Delivering Value, Earnings and Growth in 2012

April 2012

TSX: MND, MND.WT

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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 dependingon, among other things, that exploration results at Cerro Bayo, Costerfield, and La Quebrada may not meet management’s expectations, thatCerro Bayo 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 canbe no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially fromthose 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 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, and has reviewed and approved the presentation itself.

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, and has reviewed and approved the presentation itself.

Dr. Mark Sander (Member: AusIMM), Chief Operating Officer of Mandalay, has visited the Costerfield, Cerro Bayo, and La Quebrada projectsseveral times during 2010 and 2011 and has supervised the preparation of this presentation.

Forward-looking statements

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Strategy: Build a portfolio of high quality producing assets with excellent exploration potential

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What differentiates Mandalay is the discipline we bring to implementing the following principles:

Acquisition focus – Superior unrecognized upside potentialExplorationMetallurgyOperational efficienciesFinancial restructure/recapitalization

Low Cost Entry PointAcquire assets at a low cost relative to the ultimate value we believe the project may achieve as a result of good operational implementation & exploration successUse a combination of cash, equity, & debt to reduce dilution & leverage equity returns

Cash FlowFocus on early cash flow from high margin depositsReinvest cash in exploration, development, and operational improvementsDeleverage as rapidly as possible

Returning Cash to ShareholdersNCIB

Growing reserves and resources

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1 Source: Roscoe Postle Associates, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

2 Source: Snowden Group, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

-

50,000

100,000

150,000

200,000

250,000

300,000

2010 Total 2011 Total 2012 Est

t Sb

Oz

Au

, Oz

Au

Eq.

, Oz

Ag/

10

0Mandalay production

Gold Silver Au Eq. Antimony/100

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Growing production from acquired assets

Ounces Au Equivalent production (oz Au Eq) is calculated by dividing total revenue in the period by the average LME (PM) gold price in the period

Growing revenue and EBITDA

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‐20.0

0.0

20.0

40.0

60.0

80.0

100.0

Q4‐09 2010 2011

$ Million

GROWING REVENUE AND EBITDA

Revenue EBITDA

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Tailings Mill

LAGUNA VERDE

DELIA NWFABIOLADAGNY

CoyitaDalila

YASNA

Cerro Bayo: Laguna Verde area

Producing Mine or Planned mine (Vein Outcrop) Exploration Vein

BIANCA

Q4, 2011

Trinidad

DELIA SE.

Lucia

Delia to Dagny

Yasna to Coyita

Gabriela

Coigues

Coigues Hill

Discoveries

Laguna Verde: NE-SW cross section

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Delia FabiolaDalilaBianca

Dagny YasnaCoyita

Abundant economic veins at or near rhyolite-dacite contact

All are blind; no outcropping ore

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Cerro Bayo District: Target rich land package

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NI43-101 Reserve-Resource veins2012 Infill and Step-Out Drilling

2012 New infill from 2011 Blue Sky successes2012 Scheduled Blue Sky drill targets 2012- Field work to prep for 2013 drilling

Lucia

ChatitoSb Anomaly

Roadside

Brillantes

Cerro Viento

AquilaSinter Hill

Laguna Verde

Coigues

Marisol Area

High level, Madre-Aquila-Meseta

Cerro Bayo

Guanaco

Esperanza

Sb Anomaly

MarcelaRoadside

Cerro Viento

Brillantes

1010

Fabiola vein: More ore found than expected SURFACE

30 m BELOW IN MINE

Approx. 1 m

Cerro Bayo operating performance

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Cerro Bayo operating plan 2011 – 2012

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Cerro Bayo Plan 2011 Act. 2012 Est.Saleable Gold Produced (oz) 6,678 12,000 – 16,000

Saleable Silver Produced (oz) 1,318,655 2,700,000 – 3,000,000

Operating Costs (US$ m) 25.1 35 – 39

Concentrate Shipping & Treatment (US$ m) 6.3 8-10

Cash Cost/oz Ag net Au Credit 14.29 7.00 – 9.00

Capital Expenditure – PP&E (US$ m) 3.4 7-8

Capital Development (US$ m) 9.3 9-10

Capitalized Exploration (US$ m) 5.7 10-11

Cerro Bayo beyond 2012

4th mine permitted and built – opportunity to grow production to 1,600 tpd

Drilling in 12 major district exploration areas, rapidly expanding reserves

Flotation automation improves recovery and cost

Low cost with expanding production

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Costerfield project location

Costerfield district exploration potential

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Costerfield exploration success

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Cuffley (Alison)

N-lode

W-lode

Successes to date:Multiple Cuffley intercepts

• Up to 1 m thick• High-grade

Multiple N-Lode interceptsInfill W-lode at depth

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Cuffley deposit

N

W

Cuffley Lode

Drill Holes

Old Alison Mine

Offset Fault

The old Alison lode structures are offset by a flat fault by approximately 40 m

Offset theorized and tested by Mandalay geologist Brian Cuffley

Costerfield performance

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Costerfield production plan 2011-2012

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Costerfield Plan 2011 Act. 2012 Est.Saleable Gold Produced (oz) 12,244 14,000 – 18,000

Saleable Antimony Produced (t) 1,576 1,800 – 2,200

Operating Costs (US$ m) 29.6 30 – 35

Concentrate Shipping and Treatment (US$ m) 1.0 1.0 – 1.5

Cash Cost/ oz Au Equiv. (US$) 1,117 1,000 – 1,200

Capital Expenditure- PP&E (US$ m) 3.4 8-9

Capital Development (US$ m) 6.1 2-3

Capitalized Exploration (US$ m) 2.8 3-4

Costerfield beyond 2012Cuffley lode development and production

• 2x production from higher grade ore

Continuing district exploration

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Manto outcrop

Casa de Piedra

TugalPit

La Quebrada copper-silver exploration project

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Casa de Piedra: Geology & drill map

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Casa de Piedra: Cross-section B-B’ in-fill drilling during 1H 2012

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?

Mandalay financials (as at December 31, 2011)

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Revenues, Costs and Capital • Actual 2011 revenue = $92.1 million• Actual operational costs inclusive of overheads = $60.1 million• Actual capital and exploration expenditures = $33.0 million

Balance Sheet• Cash and cash equivalents (December 31, 2011) = $12.7 million• Fair value of Au, Ag puts (December 31, 2011) = $16.2 million• Total debt (December 31, 2011) = $10.3 million

• Coeur silver loan will be paid back on time by Q4, 2012• Company intends to pay the Sprott loan off early at $1 M/mo for 10 mo

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Capital & share structure (31-Jan-2012)

Shares outstanding 270,156,575

Options (1) 13,586,966

Warrants (2) 105,379,312

Shares fully diluted 389,122,853

Major shareholders: Approx. Ownership (basic) Shares Owned

West Face Capital 43.26% 116,883,045

Plinian Capital (Mills, Sander, Swarup) 11.61% 31,354,627

Sprott (all) 10.32% 27,885,938

Arcourt (Byrne) 3.90% 10,530,241

Audley Capital and Associates 2.71% 7,333,333

Market price (03-April-2012) CAD$0.76/shr

(1) Exercise price: C$ 0.255 to C$ 0.76; Expiry date: May 9, 2012 to Dec 2, 2016 (2) Exercise price: C$ 0.20 to C$ 0.465; Expiry date: August 6, 2012 to November 30, 2014

Investment highlights for 2012

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A significant and growing producer of gold, silver and antimony from two mines

Cerro Bayo – Developing third mine; full production @ 1,200 tpd in Q4, 2012• Doubled reserves and mine life at year-end 2011 • 8 rigs currently drilling infill, extension, and new targets• 2012 flotation automation project; Delia SE mine permitting

Costerfield – At design production rate of 200 tpd• Augusta mine reserves replaced in 2011; new resource at Cuffley (Alison) lode• 3 rigs on site defining Cuffley lode and Augusta lode extensions• Successful introduction of cemented rock fill methods; 24:7 ore production

La Quebrada – Infill drilling for inferred resource in 1H, 2012

Price protection program in place for 2012: 75.7% of silver production guaranteed at $31.14/ounce, and 70.1% of gold production guaranteed at $1,400/ounce

2011 Production 2012E Forecast Production

Gold (oz) 18,922 26,000 – 34,000

Silver (oz) 1,318,665 2,700,000 – 3,000,000

Antimony (t) 1,576 1,800 – 2,200

2012 goals:

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• Complete the ramp-up of the Delia NW mine, achieving total sustained production of 1,200 t/day by Q4, delivering an annual rate of 30,000 oz Au and 3-4 million oz Ag

• Install and commission the flotation automation project for higher recovery

• Repeat the significant increase in mineable reserves delivered in 2011

• Drill test at least the five best blue-sky targets and generate new targets

• La Quebrada – Infill drill Casa de Piedra and deliver NI 43-101 inferred resource

• Acquire at least one new high quality project to the portfolio

Cerro Bayo Costerfield Portfolio

• Continue decline and development to lower levels in Augusta

• Continually refine CRF stoping method for higher productivity and lower cost

• Mine and mill average 6,000 tpm ore

• Thoroughly drill test Cuffley lode and deliver Preliminary Economic Analysis

• Continue Augusta Deeps drill exploration from underground, focus on W and N-lode

Investment advantagesBig company

experience with the agility of a junior

• Management team with excellent track record in acquisition, discovery, development and production of natural resources

• Small, close-knit, disciplined team makes rapid decisions

In production –generating cash flow

from diversified portfolio• Company is

– Multi-mine – Multi-jurisdictional– Multi-metals – Au, Ag, Sb, Cu– Multi-customer

• 100% owned properties

• Costerfield & Cerro Bayo on self-funded growth plans

• Substantial free cash flow– Zero debt by end 2012 – Returning cash – NCIB

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• Cash flowing company, with access to projects and strong institutional support

• Quantum jump in critical mass with Cerro Bayo

• Aggressive exploration on near-mine targets for reserve expansions

• Capability and capacity for the next acquisition

Opportunity to invest at the right time

Appendices

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TSX: MND, MND.WT

For more information, please contact:

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

Management and Board of DirectorsBrad Mills, CEOFormer CEO Lonmin plc, over 30 years of experience in Copper, Gold, PGMs

Sanjay Swarup, CFOFormer Lonmin plc, over 20 years of industry experience

Mark Sander, COO 27 years of experience in exploration, strategy, and operating improvements

Belinda Labatte, Corporate Secretary10 years of experience in the capital markets, former investment banker

Ron Luethe, Country Manager – Chile

Andre Booyzen, GM Costerfield

Dominic Duffy, GM Cerro Bayo

Chris Gregory, GM Corporate Development and Exploration, Australasia

John Hetrick, VP of Human Resources

Toni Stryzinski, VP of Metallurgy and Processing

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Board of DirectorsInterim Chairman:Braam Jonker

Executive Directors:Brad MillsSanjay Swarup

Independent Directors:Robert Doyle Peter R. Jones Tony Griffin

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Mandalay locations and tradeflow

Low political risk100% ownership of all projects & minesDiverse customer base

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Source: www.metalbulletin.com

Metal price history

Mandalay Reserves – Costerfield & Cerro Bayo

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Cerro Bayo Reserves1 Resource (t)

Ag Grade (g/t)

Ag (cont. oz)

Au Grade(g/t)

Au (cont. oz)

Proven Reserves 156,000 341 1,713,000 1.9 10,000

Probable Reserves 1,859,000 238 14,247,000 2.1 125,000

P&P Reserves 2,016,000 246 15,960,000 2.1 135,000

Costerfield Reserves2 Ore (t)

Sb Grade (%)

Sb (cont. t)

Au Grade (g/t)

Au (cont. oz)

Proven Reserves 41,900 7.9 3,300 13.2 18,000

Probable Reserves 46,500 4.0 1,900 6.4 10,000

P&P Reserves 88,400 5.9 5,200 9.6 27,000

TOTAL RESERVES: 31-December-2011

Ag (cont. oz)

Au (cont. oz)

Sb (cont. t)

Mandalay Proven Reserves 1,713,000 28,000 3,300

Mandalay Probable Reserves 14,247,000 133,000 1,900

Mandalay P&P Reserves 15,960,000 161,000 5,200

1 Source: Roscoe Postle Associates, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

2 Source: Snowden Group, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

Numbers have been rounded

Mandalay Resources – Costerfield & Cerro Bayo

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Cerro Bayo Resources1 Resource (t)

Ag Grade (g/t)

Ag (cont. oz)

Au Grade(g/t)

Au (cont. oz)

Measured Resources 121,000 520 2,031,000 2.8 11,000Indicated Resources 1,544,000 355 17,642,000 3.1 153,000M&I Resources 1,666,000 367 19,673,000 3.1 164,000Inferred Resources 682,000 239 5,251,000 2.1 45,000

Costerfield Resources2 Ore (t)

Sb Grade (%)

Sb (cont. t)

Au Grade (g/t)

Au (cont. oz)

Measured Resources 158,400 7.8 12,300 12.9 66,000Indicated Resources 202,700 3.7 7,500 7.1 48,000M&I Resources 361,100 5.5 19,800 9.8 114,000Inferred Resources 373,900 5.6 21,100 12.7 153,000

TOTAL RESOURCES31-December-2011

Ag (cont. oz)

Au (cont. oz)

Sb (cont. t)

Measured Resources 2,031,000 77,000 12,300

Indicated Resources 17,642,000 201,000 7,500

M&I Resources 19,673,000 278,000 19,800

Inferred Resources 5,251,000 198,000 21,100

1 Source: Roscoe Postle Associates, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

2 Source: Snowden Group, February 2012, documented in an independent NI 43-101 report filed 30-Mar-2012.

2011 – 2012 price protection program

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Product Put price (US$)

Q1 2011

Q22011

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

2011 Total

2012 Total

Au Puts 1,400 - - - - 7,000 7,000 7,000 7,000 - 28,000% Cover Expected Production

0.00% 0.00% 0.00% 0.00% 76.98% 75.19% 66.01% 64.18% - 70.15%

Ag Puts 25 - - 150,000 150,000 150,000 150,000 150,000 150,000 300,000 600,000

Ag Puts 35 - - - 90,000 300,000 300,000 300,000 300,000 90,000 1,200,000

Ag Puts 30 - - - - 210,000 210,000 210,000 210,000 - 840,000% Cover Expected Production

0.00% 0.00% 25.00% 36.60% 86.45% 85.67% 64.27% 71.28% 31.06% 75.72%