2015 BUILDING VALUE ACROSS THE CYCLE Efficiency Gains at Mandalay - PowerPoint PPT Presentation

IMARC: NOV 2015 BUILDING VALUE ACROSS THE CYCLE Efficiency Gains at Mandalay Resources Costerfield Operations through a focus on People and Culture Andre Booyzen, General Manager – Australian Operations, Mandalay Resources

Forward-looking Statements 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 31, 2015 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 Assurance Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101. The exploration programs at Costerfield and Bjorkdal 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 Bjorkdal, 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 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 2

People and Culture 1. Mandalay Resources 2. What Were The Challenges 3. Options Available To Us 4. What We Achieved 5. How We Achieved Transformation 3

A Values-Based and Value-Focused Company Profitable and Dividend-Paying (5.3% yield)* 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 *Trailing 12 months dividends divided by current market capitalization 4

Delivering Value at Mandalay TIMELINE 2014 2009 2010 2013 • Cerro Bayo, Chile • Björkdal, Sweden • Costerfield, Australia • Challacollo, Chile • Silver & Gold • Gold • Gold & Antimony • Silver & Gold Revenue, EBITDA (1) & Dividends (2) 2015 Quarterly 100 Financial $56.8 Measures US$ MM $50.2 $43.3 50 $24.3 $18.2 Revenue $11.5 $4.0 $3.4 EBITDA $3.0 $2.6 0 Dividends Q1- 2015 Q2 -2015 Q3 - 2015 Q4 - 2015 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. 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 5 2.

Delivering Shareholder Value at Mandalay 21% Compounded Cumulative Total Return to Common Shareholders over past 5-years (1) Cumulative % Value Change Since Q3 2009 300% Cerro Bayo Acquired Two mine 250% ramp-up West Face Secondary Offering Single $60 Million Gold Loan Challacollo Acquired Björkdal Acquired mine 200% Costerfield Acquired ramp-up CEO Appointed Dividend Initiated SIB Warrant Redemption 150% 100% MND LAG MND OUTPERFORM 50% Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Mandalay Cumulative Returns 11% Annual Compounded Rate of Return Gold Silver 1. Q3 2010 to Q3 2015, includes all dividends paid Source: MetalPrices.com for metal spot prices 6 Index: September 30, 2009 = 100. Mandalay share price: $0.42 Graph updated quarterly, prices as at the last trading day of each respective quarter

Mandalay has Delivered an Outstanding Total Return To Original Equity Investors (1) $90,000 20 18 $80,000 16 $70,000 Investment Value Volume (millions) 14 $60,000 12 $50,000 10 $40,000 8 $30,000 6 $20,000 4 $10,000 2 $0 0 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Sep-09 Dec-09 Jun-10 Sep-10 Dec-10 Jun-11 Sep-11 Dec-11 Jun-12 Sep-12 Dec-12 Jun-13 Sep-13 Dec-13 Jun-14 Sep-14 Dec-14 Jun-15 Mandalay (1) Peer Index (2) Gold Senior (3) Mandalay Volume A $10,000 investment on September 24, 2009 would be worth: • Mandalay: $53,677 • Peer Index: $7,874 • Gold Seniors: $2,746 1. A djusted 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 August 27, 2015. 7 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.

Growing Value – Reserves Increasing Faster Than Production 1,123,367 300,000 1,200,000 Oz Au Eq. Year-End Reserves Oz Au Eq. Annual Production 250,000 1,000,000 771,500 200,000 800,000 633,000 520,175 150,000 600,000 ~165,000E 154,810 100,000 400,000 253,796 126,908 107,941 50,000 200,000 15,854 63,351 0 0 2010 2011 2012 2013 2014 2015E Adding Reserves Cost Effectively • Acquiring built-out assets for about $160/oz Au Eq. in Proven & Probable • Discovering mine-site reserves for $10-$50/oz Au Eq. in Proven & Probable MANDALAY COST OF ACQUIRING AND EXPLORING FOR RESERVES 180 USD/oz P&P Added Cumulative Cost per 160 oz Au Eq. Acquired or 140 Discovered 120 100 Cost Per oz Au Eq. 80 Discovered in yr 60 Cost Per oz Au Eq. 40 Acquired in yr 20 - 2010 2011 2012 2013 2014 8

About Mandalay Resources • Became a producing mining company at end-2009 • Three operating assets – Costerfield Sb/Au, Cerro Bayo Ag/Au and Björkdal Au • Challacollo development project in Chile • Market capitalization of over C$300 million • Share price of C$0.78 (was C$0.18 six years ago) • Annual turnover of $185m in 2014 • Experienced and focused executives and managers • Low debt • Cash in bank • Positive growth and currently looking at acquisitions 9

Operational Locations Mining friendly operational jurisdictions 10

Costerfield Mine Overview Land package 1,293 hectares Ownership 100% 2014 gold production (payable) 35,751 oz 2014 antimony production (payable) 3,639 t 2015E gold production (payable) 32,000 – 37,000 oz 2015E antimony production (payable) 3,200 – 3,500 t P&P Reserves (1) 430,000 tonnes @ 8.1 g/t Au; 3.6% Sb Current throughput 400+ tpd Plant recoveries (YTD 2015) Au: 89.6%, Sb: 95.11% 2015E Cash cost/oz Au Eq. / 2014A $625 - $750 / $771 2015 Planned Exploration Budget $1 million + Mineral Reserves for Costerfield: SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI 43-101 Technical 11 Report Filed on March 31, 2015