Mandalay Resources Reports Another Excellent Period with Strong Second Quarter 2024 Production and Cash Generation Results

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

Second Quarter Highlights:

• Quarter-end cash balance was $63 million, an increase of $16 million from the previous quarter;
• Consolidated gold equivalent production of 26,372 ounces;
  • Costerfield production increased to 13,773 gold equivalent ounces, 32% higher than Q2 2023;
  • Björkdal production increased to 12,599 gold ounces, 21% higher than Q2 2023 and highest since Q2 2019;
• Consolidated gold equivalent sold was 26,759 ounces, 32% higher than Q2 2023;
  • Costerfield sold 14,439 gold equivalent ounces, 40% higher than Q2 2023;
  • Björkdal sold 12,320 gold ounces, 24% higher than Q2 2023, and highest since Q3 2019.

Based on its strong quarter-end cash position and ongoing cash flow expectations, Mandalay repaid the entire outstanding balance ($20 million) of its Revolving Credit Facility in July 2024. As a result, Mandalay currently has no indebtedness other than obligations under equipment loan facilities and $35 million in undrawn availability under its Revolving Credit Facility.

Frazer Bourchier, President and CEO, commented:

"Mandalay again reported solid production results with over 26,000 gold equivalent ounces across both of our operations in the second quarter. I am pleased that we are executing operationally, consistently delivering results as per plan and are poised to meet our 2024 guidance targets, while solidifying our stable operational track record. Additionally, since the start of 2024, Mandalay has increased its cash balance by nearly $36 million, resulting in a robust closing quarter cash balance of approximately $63 million prior to the subsequent repayment of all outstanding amounts under our Revolving Credit Facility."

Ryan Austerberry, COO, commented:

"At Costerfield, we produced 13,773 gold equivalent ounces during Q2 2024, an increase of approximately 32% compared to the same period last year. There was a slight quarter-over-quarter decrease in output primarily due to lower mill throughput from an extended maintenance stop for planned capital improvements with a focus on plant optimization. The siteonam is working on continued planned improvement projects over the coming months, with no expected adverse impacts for the balance of the year. Additionally, the site faced manageable geotechnical challenges that required some adjustments to the mine schedule sequence, affecting the timing of accessing higher-grade stopes. For the quarter, average processed grades were 12.1 g/t for gold and 2.1% for antimony. For the second half of the year, we anticipate improved plant throughput from increased availability and maintaining similar gold equivalent mining grades as we regain access to higher grade production fronts."

"At Björkdal, we achieved gold production of 12,599 ounces, our highest quarter since Q2 2019. Björkdal has shown steady production improvements since last year, with June 2024, being a standout month where processed underground and stockpiled mixed feed grades averaged 1.34 g/t gold. This was due to ore from the higher-grade Aurora development making up part of the plant feed material. In the second half of the year, Björkdal is focusing on optimizing existing technology and systems at the mine. We will emphasize mining debottlenecking to improve productivity and reduce unit costs, while continuing to bring in higher grade material where possible. These anticipated additional improvements should support planned operational execution while upholding stringent safety standards and meeting production targets at competitive costs."

Mr. Bourchier concluded, "Concurrent to operational focus and ongoing organic exploration, the Company continues to actively explore opportunities to realize our vision of establishing Mandalay as a leading mid-tier producer in the coming years."

Production for the Quarter Ended June 30, 2024:

• The Company produced a total of 23,626 ounces of gold and 359 tonnes of antimony representing a total of 26,372 gold equivalent ounces produced, compared to 17,693 ounces of gold and 517 tonnes of antimony in the second quarter of 2023, representing a total of 20,850 gold equivalent ounces produced.
• Production at Björkdal was 12,599 ounces of gold compared to 10,397 ounces of gold in the second quarter of 2023.
• Production at Costerfield was 11,027 ounces of gold and 359 tonnes of antimony versus 7,296 ounces gold and 517 tonnes antimony in the second quarter of 2023.

Production for the Six Months Ended June 30, 2024:

• The Company produced a total of 45,972 ounces of gold and 763 tonnes of antimony representing a total of 51,308 gold equivalent ounces, versus 34,030 ounces of gold and 1,061 tonnes of antimony in corresponding first six months of 2023, which represented a total of 40,836 gold equivalent ounces.
• Production at Björkdal was 22,969 ounces of gold.
• Production at Costerfield was 23,003 ounces of gold and 763 tonnes of antimony.

Table 1 - Second Quarter and Six Months Production for 2024 and 2023

Sales for the Quarter Ended June 30, 2024:

• The Company sold a total of 23,431 ounces of gold and 435 tonnes of antimony, representing a total of 26,759 gold equivalent ounces, compared to 17,200 ounces of gold and 496 tonnes of antimony in the second quarter of 2023, representing a total of 20,229 gold equivalent ounces.
• Björkdal sold 12,320 ounces of gold versus 9,939 ounces of gold in the second quarter of 2023.
• Costerfield sold 11,111 ounces of gold and 435 tonnes of antimony versus 7,261 ounces of gold and 496 tonnes of antimony in the second quarter of 2023.

Sales for the Six Months Ended June 30, 2024:

• The Company sold a total of 46,618 ounces of gold and 761 tonnes of antimony, representing a total of 52,036 gold equivalent ounces, compared to 35,220 ounces of gold and 1,055 tonnes of antimony in the first six months of 2023, representing a total of 41,998 gold equivalent ounces.
• Björkdal sold 23,081 ounces of gold. Costerfield sold 23,537 ounces of gold and 761 tonnes of antimony.

Table 2 - Second Quarter and Six 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