fixed-cost operation. Optimized mill feed grade expected to improve recoveries Goal: Extend mineralization along strike and down dip by increasing the rate of infill drilling on currently defined Inferred Mineral Resources Produce a more refined resource model to support more selective underground open pit mining techniques Increase grade of mill feed through selective mining and “ore sorting” technologies Increase funding for exploration Goal: Provide factual basis for more selective mining to increase mill grades; will also reduce total exploration cost by accelerating wide-spaced and infill drilling while reducing the expensive practice of exploration by large-scale drifting across and on veins Timeline Dec 2014 Dec 2014 2016 2016

13. Björkdal Exploration Potential 13 Plan View A A’ Source: Elgin investor presentation, annual information form, other Elgin company disclosure In plan view • Down dip along historic vein swarm • Extend vein swarm to SE • Extend vein swarm to NW (Lake Z.) • Lake Z. open to NE and SW Sectional View In sectional view • Extend down dip • Veins in tailings area may signify leakage from far down-dip

14. Cerro Bayo Silver-Gold Mine Land package 23,096 hectares Ownership 100% 2013 silver production 3,145,537 oz 2013 gold production 21,482 oz 2014E silver production 3.0 – 3.2 Moz 2014E gold production 23,000 – 27,000 oz Current throughput / Goal 1,400 tpd P&P Reserves 2.5 Mt @ 224 g/t Ag; 2.2 g/t Au Plant recoveries (Q1 2014) Ag: 91.0%, Au: 87.25% 2013A Cash costs/oz Ag net Au credits / Q2 2014 14 $6.84 / $5.83 2014 Planned Exploration Budget $3 – 4 million

15. Cerro Bayo Operating Performance 15 $80 $60 $40 $20 $0 150,000 100,000 50,000 0 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐ 2013 Q4‐ 2013 Q2‐ 2014 $/ Tonne Tonnes Per Quarter Mining Rate and Unit Cost t Mined Cost/ t Mined $60 $40 $20 $0 150,000 100,000 50,000 0 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 $/ Tonne Tonnes Per Quarter Processing Rate and Unit Cost t Processed Cost/ t Processed $20 $15 $10 $5 $0 1,000,000 800,000 600,000 400,000 200,000 0 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 $/ oz Ag Net Byproduct Ounces Silver Per Quarter Saleable Silver Produced & Unit Cost Ag oz Cost/ oz Ag net Au

16. Emerging Extensions and New Veins Under Laguna Verde LAGUNA VERDE 16

17. Costerfield Gold-Antimony Mine: Overview Land package 1,293 hectares Ownership 100% 2013 gold production 28,758 oz 2013 antimony production 3,275 t 2014E gold production 32,000 – 37,000 oz 2014E antimony production 3,500 – 3,800 t Current throughput 400 tpd P&P Reserves 420,000 tonnes @ 9.2 g/t Au; 3.6% Sb Plant recoveries (Q1 2014) Au: 90.75%, Sb: 94.18% 2013A Cash cost/oz Au Eq. / Q2 2014 $819 / $989 17 2014 Planned Exploration Budget $4 – 5 million

18. Costerfield Operating Performance 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 18 $400 $300 $200 $100 $0 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q4‐09 (Dec. only) 40,000 35,000 30,000 Q2‐10 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 AUD/ Tonne Tonnes Per Quarter Mining Rate and Unit Cost t Mined Cost/ t Mined $120 $100 $80 $60 $40 $20 $0 25,000 20,000 15,000 10,000 5,000 0 Q4‐09 (Dec. only) Q2‐10 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 AUD/ Tonne Tonnes Per Quarter Processing Rate and Unit Cost t Processed Cost/ t Processed $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 0 Q4‐09 (Dec. only) Q2‐10 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13 Q2‐14 USD/ Oz Au Eq. Ounces Per Quarter Au Equivalent Production and Cost Oz Au Eq. Cost/ Au Eq. Oz

19. Challacollo Silver-Gold Project: Overview Land package 4,000 hectares Ownership 100% Location 130 km SE of Iquique, Chile Mineralization Epithermal, oxidized Ag-Au Elevation approx. 1,500 metres ASL Resource Indicated: 1 mt @ 242 g/t Ag; Inferred: 4 mt @193 g/t Ag 19

20. Challacollo Development Plan • 12 mo Feasibility Study: $7 – $8 million – on track  Hire GM and Construction Manager to run feasibility study – done  Environmental, community, cultural baselines for permitting – in progress  Drill 8,000 m for infilling existing Inferred Resource and extensions – infill complete; 20 finishing new target testing  Resource update – due EOY 2014  Metallurgical testing – crushing, grinding, agitation leach in progress  Mine design, plant design – after resource model and metallurgical testing complete  Capital and operating costing – after mine and plant design  Financial case and conversion to reserves – Q1, 2015 • Permitting  Submission of EIA Q1, 2015  Receipt of permits – Goal: EOY 2015 • Build  12 months build (est.) in 2016 • Production  First production – Goal: Q1 2017

21. 21 Lolon Vein Challacollo Resources (1) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz) Measured Resources - - - - - Indicated Resources 1,030,000 0.4 242 13,000 8,000,000 M&I Resources 1,030,000 0.4 242 13,000 8,000,000 Inferred Resources 3,900,000 0.3 193 40,000 24,300,000 Source News Release, “Mandalay Resources Corporation Provides Update on Challacollo Infill Drilling and Feasibility Study Progress”. Filed September 10, 2014 (1) Source Challacollo: NI 43-101 Technical Report on the Challacollo Silver-Gold Project, Region 1, Chile. Effective date January 30, 2014. Filed on sedar Feb. 7, 2014

22. Peer Comparison: Production, Cost, Financials 1H 2014 Production 1H 2014 Financials 22 Ag (oz) Au (oz) Other Ag Eq (oz) (Au + Ag) Revenue ($MM) EBITDA ($MM) EBITDA Margin (%) Mandalay Resources 1,484,951 27,274 1,713 t Sb 2,973,138 83.0 32.4 39.1 Endeavour Silver 3,568,608 33,650 - 5,404,697 107.8 37.0 34.3 First Majestic Silver 5,993,715 6,176 10,456 t Pb+Zn 6,330,704 132.2 43.2 32.7 Fortuna Silver 3,167,281 16,669 9,562 t Pb+Zn 4,076,814 89.8 31.4 35.0 McEwen Mining 1,465,000 39,000 - 3,593,008 22.8 (12.9) - Primero Mining 3,000,000 82,339 - 7,492,771 127.9 39.3 30.7 P+P Reserves Market Comparables Ag (oz) Au (oz) Other Reserve Grade Ag Eq (g/t) (Au + Ag) Market Capitalization FD (C$MM) 1H 2014 EPS ($) Last 12M Dividend Paid/Share Mandalay Resources 17,902,000 301,000 15,000t Sb 568 426.1 0.03 $0.0334 Endeavour Silver 11,603,200 139,400 - 270 486.4 0.04 $0 First Majestic Silver 108,627,132 - - 174 951.6 0.13 $0 Fortuna Silver 36,300,000 235,900 - 229 640.6 0.06 $0 McEwen Mining 14,724,500 200,606 - 899 585.4 (0.29) $0 Primero Mining 64,814,000 2,243,000 - 146 824.3 (0.08) $0 Source: Company reports and FactSet Market capitalization as at Oct 10, 2014 Ag Eq oz converted at 55/1 Au/Ag. Metal prices: Ag price of $28.92 and Au price of $1,578

23. Peer Comparison: Production, Cost, Financials 23 1000 900 800 700 600 500 400 300 200 100 0 P+P Reserve Grade Fully Diluted Ag Eq (g/t) Mandalay Resources Endeavour Silver First Majestic Silver Fortuna Silver McEwen Mining Primero Mining 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 1H 2014 EBITDA Margin $35 $30 $25 $20 $15 $10 $5 $0 Fully Loaded 1H 2014 Cash Cost/Ag Eq oz $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Market Cap per 2014E Ag Eq Production (oz) $0.040 $0.030 $0.020 $0.010 $0.000 Last 12M Dividend Paid per Share $30 $25 $20 $15 $10 $5 $0 Market Cap per P+P Reserves (Ag Eq oz)  Second highest grade reserves (Ag Eq oz)  Highest EBITDA margin  Lowest fully loaded cost (Ag Eq oz)  Second lowest market cap per estimated annual production of Ag Eq oz  Third lowest market cap per P+P reserves oz  Highest dividend paid per share Market capitalization as at Oct 10, 2014 Ag Eq oz converted at 55/1 Au/Ag Metal prices: Ag price of $28.92 and Au price of $1,578

24. Investment Proposition  Execution-focused management with track record of acquisition, operational and exploration success, growth and value generation  High-quality, cash flowing asset portfolio with major exploration upside and full project pipeline  Strong balance sheet, Company’s development and capital programs funded  Rapid increase in production and margins through low-capex organic growth and operational efficiencies  Returning cash to shareholders  Company dividend policy based on 6% of trailing gross quarterly revenues 24

25. OCT 2014 DELIVERING VALUE AND GROWTH For more information, please contact: Greg DiTomaso Tel: 647.260.1566 Email: g.ditomaso@mandalayresources.com Company Website: www.mandalayresources.com Twitter: @MandalayAuAg

26. Management and Board of Directors Senior Management 26 Brad Mills, CEO and Executive Director Former CEO Lonmin plc, over 30 years of experience in Copper, Gold, PGMs Board of Directors Mark Sander, President 28 years of experience in exploration, strategy and operating improvements Sanjay Swarup, CFO and Executive Director Former Lonmin plc, over 20 years of industry experience Belinda Labatte, Corporate Secretary Over 10 years of experience in capital markets and investment banking Braam Jonker, Chairman Peter R. Jones, Independent Director Dominic Duffy, COO Mining Engineer with extensive technical and operational management experience Tony Griffin, Independent Director Robert Doyle, Independent Director

27. Bjorkdal Open-Pit Reserves(3) Tonnes (1,000’s) Grade (g/t) Ounces Proven 49.6 1.48 2,366 Probable 5,454.4 1.04 182,858 Total 5,504.0 1.05 185,224 Bjorkdal Underground Tonnes Grade Reserves(3) (1000’s) (g/t) Proven 36.2 2.02 2,357 Probable 2,054.7 2.07 136,732 Total 2,090.9 2.07 139,089 Numbers may differ slightly from source documents due to rounding Ounces 27 Mandalay Reserves Cerro Bayo Reserves (1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Proven Reserves 516,000 283 4,705,000 2.5 41,000 Probable Reserves 1,967,000 209 13,197,000 2.1 134,000 P&P Reserves 2,483,000 224 17,901,000 2.2 174,000 Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Proven Reserves 71,000 4.4 3,000 8.3 20,000 Probable Reserves 350,000 3.4 12,000 9.4 106,000 P&P Reserves 420,000 3.6 15,000 9.2 126,000 TOTAL RESERVES (excluding Björkdal) 31-December-2013 Ag (cont. oz) Au (cont. oz) Sb (cont. t) Mandalay Proven Reserves 4,705,000 61,000 3,000 Mandalay Probable Reserves 13,197,000 240,000 12,000 Total Mandalay P&P Reserves 17,902,000 301,000 15,000 1 Source: Roscoe Postle Associates, March 2014 documented in an independent NI 43-101 report filed March 28, 2014 2 Source: SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014 3 Source: A qualified person within the meaning of NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves; Mandalay is not treating the historical estimate as current Mineral Resources and Mineral Reserves.

28. Mandalay Resources Cerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Measured Resources 411,000 423 5,596,000 3.6 48,000 Indicated Resources 1,633,000 308 16,172,000 3.2 167,000 M&I Resources 2,044,000 331 21,768,000 3.3 214,000 Inferred Resources 433,000 400 5,580,000 3.3 46,000 Challacollo Resources (3) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz) Measured Resources - - - - - Indicated Resources 1,030,000 0.4 242 13,000 8,000,000 M&I Resources 1,030,000 0.4 242 13,000 8,000,000 Inferred Resources 3,900,000 0.3 193 40,000 24,300,000 Costerfield Resources (2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Measured Resources 191,000 4.3% 8,000 8.4 51,000 Indicated Resources 605,000 3.7% 22,000 9.6 187,000 M&I Resources 796,000 4.1% 32,000 9.3 238,000 Inferred Resources 569,000 3.8% 22 ,000 7.4 135,000 La Quebrada Resources (4) Resource (t) Cu Grade (%) Cu (cont. lb) Ag Grade (g/t) Ag (cont. oz) Measured Resources 0 0 0 0 0 Indicated Resources 34,800,000 0.6% 459,000,000 10 11,200,000 M&I Resources 34,800,000 0.6% 459,000,000 10 11,200,000 Inferred Resources 1,000,000 0.6% 13,000,000 11 400,000 TOTAL RESOURCES (Excluding Björkdal) Ag (cont. oz) Au (cont. oz) Sb (cont. t) Cu (cont. lb) Measured Resources 5,596,000 99,000 8,000 0 Indicated Resources 35,372,000 367,000 22,000 459,000,000 Total M&I Resources 40,968,000 465,000 32,000 459,000,000 Total Inferred Resources 30,280,000 221,000 22,000 13,000,000 1 Source: Cerro Bayo - Roscoe Postle Associates, March 2014 documented in an independent NI 43-101 report filed March 28, 2014 2 Source: Costerfield - SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014 3 Source: Challacollo – Roscoe Postle Associates, Jan, 30, 2014, in a report filed February 7, 2014. 4 Source: La Quebrada – Independent Technical Report filed 16-Aug-2012. 5 Source: Björkdal - A qualified person within the meaning of NI 43-101 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves; Mandalay is not treating the historical estimate as current Mineral Resources and Mineral Reserves. 28 Björkdal Resources(5) Measured Au (cont. oz) Indicated Au (cont. oz) Measured + Indicated Au (cont. oz) Inferred Au (cont. oz) Open Pit 2,746 229,611 232,357 111,907 Underground 12,624 765,319 777,944 640,972 Totals 15,370 994,930 1,010,301 752,879

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