Mandalay Resources Announces Strike Action at Cerro Bayo Mine

TORONTO, June 23, 2015 /CNW/ - Mandalay Resources Corp. ("Mandalay" or the "Company") (TSX: MND) announced today that the union at its Cerro Bayo mine site has initiated a legal strike action, starting today, in the context of ongoing bargaining efforts to reach a new collective agreement. It is not known how long the strike action will be and the impact on production is therefore undetermined at this time. Mine production is temporarily suspended due to blocked access to the mine site. Mandalay will ensure the safety of all employees, and safe road access, before resumption of operations. The Company remains committed to maintaining positive relations with its Cerro Bayo workforce and remaining in compliance with all of its labour relations obligations under Chilean law.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Chile and Sweden, and a development project in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas, and Europe to generate near-term cash flow and shareholder value.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements related to the terms and timing of the offering and West Face's analysis and expectations in respect of its investment in Mandalay. 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, 2015 a copy of which is 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.

SOURCE Mandalay Resources Corp.