AUG2014

DELIVERING

VALUE AND GROWTH

This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of

mine production plans and exploration plans and the growth and strategy of 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, that exploration results at Cerro Bayo, Costerfield, and La Quebrada may not meet management’s expectations, that Cerro

Bayo and Costerfield capital, production and operating cost results may not meet current plans, that reclamation costs associated with

Mandalay’s Furioso property may exceed current estimates, 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. 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 program at Costerfield is supervised by Chris Gregory (Member, Australian Institute of Geoscientists accredited Chartered

Professional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under National

Instrument 43-101. Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical information

contained in this presentation.

The exploration programs on the Cerro Bayo and La Quebrada projects are supervised by Ronald Luethe (Member: American Institute of

Professional Geologists and an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person as

defined under National Instrument 43-101. Mr. Luethe visits the Cerro Bayo and La Quebrada projects often, supervises the collection and

interpretation of scientific and technical information contained in this presentation.

Dr. Mark Sander (Member: AusIMM), President of Mandalay, has visited the Costerfield, Cerro Bayo, and La Quebrada projects several times

during 2010, 2011, 2012 and 2013 and has supervised the preparation of this presentation. He has also visited the Challacollo project in 2013

and 2014.

All currency references in US$ unless otherwise indicated

Forward-looking Statements

2

Vision

3

To create exceptional shareholder value through the acquisition of undervalued assets that

can rapidly become cash generative, self fund exploration, establish and maintain high

operating margins and return cash to shareholders within a planned period of time.

Mandalay is committed to operating safely and in an environmentally responsible manner,

while developing a high level of community and employee engagement.

Locations and Tradeflows

4

5

Strategy: Rapid Value Generation and Returns

Entry Strategy:

Acquire high-quality assets at a low cost

relative to ultimate value

Apply management’s extensive operational

and exploration expertise to turn around, grow

and/or develop the assets

Focus on cash returns to shareholders and

prudent use of leverage

Operationally, Mandalay is focused on:

High-margin projects where the Company can

achieve rapid production ramp-ups from

restarts, turn around situations or late-stage

development

Early cash flow to fund exploration, growth and

operational improvements

Building critical mass through acquisition

Capital strategy: Reduce dilution and return

cash to shareholders

Announced dividend policy, currently paying

annualized dividend of 6% of gross revenue(2)

NCIB: Repurchasing up to 5% of the Company

from operational cash flow over 1 year

Dividend Declarations ($CAD MM)

5

Strategy: Rapid Value Generation and Returns

20.6

92.2

171.8 166.9

83.0

2010 2011 2012 2013 2014 (Q1+Q2)

Increase Revenues ($MM)

1.7

32.0

79.967.7

32.4

2010 2011 2012 2013 2014 (Q1+Q2)

Generate Cash(EBITDA - $MM (1))

Focus and Results

$0

$5

$10

$15

$20

2010 2011 2012 2013 2014

C$

MM

$3.2

Dividend Declarations (C$ MM)

$10.9

$7.3

(1) The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA is presented because the Company

believes it is a useful indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net income

or cash flow as determined in accordance with IFRS.

(2) 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.

Mandalay Q2 2014 Financial Performance

6

Mandalay Q2 2014 Operational Performance

Q2, 2014 2013YE Q2, 2013 2012YE

Saleable Silver oz produced 741,382 3,145,537 921,895 2,911,595

Saleable Gold oz produced 14,079 50,240 13,046 35,125

Saleable Antimony t produced 855 3,275 738 2,481

Q2, 2014 2013YE Q2, 2013 2012YE

Net Cash/All-in Cost/oz Ag at Cerro Bayo, $ 5.83 / 12.08 6.84 / 12.07 6.12 / 11.54 5.67 / 10.70

Net Cash/All-in Cost/oz Au Eq. at

Costerfield, $

989 / 1,278 819 / 1,062 917 / 1,178 1,112 /

1,304

EBITDA, $ million 16.4 67.7 11.0 79.9

Net Income, $ million 4.9 29.4 3.1 41.7

Cash and cash equiv., $ million 69.0 33.5 23.9 17.3

Discovery-fuelled Organic Growth

7

Significant M&I Resource Growth (1,2,3,4)

P&P Reserve Growth (1,2,3,4)

0

20,000,000

40,000,000

60,000,000

2010 2011 2012 2013

Ag (cont. oz)

0

200,000

400,000

600,000

2010 2011 2012 2013

Au (cont. oz)

0

10,000

20,000

30,000

40,000

2010 2011 2012 2013

Sb (cont. t)

1 Source: Cerro Bayo - Roscoe Postle Associates, March 2014, documented in an independent NI 43-101 report filed March 28, 2014

2 Source: Costerfield - SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014

3 Source: Challacollo – Roscoe Postle Associates, Jan. 30, 2014, in a report filed Feb. 7, 2014

4 Source: La Quebrada – Independent Technical Report filed Aug. 16, 2012

0

200

400

600

2012 2013

Cu (MMlbs)

14,000,000

15,000,000

16,000,000

17,000,000

18,000,000

19,000,000

2011 2012 2013

Ag (cont. oz)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013

Au (cont. oz)

0

10,000

20,000

2011 2012 2013

Sb (cont. t)

Total Reserves: 31-December-2013Ag

(cont. oz)

Au

(cont. oz)

Sb

(cont. t)

Mandalay Proven Reserves 4,705,000 61,000 3,000

Mandalay Probable Reserves 13,197,000 240,000 12,000

Mandalay P&P Reserves 17,902,000 301,000 15,000

Production Growth 2014E

8

$8-$9 million $6-$7

million

$3-$4million

Capital Expenditure(PP&E)

Capital Development

Capitalized Exploration

1.3 million

2.9 million

3.1 million 3.0 - 3.2 million

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2011 2012 2013 2014E

Silver (oz)

12,244

17,089

21,482

23,000–27,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013 2014E

Gold (oz)

6,678

18,036

28,758

37,000–43,000

0

10,000

20,000

30,000

40,000

50,000

2011 2012 2013 2014E

Gold (oz)

Costerfield Budget and Production(2014E)

Cerro Bayo Budget and Production(2014E)

$11-$12million

$13-$14 million

$4-$5million

Capital Expenditure(PP&E)

Capital Development

Capitalized Exploration

1,576

2,481

3,2753,000 –3,300

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2011 2012 2013 2014E

Antimony (Sb)

Challacollo Budget (2014E)

$7 - $8 million

Feasibility &Exploration

(1) Exercise price: C$0.255 - C$1.13; Expiry date: Dec 7, 2014 - Mar 24, 2019(2) Exercise price: C$0.31 - C$0.465; Expiry date: Nov 30, 2014(3) Assuming C$ 1 = US$ 0.94(4) As of November 5, 2013, the directors and executive officers of the Corporation, as a group, beneficially owned, or controlled or directed, directly or indirectly, approximately

173,783,259 Common Shares, representing approximately 53.76% of the outstanding Common Shares

Capital Structure and Ownership

9

Major Shareholders(4)

Holders % Shares (Million)

West Face Capital 40.1% 137.0

Plinian + Management 9.7% 33.3

Sprott Asset Management 9.5% 32.3

Baker Steel Capital Managers 4.4% 15.0

U.S. Global Investors 2.5% 8.4

Shares, options, and warrants as at Aug 06, 2014Millions

(Except Share Price Information)

Share price (Aug 06, 2014 - close) (C$) 1.19/shr

Shares Outstanding 341.7

Options(1) 18.4

Warrants(2) 15.8

Fully Diluted Shares Outstanding 376.2

Market Capitalization (C$) 406.7

Cash and Cash Equivalents (US$) 69.0

Total Debt (US$) 60.0

Total Enterprise Value(3) (US$) 373.3

Funding Growth

10

Capital Requirements

2014 2015E 2016E

Cerro Bayo Growth Cerro Bayo Mine Expansion

(1,200 – 1,400 tpd):

$9 million

None None

Costerfield Growth -

(Cuffley)

Cuffley Lode Development:

$15 million

None None

Challacollo Challacollo Feasibility:

$6 million

Challacollo Permit & Build:

$15 million

Challacollo Build:

$60 million

Sustaining -

Costerfield & Cerro Bayo

Sustaining Capital:

$15 million

Sustaining Capital:

$15 million

Sustaining Capital:

$15 million

Yearly Capital

Requirements

$45 million $30 million $75 million

Total Capital Requirements (2014E – 2016E): ~$150 million

Sources of Funding

2014 – 2016

Starting Cash + Gold Exchangeable Financing Proceeds: $80 million

Uncommitted Operational Cash Flow (after Interest, Dividend, Tax, and Exploration) (2014E-2016E): $135 million(1)

Warrant Exercise (2014): $5 million

Total Cash Generation (estimated, not including asset sales): ~$220 million

Cash Headroom through Completion of Challocollo Development & 2016E: ~$70 million

(1) At metal prices: $1,300 Au; $21 Ag

11

$60 Million, Five Year 5.875% Gold Exchangeable Financing

The Company must repay $60 million or SPDR Gold Share equivalent of approximately

32,000 oz of gold after five years, whichever has greater value

5.875% annual coupon = $2.94 million interest cost per year

Exchangeable at lender’s option for SPDR Gold Shares at a price of $149.99 per share

(currently equivalent to a gold price of approximately $1,556/oz) – represents 20%

premium to April 29 gold price of $1,297/oz

Sinking fund of SPDR Gold Shares to be established in quarterly instalments over last

two years of term

Redeemable by Company (i) after three years if the closing price of the SPDR ETFs

exceeds 130% of the then prevailing exchange price or (ii) if 15% or less of the original

principal amount remains outstanding

Secured by first ranking pledge over Costerfield

12

Management Track Record: Execution, Value Creation

Company History and Milestones

2009 Q4 2010 2011 2012 2013 2014

Financial/

Corporate

• Acquired

Costerfield

gold-antimony

mine for

Mandalay

stock

• Listed on TSX

main board from

TSX-V

• Raised $23

million for

purchase and

restart of Cerro

Bayo silver-gold

mine

• Announced

Normal Course

Issuer Bid

(“NCIB”) to buy

back 5% of

Company’s

shares

• Completed

Substantial Issuer

Bid; reduced FD

share count by 8%

• Completed and

Renewed NCIB

• Paid $3.2 million in

dividends

• Extended credit

facility by $10

million

• NCIB renewed

• Paying $10.9

million in

dividends

(2013 est.)

• Completed

Challacollo

acquisition

• $60 million gold

exchangeable

financing

• Announced Elgin

Acquisition

Operational • Began

Production at

Costerfield

(Dec 2009)

• Began

production at

Cerro Bayo

(Sept 2010)

• Began milling &

shipping at

Cerro Bayo (Jan

2011)

• Increased

production at

both projects

• Doubled silver

reserves, boosted

gold reserves 85%

• Reached design

production at both

operations

• Extended

Costerfield mine

life to 4 years

• Began ramp up at

Cerro Bayo to

1,400 tpd

• Cerro Bayo ramp

up completed:

Q1 2014

• Initiated

Challacollo

feasibility study

(1) Peer group includes: Endeavour Silver, First Majestic Mines, Fortuna Silver, McEwen Mining, and Primero Mining

Share prices as at Aug 5, 2014

50

100

150

200

250

300

350

400

450

500

550In

dex (

Au

gu

st

3,

2009 =

100)

Mandalay Resources Peers (1) Gold Silver S&P/TSX Composite Index S&P/TSX Global Mining Index

Mandalay: 336%

(total return)

Peers: 176%

Silver: 38%

Gold: 33%

TSX Composite: 39%

TSX Mining: -6%

Q4 2009 - New Management Team

(Mills, Sander & Swarup)

Cerro Bayo Silver-Gold Mine

13

Land package 23,096 hectares

Ownership 100%

2013 silver production 3,145,537 oz

2013 gold production 21,482 oz

2014E silver production 3.0 – 3.2 Moz

2014E gold production 23,000 – 27,000 oz

Current throughput / Goal 1,400 tpd

P&P Reserves 2.5 Mt @ 224 g/t Ag; 2.2 g/t Au

Plant recoveries (Q1 2014) Ag: 91.0%, Au: 87.25%

2013A Cash costs/oz Ag

net Au credits / Q2 2014

$6.84 / $5.83

2014 Planned Exploration

Budget $3 – 4 million

Cerro Bayo Operating Performance

14

$0

$20

$40

$60

$80

0

50,000

100,000

150,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-2013

Q4-2013

Q2-2014

$/

Ton

ne

Ton

ne

s P

er Q

ua

rter

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$20

$40

$60

0

50,000

100,000

150,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14

$/

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

200,000

400,000

600,000

800,000

1,000,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14

$/

oz

Ag

Ne

t B

ypro

du

ct

Ou

nce

s Si

lve

r P

er

Qu

arte

r

Saleable Silver Produced & Unit Cost

Ag oz Cost/ oz Ag net Au

15

Cerro Bayo District: Target-rich Land Package

NI43-101 Reserve-Resource veins

2013 Infill and Step-Out Drilling

2012 New infill from 2011 Blue Sky successes

2013 Scheduled Blue Sky drill targets

2013- Field work to prep for 2014 drilling

Lucia

ChatitoSb Anomaly

Roadside

Brillantes

Cerro

Viento

Aquila

Sinter Hill

Laguna Verde

High level, Madre-

Aquila-Meseta

Cerro Bayo

Guanaco

Esperanza

Sb Anomaly

MarcelaRoadside

Cerro

Viento

Brillantes

Coigues

LAGUNA VERDE

Emerging Extensions and New Veins Under Laguna Verde

16

Cerro Bayo M&I Resource Growth Net of Depletion

171 Source: Cerro Bayo - Roscoe Postle Associates, March 2014, documented in an independent NI 43-101 report filed March 28, 2014

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2010 2011 2012 2013

OZS

Ag

END OF YEAR MEASURED PLUS INDICATED RESOURCES

Cerro Bayo M+I Resource Additions vs Depletion (Ag Ozs)

CUMULATIVE DEPLETION Dagny Fabiola Delia NW

Delia SE Marcela Sur Yasna Coyita

Dalila Bianca Trinidad Raul

2.4 X

Net

Add

Cerro Bayo Resources (1)Resource

(t)

Ag

Grade

(g/t)

Ag

(cont. oz)

Au

Grade

(g/t)

Au

(cont. oz)

Measured Resources 411,000 423 5,596,000 3.6 48,000

Indicated Resources 1,633,000 308 16,172,000 3.2 167,000

M&I Resources 2,044,000 331 21,768,000 3.3 214,000

Inferred Resources 433,000 400 5,580,000 3.3 46,000

Cerro Bayo

Reserves (1)

Ore

(t)

Ag

Grade

(g/t)

Ag

(cont. oz)

Au

Grade

(g/t)

Au

(cont.

oz)

Proven Reserves 516,000 283 4,705,000 2.5 41,000

Probable Reserves 1,967,000 209 13,197,000 2.1 134,000

P&P Reserves 2,483,000 224 17,901,000 2.2 174,000

Costerfield Gold-Antimony Mine: Overview

18

2014 Planned Exploration

Budget $4 – 5 million

Land package 1,293 hectares

Ownership 100%

2013 gold production 28,758 oz

2013 antimony production 3,275 t

2014E gold production 37,000 – 43,000 oz

2014E antimony production 3,000 – 3,300 t

Current throughput 400 tpd

P&P Reserves 420,000 tonnes @ 9.2 g/t Au; 3.6% Sb

Plant recoveries (Q1 2014) Au: 90.75%, Sb: 94.18%

2013A Cash cost/oz Au Eq. / Q2 2014 $819 / $989

Costerfield Operating Performance

19

$0

$100

$200

$300

$400

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14

AU

D/

Ton

ne

Ton

nes

Pe

r Q

uar

ter

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$20

$40

$60

$80

$100

$120

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14

AU

D/

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

$2,000

$2,500

$3,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14

USD

/ O

z A

u E

q.

Ou

nce

s P

er

Qu

arte

r

Au Equivalent Production and Cost

Oz Au Eq. Cost/ Au Eq. Oz

20

Costerfield – Long Section

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2009 2010 2011 2012 2013

OZ

Au

Eq.

END OF YEAR MEASURED PLUS INDICATED RESOURCES

Costerfield M+I Resource Additions vs Depletion (AuEq Ozs)

CUMULATIVE DEPLETION Augusta Brunswick Cuffley

21

Costerfield M&I Resource Growth Net of Depletion

Costerfield

Resources (1)

Resource

(t)

Sb

Grade

(%)

Sb

(cont. t)

Au

Grade

(g/t)

Au

(cont. oz)

Measured 191,000 4.3% 8,000 8.4 51,000

Indicated 605,000 3.7% 22,000 9.6 187,000

M&I 796,000 4.1% 32,000 9.3 238,000

Inferred 569,000 3.8% 22,000 7.4 135,000

Costerfield

Reserves (1)Ore

(t)

Sb

Grade

(%)

Sb

(cont. t)

Au

Grade

(g/t)

Au

(cont. oz)

Proven 71,000 4.4% 3,000 8.3 20,000

Probable 350,000 3.4% 12,000 9.4 106,000

P&P 420,000 3.6% 15,000 9.2 126,000

1 Source: Costerfield - SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014

3.8 X

Net

Add

Challacollo Silver-Gold Project: Overview

22

Land package 4,000 hectares

Ownership 100%

Location 130 km SE of Iquique, Chile

Mineralization Epithermal, oxidized Ag-Au

Elevation approx. 1,500 metres ASL

Resource Indicated: 1 mt @ 242 g/t Ag;

Inferred: 4 mt @193 g/t Ag

23

Plan funded from cash flow

• 12 mo Feasibility Study: $7 – $8 million

Environmental, community, cultural baselines for permitting

Drill 8,000 m for infilling existing Inferred Resource and extensions

Resource update

Metallurgical testing – crushing, grinding, agitation leach

Mine design, plant design

Capital and operating costing

Financial case and conversion to reserves

• Permitting

Submission of EIA Q1, 2015

Receipt of permits – Goal: EOY 2015

• Build

12 months build (est.) in 2016

• Production

First production – Goal: Q1 2017

Challacollo Development Plan

24

Lolon Vein

1 Source Challacollo: NI 43-101 Technical Report on the Challacollo Silver-Gold Project, Region 1, Chile. Effective date January 30, 2014.

Filed on SEDAR February 7, 2014.

Challacollo Resources (3)Resource

(t)Au Grade

(g/t)

Ag Grade

(g/t)

Au

(cont. oz)

Ag

(cont. oz)Measured Resources - - - - -Indicated Resources 1,030,000 0.4 242 13,000 8,000,000 M&I Resources 1,030,000 0.4 242 13,000 8,000,000 Inferred Resources 3,900,000 0.3 193 40,000 24,300,000

25

Peer Comparison: Production, Cost, Financials

2013A Production 2013A Financials

Ag

(oz)

Au

(oz)

Other Ag Eq (oz)

(Au + Ag)

Revenue

($MM)

EBITDA

($MM)

EBITDA Margin

(%)

Mandalay Resources 3,145,537 50,240 3,275 t Sb 5,886,848 166.9 67.7 40.6

Endeavour Silver 6,813,069 75,578 - 10,936,931 276.8 100.0 36.1

First Majestic Mines 10,641,465 10,040 16,000 t Pb+Zn 11,189,291 251.3 70.1 27.9

Fortuna Silver 4,631,264 21,242 19,000 t Pb+Zn 5,790,319 137.4 41.9 30.5

McEwen Mining 3,135,468 79,158 - 7,454,70 45.98 - -

Primero Mining 6,050,000 111,983 - 12,160,276 200.3 87.3 43.6

P+P Reserves Market Comparables

Ag

(oz)

Au

(oz)

Other Reserve Grade

Ag Eq (g/t)

(Au + Ag)

Market

Capitalization FD

(C$MM)

2013 EPS Last 12M

Dividend

Paid/Share

Mandalay Resources 17,902,000 301,000 15,000t Sb 568 458.9 $0.09 $0.03939

Endeavour Silver 11,603,200 139,400 - 270 688.3 ($0.90) $0

First Majestic Mines 108,627,132 - - 174 1,399.7 ($0.33) $0

Fortuna Silver 36,300,000 235,900 - 229 786.8 ($0.15) $0

McEwen Mining 14,724,500 200,606 - 899 914.9 ($0.50) $0

Primero Mining 64,814,000 2,243,000 - 146 1,225.3 ($0.04) $0

Source: Company reports and Bloomberg

Market capitalization as at Aug 5, 2014

Ag Eq oz converted at 55/1 Au/Ag. Metal prices: Ag price of $28.92 and Au price of $1,578

26

Peer Comparison: Production, Cost, Financials

0

100

200

300

400

500

600

700

800

900

1000

P+P Reserve Grade FullyDiluted Ag Eq (g/t)

Mandalay Resources

Endeavour Silver

First Majestic Silver

Fortuna Silver

McEwen Mining

Primero Mining

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2013 EBITDA Margin

$0

$5

$10

$15

$20

$25

$30

$35

Fully Loaded 2013 CashCost/Ag Eq oz

$0

$20

$40

$60

$80

$100

$120

$140

Market Cap per 2014EAg Eq Production (oz)

$0.000

$0.010

$0.020

$0.030

$0.040

$0.050

Last 12M Dividend Paidper Share

$0

$5

$10

$15

$20

$25

$30

$35

$40

Market Cap per P+PReserves (Ag Eq oz)

Market capitalization as at Aug 5, 2014

Ag Eq oz converted at 55/1 Au/Ag

Metal prices: Ag price of $28.92 and Au price of $1,578

Second highest grade

reserves

(Ag Eq oz)

Second highest EBITDA

margin

Lowest fully loaded cost

(Ag Eq oz)

Second lowest market

cap per estimated annual

production of Ag Eq oz

Second lowest market

cap per P+P reserves oz

Highest dividend paid per

share

27

Investment Proposition Execution-focused management with track record of acquisition, operational and exploration success,

growth and value generation

High-quality, cash flowing asset portfolio with major exploration upside and full project pipeline

Strong balance sheet, Challacollo development and capital programs funded

Rapid increase in production and margins through low-capex organic growth and operational

efficiencies

Returning cash to shareholders and reducing dilution – share buyback program in place

Company dividend policy based on 6% trailing revenues

Continued growth through further acquisitions

AUG2014

DELIVERING

VALUE AND GROWTH

For more information, please contact:

Greg DiTomaso

Tel: 647.260.1566

Email: g.ditomaso@mandalayresources.com

Company Website: www.mandalayresources.com

Twitter: @MandalayAuAg

29

Management and Board of Directors

Senior Management

Board of Directors

Brad Mills, CEO and

Executive Director

Former CEO Lonmin

plc, over 30 years of

experience in Copper,

Gold, PGMs

Mark Sander, President

28 years of experience in

exploration, strategy and

operating improvements

Sanjay Swarup, CFO

and Executive Director

Former Lonmin plc, over

20 years of industry

experience

Belinda Labatte,

Corporate Secretary

Over 10 years of

experience in capital

markets and investment

banking

Braam Jonker,

Chairman

Peter R. Jones,

Independent Director

Tony Griffin,

Independent Director

Robert Doyle,

Independent Director

Dominic Duffy, COO

Mining Engineer with

extensive technical and

operational management

experience

Numbers may differ slightly from source documents due to rounding30

Mandalay Reserves

Cerro Bayo Reserves (1)Ore

(t)

Ag Grade

(g/t)

Ag

(cont. oz)

Au Grade

(g/t)

Au

(cont. oz)

Proven Reserves 516,000 283 4,705,000 2.5 41,000

Probable Reserves 1,967,000 209 13,197,000 2.1 134,000

P&P Reserves 2,483,000 224 17,901,000 2.2 174,000

Costerfield Reserves (2)Ore

(t)

Sb Grade

(%)

Sb

(cont. t)

Au Grade

(g/t)

Au

(cont. oz)

Proven Reserves 71,000 4.4 3,000 8.3 20,000

Probable Reserves 350,000 3.4 12,000 9.4 106,000

P&P Reserves 420,000 3.6 15,000 9.2 126,000

TOTAL RESERVES:

31-December-2013

Ag

(cont. oz)

Au

(cont. oz)

Sb

(cont. t)

Mandalay Proven Reserves 4,705,000 61,000 3,000

Mandalay Probable Reserves 13,197,000 240,000 12,000

Mandalay P&P Reserves 17,902,000 301,000 15,000

1 Source: Roscoe Postle Associates, March 2014 documented in an independent NI 43-101 report filed March 28, 2014

2 Source: SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014

31

Mandalay Resources

Cerro Bayo Resources (1)Resource

(t)

Ag Grade

(g/t)

Ag

(cont. oz)

Au Grade

(g/t)

Au

(cont. oz)

Measured Resources 411,000 423 5,596,000 3.6 48,000

Indicated Resources 1,633,000 308 16,172,000 3.2 167,000

M&I Resources 2,044,000 331 21,768,000 3.3 214,000

Inferred Resources 433,000 400 5,580,000 3.3 46,000

Costerfield Resources (2)Resource

(t)Sb Grade

(%)

Sb

(cont. t)

Au Grade

(g/t)

Au

(cont. oz)

Measured Resources 191,000 4.3% 8,000 8.4 51,000

Indicated Resources 605,000 3.7% 22,000 9.6 187,000

M&I Resources 796,000 4.1% 32,000 9.3 238,000

Inferred Resources 569,000 3.8% 22 ,000 7.4 135,000

TOTAL RESOURCESAg

(cont. oz)Au

(cont. oz)Sb

(cont. t)Cu

(cont. lb)

Measured Resources 5,596,000 99,000 8,000 0

Indicated Resources 35,372,000 367,000 22,000 459,000,000

M&I Resources 40,968,000 465,000 32,000 459,000,000

Inferred Resources 30,280,000 221,000 22,000 13,000,000

1 Source: Cerro Bayo - Roscoe Postle Associates, March 2014 documented in an independent NI 43-101 report filed March 28, 2014

2 Source: Costerfield - SRK Consulting (Australia), March 2014, documented in an independent NI 43-101 report filed March 28, 2014

La Quebrada Resources (4)Resource

(t)Cu Grade

(%)

Cu

(cont. lb)

Ag Grade

(g/t)

Ag

(cont. oz)Measured Resources 0 0 0 0 0

Indicated Resources 34,800,000 0.6% 459,000,000 10 11,200,000

M&I Resources 34,800,000 0.6% 459,000,000 10 11,200,000

Inferred Resources 1,000,000 0.6% 13,000,000 11 400,000

Challacollo Resources (3)Resource

(t)Au Grade

(g/t)

Ag Grade

(g/t)

Au

(cont. oz)

Ag

(cont. oz)Measured Resources - - - - -Indicated Resources 1,030,000 0.4 242 13,000 8,000,000 M&I Resources 1,030,000 0.4 242 13,000 8,000,000 Inferred Resources 3,900,000 0.3 193 40,000 24,300,000

3 Source: Challacollo – Roscoe Postle Associates, Jan, 30, 2014, in a report filed February 7, 2014.

4 Source: La Quebrada – Independent Technical Report filed 16-Aug-2012.

Significant Resource Increase Net of Depletion in 2013

Measured and Indicated

• Contained Sb increased by 52%

• Contained Au increased by 31%

• Contained Ag increased by 18%

Inferred

• Contained Ag increased by 811%

• Contained Au increased by 26%

• Contained Sb increased by 13%

Source of Additions

• Infilling Cuffley and N-lode

• Acquiring Challacollo

• Expanding Marcela etc.

Source of Additions

• Acquiring Challacollo

• Fabiola and Yasna extensions

32

Coyita Vein – Long Section

33

Yasna Vein – Long Section

34

200 m

50

m

75 m

Kasia Vein – Long Section

35

300 m

75 m

Irene Vein – Long Section

36

37

Safety, Health, Environment and CommunitySafety & Health Environment & Community Employees

ACTIONS

• Spending on S&H (including

safety training) has more than

tripled in last two years

• Focus on line management

safety leadership, systems and

behaviours

• Improved S&H safety

processes & compliance

• Implementation of DuPont

safety system in 2013 at both

operations

• Extensive training and

equipping of mine rescue team

at Cerro Bayo

• Nearly doubled spending in

2013 on community projects as

compared to 2012

• Environmental spend down by

approximately 60% at Cerro

Bayo (completed reclamations)

• Strengthened commitment to

local purchases & payrolls

• Development of new water &

waste solutions at Costerfield

• Supplying various workshops for

local community at Cerro Bayo

• University scholarships for local

school graduates at Cerro Bayo

• Employee selection process

continued to improved

• Focus on local hires including

management positions

• Increased hours of training in 2013

• High-level executive coaching for leadership team

RESULTS

• Improved rolling 12 month

LTIFR in 2013 vs 2012

• Improved return to work

performance

• Maintained high levels of

attendance at mine sites

• More prosperous local

communities

• Reduced impacted land area

• Zero incidences of unpermitted

discharge at both operations

• Successfully completed

reclamation programs at Furioso

and Cascada

• 3 year collective contract signed

with Cerro Bayo union in 2012

• Increased presence of local hires

among workforce and supervisors

• Significantly reduced employee

turnover rate at both mine sites

• More productive employees, a

significant factor in lower unit costs

Metal Price Update

38Source: Metal Bulletin

1,000

1,100

1,200

1,300

1,400

1,500

1,600

01

/Mar

/14

05

/Mar

/14

09

/Mar

/14

13

/Mar

/14

17

/Mar

/14

21

/Mar

/14

25

/Mar

/14

29

/Mar

/14

02

/Ap

r/1

40

6/A

pr/

14

10

/Ap

r/1

41

4/A

pr/

14

18

/Ap

r/1

42

2/A

pr/

14

26

/Ap

r/1

43

0/A

pr/

14

04

/May

/14

08

/May

/14

12

/May

/14

16

/May

/14

20

/May

/14

24

/May

/14

28

/May

/14

01

/Ju

n/1

40

5/J

un

/14

09

/Ju

n/1

41

3/J

un

/14

17

/Ju

n/1

42

1/J

un

/14

25

/Ju

n/1

42

9/J

un

/14

03

/Ju

l/14

Au

pri

ce U

SD/o

z

GOLD PRICE - DAILY SPOT LME

Actual Au-Price LME USD

15.00

17.00

19.00

21.00

23.00

25.00

27.00

01

/Mar

/14

05

/Mar

/14

09

/Mar

/14

13

/Mar

/14

17

/Mar

/14

21

/Mar

/14

25

/Mar

/14

29

/Mar

/14

02

/Ap

r/1

40

6/A

pr/

14

10

/Ap

r/1

41

4/A

pr/

14

18

/Ap

r/1

42

2/A

pr/

14

26

/Ap

r/1

43

0/A

pr/

14

04

/May

/14

08

/May

/14

12

/May

/14

16

/May

/14

20

/May

/14

24

/May

/14

28

/May

/14

01

/Ju

n/1

40

5/J

un

/14

09

/Ju

n/1

41

3/J

un

/14

17

/Ju

n/1

42

1/J

un

/14

25

/Ju

n/1

42

9/J

un

/14

03

/Ju

l/14

Ag

pri

ce U

SD/o

z

SILVER PRICE - DAILY SPOT LME

Actual Ag-Price LME USD

8,0008,5009,0009,500

10,00010,50011,00011,50012,000

01

/Mar

/14

05

/Mar

/14

09

/Mar

/14

13

/Mar

/14

17

/Mar

/14

21

/Mar

/14

25

/Mar

/14

29

/Mar

/14

02

/Ap

r/1

40

6/A

pr/

14

10

/Ap

r/1

41

4/A

pr/

14

18

/Ap

r/1

42

2/A

pr/

14

26

/Ap

r/1

43

0/A

pr/

14

04

/May

/14

08

/May

/14

12

/May

/14

16

/May

/14

20

/May

/14

24

/May

/14

28

/May

/14

01

/Ju

n/1

40

5/J

un

/14

09

/Ju

n/1

41

3/J

un

/14

17

/Ju

n/1

42

1/J

un

/14

25

/Ju

n/1

42

9/J

un

/14

03

/Ju

l/14

Sb p

rice

USD

/t

ANTIMONY PRICE - DAILY ROTTERDAM WAREHOUSE

Actual Sb-Price Market USD

2.70

2.90

3.10

3.30

3.50

3.70

01

/Mar

/14

05

/Mar

/14

09

/Mar

/14

13

/Mar

/14

17

/Mar

/14

21

/Mar

/14

25

/Mar

/14

29

/Mar

/14

02

/Ap

r/1

40

6/A

pr/

14

10

/Ap

r/1

41

4/A

pr/

14

18

/Ap

r/1

42

2/A

pr/

14

26

/Ap

r/1

43

0/A

pr/

14

04

/May

/14

08

/May

/14

12

/May

/14

16

/May

/14

20

/May

/14

24

/May

/14

28

/May

/14

01

/Ju

n/1

40

5/J

un

/14

09

/Ju

n/1

41

3/J

un

/14

17

/Ju

n/1

42

1/J

un

/14

25

/Ju

n/1

42

9/J

un

/14

03

/Ju

l/14

CU

pri

ce U

SD/l

b

COPPER PRICE - DAILY SPOT LME

Actual Cu-Price LME USD

Antimony Facts

39

140,000 t/y global market

• Sold either as metal ingots or various grades of antimony oxides and trioxides

• Primary use as fire retardant in fabrics and plastics (trioxides)

• Relatively minor uses in electronics, with possible new uses in development, e.g.

in batteries

• Ingredient of lead alloys as hardener (antimony metal)

• Consumption growth in line with global GDP growth

Market dominated and prices set by China

• Declining Chinese mine production as reserves depleted and environmental

controls strengthened, closing marginal mines

• Chinese beginning to invest in mines outside China

• Two dominant Chinese smelters, only one of which recovers Au

Gold Equivalent Ounces Calculation

40

***Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the period,

adding the three amounts to get a “total contained value based on market price”, and then dividing that total contained value by the average market price of Au in the period.

Average Au price in the period is the average of the monthly LME PM fix, average Sb price is the average of the monthly high and low Rotterdam warehouse prices, and average

Ag price is the average of the monthly London Broker’s silver spot price, all reported in www.metalbulletin.com. The monthly commodity prices are calculated as the average of the

daily prices, with holiday and weekend day prices carried forward from the last business day.

Au Eg. oz for each of the low range and high range guidance is calculated by multiplying (i) total Au oz by an assumed US$1,600/oz Au price, (ii) total Ag oz by an assumed

US$32.00/oz Ag price and (iii) total Sb tonnes times an assumed US$12,000/t Sb price, then, in each case, dividing by the assumed US$1,600/oz Au price.