Mandalay Resources Announces Production and Cash Balance for Third Quarter 2024 and Reaffirms Production Guidance

TORONTO, Oct. 10, 2024 - Mandalay Resources Corp. ("Mandalay" or the "Company") (TSX: MND) (OTCQB: MNDJF) announces third quarter production results, highlighted by continued cash generation. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Third Quarter Highlights:

• Quarter-end cash balance was $55 million;
• Consolidated gold equivalent production of 20,323 ounces;
• Consolidated gold equivalent sold was 21,551 ounces; and
• Outstanding balance of revolving credit facility repaid in full.

Frazer Bourchier, President and CEO, commented:

"Mandalay's combined operations produced 20,323 gold equivalent ounces in the third quarter of 2024. Q3 was always planned to be the lowest ounce production quarter of the year, and production of gold equivalent ounces is expected to rebound in Q4. This positions Mandalay to meet its full-year production guidance of 90,000 - 100,000 gold equivalent ounces.

"The Company continued to maintain its strong balance sheet, ending the quarter with $55 million in cash. This includes the full repayment during the quarter of the $20 million that was outstanding under the revolving credit facility, leaving Mandalay with $35 million in undrawn availability under the facility."

Ryan Austerberry, COO, commented:

"At Costerfield, we produced 10,697 gold equivalent ounces during Q3 2024, comparable with the same period last year. However, as compared with the previous quarter, production was down primarily due to both the expected impact of our mining cycle in the third quarter, and mining additional not-in-reserve profitable ore at the extremities of Youle and Shepherd due to elevated metal prices. For the quarter, average processed grades were 8.1 g/t and 1.3% for antimony. For Q4, we anticipate returning our focus to mining higher-grade areas of the orebodies.

"At Björkdal, we produced 9,626 ounces of gold, which was slightly less than anticipated due to incremental weather causing flooding in the Eastern Zone thereby temporarily restricting access to this area. Consequently, the site had to pivot to lower-grade stope material underground and also rely on increased low grade surface stockpile to maximize plant feed, leading to lower than expected production. In the last quarter of 2024, Björkdal is expected to return to production levels achieved in the first half of the year."

Mr. Bourchier concluded, "To close out the year, our primary focus remains continuing to deliver operating cashflow and advancing our strategy to become a mid-tier gold producer."

Production for the Quarter Ended September 30, 2024:

• The Company produced a total of 17,844 ounces of gold and 252 tonnes of antimony representing a total of 20,323 gold equivalent ounces produced, compared to 19,601 ounces of gold and 395 tonnes of antimony in the third quarter of 2023, representing a total of 22,032 gold equivalent ounces produced.
• Production at Björkdal was 9,626 ounces of gold compared to 11,224 ounces of gold in the third quarter of 2023.
• Production at Costerfield was 8,218 ounces of gold and 252 tonnes of antimony versus 8,377 ounces gold and 395 tonnes antimony in the third quarter of 2023.

Production for the Nine Months Ended September 30, 2024:

• The Company produced a total of 63,816 ounces of gold and 1,015 tonnes of antimony representing a total of 71,631 gold equivalent ounces, versus 53,631 ounces of gold and 1,456 tonnes of antimony in corresponding first nine months of 2023, which represented a total of 62,868 gold equivalent ounces.
• Production at Björkdal was 32,595 ounces of gold.
• Production at Costerfield was 31,221 ounces of gold and 1,015 tonnes of antimony.

Table 1 - Third Quarter and Nine Months Production for 2024 and 2023

Sales for the Quarter Ended September 30, 2024:

• The Company sold a total of 19,111 ounces of gold and 248 tonnes of antimony, representing a total of 21,551 gold equivalent ounces, compared to 18,106 ounces of gold and 400 tonnes of antimony in the third quarter of 2023, representing a total of 20,568 gold equivalent ounces.
• Björkdal sold 10,790 ounces of gold versus 10,751 ounces of gold in the third quarter of 2023.
• Costerfield sold 8,321 ounces of gold and 248 tonnes of antimony versus 7,355 ounces of gold and 400 tonnes of antimony in the third quarter of 2023.

Sales for the Nine Months Ended September 30, 2024:

• The Company sold a total of 65,729 ounces of gold and 1,009 tonnes of antimony, representing a total of 73,587 gold equivalent ounces, compared to 53,326 ounces of gold and 1,455 tonnes of antimony in the first nine months of 2023, representing a total of 62,566 gold equivalent ounces.
• Björkdal sold 33,871 ounces of gold.
• Costerfield sold 31,858 ounces of gold and 1,009 tonnes of antimony.

Table 2 - Third Quarter and Nine Months Sales for 2024 and 2023

About Mandalay Resources Corporation:

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.

Forward-Looking Statements:

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 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 28, 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 Corporation