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 30, 2016 and
in its final prospectus dated July 18, 2016, 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 AssuranceQuality control and assurance programs are implemented in line with the standards of National Instrument 43-101.
The exploration programs at Costerfield and Björkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP of
Operational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfield
and Björkdal, and supervises the collection and interpretation of scientific and technical information contained in this presentation.
The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of Mandalay
Resources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved the
technical and scientific information on these projects contained in the presentation.
Dr. Mark Sander (Member: AusIMM), President and CEO of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal and
has supervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated
Forward-looking Statements
2
A Values-Based and Value-Focused Company
WE ARE SUCCESSFUL WHEN:
Our employees live and work safely and experience
the personal satisfaction that comes with high
performance and recognition
The communities in which we operate value our
presence
Our environmental impact is minimized and causes
no permanent harm
We have a large, diversified set of customers who
are delighted with and compete for our products
Our shareholders realize a superior total return on
their investment and support our corporate values
Our values are visibly demonstrated by strong local
management, at the point of impact with our
stakeholders, and coordinated across the Company for
maximum effect
Profitable and Dividend-Paying: (4.7% yield)*
*Trailing 12 months dividends divided by current market capitalization (Dec. 2, 2016)
3
Designed for Value: How We are Different
Acquire only when we see possibility of 3-5X value uplift in 3-5 years
Target cash cost of production: 50% of ‘reversion to mean’ metal price
100% ownership of all operations; no private royalties, no streams
Flat, virtual, low-cost organizational structure; local GM accountability
Direct relationships and sales contracts with customers
Dividend-paying: 6% of trailing quarterly revenue
No hedging of metal prices
Lightly levered with low-interest, gold-convertible bonds
Stingy with equity
Disciplined management processes operated with integrity
Compensation systems based on value-add
4
1.7
32
79.967.7 64.4 68
-0.8
30.6
61.275.9
52.473.4
20.6
92.2
171.8 166.9184.6
194.5
-50
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015
2009
• Costerfield, Australia
• Gold & Antimony
2010
• Cerro Bayo, Chile
• Silver & Gold
2014
• Challacollo, Chile
• Silver & Gold
2014
• Björkdal, Sweden
• Gold
Results: Strong Performance Across the Price Cycle
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 – EBITDA figures reflect adjusted EBITDA, please see the Company’s Management’s Discussion
and Analysis.
TIMELINE
2016 Quarterly
Financial
Measures
Revenue,
EBITDA(1) &
Cash from
Operations
Revenue
EBITDA
Cash from
Operations
Record
Revenue
2nd best EBITDA &
Cash from Operations
• No acquisition
• Optimize operations
• Pay down debt
• Exchange warrants
• Begin dividends
2011-2013
5
50.454.2
48.5
17.322.1
13.8
7.3
22.3
15.5
0
10
20
30
40
50
60
Q1 2016 Q2 2016 Q3 2016
US
$ M
MU
S$ M
M
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t
6
Based on Matched Production and Reserve Growth
6
With Continuing Low Cash and all-in Production Costs
$/O
z A
u E
q. (C
os
t) o
r A
u (
Pri
ce
)
600
800
1,000
1,200
1,400
1,600
1,800
-
10,000
20,000
30,000
40,000
50,000
60,000
Production Cash Cost AISC Average Au price
Au
Eq
. O
z/Q
tr
Reducing volatility with growing number of operations
1 mine restart
1 mine restart
1 mine transformation1 mine restart
1 mine transformation2 mines producing
1 mine transformation
P&L Margin
EBITDA Margin
2010 2011 2012 2013 2014 2015 Q3 2016
15,854 63,351
107,941 126,908
154,810 166,679
254,000
520,000 633,000
772,000
1,123,000 1,070,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2010 2011 2012 2013 2014 2015 2016E 2017E
Oz A
u E
q.
Ye
ar-
En
d R
es
erv
es
Oz A
u E
q.
An
nu
al
Pro
du
cti
on
149,000 –
152,000(1)
155,000 –
175,000(1)
0
50
100
150
200
250
300
2010 2011 2012 2013 2014 2015
US
$/o
z A
u E
q. P
&P
Ad
de
d
Mandalay cost of acquiring and discovering reserves
Cumulative Cost per oz Au Eq. Acquired or Discovered
Cost Per oz Au Eq. Discovered in yr
Cost Per oz Au Eq. Acquired in yr
And Adding Reserves Cost-effectively
1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb
2. Source: BMO
Exploration adds at
cumulative average
$50/oz Au Eq.
Acquisition + Exploration
adds at cumulative
average $78/oz Au Eq.
(for developed &
producing reserves)
Cerro
Bayo
Björkdal
Median for all Au sector acquisitions
2012 – 2016 = $254/oz Au Eq.(2)
7
50%
100%
150%
200%
250%
300%
350%
Q3 2009 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016
Mandalay Cumulative Returns
10.5% Annual Compounded Rate of Return
Gold
Silver
(1) Adjusted for reinvested dividends. Assumes investment in Mandalay made as part of private placement announced on 24-Sep-09 to fund acquisition of Costerfield and accounts for warrant exchange offer of 0.47 shares per
warrant. (2) Peer Index: Alacer, Argonaut, Dundee PM, Kirkland, Klondex, Newmarket, Perseus, Primero, Richmont. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont,
Polyus, Randgold. (4) End date as at December 2, 2016.
Creating Superior Value for Shareholders
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2010 2011 2012 2013 2014 2015 2016
Dividends Paid (USD)**
6% of revenues (dividend contribution)
10.5% Cumulative Total Return (% Value Change)*
*Q3 2010 to Dec 2, 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $0.74.
Graph updated quarterly, prices as at the last trading day of each respective quarter.
**Annual cash dividend paid quarterly, based on 6% of the Company’s trailing quarter’s gross revenue and the future cash requirements of the Company
0.0
5.0
10.0
15.0
20.0
25.0
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16
Volu
me (
mill
ions)
Invest
ment
Valu
e
Mandalay(1) Peer Index(2) Gold Senior(3)
Total Return vs. Peers and Seniors
A $10,000 investment on September 24, 2009 would be worth today(4):
• Mandalay: $50,607• Peer Index: $10,870• Gold Seniors: $6,429
Record
Dividends
Trading Volume, Ownership and Coverage
Major Shareholders(1)
Holders Shares (Million) Shares (Percentage)
GMT Capital 66.1
Ruffer LLP 45.0
Sentry Investments 43.5
Plinian + Management + Directors 32.5
AzValor Asset Management 20.7
Large Holders (Top-5) 207.8
Other Holders 243.4
TOTAL 451.2
Analyst Coverage
Firm Analyst
BMO Brian Quast
Desjardins Mike Parkin
Haywood Ben Asuncion
Raymond James Chris Thompson
Scotia Craig Johnston
Volume
30-day Average Daily Volume 1,608,354
100-day Average Daily Volume 1,217,989
14.6%
10.0% 9.6%
7.2%
4.6%
53.9%
9
Average Daily Volume across all trading platforms (as of Oct. 31, 2016)
1. Known ownership positions are estimates - as at October 24, 2016 - Ownerships and percentages rounded to one decimal place
Strong Balance Sheet
101. Exercise Price: C$0.83 – C$0.91 expiry dates ranging from Mar 9, 2017 – Mar 23, 2021
2. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.75 USD (Dec. 2, 2016)
3. Cash and Cash Equivalents and Interest-Bearing Debt as at end of Q3-2016 (Sept 30, 2016)
As at Dec. 2, 2016 Millions
(Except Share Price Info)
Share price (Dec. 2, 2016 - close) (C$) $0.74/shr
Shares Outstanding 451.2
Stock Options(1) 19.2
Fully Diluted Shares Outstanding 470.4
Market Capitalization (C$) $333.9
Cash and Cash Equivalents (US$)(3) $74.6
Total Interest-Bearing Debt (US$)(3) $59.0
Total Enterprise Value (US$)(2,3) $234.8
Net Cash (US$) $15.6
Revised Guidance for Full-Year 2016
Revised 2016 Guidance Total Cerro Bayo Costerfield Björkdal Challacollo
Ag oz Saleable Production (millions) 1.7 – 1.9 1.7 – 1.9
Au oz Saleable Production (‘000) 104 – 110 13 – 15 41 – 43 50 – 52
Sb t Saleable Production (‘000) 3.6 – 3.8 3.6 – 3.8
Total Forecast Production
Au Eq oz (‘000) (1,2)
149 – 152
Total cash costs per saleable
Au Eq oz(3)
$845 – $865 $950 – $1,050 $610 – $650 $850 – $870
Total capex spend (millions) $33 – $38 $15 – $17 $3 – $4 $14 – $16 $1
Total exploration spend (millions) $12 – $14 $3 $4 – $5 $4 – $5 $1
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t
2. Actual AuEq production ounces dependent on realized metal prices used for AuEq calculation
3. Total cash cost per Au Eq includes corporate overhead spending
4. Assumes assumptions: Au $1,202/oz, Ag $16.87/oz, and Sb $6,820/t 11
Original 2016 Guidance Total Cerro Bayo Costerfield Björkdal
Ag oz Saleable Production (millions) 2.9 – 3.3 2.9 – 3.3
Au oz Saleable Production (‘000) 100 – 115 24 – 30 26 – 30 50 – 55
Sb t Saleable Production (‘000) 3.0 – 3.5 3.0 – 3.5
Total Forecast Production
Au Eq oz (‘000) (2,4)
165 – 180
Total cash costs per saleable
AuEq oz(4)
$690 – $810 $600 – $720 $650 – $770 $850 – $970
Total capex spend (millions) $31 – $37 $13 – $15 $2 – $3 $16 – $19
Total exploration spend (millions) $7 $2 $2 $3
12
2017 Guidance
Total Cerro Bayo Costerfield Björkdal Challacollo
Ag oz Saleable Production (millions) 2.2 – 2.5 2.2 – 2.5
Au oz Saleable Production (‘000) 104 – 121 22 – 28 30 – 35 52 – 58
Sb t Saleable Production (‘000) 3.2 – 3.7 3.2 – 3.7
Total Forecast Production
Au Eq oz (‘000)(1) 155 – 175
Total cash costs per saleable
Au Eq oz(1) $820 – $890 $720 – $780 $710 – $780 $860 – $930
Total capex spend (millions)(2) $58 – $66 $21 – $24 $12 – $14 $24 – $27 $1
Total exploration spend (millions) $7 $2 $3 $2
1. Assumes full-year 2016 prices: Au $1,258/oz, Ag $17.00/oz, Sb $6,505/t
2. Actual AuEq production ounces dependent on realized metal prices used for AuEq calculation
Mine DevelopmentCosterfield:
• $1.8M for Cuffley Deeps
Cerro Bayo:
• Marcela vein, $10.5M
Björkdal:
• $3.0M capitalised stripping for new open pit mine
plan with anticipated new reserves $1.1M for
accelerated underground dev. metres
Plant/EquipmentCosterfield:
• Brunswick preparations - Water storage and evap. facilities
$3.0M and power equipment of $1.3M; and
• Tailings facility $1.0M to finish current LOM
Björkdal:
• Ore sorting and screening – $8.0M ($4M 2018)
• Flotation circuit upgrade - $2.6M in 2017; and
• Upgrade of current tailings $1.1M
Cerro Bayo:
• Tailings Dam $2.5M – delayed from 2016; and
• Electrical installation at Coyita $0.5M
$30M in New Capital
Costerfield Gold-Antimony Mine: Turnaround Complete
Land package 1,293 hectares
Ownership 100%
Number of Employees(1) 172 direct, 4 contractors: 176 total
Current throughput (Q3-2016) 391 tpd
Plant recoveries (Q3-2016) Au: 90.13%, Sb: 95.69%
1. As at year-end 2015, filed in Company’s Annual Information Form
13
14
Costerfield: Continuous Improvement
$0
$100
$200
$300
$400
0
10,000
20,000
30,000
40,000
50,000
Q4-09(Dec. only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15
USD
/ To
nn
e
Ton
nes
Pe
r Q
uar
ter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
$100
$150
0
10,000
20,000
30,000
40,000
50,000
Q4-09(Dec. only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15
USD
/ To
nn
e
Ton
ne
s P
er
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
Cont. Impr.
Start-up
$0
$1,000
$2,000
$3,000
0
5,000
10,000
15,000
20,000
Q4-09(Dec.only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 USD
/ O
z A
u E
q.
Ou
nce
s P
er
Qu
arte
r
Au Equivalent Production and Unit Cost
Oz Au Eq. Cost/ Au Eq. Oz
Costerfield Operational Improvements:
Record High Rate Record Low Cost
Improved mine output/mill throughput from
170 tpd to 450 tpd (capped by grid power and
site grinding capacity)
Changed mining method from cut-and-fill to
blast-hole stoping with cemented rock fill
(greater production, lower unit costs)
Introduced contract capital development for
faster and lower cost results
Increased sub-level spacing from 5 – 10 m
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle
size of mill feed (better recoveries, higher
throughput)
Grew mine life from zero reserves to roughly 4
years while mining continuously for 6 years
Operations continue setting records and new
targets being tested
14
Start-up
Transformation
Cont. Impr.
15
Expansion of existing lodes
Entirely “new” lodes
N-Lode North
Brunswick Lode
Björkdal Gold Mine: Emerging from Intensive Care
Land package 12,949 hectares
Ownership 100%
Number of Employees(1) 169 direct, 58 contractors: 227 total
Current throughput (Q3-2016) 3,581 tpd
Plant recoveries (Q3-2016) Au: 88.1%
1. As at year-end 2015, filed in Company’s Annual Information Form16
17
Björkdal Operating Performance and Improvements
$0
$5
$10
$15
$20
$25
$30
0
100,000
200,000
300,000
400,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16
$/
Ton
ne
Ton
ne
s P
er Q
ua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$2
$4
$6
$8
$10
0
100,000
200,000
300,000
400,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16
$/
Ton
ne
Ton
ne
s P
er
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$500
$1,000
$1,500
0
5,000
10,000
15,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16
$/
oz
Au
Ou
nce
s G
old
Pe
r Q
uar
ter
Saleable Gold Produced and Unit Cost
Au oz Cost/ oz Au
Björkdal 2015 Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling,
sampling, and modelling of high nugget-
effect gold deposits
Produced a more refined resource model to
support more selective underground & open
pit mining techniques
Establishing a local assay lab for faster
grade control turnaround
2016 Planned Improvements:
Increasing grade of mill feed through more
selective underground and open pit mining at
an increasing rate (making up for discarding
waste) – DONE
Pilot optical ore sorting – DONE
Pilot coarse and ultra-fine gold float – DONE
17
Transitioning to Proper Longitudinal Grade Control
18
Sampling every round results in
discarding 30-40% of material
Ore sorting: Encouraging visual results backed up by preliminary processing results
19
“Ore” – Abundant vein fragments,
presumed increased grade
“Waste” – No vein fragments,
presumed very low-grade
Bulk Test
Start
Grade
End
Grade
Times
Upgraded
Waste
Rejection
Gold
Retained
g/t Au g/t Au (%) (%)
Underground
Ore1.93 2.97 1.54 43.0 87.0
Stockpile
Ore0.80 1.19 1.48 39.0 90.0
Result includes fines (-20mm) that are too fine to sort
Björkdal Processing Improvements
20
Completed:
Sampling survey on milling and gravity gold circuits to identify
improvement opportunities
Laboratory flotation recovery study on effect of fineness of
grind, % solids, and residence time – key for decision-making
on possible future flotation circuit expansion
Pilot on-site testing of coarse and ultra fine gold flotation
Flotation circuit and ancillary equipment expansion study to
determine OPEX and CAPEX for a planned flotation circuit
expansion. Goal: improve flotation recovery and concentrate
grade
2016 Planned Improvements:
Milling/Flotation material flow stability survey to identify areas
where automation can be implemented to improve recovery
Introduction of high chrome grinding media for increased wear
resistance, grinding media cost saving and improved pulp
chemistry for improved flotation recovery
21
Björkdal H1 2016 Drill Results
Filling in gap
between Open Pit
and Nylunds
Expanding
underground
footprint
5 km top-of bedrock gold anomaly
extends from open pit to Au
prospect at Ronnberget
DDE2015-006 (assays received in
2016) about halfway along;
intersected 1.05 m @3.91 g/t Au
1-2 km
Cerro Bayo Silver-Gold MineLand package 23,106 hectares
Ownership 100%
Number of Employees(1) 398 direct, 133 contractors: 531 total
Current throughput (Q3-2016) 920 tpd
Plant recoveries (Q3-2016) Ag: 82.32%, Au: 82.93%
1. As at year-end 2015, filed in Company’s Annual Information Form
22
BRANCAKASIA
RAMONA
ETC.
Emerging Vein
Cerro Bayo Operating Performance and Improvements
$0
$50
$100
0
50,000
100,000
150,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16
$/
Ton
ne
Ton
ne
s P
er Q
ua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
0
50,000
100,000
150,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16
$/
Ton
ne
Ton
ne
s P
er
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$5
$10
$15
$20
0
500,000
1,000,000
1,500,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16 $/
oz
Ag
Ne
t B
ypro
du
ct
Oz
Ag/
Qu
arte
r
Saleable Silver Produced & Unit Cost
Ag oz Cost/ oz Ag net Au
Cerro Bayo Operational Improvements:
Shifted the mining method from
shrinkage stoping to completely
mechanized blast hole open stoping;
Ramped up throughput from 0 tpd –
1,400 tpd from three mines
Installed flotation automation system to
maximize silver and gold recoveries
Extended mine life from 3 years at
1,200 tpd to 5 years at 1,400 tpd while
mining continuously for 4 years
Ongoing improvements to increase pace
of development mining
23
Record High Rate Record Low Cost
Challacollo Silver-Gold Project 2016
Land package 20,378 hectares
Ownership 100%
Location 130 km SE of Iquique, Chile
Mineralization Epithermal, oxidized Ag-Au
Number of Employees(1) 6 direct: 6 total
Elevation Approx. 1,500 ASL
1. As at year-end 2014, filed in Company’s Annual Information Form
24
Water exploration and water rights transfer
Exploration and optimization
Large self-potential
anomalies north and
south of Lolon veinLolon vein
Invest with us: How we will deploy your capital
1. Acquire new assets counter-cyclically – only at deep discount to value
• Deliver base case returns at least 2x the investment
• Upside case 3-5x over 3-5 years based on specific testable hypotheses
• Keep portfolio evergreen – exit assets that do not fit
2. Execute focused operational improvement projects at each site
3. Apply relentless, disciplined financial management
• Exploration – project portfolio targeted on discovery of near-term reserves
• Mining – projects focused on safer, more mechanised mining with higher extraction, lower dilution
and reduced cost
• Metallurgical – projects focused on higher recovery, higher availability, higher quality products with
higher payables and reduced costs
• Commercial – more diverse customers paying better terms
• Low cash cost and overheads for high EBITDA margins
• Low DD&A for high P&L margins – low acquisition cost, focused CAPEX & exploration
• Prudent, low-cost leverage to fund growth when needed
• Minimize shareholder dilution
• Return cash to shareholders: dividend = 6% trailing qtr. revenues
4. Engage all stakeholders in a values-based and value-focused organization
25
For more information, please contact:
Greg DiTomaso
Director, Investor Relations
Tel: 647.260.1566
Email: [email protected]
Company Website: www.mandalayresources.com
Twitter: @MandalayAuAg
27
Management and Board of Directors
Senior Management
Board of Directors
Sanjay Swarup, CFO
Former Lonmin plc, over
20 years of industry
experience
Belinda Labatte,
Head of Stakeholder
Engagement & Corporate Affairs
Over 15 years of industry
experience
Braam Jonker,
Independent Director
Peter R. Jones,
Independent Director
Robert Doyle,
Independent Director
Dominic Duffy, COO
Mining Engineer with
extensive technical and
operational management
experience
Mark Sander,
President and CEO
29 years of experience in
exploration, strategy and
operating improvements
28
Mark Sander,
Director
Brad Mills,
Executive Chairman
Amy Freedman,
Independent Director
Numbers may differ slightly from source documents due to rounding
Mandalay Reserves
Cerro Bayo Reserves(1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)
Proven Reserves 133,000 195 835,000 1.98 9,000
Probable Reserves 1,903,000 230 14,041,000 2.18 133,000
P&P Reserves 2,036,000 227 14,876,000 2.16 142,000
Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)
Proven Reserves 125,000 4.4 5,500 12.0 48,000
Probable Reserves 366,000 3.7 13,400 8.2 97,000
P&P Reserves 491,000 3.9 18,900 9.2 145,000
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 20162 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report to filed March 30, 20163 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
TOTAL RESERVES
31-December-2015Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Mandalay Proven Reserves 835,000 57,000 5.5
Mandalay Probable Reserves 14,041,000 648,000 13.4
Total Mandalay P&P Reserves 14,876,000 705,000 18.9
Björkdal Reserves (3) Ore (t) Au Grade (g/t) Au (cont. oz)
Proven - - -
Probable 7,012,000 1.85 418,000
Total 7,012,000 1.85 418,000
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Mandalay Resources
Cerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)
Measured Resources 132,000 250 1,065,000 2.46 10,000Indicated Resources 1,699,000 315 17,211,000 3.16 173,000M&I Resources 1,832,000 310 18,276,000 3.11 183,000Inferred Resources 511,000 181 2,984,000 2.32 38,000
Costerfield Resources (2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)
Measured Resources 247,000 4.6 11,000 12.1 96,000
Indicated Resources 798,000 3.4 27,000 7.6 194,000
M&I Resources 1,045,000 3.7 38,500 8.6 290,000
Inferred Resources 491,000 2.0 9,700 4.3 68,000
TOTAL RESOURCES Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Measured Resources 1,065,000 106,000 11,000Indicated Resources 47,411,000 1,013,000 27,000Total M&I Resources 48,476,000 1,119,000 38,000
Total Inferred Resources 9,884,000 215,000 9,700
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 2016
2 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report Filed March 30, 2016
Challacollo Resources (3) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz)
Measured Resources - - - - -
Indicated Resources 4,700,000 0.32 200 48,000 30,200,000
M&I Resources 4,700,000 0.32 200 48,000 30,200,000
Inferred Resources 1,600,000 0.31 134 16,000 6,900,000
3 Source: Challacollo – Mining Plus, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed Mar. 31, 2015
4 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
Björkdal Resources (4) Resource (t) Au Grade (g/t) Au (cont. oz)
Measured Resources - - -
Indicated Resources 7,524,000 2.47 598,000
M&I Resources 7,524,000 2.47 598,000
Inferred Resources 1,552,000 1.86 93,000
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