Mandalay Resources Corporation Announces Strong Production Results and Growing Cash Balance for First Quarter 2024

TORONTO, April 8, 2024 - Mandalay Resources Corp. ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF) announces strong first quarter production results marked by a notable increase in cash balance. All currency references in this press release are in U.S. dollars except as otherwise indicated.

First Quarter Highlights:

• Mandalay's quarter-end cash balance was $47.1 million, a significant increase of $20.2 million as compared to year-end 2023;
• Consolidated gold equivalent production of 24,936 ounces;
  • Costerfield production increased to 14,566 gold equivalent ounces, 32% higher than Q1 2023;
  • Björkdal production increased to 10,370 gold ounces, 16% higher than Q1 2023; and
• Consolidated gold equivalent sold was 25,277 ounces.

Frazer Bourchier, President and CEO, commented:

"We are pleased to report Mandalay's continued operational success in the latest quarter, achieving a solid production result of nearly 25,000 gold equivalent ounces across both operations. This achievement positions the Company on a stable trajectory towards meeting our annual production target of 90,000 - 100,000 gold equivalent ounces. Of significant note, Mandalay bolstered its cash reserves substantially, increasing its cash balance by over $20 million in the quarter, culminating in a closing quarter cash balance of $47 million."

Ryan Austerberry, COO, commented:

"At Costerfield, we produced 14,566 gold equivalent ounces during Q1 2024, with an average processed head grade of 12.4 g/t and 2.2%, for gold and antimony, respectively. This is despite encountering challenges impacting operations due to two distinct adverse rain weather events, leading to temporary site access restrictions and power disruptions in January 2024. We anticipate maintaining similar metal grades as we mine comparable sections within our high-grade Youle and Shepherd deposits in the upcoming quarter.

"At Björkdal, we achieved gold production of 10,370 gold ounces. Throughout the quarter, underground mining rates remained healthy and consistent notwithstanding some geotechnical challenges causing adjustments to the mine sequencing schedule. While the processed gold grades were lower than anticipated in the quarter, this large gold system with sufficient underground capital development provides us flexibility to pivot as required when these issues might occur. Site continues to explore opportunities to even further improve planning flexibility, enabling better management of potential impacts from future sequencing changes. One notable achievement we are very pleased with was the steady ramp up in mill throughput rates during the quarter. The commissioning of the mill expansion conversion project is progressing as scheduled and is expected to be completed in Q2 2024. This step change will increase the plant's feed to a run-rate of 1.45 million tonnes per annum."

Mr. Bourchier concluded, "With this continued solid foundation of two great assets in excellent jurisdictions coupled with the ongoing execution of Mandalay's new corporate strategy, we are poised to capitalize on future opportunities and look towards achieving our vision of building a premier mid-tier essential metal producer over the next few years."

Production for the Quarter Ended March 31, 2024:

• The Company produced a total of 22,346 ounces of gold and 404 tonnes of antimony representing a total of 24,936 ounces of gold equivalent, versus 16,337 ounces of gold and 544 tonnes of antimony in the first quarter of 2023, representing a total of 19,986 ounces of gold equivalent.
• Production at Björkdal was 10,370 ounces of gold versus 8,969 ounces of gold in the first quarter of 2023.
• Production at Costerfield was 11,976 ounces of gold and 404 tonnes of antimony versus 7,368 ounces gold and 544 tonnes antimony in the first quarter of 2023.

Table 1 - First Quarter Production for 2024 and 2023 and Fourth Quarter of 2023

Sales for the Quarter Ended March 31, 2024:

• The Company sold a total of 23,187 ounces of gold and 326 tonnes of antimony, representing a total of 25,277 ounces of gold equivalent, versus 18,020 ounces of gold and 559 tonnes of antimony in the first quarter of 2023, representing a total of 21,769 ounces of gold equivalent.
• Björkdal sold 10,761 ounces of gold versus 9,521 ounces of gold in the first quarter of 2023.
• Costerfield sold 12,426 ounces of gold and 326 tonnes of antimony versus 8,499 ounces of gold and 559 tonnes of antimony in the first quarter of 2023.

Table 2 - First Quarter Sales for 2024 and 2023 and Fourth Quarter of 2023

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Björkdal gold mine). The Company is focused on growing its production and reducing costs to generate significant positive cashflow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.

Mandalay's mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Björkdal mines. Currently, the Company's main objectives are to continue mining the high-grade Youle vein at Costerfield, ramping up production from deeper Shepherd veins, both of which will continue to supply high-quality ore to the processing plant, and to extend Mineral Reserves. At Björkdal, the Company will continue to produce from the Aurora zone and other higher-grade areas in the coming years, in order to maximize profit margins from the mine.

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's expected production of gold and antimony and costs for the 2024 fiscal year. Readers are cautioned not to place undue reliance on forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, 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 31, 2024, a copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. 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.

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SOURCE Mandalay Resources Corp.