DELIVERINGVALUE AND GROWTH

FEB2014

This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life ofmine production plans and exploration plans and the growth and strategy of Mandalay. Readers are cautioned not to place undue reliance onforward-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 CerroBayo and Costerfield capital, production and operating cost results may not meet current plans, that reclamation costs associated withMandalay’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 hasattempted 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 beno assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated 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 CharteredProfessional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under NationalInstrument 43-101. Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical informationcontained in this presentation..

The exploration programs on the Cerro Bayo and La Quebrada projects are supervised by Ronald Luethe (Member: American Institute ofProfessional Geologists and an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person asdefined under National Instrument 43-101. Mr. Luethe visits the Cerro Bayo and La Quebrada projects often, supervises the collection andinterpretation 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 timesduring 2010, 2011, 2012 and 2013 and has supervised the preparation of this presentation. He has also visited the Challacollo project in 2013and 2014.

Forward-looking Statements

2

Vision

3

To create exceptional shareholder value through the acquisition of undervalued assets thatcan rapidly become cash generative, self fund exploration, establish and maintain highoperating 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

Mandalay Q4 2013 Financial Performance

5

Mandalay Q4 2013 Operational PerformanceQ4, 2013 Q4, 2012

Saleable Silver oz produced 878,542 895,222

Saleable Gold oz produced 12,117 10,927

Saleable Antimony t produced 805 785

*Cash position of US$27.7 prior to purchase of Challacollo mining project in February 2014.

Q4, 2013 Q4, 2012

Net Cash/All-in Cost/oz Ag at Cerro Bayo, USD 6.74 / 11.51 5.17 / 10.71

Net Cash/All-in Cost/oz Au Eq. at Costerfield, USD 850 / 1,085 943 / 1,153

EBITDA, USD million 13.9 28.8

Net Income, USD million 4.4 22.4

Cash and cash equiv. at end of period, USD million* 33.5 17.3

6

Management and Board of DirectorsSenior Management

Board of Directors

Brad Mills, CEO and Executive DirectorFormer CEO Lonminplc, over 30 years of experience in Copper, Gold, PGMs

Mark Sander, President28 years of experience in exploration, strategy and operating improvements

Sanjay Swarup, CFO and Executive DirectorFormer Lonmin plc, over 20 years of industry experience

Belinda Labatte, Corporate SecretaryOver 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, COOMining Engineer with extensive technical and operational management experience

**The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA is presented because the Companybelieves it is a useful indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net incomeor cash flow as determined in accordance with IFRS.***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.

7

Strategy: Rapid Value Generation and Returns

0.320.6

92.2

171.8

166.9

2009 2010 2011 2012 2013

Increase Revenues ($US MM)

-1.0 1.732.0

79.9

67.7

2009 2010 2011 2012 2013

Generate Cash(EBITDA - $US MM**)

Focus and ResultsEntry 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***

NCIB: Repurchasing up to 5% of the Company from operational cash flow over 1 year 2012 A 2013 A

$3.2

Dividend Payouts ($CAD MM) $10.9

(1) Exercise price: C$0.255 - C$0.83; Expiry date: Dec 7, 2014 - Mar 18, 2018(2) Exercise price: C$0.31 - C$0.465; Expiry date: Nov 30, 2014(3) Assuming US$ 1 = C$ 1.0421(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

8

Major Shareholders(4)

Holders % Shares (Million)

West Face Capital 40.9% 136.9

Plinian + Management 10.7% 35.8

Sprott Asset Management 10.0% 33.5

Silver Standard 3.6% 12.0

Arcourt (Byrne) 3.5% 11.7

Baker Steel 3.3% 11.1

Capital Structure as at February 13, 2014 Millions (Except Share Price Information)

Share price (Feb. 13, 2014 - close) (CAD$) 0.90/shr

Shares Outstanding 334.7

Options(1) 16.1

Warrants(2) 21.0

Fully Diluted Shares Outstanding 371.8

Market Capitalization (CAD$) 310.3

Cash and Cash Equivalents (CAD$) (as of Sept. 30, 2013)(3) 33.5

Total Debt (CAD$) (as of Sept. 30, 2013)(3) 0

Total Enterprise Value (CAD$) 276.8

9

Management Track Record: Execution, Value Creation

Company History and Milestones

2009 Q4 2010 2011 2012 2013Financial/Corporate

• AcquiredCosterfield gold-antimony mine for Mandalay stock

• Listed on TSX mainboard 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

• CompletedSubstantial 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.)

Operational • Began Production at Costerfield (Dec 2009)

• Began production atCerro 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

• Acquired Challacollo

50

100

150

200

250

300

350

400

450

500In

dex

(Aug

ust 3

, 200

9 =

100)

Mandalay Resources Peers* Gold Silver S&P/TSX Composite Index S&P/TSX Global Mining Index

Mandalay: 237% (total return)Peers: 130%Silver: 43%Gold: 36%TSX Composite: 27%TSX Mining: -11%

*Peer group includes: Coeur Mining, Endeavour Silver, First Majestic Mines, Fortuna Silver, and Primero MiningShare prices as at February 13, 2014

Q4 2009 - New Management Team (Mills, Sander & Swarup)

Cerro Bayo Silver-Gold Mine

10

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 approx. 1,200 tpd / 1,400 tpd (end Q1 2014)

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

Plant recoveries (FY 2013) Ag: 90.9%, Au: 87.8%

2013A Cash costs/oz Ag net Au credits / 2014E

$6.84 / $6 – $8

2014 Planned Exploration

Budget $3 – 4 million

Cerro Bayo Operating Performance

11

$0

$10

$20

$30

$40

$50

$60

$70

0

20,000

40,000

60,000

80,000

100,000

120,000

Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐2013

Q4‐2013

USD

/ To

nne

Tonn

es Per Qua

rter

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$10

$20

$30

$40

$50

$60

$70

0

20,000

40,000

60,000

80,000

100,000

120,000

Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 q4‐13

USD

/ To

nne

Tonn

es Per Qua

rter

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 USD

/ oz Ag Net Byprodu

ct

Oun

ces Silver Per Qua

rter

Saleable Silver Produced & Unit Cost

Ag oz Cost/ oz Ag net Au

12

Cerro Bayo District: Target-rich Land Package

NI43-101 Reserve-Resource veins2013 Infill and Step-Out Drilling

2012 New infill from 2011 Blue Sky successes2013 Scheduled Blue Sky drill targets

2013- Field work to prep for 2014 drilling

Lucia

ChatitoSb Anomaly

Roadside

Brillantes

Cerro Viento

AquilaSinter 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

Veins with ReservesSurface Trace

Veins with ReservesUnderground Trace

Target Extensions Under Laguna Verde

Reported Drill Intercepts

Cerro Bayo M&I Resource Growth Net of Depletion

141 Source: Cerro Bayo - Roscoe Postle Associates, Feb. 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb.13, 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 XNet 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 48,000Indicated Resources 1,633,000 308 16,172,000 3.2 167,000M&I Resources 2,044,000 331 21,768,000 3.3 214,000Inferred 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 41,000Probable Reserves 1,967,000 209 13,197,000 2.1 134,000P&P Reserves 2,483,000 224 17,901,000 2.2 174,000

Costerfield Gold-Antimony Mine: Overview

15

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 / 2014E 400 tpd / 400 tpd

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

Plant recoveries (FY 2013) Au: 89.98%, Sb: 95.37%

2013A Cash cost/oz Au Eq. (US$) / 2014E $819/ $675 – $775

Costerfield Operating Performance

16

$0

$100

$200

$300

$400

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

AUD/ To

nne

Tonn

es Per Qua

rter

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

AUD/ To

nne

Tonn

es Per Qua

rter

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

02,0004,0006,0008,000

10,00012,00014,00016,00018,000

Q4‐09(Dec. only)

Q2‐10 Q4‐10 Q2‐11 Q4‐11 Q2‐12 Q4‐12 Q2‐13 Q4‐13

USD

/ Oz Au Eq

.

Oun

ces Pe

r Qua

rter

Au Equivalent Production and Cost

Oz Au Eq. Cost/ Au Eq. Oz

Cuffley Mine Plan

17

Subparallel and adjacent to N-lodeSame mining technique as N-lode

• Long hole stoping 10 m lifts• CRF backfill

Cuffley Lode

N-lode

W-lode

E-lode

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 AuEq.

END OF YEAR MEASURED PLUS INDICATED RESOURCES

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

CUMULATIVE DEPLETION Augusta Brunswick Cuffley

18

Costerfield M&I Resource Growth Net of DepletionCosterfield Resources (1)

Categories

Resource(t)

SbGrade

(%)

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)

Categories

Ore (t)

SbGrade

(%)

Sb (cont. t)

Au Grade (g/t)

Au (cont. oz)

Proven 71,000 4.4% 3,000 8.3 20,000Probable 350,000 3.4% 12,000 9.4 106,000P&P 420,000 3.6% 15,000 9.2 126,000

1 Source: Costerfield - SRK Consulting (Australia), Feb. 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 2014

3.8 XNet Add

19

Costerfield – Long Section

Challacollo Silver-Gold Project: Overview

20

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

21

Plan funded from cash flow

• 12 mo Feasibility Study: $7 – $8 millionEnvironmental, community, cultural baselines for permittingDrill 8,000 m for infilling existing Inferred Resource and extensionsResource updateMetallurgical testing– crushing, grinding, agitation leachMine design, plant designCapital and operating costingFinancial case and conversion to reserves

• PermittingSubmission of EIA Q1, 2015Receipt of permits– goal EOY 2015

• Build12 months build (est.) in 2016

• ProductionFirst production – Goal: Q1 2017

Challacollo Development Plan

La Quebrada

22

Next steps:

Drilling for modest expansion of Casa de Piedra

District exploration – new concepts

Basic engineering studies

Conversation for district consolidation

La Quebrada Total Resources(1)

Rock (t) Ag Grade (g/t) Ag (cont. oz) Cu Grade (%) Cu (cont. lb)

Measured 0 0 0 0 0

Indicated 34,800,000 10 11,188,272 0.6% 459,360,000

Measured & Indicated 34,800,000 10 11,188,272 0.6% 459,360,000

Inferred 1,000,000 11 353,652 0.6% 13,200,000

(1) La Quebrada Independent Technical Report filed 16-Aug-2012.

Tugal Pit

Discovery-fuelled Organic Growth – 2013E & 2014E

30

$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

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

2011 2012 2013 2014E

Silver (oz)

12,244

17,08921,482

23,000–27,000

05,000

10,00015,00020,00025,00030,000

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)

0

200

400

600

2010 2011 2012 2013

Cu (cont. lbs MM)

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

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 Exploration1,576

2,481

3,2753,000 –3,300

0500

1,0001,5002,0002,5003,0003,500

2011 2012 2013 2014E

Antimony (Sb)

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, Feb. 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 20142 Source: Costerfield - SRK Consulting (Australia), Feb 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 20143 Source: Challacollo – Roscoe Postle Associates, Dec. 20, 2013, in a report filed Feb. 7, 20144 Source: La Quebrada – Independent Technical Report filed 16-Aug-2012. 2014E midpoints graphed.

24

Peer Comparison: Production, Cost, Financials

Source: Company reports and BloombergMarket capitalization as at February 13, 2014Ag Eq oz converted at 55/1 Au/Ag. Metal prices: Ag price of $28.92 and Au price of $1,578

P+P Reserves Market Comparables

Ag (oz)

Au (oz)

Other Reserve Grade Ag Eq (g/t)(Au + Ag)

Market Capitalization FD

(CAD$MM)

EPS Last 12M Dividend

Paid/Share

Mandalay Resources 18,250,000 214,000 7,200t Sb 361 334.6 $0.07 $0.03429

Coeur Mining 261,528,000 2,286,000 - 51 1,197.3 ($0.67) $0

Endeavour Silver 23,057,200 222,300 - 253 601.9 $0.26 $0

First Majestic Mines 90,800,000 0 - 161 1,557.9 $0.37 $0

Fortuna Silver 42,700,000 266,100 - 216 640.3 ($0.03) $0

Primero Mining 39,377,000 660,000 - 513 1,015.0 $0.31 $0

2013A Production 9M 2013A Financials

Ag (oz)

Au (oz)

Other Ag Eq (oz)(Au + Ag)

Revenue (US$MM)

EBITDA(US$MM)

EBITDA Margin (%)

Mandalay Resources 3,145,537 50,240 3,275 t Sb 5,886,848 127.8 53.8 42.1

Coeur Mining 17,012,000 262,217 - 31,319,691 577.2 145.9 25.3

Endeavour Silver 6,813,069 75,578 - 10,936,931 208.9 69.9 33.5

First Majestic Mines 10,641,465 10,040 16,000 t Pb+Zn 11,189,291 192.3 78.3 40.7

Fortuna Silver 4,631,264 21,242 19,000 t Pb+Zn 5,790,319 101.0 29.4 29.1

Primero Mining 6,050,000 111,983 - 12,160,276 152.6 71.2 46.7

25

Mandalay Compares Favourably to its Peers

0

100

200

300

400

500

600

P+P Reserve Grade Fully Diluted Ag Eq (g/t)

Mandalay Resources

Coeur Mining

Endeavour Silver

First Majestic Mines

Fortuna Silver

Primero Mining

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

9M 2013 EBITDA Margin

$0

$5

$10

$15

$20

$25

Fully Loaded 9M 2013 Cash Cost/Ag Eq oz

$0

$20

$40

$60

$80

$100

$120

Market Cap per 2014E Ag Eq Production (oz)

$0.000

$0.010

$0.020

$0.030

$0.040

Last 12M Dividend Paid per Share

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Market Cap per P+P Reserves (Ag Eq oz)

Market capitalization as at February 13, 2014Ag Eq oz converted at 55/1 Au/AgMetal 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

26

Investment PropositionExecution-focused management with track record of acquisition, operational and exploration success, growth and value generationHigh-quality, cash flowing asset portfolio with major exploration upside and full project pipelineStrong balance sheet, self-funding Challacollo development, zero net debt Rapid increase in production and margins through low-capex organic growth and operational efficienciesReturning cash to shareholders and reducing dilution – share buyback program in placeCompany paying sustainable dividend annualized at approximately 5%Continued growth through further acquisitions

DELIVERINGVALUE AND GROWTH

FEB2014

For more information, please contact:

Greg DiTomasoTel: 647.260.1566Email: g.ditomaso@mandalayresources.comCompany Website: www.mandalayresources.comTwitter: @MandalayAuAg

Numbers may differ slightly from Source documents due to rounding

28

Mandalay ReservesCerro 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, Feb. 2014 documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 20142 Source: SRK Consulting (Australia), Feb 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 2014

29

Mandalay ResourcesCerro 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 48,000Indicated Resources 1,633,000 308 16,172,000 3.2 167,000M&I Resources 2,044,000 331 21,768,000 3.3 214,000Inferred 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 51,000Indicated Resources 605,000 3.7% 22,000 9.6 187,000M&I Resources 796,000 4.1% 32,000 9.3 238,000Inferred Resources 569,000 3.8% 22 ,000 7.4 135,000

TOTAL RESOURCES Ag(cont. oz)

Au(cont. oz)

Sb(cont. t)

Cu(cont. lb)

Measured Resources 5,596,000 99,000 8,000 0Indicated Resources 35,372,000 367,000 22,000 459,000,000M&I Resources 40,968,000 465,000 32,000 459,000,000Inferred Resources 30,280,000 221,000 22,000 13,000,000

1 Source: Cerro Bayo - Roscoe Postle Associates, Feb. 2014 documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 20142 Source: Costerfield - SRK Consulting (Australia), Feb 2014, documented in an independent NI 43-101 report to be filed within 45 days of Feb. 13, 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 0Indicated Resources 34,800,000 0.6% 459,000,000 10 11,200,000M&I Resources 34,800,000 0.6% 459,000,000 10 11,200,000Inferred 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 8,000,000M&I Resources 1,030,000 0.4 242 13,000 8,000,000Inferred Resources 3,900,000 0.3 193 40,000 24,300,000

3 Source: Challacollo – Roscoe Postle Associates, Dec. 20, 2013, in a report filed February 7, 2014.4 Source: La Quebrada – Independent Technical Report filed 16-Aug-2012.

30

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

ACTIONS

• Spending on S&H (including safety training) 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

• Spent over 200% more in 2012 on environment & community projects as compared to 2011

• Commitment to local purchases & payrolls

• Development of new water & mine waste solutions at Costerfield

• Closure works completion at Furioso Mine Site

• Supplying various workshops for local community at Cerro Bayo

• University scholarships for local school leavers at Cerro Bayo

• Employee selection process improved

• Focus on local hires including management positions

• Increased hours of training in 2012 by +80% as compared to 2011

• High level executive coaching for leadership team

RESULTS

• Consolidated lost time injury frequency rate approximately halved

• 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

• 3 year collective contract signed with Cerro Bayo union in 2012

• Increased presence of local hires among workforce and supervisors

• Reduced employee turnover at mine sites

• More productive employees, leading to lower unit costs

Metal Price Update

31

1,0001,1001,2001,3001,4001,5001,6001,7001,800

01/O

ct/13

07/O

ct/13

13/O

ct/13

19/O

ct/13

25/O

ct/13

31/O

ct/13

06/N

ov/13

12/N

ov/13

18/N

ov/13

24/N

ov/13

30/N

ov/13

06/Dec/13

12/Dec/13

18/Dec/13

24/Dec/13

30/Dec/13

05/Jan/14

11/Jan/14

17/Jan/14

23/Jan/14

29/Jan/14

04/Feb

/14

Au price USD

/oz

GOLD  PRICE ‐ DAILY  SPOT LME

Actual Au‐Price LME USD

15.00

20.00

25.00

30.00

35.00

40.00

01/O

ct/13

07/O

ct/13

13/O

ct/13

19/O

ct/13

25/O

ct/13

31/O

ct/13

06/N

ov/13

12/N

ov/13

18/N

ov/13

24/N

ov/13

30/N

ov/13

06/Dec/13

12/Dec/13

18/Dec/13

24/Dec/13

30/Dec/13

05/Jan/14

11/Jan/14

17/Jan/14

23/Jan/14

29/Jan/14

04/Feb

/14

Ag price USD

/oz

SILVER  PRICE  ‐ DAILY  SPOT LME

Actual Ag‐Price LME USD

9,000

10,000

11,000

12,000

13,000

14,000

01/O

ct/13

07/O

ct/13

13/O

ct/13

19/O

ct/13

25/O

ct/13

31/O

ct/13

06/N

ov/13

12/N

ov/13

18/N

ov/13

24/N

ov/13

30/N

ov/13

06/Dec/13

12/Dec/13

18/Dec/13

24/Dec/13

30/Dec/13

05/Jan/14

11/Jan/14

17/Jan/14

23/Jan/14

29/Jan/14

04/Feb

/14

Sb price 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/O

ct/13

07/O

ct/13

13/O

ct/13

19/O

ct/13

25/O

ct/13

31/O

ct/13

06/N

ov/13

12/N

ov/13

18/N

ov/13

24/N

ov/13

30/N

ov/13

06/Dec/13

12/Dec/13

18/Dec/13

24/Dec/13

30/Dec/13

05/Jan/14

11/Jan/14

17/Jan/14

23/Jan/14

29/Jan/14

04/Feb

/14

CU price USD

/lb

COPPER PRICE ‐ DAILY SPOT LME

Actual Cu‐Price LME USD

Antimony Facts

32

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

33

***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 averageAg 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 thedaily 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 assumedUS$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.

Silver Equivalent Ounces CalculationAg Eq oz converted at 54/1 Au/Ag at metal prices: Ag price of $28.92 and Au price of $1,578.00