mandalay resources may 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 September 2, 2014, 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 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

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 or stakeholders, and co-ordinated across the

Company for maximum effect

Profitable and Dividend-Paying (2.6% yield)*

*Trailing 12 months dividends divided by current market capitalization (May 10, 2016)

3

2009

• Costerfield, Australia

• Gold & Antimony

2010

• Cerro Bayo, Chile

• Silver & Gold

2013

• Challacollo, Chile

• Silver & Gold

2014

• Björkdal, Sweden

• Gold

Delivering Strong Financial Results Across 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.

TIMELINE

2016 Quarterly

Financial

Measures

Revenue,

EBITDA(1) &

Cash from

Operations

Revenue

EBITDA

Cash from

Operations

$1.7

$32.0

$79.9$67.7 $64.4 $68.0

-$0.8

$30.6$61.2

$75.9

$52.4

$73.4

$20.6

$92.2

$171.8 $166.9$184.6 $194.5

-50

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015

US

$ M

M

4

Record

Revenue

2nd best EBITDA &

Cash from Operations

$50.4

$17.3

$7.3

0

25

50

75

100

Q1-2016

US

$ M

M

Based on Matched Production and Reserve Growth

With Continuing Low Cash and All-In Production Costs

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

Oz A

u E

q. Y

ear-

En

d R

eserv

es

Oz A

u E

q. A

nn

ual P

rod

ucti

on

165,000 –

180,000(1)

1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb

5

500

700

900

1,100

1,300

1,500

1,700

1,900

-

10,000

20,000

30,000

40,000

50,000

60,000

2010 2011 2012 2013 2014 2015 2016

$/O

z A

u E

q. (C

ost)

or

Au

(P

rice)

Au

Eq

. O

z/Q

tr

Consolidated Production, Cash Cost and All-in Cost

Production Cash Cost AISC Average Au price

EBITDA Margin

P&L Margin

And Adding Reserves Cost-Effectively


6

0

20

40

60

80

100

120

140

160

180

2010 2011 2012 2013 2014 2015

US

$/o

z A

u E

q.

P&

P A

dd

ed

Mandalay Cost of Acquiring and Exploring for 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

Exploration adds at

cumulative average

$50/oz Au Eq.

Acquisition + Exploration

adds at cumulative

average $78/oz Au Eq.

(for developed &

producing reserves)

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. End date as at January 14, 2016. 2. Peer Index: Argonaut, Dundee PM, Kirkland, Lake Shore, OceanaGold, Perseus, Primero, Timmins. 3. Gold Seniors: Agnico Eagle, AngloGold, Barrick,

Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Yamana. (4) End date as at April 19, 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 Q1-2016

Dividends Paid (USD)**

6% of revenues (dividend contribution)

50%

100%

150%

200%

250%

300%

Q3

2009

Q1

2010

Q3

2010

Q1

2011

Q3

2011

Q1

2012

Q3

2012

Q1

2013

Q3

2013

Q1

2014

Q3

2014

Q1

2015

Q3

2015

Q1

2016

Mandalay Cumulative Returns13.8% Annual Compounded Rate of ReturnGoldSilver

Cumulative Total Return (% Value Change)*

*Q3 2010 to Q1 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $0.89.

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

2

4

6

8

10

12

14

16

18

20

-$20,000

$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

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(4):

• Mandalay: $65,442• Peer Index: $10,401• Gold Seniors: $6,948

7

Record

Dividends

Trading Volume, Ownership and Coverage

Major Shareholders(1)

Holders Shares (Million) Shares (Percentage)

GMT Capital 62.4

Sentry Investments 42.1

Ruffer LLP 42.0

Plinian + Management + Directors 37.5

West Face Capital 35.3

Large Holders 217.6

Other Holders 198.5

TOTAL 416.1

Analyst Coverage

Firm Analyst

BMO Brian Quast

Desjardins Mike Parkin

Haywood Ben Asuncion

Raymond James Chris Thompson

Volume

30-day Average Daily Volume 712,000

100-day Average Daily Volume 1,097,000

15.0%

10.1% 10.1%

9.0%

8.5%

47.3%

8

Average Daily Volume across all trading platforms

As at May 10, 2016 Millions

(Except Share Price Info)

Share price (May 10, 2016 - close) (C$) 1.07/shr

Shares Outstanding 416.1

Options(1) 21.3

Fully Diluted Shares Outstanding 437.4

Market Capitalization (C$) $445.2

Cash and Cash Equivalents (US$) $40.7

Total Interest-Bearing Debt (US$) $58.0

Total Enterprise Value (US$)(2) $360.1

Net Debt (US$) $17.3

Last 12 Months EBITDA (US$) $61.0

Net Debt to EBITDA (Last 12 Mos.) 0.28x

Strong Balance Sheet

1. Exercise Price: C$0.58 – C$1.13 expiry dates ranging from April 11, 2016 - Mar 24, 2020

2. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.77 USD (May 10, 2016)

Debt and EBITDA numbers as at end Q1-2016

9

Reiterating Corporate Consolidated Guidance

2016E

Au oz Saleable Production 100,000 – 115,000

Ag oz Saleable Production 2.9 million – 3.3 million

Sb oz Saleable Production 3,000 – 3,500

Total Forecast Production Au Eq oz 165,000 – 180,000(1)

Total cash costs per saleable Au Eq oz $778

Total capex spend $31 million – $37 million

Total exploration spend $7 million


10

Corporate Consolidated Guidance – Production, Investment & Costs

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 420 tpd

Plant recoveries (Q1-2016) Au: 90.6%, Sb: 95.35%

2016 Planned Exploration Budget $2 million

1. As at year-end 2015, filed in Company’s Annual Information Form

11

Costerfield Continuous Improvement – New Records

$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

ne

s P

er

Qu

arte

r

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

nes

Per

Qu

arte

r

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$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

12

Costerfield Exploration: Sub-King Cobra Drill Results Find High Grades in Three Zones

CENTRAL

WESTERN

EASTERN

EASTERN

WESTERN

CENTRAL

13

Björkdal Gold Mine: Overview


Ownership 100%


Current throughput 3,500 tpd

Plant recoveries (Q1-2016) Au: 88.4%


1. As at year-end 2015, filed in Company’s Annual Information Form14

Björkdal Operating Performance and Improvements

$0

$10

$20

$30

0

100,000

200,000

300,000

400,000

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16

$/ T

on

ne

To

nn

es

Pe

r Q

ua

rte

r



$0

$10

$20

310,000

320,000

330,000

340,000

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15

$/

Ton

ne

To

nn

es

Pe

r Q

ua

rte

r



$700

$750

$800

$850

$900

$950

$1,000

0

5,000

10,000

15,000

Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16

$/ o

z A

u

Ou

nce

s G

old

Per

Qu

arte

r

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)

Pilot optical ore sorting – IN PROGRESS

Pilot coarse and ultra-fine gold float – DONE

15

Transitioning to Proper Longitudinal Grade Control

16

-

50

100

150

200

250

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16

Develo

pm

en

t A

dvan

ce (

m)

Accelerating Underground Development x 2

Underground metres - Monthly

Sampling every round

results in discarding

30-40% of material

Ore sorting at Björkdal Stockpiled Mixed Low-Grade Material

Sorted Waste – no veins Sorted Ore – with veins

Bulk Test Start Grade End Grade Times Upgraded Waste Rejection Gold Retained

g/t Au g/t Au (%) (%)

Underground Ore 1.93 2.97 1.54 43.0 87.0

Stockpile Ore 0.81 1.11 1.37 30.0 96.0

Pilot studies confirm that:

• Au is contained in fragments of

white quartz vein material, not in

black wallrock material

• Can optically sort out 40+% of

black rock and only lose a few %

of gold recovery

Potential to upgrade low-grade

material or even high-grade material

to increase mill head grade,

producing more gold from existing mill

capacity

Onsite pilot plant being commissioned

May, 2016

17

Björkdal Processing Improvements

18

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

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

Flotation circuit and ancillary equipment expansion study to

determine OPEX and CAPEX for a planned flotation circuit

expansion to improve flotation recovery and concentrate grade

19

NYLUNDS

Björkdal 2015 Drill Results

NYLUNDS

Expanding limits of Au mineralization

Cerro Bayo Silver-Gold MineLand package 23,106 hectares

Ownership 100%


Current throughput 1,400 tpd

Plant recoveries (Q1-2016) Ag: 91.5%, Au: 87.9%



20

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

$/ T

on

ne

Ton

nes

Per

Qu

arte

r



$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

$/

To

nn

e

Ton

nes

Per

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 $/ o

z A

g N

et 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

21


Emerging Extensions and New Veins Under Laguna Verde

COYITA

YASNA

Indicated

Slow drilling of long holes under lake

Coyita and Yasna only partially

infilled/extended in 2014 – 3.4 Moz

added in reserves

We expect at least as much again as

we complete drilling

COYITA

YASNA

22

New Target Testing 2016 Brillantes – Planned Drill Holes: 14

Multiple, multi-km outcropping veins with

better “appearance” than historic Laguna

Verde ore veins at surface and excellent

stratigraphic control showing we are above

favorable ore horizon

23

Drilling planned for 1H 2016

Cerro Bayo E.

– Planned Drill Holes: 18

Multiple, multi-km

outcropping veins adjacent

to historic CB mining area

Laguna Verde Norte

– Planned Drill Holes: 11

Wide spaced target testing

(blue holes) under

previously undrilled parts of

lake

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

Invest with Us: How We Will Deploy Your Capital Acquire new assets counter-cyclically – only at a deep discount to value that we can 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

Execute focused operational improvement projects at each site• 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 – create more diverse customers paying better terms

Apply relentless, disciplined financial management• 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

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 10 years of experience

in capital markets

Braam Jonker,

Independent Director

Peter R. Jones,


Robert Doyle,


Dominic Duffy, COO

Mining Engineer with

extensive technical and

operational management

experience

Brad Mills,

Executive Chairman

Mark Sander,

President and CEO

29 years of experience in

exploration, strategy and

operating improvements

27

Mark Sander,

Director

Numbers may differ slightly from source documents due to rounding

Mandalay Reserves

Cerro Bayo Reserves(1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)

Proven Reserves 133,000 195 835,000 1.98 9,000

Probable Reserves 1,903,000 230 14,041,000 2.18 133,000

P&P Reserves 2,036,000 227 14,876,000 2.16 142,000

Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)

Proven Reserves 125,000 4.4 5,500 12.0 48,000

Probable Reserves 366,000 3.7 13,400 8.2 97,000

P&P Reserves 491,000 3.9 18,900 9.2 145,000

1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 20162 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report to filed March 30, 20163 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016

TOTAL RESERVES

31-December-2015Ag (cont. oz) Au (cont. oz) Sb (cont. t)

Mandalay Proven Reserves 835,000 57,000 4.4

Mandalay Probable Reserves 14,041,000 648,000 11.2

Total Mandalay P&P Reserves 14,876,000 705,000 15.6

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

28

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

29

As at May 10, 2016

Millions

(Except

Share

Price

Info)

Share price

(May 10, 2016 - close) (C$)

1.07/shr

Shares Outstanding 416.1

Options(1) 21.3

Fully Diluted Shares Outstanding 437.4

Market Capitalization (C$) $445.2

Cash and Cash Equivalents (US$) $40.7

Total Interest-Bearing Debt (US$) $58.0

Total Enterprise Value (US$)(2) $360.1

Net Debt (US$) $17.3

Last 12 Months EBITDA (US$) $61.0

Net Debt to EBITDA (Last 12 Mos.) 0.28x

Q1, 2016 Q1, 2015 2015YE 2014YE

Saleable Ag oz

produced

515,216 590,755 2,545,984 3,329,519

Saleable Au oz

produced

28,954 27,740 109,102 77,900

Saleable Sb t

produced

1,000 969 3,712 3,639

Operational Performance

Financial Performance

Balance Sheet and Current Results

1. Exercise Price: C$0.58 – C$1.13 expiry dates ranging from April 11, 2016 - Mar 24, 2020

2. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.77 USD (May 10, 2016)

3. Björkdal Acquired September 10, 2014. Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation, accretion

and write-off of exploration and evaluation.

Debt and EBITDA numbers as at end Q1-2016

Q1, 2016 Q1, 2015 2015YE 2014YE

Net Cash/All-in cost/oz

Au Eq. at Costerfield, $

512 /

724

566 /

744

559 /

773

772 /

1,036


Ag at Cerro Bayo, $

9.76 /

18.78

10.09 /

17.61

7.50 /

14.69

5.30 /

11.36


Au Eq. at Björkdal, $(3)

821 /

1,059

797 /

940

884 /

1,128

870 /

1,024(3)

EBITDA, $ million 17.3 24.3 68.0 64.4

Net Income, $ million 1.0 12.5 14.7 17.6

Cash and cash equiv., $

million

40.7 51.9 49.2 49.0

30

Operational Locations: Mining-friendly Jurisdictions

Metal Gold

Ownership 100%

2015

Production &

Cash Cost

44,039 oz

$884/oz Au

2016E

Production &

Cost

50,000 – 55,000 oz

$850-970/oz Au

P&P

Reserves(1)

7.0 Mt @ 1.85 g/t Au

Metal Silver, Gold

Ownership 100%

2015

Production &

Cash Cost

2,545,984 oz Ag

22,572 oz Au

$7.50/oz Ag net Au

2016E

Production

& Cost

24,000 – 30,000 oz Au

2.9 – 3.3 MM oz Ag

$600-$720/oz Au Eq.

P&P

Reserves(1)

2.0 Mt @ 227 g/t Ag;

2.16 g/t Au

Metal Gold, Antimony

Ownership 100%

2015

Production &

Cash Cost

42,491 oz Au

3,712 t Sb

$559/oz Au Eq.

2016E

Production

& Cost

26,000 –30,000 oz Au

3,000 – 3,500 t Sb

$650—$720/oz Au Eq.

P&P

Reserves(1)

491,000 t @ 9.2 g/t Au;

3.9% Sb

2016E

Au oz Saleable Production 100,000 – 115,000

Ag oz Saleable Production 2.9 million – 3.3 million

Sb oz Saleable Production 3,000 – 3,500

Total Forecast Production Au Eq oz 165,000 – 180,000(2)

Total cash costs per saleable Au Eq oz $778

Total capex spend $31 million – $37 million

Total exploration spend $7 million

2016E Corporate Consolidated Guidance – Production, Investment and Costs

1. Refer to notes in the Appendix

2. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb 31

MND (242% value change) outperformed through the entire 2009 - 2015 bottom-to-bottom price cycle*:

1. All 6 Currencies (AUD, CAD, GBP, CLP, EU, CNY): 78 – 106%

2. All 3 Precious Metals – (Au, Ag, Pt): 75 – 123%

3. All 4 Base Metals (Pb, Zn, Cu, Ni): 48 – 93%

4. All 7 Gold Mutual Funds: 59 – 74%

5. All 6 Resource/Basic Material Mutual Funds: 79 – 170%

6. All 6 “Big Diversified” Miners: 42 – 99%

7. 5 of 6 “Prospect Generator” Companies: 6 – 243%

8. 3 of 4 “Royalty/Streaming” Companies: 81 – 246%

9. All 3 “Mega Gold” Miners (>$US10 B market cap): 44 – 60%

10. 8 of 9 “Big Gold” Miners (USD1-10B market cap): 18 – 281%

11. 5 of 9 “Mid-Tier Gold” Miners USD0.5-1B market cap): 24 – 9,200%

12. 15 of 19 “Junior Gold” Miners (<USD500M market cap): 29 – 1,440%

13. 13 of 16 “Gold Developers”: 10 – 580%

14. 6 of 8 “Big Silver” Miners (>USD400M market cap): 27 – 337%

15. All 2 “Mid Tier Silver” Miners (USD200-400M market cap: 35 – 106%

16. All 5 “Junior Silver” Miners (<USD200M market cap): 26 – 142%

17. All 7 “Silver Developers”: 3 – 197%

18. All 6 “Big Copper” Miners (>USD7B market cap): 38 – 198%

19. All 11 “Base Metals Developers”: 8 – 104%

20. All 6 “Mid-Tier Base Metals” (USD0.25-1B market cap): 14 – 190%

21. All 6 “Junior Base Metals” (<USD250M market cap): 3 – 86%

22. All 9 “PGM Mineral and Developers”: 1 – 158%

23. All 1 “Junior Aluminum Company”: 3 – 83%

32

Mandalay versus:

• 159 alternative investments

• In 23 different strategy categories

• Over the 26 quarters from Q3 2009 to

Q1 2016 (period that Plinian has led

Mandalay)

Value metric is:

• For currencies, change in exchange

rate with USD as listed in

www.bankofcanada.com

• For metal prices, change in USD metal

price per lb., oz., or t as listed in

www.metalprices.com

• For mutual funds, change in share

price plus dividends paid as listed in

www.finance.yahoo.com

• For companies, common shareholder

equity value assuming market

purchase of shares, excluding warrants

and special dividends but including

ordinary dividends and stock splits as

listed in www.finance.yahoo.com

32

*Q3 2010 to Q1 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $0.89.

Prices as at the last trading day of each respective quarter.

http://www.bankofcanada.com/

http://www.metalprices.com/

http://www.yahoo/

Strong Annual Production Growth

109,337

1,318,655

2,911,595 3,145,5373,329,519

2,545,984

0500,000

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

2010 2011 2012 2013 2014 2015 2016E

Silver (oz)

334

6,678

17,089

21,482

27,600

22,572

0

5,000

10,000

15,000

20,000

25,000

30,000

2010 2011 2012 2013 2014 2015 2016E

Gold (oz)

7,66112,244

18,036

28,758

35,75142,491

0

10,000

20,000

30,000

40,000

50,000

2010 2011 2012 2013 2014 2015 2016E

Gold (oz)Costerfield Production(2016E)

Cerro Bayo Production(2016E)

1,106

1,571

2,481

3,275

3,639 3,712

0

1,000

2,000

3,000

4,000

2010 2011 2012 2013 2014 2015 2016E

Antimony (Sb)

Björkdal Production(2016E)

14,549

44,039

0

10,000

20,000

30,000

40,000

50,000

60,000

2010 2011 2012 2013 2014 2015 2016E

Gold (oz)

15,854

63,351

107,941126,908

154,810 166,679

0

40,000

80,000

120,000

160,000

200,000

2010 2011 2012 2013 2014 2015 2016E

Total MND Production (AuEq oz)(1)

165,000 - 180,000

26,000 –

30,000

24,000 –

30,000

50,000 -

55,000

3,000 –

3,500

2,900,000 –3,300,000
