The information given in this presentation and during Mandalay Resources Corporation’s September 12, 2016 Investor Day contain "forward-

looking statements" within the meaning of applicable securities laws, including statements relating to life of mine production plans, exploration

plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from those contemplated by these

statements depending on, among other things: exploration results or production results not meeting management’s expectations; capital,

production and operating cost results not meeting current plans; and changes in commodity prices and general market and economic conditions.

The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional

risks that could result in actual results and developments differing from those contemplated by forward looking statements in this news release

can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016 and in its final prospectus dated

July 18, 2016, copies of which are available under Mandalay's profile at www.sedar.com. Although Mandalay has attempted to identify important

factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be

other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-

looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward-looking statements.

Qualified Persons

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 has reviewed and approved the scientific and technical information related to these projects 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 related to these projects contained in the presentation.

Non-IFRS MeasuresThe presentations given during Mandalay Resources Corporation’s September 12, 2016 Investor Day Presentations include non-IFRS

performance measures including Adjusted EBITDA, cash costs and site all-in costs. These measures are included in these presentations

because the Company believes these are useful indicators to discuss and understand performance of the Company and its operations. These

performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented

by other mining companies. These non-IFRS performance measures should not be considered in isolation as a substitute for measures of

performance in accordance with IFRS. For a more detailed discussion of how the Company calculates non-IFRS performance measures and

reconciliations (where applicable) to the nearest IFRS measure please refer to the Company’s management discussion and analysis for the

quarter ended June 30, 2016. All currency references in US$ unless otherwise indicated

Forward-looking Statements

2

Financial discipline: assumptions behind valuations, planning & decisions

Reversion to mean metal pricing from current spot

• Mean is $1,400/oz for Au, $22/oz for Ag, $10,000/t for Sb

• Reversion from spot to mean over 3 years

• Reinforces countercyclical instincts

Reversion to mean exchange rates counter to metal price reversion

3

Q2 2016 performance year-to-date

4

Operational Performance

(1) Non-IFRS Measure. See “Non-IFRS Measures” in introductory slide.

(2) Cash position is as at end of Q2-2016, plus the C$36.9 million net proceeds raised on bought deal that closed July 26, 2016

Q2, 2016 Q2, 2015 1H 2016 1H 2015

Total Au Eq. Produced (oz) 39,653 40,717 79,618 82,993

Cash cost/Au oz Eq. Produced ($)(1) 811 771 781 761

All-in cost/Au oz Eq. Produced ($)(1) 1,095 1,044 1,069 1,031

Financial Performance

Q2, 2016 Q2, 2015 1H 2016 1H 2015

Revenue ($ Million) 54.2 50.8 104.6 107.6

Adjusted EBITDA ($ Million)(1) 22.1 18.2 39.4 42.5

Cash Capex 11.5 14.3 24.5 27.3

Net Income ($ Million) 3.6 4.4 4.8 16.2

Dividends paid 3.0 3.3 5.7 7.3

Cash generation after dividend 4.9 0.3 (3.5) 3.3

Cash and Cash Equiv. 73.7(2) 52.3 73.7(2) 52.3

Financial discipline: balance sheet

Modest leverage -- C$60 million debt, 28% leveraged to

shareholder’s equity at the end of Q2 2016.

Debt at 5.875% coupon, investor gets upside if gold gets above

$1,556/oz. Industry leading terms – at current gold prices, we should

see more of these type of deals.

Net cash generation after dividend-- $0.2 million in FY 15.

$4.9 million Q2 2016

Comfortable H1 Adjusted EBITDA/Interest = 14.3

Judicious deployment of equity

• $33 million raised in two tranches to buy/restart Costerfield &

Cerro Bayo (2009-10)

• $28 million raised at near all-time high in July, 2016 to become

net cash positive

Market Capitalization = $386.7 million(1)

51. Based on closing price on September 1, 2016 and exchange rate of 0.78 CAD:USD (September 7, 2016)

Process discipline for planning and execution

Annual strategic life of mine planning

• One week, this group all together (end of Q3)

• Combine separate site operational plans into corporate plan

• Review and stress test performance at current, mean, and bottom of cycle prices

• Capital allocation -- debate

− Identify and minimize LOM sustaining capital

− Everything else is discretionary – improvement, exploration, growth

− Single discretionary priority list.

• Identify cash flow available after debt service, dividends, sustaining capital

• Allocate cash to top priority discretionary projects

− LOM + Discretionary project funded year 1 = budget

− All other discretionary projects postponed out of budget year

− If financial performance better than plan, can fund postponed projects later

First year of plan = budget

Operational KPI’s monitored with weekly calls

Monthly financials follow without surprises from weekly calls

Year-end results forecast quarterly, feed back to discretionary projects

6

Capital Expenditure Efficiency

Multi-layered controls to ensure efficiency

Initial approval during strategic planning discussions (this is after

each businesses paying 6% dividend on their revenue)

Then specific projects approved on standalone efficiency/ROI basis

in the form of Approval for Expenditure (AfE) process

These projects are then monitored on weekly basis on the weekly

call as discussed earlier

7

Weekly operational calls: 15 min. to 1 hour

8

Mining @ Costerfield

Periodic monitoring

of actual results

against budget

Table for illustrative purposes only

Monthly performance monitoring

9

2016F

ton

nes

Björkdal cumulative open pit mined ore

2015 Actual Budget$

/to

nn

e

Björkdal open pit mining cost

2015 Actual Budget YTD Actual YTD Budget

Graphs for illustrative purposes only

Mandalay’s multi-disciplinary approach to create success

10

Operations

Human Resources

Process

GovernanceFinancial Discipline

Technology

1. Human Resources: best talent from

all round the world.

2. Technology and process:

investments and improvements made

immediately after acquisition.

Continuous improvement in all the

three mines. Culture of Do-Learn-Do.

3. Governance: transparent – what we

say in public is what we practice. Flat

structure. Responsive. Decisions

made on weekly basis.

4. Financial Discipline: We make the

mines self funding and should be able

to pay for their own exploration,

development and dividend as soon as

possible. Cashflow monitored on

weekly basis.

Other key processes

Team-based compensation system based on value-add

Risk assessment and mitigation; task tracking

Near-miss, incident investigation and feedback

Annual third party review of reserves & resources

Periodic third party reviews of key risk areas – dams, ground

conditions, inundation risks

Preventative maintenance

Internal process audits

Monthly ore reserve reconciliations

Exploration stage-gating pipeline

Community surveys and issue resolution

Employee surveys and issue resolution

11

Team-based compensation based on value-add– STIP

12

Executive Team

Annual Incentive

Plan

Tracking &

Communication

2016F$ '0

00

MND cumulative EBITDA

2015 Actual

Budget EIB target

Table and graph for illustrative purposes only

13

Residual Risk Profile –

Mandalay Corporate Risks

Rare

Possible

Unlikely

AlmostCertain

Likely

Likelihood

Slight Minor Moderate Major Massive

Consequence

1819

20

9

3

12

16

2

17

14

4

7

13

15

No Risk description

1 Mine inundation

2 Price and currency volatility

3 Major equipment and/or plant failure

4 Failure to deliver Björkdal transformation programme

5Community action or disruptions/impacts on social license to

operate

6 Government fiscal reforms

7 Tailings dam wall failure

8 Failure to obtain or maintain regulatory titles and permits to operate

9 Significant safety incident / fatality

10 Customer concentration / customer action

11 Political / country risk

12 Major business interruption (external factors)

13 IT security

14Misallocation of capital to unviable/uncommercial projects/ capital

investment

15 Portfolio: Acquisition of the wrong asset/s

16Failure to achieve strategic objectives (capital outcomes) due to cost

escalation or budget over-runs

17 Inaccurate mineral resource and reserve estimates

18 Ineffective management of unionised employee

19Non-compliance with Anti-Bribery and Corruption related

legislation, fraud and theft

20Failure to achieve strategic plan due to inadequate corporate

infrastructure and standards

21 Non-compliance with Ontario Securities Commission regulations

Very High

High

Medium

Low

3

1

21

5

10

6

8

11

Inherent

Risks

Risk management: assessment

Monthly reconciliations to model, budget & forecast

14

e.g. Costerfield

Graph for illustrative purposes only

It is not luck!

It is repeatable, predictable, and improvable

15