Download - Mandalay Resources November 2016 Investor Presentation

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: (3.4% yield)*

*Trailing 12 months dividends divided by current market capitalization (Oct. 31, 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%

Q32009

Q12010

Q32010

Q12011

Q32011

Q12012

Q32012

Q12013

Q32013

Q12014

Q32014

Q12015

Q32015

Q12016

Q32016

Mandalay Cumulative Returns

14.6% 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 October 17, 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 9M-2016

Dividends Paid (USD)**

6% of revenues (dividend contribution)

14.6% Cumulative Total Return (% Value Change)*

*Q3 2010 to Q3 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $1.00.

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: $68,425• Peer Index: $12,344• Gold Seniors: $6,932

8

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

FIL 16.3

Large Holders (Top-5) 203.4

Other Holders 247.8

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%

3.6%

54.9%

9

Average Daily Volume across all trading platforms (as of Oct. 31, 2016)

Known ownership positions are estimates - as at October 24, 2016

Strong Balance Sheet

10

As at October 31, 2016 Millions

(Except Share Price Info)

Share price (October 31, 2016 - close) (C$) $1.00/shr

Shares Outstanding 451.2

Stock Options(1) 19.2

Fully Diluted Shares Outstanding 470.4

Market Capitalization (C$) $451.2

Cash and Cash Equivalents (US$) + Cash Proceeds of Bought Deal $74.6

Total Interest-Bearing Debt (US$) $59.0

Total Enterprise Value (US$)(2) $322.8

Net Cash (US$) $15.6

1. 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 (Oct 31, 2016)

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


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





Au Eq oz (‘000) (2,4)

165 – 180


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





Au Eq oz (‘000)(1) 155 – 175


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


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


Ownership 100%


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



$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



$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:


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%


Current throughput (Q3-2016) 920 tpd

Plant recoveries (Q3-2016) Ag: 82.32%, Au: 82.93%


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



$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



$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


Challacollo Silver-Gold Project 2016


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


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

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,


Robert Doyle,


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,


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

29

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

30

Download - Mandalay Resources November 2016 Investor Presentation

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