1

ACQUISITION OF ELGIN MINING INC. June 2014

2

DISCLAIMER

Forward-looking Statements This presentation contains forward-looking statements within the meaning of securities legislation and which are based on the expectations, estimates and projections of management of the parties as of the date of this news release unless otherwise stated. Forward-looking statements are generally identifiable by use of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" or the negative of these words or other variations on these words or comparable terminology. More particularly, and without limitation, this presentation contains forward-looking statements and information concerning expectations regarding the consideration to be issued pursuant to the transaction, the ability of Mandalay and Elgin to consummate the transaction on the terms and in the manner contemplated thereby, the anticipated benefits of the transaction, the anticipated timing of the transaction, forecast production amounts and exploration and growth potential for both Mandalay and Elgin. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the time required to prepare and mail meeting materials to Elgin shareholders, the ability of the parties to receive, in a timely manner and on satisfactory terms, the necessary court, shareholder, stock exchange and regulatory approvals and the ability of the parties to satisfy, in a timely manner, the conditions to the closing of the transaction, as well as other uncertainties and risk factors set out in filings made from time to time by Mandalay and Elgin with the Canadian securities regulators, including, without limitation, Mandalay’s annual information form dated March 28, 2014 and Elgin annual information form dated March 21, 2014, both of which are available on SEDAR at www.sedar.com. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Technical Information Dr. Mark Sander (Member: AusIMM), President of Mandalay, has supervised the preparation of the technical and scientific information relating to Mandalay’s properties contained in this presentation. George Friesen, P.Eng., Qualified person for Elgin Mining Inc., has supervised the preparation of the technical and scientific information relating to Elgin’s properties contained in this presentation.

3

TRANSACTION HIGHLIGHTS

Mandalay’s core strategy is to acquire cash flowing or near cash flowing assets in geopolitically stable and mining-supportive jurisdictions that have excellent exploration potential and where Mandalay’s operational expertise can make a material difference to the performance of the asset in the short to medium-term. The Björkdal mine is an ideal fit for Mandalay as the third positive cash flowing asset in the Company’s portfolio.

Strong Management Team • Proven ability to optimize mining operations particularly narrow vein underground scenarios

Mid-Tier Producer Status with Re-Rating Potential • Adds immediate gold production at an annualized rate of 44,000 – 49,000 oz Au in 2014E (1) • Mandalay will have pro forma production of 200koz AuEq per annum (2)

• Maintains low cash cost advantage in Mandalay

Multi-Mine Production with Attractive Growth Profile • Three producing operations and one near-term growth project

Projects Located in Mining Friendly Jurisdictions • All operating mines and projects are located in low political risk jurisdictions: Chile, Australia and Sweden

Enhanced Financial Position • Accretive to Mandalay shareholders on all major metrics • Better able to fund the capital requirements and exploration programs for Björkdal going forward • Strengthens potential payments under Mandalay’s existing dividend policy (6% of trailing quarter gross revenue)

1

1. Based on Elgin’s 2014 guidance 2. Gold equivalency based on commodity prices of US$1,200/oz Au, US$21.50/oz Ag, and US$10,000/t Sb

2

3

4

5

4

TRANSACTION DETAILS

1. Based on Mandalay’s closing share price of C$0.90 as at June 3, 2014 2. Based on Mandalay’s cash and cash equivalents of US$20.0m as at March 31, 2014, proceeds from debt offering and Elgin’s cash of C$12.5m as at March 31, 2014

Structure:

• Acquisition of all of the outstanding common shares of Elgin via court-approved Plan of Arrangement • Each Elgin shareholder can elect either C$0.37 in cash or 0.4111(1) of a Mandalay Share, subject to pro-

ration based on a maximum cash consideration of C$25.0 million and maximum number of Mandalay Shares issued of 50.0 million.

Offer Value: • Total equity value of approximately C$70 million • 85% premium to Elgin’s last close on the TSX on June 3, 2014 (C$0.20) • 53% premium to Elgin’s 20-d VWAP on the TSX on June 3, 2014 (C$0.24)

Financial Position:

• Mandalay existing cash and cash equivalents of US$80 million as at March 31, 2014 (inclusive of debt) • US$60 million new gold-linked facility available to finance the acquisition and for general corporate

purposes • Transaction not subject to financing(2)

Other Terms:

• Customary non-solicitation covenants, subject to normal fiduciary outs • Right to match • Termination fee of C$2 million payable to Mandalay in certain circumstances • Unanimous support for the transaction and lockup agreements covering 41% of outstanding shares from

Elgin shareholders (including directors and officers of Elgin) • C$5 million bridge loan from Mandalay to Elgin to repay existing bridge financing – six month term,

convertible into Elgin shares at $0.1565 per share

Conditions:

• 66⅔% approval by Elgin shareholders • No material adverse change • Customary regulatory and court approvals • Final resolution of certain reclamation obligations related to Elgin’s historic coal mining operations in

Kentucky • Other customary conditions

5

71 74 75 77

81 85

90 93 93 94 94 95

ChileBotswana

GreenlandFrance

New ZealandNorway

AustraliaUSA

IrelandCanadaFinland

Sweden

ASSET OVERVIEW

Challacollo Silver-Gold Project Location: 130 km SE of Iquique, Chile Ownership: 100%

Resources: Indicated: 1 mt @ 242 g/t Ag Inferred: 4 mt @193 g/t Ag

Costerfield Gold-Antimony Mine Location: Australia Ownership: 100%

2013A production: 28,758 oz Au 3,275 t Sb

2014E production: 37,000 – 43,000 oz Au 3,000 – 3,300 t Sb

Reserves: 178,000 tonnes @ 8.9 g/t Au; 4.1% Sb

Cerro Bayo Silver-Gold Mine Location: Chile Ownership: 100%

2013A production: 3,145,537 oz Ag 21,482 oz Au

2014E production: 3.0 – 3.2 Moz Ag 23,000 – 27,000 oz Au

Reserves: 2.3 Mt @ 241 g/t Ag; 2.2 g/t Au

Björkdal Gold Mine Location: Sweden Ownership: 100% 2013A production: 46,946 oz Au 2014E production: 44,000 – 49,000 oz Au Reserves: 7.6 Mt @ 1.33 g/t Au; 0.3MozAu

Non Core Assets La Quebrada Chile Cu-Ag Lupin & Ulu Canada Au

Three producing precious metal mines in safe political jurisdictions with a pipeline of advanced-stage development projects

Producing mine Development project Non-core asset

2013 Fraser Institute Country Rankings (1)

1. Based on Fraser Institute’s annual Survey of Mining Companies for 2013

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BENEFITS FOR SHAREHOLDERS

The transaction has received unanimous approval from both Mandalay and Elgin’s board of directors; management believe there is significant benefits for all shareholders

Significant and immediate premium to Elgin’s common share price, representing 85% to the closing price and 53% to the 20 trading day VWAP of Elgin common shares

Strong re-rate potential as Mandalay continues to grow to a mid-tier profitable producer

Diversifies asset base while remaining in politically stable jurisdictions

Mandalay Quarterly Dividend Program – 6% of trailing quarter’s gross revenue (amounted to 3.429¢/sh in 2013) – on all production, not just Björkdal

Continued exposure to Elgin’s assets plus exposure to Mandalay’s high grade Costerfield and Cerro Bayo mines

Provides the cash and balance sheet to accelerate the continued ongoing growth at Björkdal

Improves market presence and liquidity

Benefits for Elgin Shareholders Benefits for Mandalay Shareholders

Adds a third producing and cash flow generating mine in a mining friendly jurisdiction to Mandalay’s existing operations

Increases and diversifies Mandalay’s production profile by adding Björkdal’s annual production of ~50koz Au to Mandalay’s current 130-143koz/yr AuEq annual production rate

Opportunity to generate additional value through Mandalay’s demonstrated capabilities to grow production, lower costs and increase reserves to Björkdal’s operations in the near term

Accretive to Mandalay shareholders on all major metrics

Provides Mandalay with positive EBITDA and cash flow at current gold prices and current AISC levels at Björkdal

Includes large resources and excellent exploration potential for potentially long mine life and/or significant organic growth profile

Demonstrates Mandalay’s continued business development success in being able to add high value assets to its portfolio at attractive prices

Offers the potential for a substantial re-rating of Mandalay to a multiple in line with or superior to other mid-tier precious metals producers

7

COMBINED COMPANY OVERVIEW (1)

TSX Closing Price: (June 3, 2014) C$0.90

Shares O/S: (Basic) 334.8M

Shares O/S: (FDITM) 367.6M

MCAP – Basic:

(C$) C$301M

MCAP – FDITM: (C$)

C$331M

Cash & Equivalents: (2,3) (C$)

C$87M

Debt:(3) (C$)

C$65M

Enterprise Value: (C$)

C$280M

MANDALAY ELGIN PRO FORMA

1. US/CA rate of 0.9174 2. Based on Mandalay and Elgin’s last reported cash and cash equivalents as at March 31, 2014, including estimated transaction costs of C$11 million, including assumed $25 million cash component of offer 3. Adjusted for US$60 million debt offering, completed May 14, 2014

TSX Closing/Offer Price:

(June 3, 2014) C$0.20 C$0.37

Shares O/S: (Basic) 173.4M

Shares O/S: (FDITM) 188.8M

MCAP – Basic: (C$) C$64M

MCAP – FDITM: (C$)

C$70M

Cash & Equivalents:(2) (C$)

C$14M

Debt: (C$)

C$10M

Enterprise Value: (C$)

C$60M

TSX Share Price: (C$) C$0.90

Shares O/S: (2) (Basic) 384.6M

Shares O/S: (FDITM) 417.4M

MCAP – Basic: (C$) C$365M

MCAP – FDITM: (C$)

C$401M

Cash & Equivalents:(2,3) (C$)

C$101M

Debt:(3) (C$)

C$75M

Enterprise Value: (C$)

C$340M

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46%

37%

17%

Gold

Silver

Antimony

41%

34%

25%

Chile

Australia

Sweden54%

46% Chile

Australia

PRODUCTION DIVERSIFICATION

Enhanced exposure to gold and diversifies production across three politically stable countries

60%

27%

13%

Gold

Silver

Antimony

Mandalay 2014 AuEq Production (1,2) Mandalay Pro Forma 2014 AuEq Production (1,2,3)

Geography

1. Gold equivalency based on 2014 commodity prices of US$1,300/oz Au, US$21.50/oz Ag, US$10,000/t Sb 2. Mandalay 2014E production of 65koz Au, 3.1Moz Ag, 3.15kt Sb converted into gold equivalent (Cerro Bayo: 25koz Au, 3.1Moz Ag; Costerfield: 40koz Au, 3.15kt Sb) 3. Elgin 2014E production of 46.5koz Au

Commodity

Geography

Commodity

9

19 37

54 64 34

65

73 76

23

53

102

127

164

0

50

100

150

200

250

2011 2012 2013 2014E(2)

Costerfield Cerro Bayo Björkdal

PRODUCTION GROWTH

Acquisition of Elgin enhances Mandalay’s current and future production growth

Gold Equivalent Production Growth

1. Gold equivalent production based on 2014 commodity prices of US$1,300/oz Au, US$21.50/oz Ag, US$10,000/t Sb 2. Björkdal production pro rated for half year of production under Mandalay ownership based on Elgin full year 2014 production guidance

10

SWEDEN – A TOP MINING JURISDICTION

Sweden boasts; a stable political and financial regime as well as a long history of organized mining dating back to the 9th century

#1 ranking from Fraser Institute Finland and Norway also rank high

22% corporate income tax

Free repatriation of earnings

Stable permitting rules

Opportunities for aggregation and consolidation exist in the area;

relatively underexplored

Highly effective work force Mining management Process improvement orientation Adept at mechanization Safety orientation & performance

Very low power costs

Mining equipment manufacturing headquarters

English works for technical communication

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BJÖRKDAL – THE MINE (SWEDEN)

35 km from Skelleftea and airport 50 km from Boliden – mining centre Paved access Local agrarian economy and workforce Power: US$0.06/kwh (2013) and US$$0.05/kwh (2014)

Lake Zone (new discovery)

Pit

Stockpiles

Underground

Source: Elgin company disclosure

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BJÖRKDAL MINERALIZATION

In footwall of folded thrust 70+ veins Mineralized down dip for about 80m below thrust Open down-plunge

Coarse free gold in sheeted quartz veins

Source: Elgin company disclosure

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BJÖRKDAL OPERATIONS

An attractive asset with continued optimization potential

ASSET OVERVIEW – Similar challenges to those faced by Mandalay at Cerro Bayo and Costerfield A narrow vein, nuggety ore body that is highly levered to grade control Understanding gold deportment and executing proper sampling and mapping key to success Strengthened geology/mining team to ensure proper planning and execution Focus on reducing dilution from both underground and open-pit mines Open Pit

Grade control drilling in pit and employment of experienced pit geologists New pit contractor at lower rate with new equipment

Underground

Successful transition to owner-operated equipment (in Q3-2013 with full transition in Q4-2013) which reduced dilution and allows for better mine planning and also reduced mining costs

Increasing ore feed to mill from underground as overall composition of 3,700 tpd mill feed New “grade control” drill in operation providing better data for stope design and layout

Mill Metallurgical characteristics allow 88-90% recovery through gravity concentration Environmentally benign - no cyanide Simple, expandable mill employing gravity concentration with no leach tanks and no reagents Low sustaining capex Long life asset having produced over 1 million ounces of gold since start-up in 1988 and having M&I resource of 1.0Moz as at March 2013

2014 GUIDANCE Expected production between 44,000-49,000 ozs at cash costs of $886-982/oz and AISC of $1,106-1,227/oz Continue focus on developing and mining higher grade underground zones Maintain ongoing grade control focus in open pit to sustain grade at ±1 g/t

Source: Elgin investor presentation, annual information form, other Elgin company disclosure

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Plan View

BJÖRKDAL UPSIDE POTENTIAL

Optimization Plan Moving Forward

Expansion Potential

In 2013, developed new mine plan alongside a move from contractor to owner-operated fleet In-pit targets will be drilled in 2014, improving grades and decrease LOM strip-ratio Drill program planned to evaluate the nearby near surface, open pit Ronnberget target with several historic high gold grade drill results Several near mine open pit targets being evaluated for 2014 drilling program

Source: Elgin investor presentation, annual information form, other Elgin company disclosure

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GROWTH PROJECTS

Upon completion of the transaction, Mandalay will continue developing several immediate growth prospects

Cerro Bayo (Expansion) Follow-up of recent exploration success on extensions of veins currently in reserves. Expansion of mine capacity through enhanced access with 5 of 12 veins with booked reserves currently accessed for mining Expansion of mill throughput from 1,200 tpd to 1,400 tpd achieved in Q2-2014

Process facility rated at 1,650 tpd, leaving room for further increase depending on exploration success Costerfield Cuffley lode now in production, supplying high grade feed for Costerfield mill

Increase in head grade as proportion of Cuffley feed grows, will raise production rate Four year mine life Extension and infill drilling targeting further extension of mine life in 2014 Increase in sublevel spacing lowering cost

Challacollo (Feasibility) Indicated resources of 8.0Moz Ag, 13.4koz Au, inferred resources of 24.3Moz Ag, 40.1koz Au(1)

Feasibility study underway – expected Q4-2014 Björkdal (Expansion) Alternative production growth strategies

More selective mining to raise head grades at current mine tonnage production rates Ore sorting to increase head grades at current processing rates Mill expansion

Capital costs are projected to be low given the simple mill flow sheet encompassing only crush/grind, gravity, and flotation concentration

Mine capital required is also low given ramp access with no shaft

(1) NI 43-101 Technical Report On The Challacollo Silver-Gold Project, Region 1, Chile Qualified Person: Luke Evans, M.Sc., P.Eng. Filed: January 30, 2014

16

747

2,598

979

324

1,010

1,156 1,071

3,608

2,136

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Reserves M&I Resources Inferred Resources

Koz A

u Eq

(6)

Elgin

Mandalay

RESERVES & RESOURCES

1. Source: NI 43-101 Technical Report On The Cerro Bayo Project, Region Xi (Aisén), Chile, Qualified Persons: Normand L. Lecuyer, P.Eng. Rosmery Julia Cárdenas Barzola, Mausimm Cp (Geo) Filed: March 27, 2014 2. Source: NI 43-101 Technical Report On Costerfield Operation, Victoria, Australia, Prepared By: Srk File Date: March 28, 2014 3. Source: NI 43-101 Technical Report On The Challacollo Silver-Gold Project, Region 1, Chile Qualified Person: Luke Evans, M.Sc., P.Eng. Filed: January 30, 2014 4. Source: Technical Report on La Quebrada Copper-Silver Project, Casa De Piedra Sector Region IV, Coquimbo Province, Chile, Filed: August 14, 2012 5. Source: Elgin Annual Information Form filed March 21, 2014 - Björkdal and Lupin 6. Equivalency based on Raymond James long term commodity price estimates of US$1,200/oz Au, US$21.50/oz Ag, US$10,000/t Sb, US$3/lb Cu 7. Numbers may not add due to rounding

Pro Forma Reserves & Resources(1,2,3,4,5) (Gold Equivalent Ounces)

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$1,153 $1,123

$935

$615 $543

$341 $276 $255

Alamos Primero AuRico Rio Alto (2) Argonaut New Mandalay Mandalay Timmins

COMPARABLE COMPANY ANALYSIS

Market Capitalization and Dividend Yield (US$ millions / %)

Mineral Resources (1) (US$/oz Gold Equivalent Ounces)

Re-rating potential

1. Source: CapIQ, consensus analyst production estimates, SEDAR, public company disclosure, Fortuna cash cost guidance only quoted in AISC

Yield 2.4% 0% 2.1% 0% 0% 0% 3.3%

$154

$101

$62 $61 $57 $55

$37 $28

Primero AuRico Timmins New Mandalay Alamos Mandalay Argonaut Rio Alto (2)

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COMPARABLE COMPANY ANALYSIS

P / NAV (3)

Peer Group 2014E Production (1) (Attributable Gold Equivalent Ounces)

1. Source: CapIQ, consensus analyst production estimates, SEDAR, public company disclosure 2. Pro forma combination with Sulliden 3. Selected consensus research estimates, Raymond James investment banking estimates for Mandalay and New Mandalay

1.08x

0.90x 0.86x

0.77x 0.73x 0.69x 0.68x 0.57x

Primero AuRico Timmins Alamos Mandalay Rio Alto (2) New Mandalay Argonaut

220 215 202

164 160 146 138

123

AuRico Rio Alto (2) Primero New Mandalay Alamos Mandalay Argonaut Timmins

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APPENDIX

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MINING IN SWEDEN

Sweden was the birth place of the first public mining company in the world, STORA Kopparberg

Sweden is the largest producer of iron, the second largest producer of silver, gold, lead and zinc and the third largest producer of copper in the EU

Based on a survey done by the Fraser Institute of more than 4,100 mining companies, Sweden ranked as the #1 country in the world for mineral investment for 2013

Attractiveness includes: Stable exchange rates to US dollar Since 1992, no Statutory State holdings 22% corporate tax rate and no mineral tax Well-developed access & infrastructure Mature, well-defined environmental requirements & permitting

process

SKE:USD Exchange Rate History

Mines in Sweden (2009)

Sweden boasts a stable political and financial regime as well as a long history of organized mining dating back to the 9th century

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

Apr-

93

Apr-

95

Apr-

97

Apr-

99

Apr-

01

Apr-

03

Apr-

05

Apr-

07

Apr-

09

Apr-

11

Apr-

13

SEK/

USD

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BJÖRKDAL HISTORICAL PRODUCTION

Björkdal has been a stable gold producer over the past two years with consistent cost metrics

Production History Four months

(13-months) ended Operating Data FY2013 Q4-2013 Q3-2013 Q2-2013 Q1-2013 FY2012 Q4-2012 Q3-2012 June 30 2012 Q1-2012 Open Pit (tonnes) 515,225 153,121 139,385 100,807 121,912 617,059 128,965 139,128 193,238 155,728 Open Pit (g/t) 0.96 0.99 0.81 1.1 0.97 0.98 1.12 1.15 0.87 0.86 Underground (tonnes) 699,880 155,485 184,566 219,350 140,479 627,243 139,002 131,712 215,004 141,525 Underground (g/t) 1 .63 2.13 1.45 1.51 1.5 1.51 1.65 1.37 1.45 1.59 Stockpile (tonnes) 46,263 6,369 4,490 2,730 32,674 140,796 38,859 57,507 24,188 20,242 Stockpile (g/t) 0.6 0.56 0.65 0.55 0.61 0.74 0.77 0.55 0.86 1.08 Tonnes milled (tonnes) 1,261,368 314,975 328,441 322,887 295,065 1,385,098 306,826 328,347 432,430 317,495 Plant throughput (tpd) 3,456 3,424 3,570 3,548 3,279 3,489 3,335 3 ,569 3,545 3,489 Average plant head grade (g/t) 1.32 1.55 1.17 1.37 1.18 1.2 1.32 1.13 1.16 1.2 Average plant recovery rate 87.8% 88.0% 87.3% 86.7% 89.40% 87.8% 87.8% 87.6% 87.6% 88.5% Gold (oz) - Produced 46,946 13,818 10,751 12,343 10,034 46,808 11,401 10,460 14,121 10,826 - Sold 46,535 13,482 10,464 11,945 10,644 46,529 12,572 9,463 13,744 10,750 Average realized gold price (USD/oz) 1,324 1 ,216 1,283 1,219 1,618 $1,658 1,608 1,800 $1,571 1,700 Cash cost per gold ounce sold (USD/oz) 1,120 953 1,119 1,198 1,246 $1,023 938 1,052 $1,071 1,033 Cash operating margin per ounce sold (USD/oz) 204 264 164 21 372 $635 670 748 $500 667

(1) Source: Elgin Mining Inc. Management Discussion And Analysis For The Year Ended December 31, 2013

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1.3

2.9 3.1 3.2 0.7

1.0 1.2

1.5

2.0

3.9 4.3

~4.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2011 2012 2013 2014E

Silv

er P

rodu

ctio

n (M

oz A

g Eq

.)

Silver Production Gold Production

Capital Exploration

CapEx (PP&E)

Capital Development

The Au-Ag mine is located in the Cerro Bayo district of southern Chile; access via an all weather road

Production from multiple underground mines; 2013A production of 3.2M oz Ag and 22k oz Au @ cash costs of $6.84/oz Ag Eq

Production ramp-up to 1,400 tpd completed

Estimated 2014 production of ~3.0 – 3.2 M oz Ag @ a cash cost between $6 - $8/oz, net of Au credit

23k ha land package with significant exploration upside; currently has the highest reserve estimate in mine’s history

Production Profile

Acquired in 2010 from Coeur Mining while on care and maintenance

CERRO BAYO

$3M-$4M

$8M-$9M

$6M-$7M

2014 Cerro Bayo Capital Budget (1)

(1) Gold production converted into silver equivalent production using Raymond James long term commodity prices of $21.50/oz Ag, $1,200/oz Au.

23

7 18

29

43

13

21

27

27

20

39

56

70

-

10

20

30

40

50

60

70

80

2011 2012 2013 2014E

Gol

d Pr

oduc

tion

(Koz

Au

Eq.)

Gold Production Antimony Production

Immediately after purchase, Mandalay restarted the mine and has increased throughput from 5k tpm in 2010 to 10k -12k tpm in 2013

2013 production was 29k oz Au and 3.3kt Sb @ a cash cost of $819/oz Au Eq

2014 guidance of 37k – 43k oz Au and 3kt – 3.3kt Sb @ cash cost of $675 - $775/oz Au Eq

Cuffley currently developed and contributing mill feed

Production Profile

Located in Victoria, Australia, the Costerfield mine was acquired in 2009 from Western Coal

COSTERFIELD

Capital Exploration

CapEx (PP&E)

Capital Development

2014 Costerfield Capital Budget

$4M-$5M

$11M-$12M

$13M-$14M

(1) Antimony production converted into gold equivalent production using Raymond James long term commodity prices of $10,000/t Sb, $1,200/oz Au.

24

Challacollo is a silver deposit located in northern Chile, approximately 130km from the major port city of Iquique

Initial resource estimate was released in 2014; indicated resource of 8.0M oz Ag @ 242g/t Ag and 13.4k oz Au and inferred resource of 24.3M

oz Ag @ 193g/t Ag and 40.1k oz Au (2)

Acquired from Silver Standard Resources in February 2014 for cash/share consideration of ~US$17M and contingent payments (1)

CHALLACOLLO

(1) Upon commercial production, Mandalay will issue 5M shares to Silver Standard, make a cash payment equal to 240k oz Ag (over 8 quarters) and provide Silver Standard with a 2% NSR on any production over 36M oz Ag (cap/buyout of US$5M)

(2) NI 43-101 Technical Report On The Challacollo Silver-Gold Project, Region 1, Chile Qualified Person: Luke Evans, M.Sc., P.Eng. Filed: January 30, 2014

Challacollo Development 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