March 2013

TSX: MND

Operations and Exploration Tour

This presentation contains "forward-looking statements" within the meaning of applicablesecurities laws, including statements relating to life of mine production plans and explorationplans, the Cerro Bayo restart plan and the growth and strategy of Mandalay. Readers arecautioned not to place undue reliance on forward-looking statements. Actual results anddevelopments may differ materially from those contemplated by these statements depending on,among other things, that exploration results at Cerro Bayo, Costerfield, and La Quebrada may notmeet management’s expectations, that Cerro Bayo and Costerfield capital, production andoperating cost results may not meet current plans, that reclamation costs associated withMandalay’s Furioso property may exceed current estimates, and changes in commodity prices andgeneral market and economic conditions. The factors identified above are not intended torepresent 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 differmaterially from those described in forward-looking statements, there may be other factors thatcause actions, events or results not to be as anticipated, estimated or intended. There can be noassurance that forward-looking statements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in such statements. Accordingly, readersshould not place undue reliance on forward-looking statements.

Forward-looking statements

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Quality control and assurance programs are implemented in line with the standards of NationalInstrument 43-101.

The exploration program at Costerfield on the Augusta Deeps project is supervised by NeilSchunke (Member, AusIMM), a manager of the Company at Costerfield and a Qualified Person asdefined under National Instrument 43-101.

The exploration programs on the Cerro Bayo and La Quebrada projects are supervised by RonaldLuethe (Member, American Institute of Professional Geologists), General Manager of MandalayChile Ltda. and a Qualified Person as defined under National Instrument 43-101. Mr. Luethe hasvisited the Cerro Bayo and La Quebrada projects often during 2010 and 2011 and has supervisedthe collection and interpretation of scientific and technical information contained in thispresentation.

Dr. Mark Sander (COO of Mandalay and member AusIMM) has visited the Costerfield, Cerro Bayo,and La Quebrada projects various times during 2010 and 2011 and has supervised the scientificand technical information contained in this presentation.

Quality Control and Assurance

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Cerro Bayo District - tour route and stops

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LEYENDA

Inventario_Vetas_Lineas

Inventario_Vetas_Poligonos

Propiedad_Minera

OPERATIONS

EXPLORATION

Tailings¬«7

CERRO   BAYO   Overlook¬«1LAGUNA   VERDE  Overlook¬«2FABIOLA   Mine and Vein Outcrop¬«3DAGNY  Mine and Vein Outcrop¬«4DELIA   Mine and Vein Outcrop¬«5Plant¬«6

Open Pit and low grade (deep?)¬«8Cerro Bayo overlook and viewsouth of Veta Madre, Sinter Hill,Meseta and Aguila¬«9

1) Cerro Bayo Overlook

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Cerro BayoDome

Guanaco III

Guanaco I

Historic Cerro Bayo veins (e.g. Lucero) on right margin of dome

2) Cerro Bayo: Laguna Verde Area

Producing Mine or Planned mine (Vein Outcrop) Exploration Vein

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Laguna Verde Area - detail

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3) Fabiola Vein & Outcrops

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Fabiola Mine

Additional Yasna Vein

Primary Ramp

• Currently Mining on 5 levels• Simple design of primary ramp and 2 raises for

ventilation and escape-way• Minimal operational development to access

Yasna vein and no extra capital development

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4) Dagny Vein & Outcrops

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5a) Delia NW Vein & Outcrops

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5b) Delia SE Vein & Outcrops

5c) Delia Portal & Vein Outcrops

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View to SE across Portal to Delia SE View to NW of

sheeted veins & main Delia

6) Concentrator

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Added Q2, 2011

7) Tailings

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• Permitted dam elevation 320 masl• Actual dam elevation 316 masl• Actual tails elevation 313.5 masl• Permitted and design capacity 2,300 kt• Required capacity for LOM 1,141 kt (including inferred)• Permitted capacity vs LOM 2X• Number of lifts required 2, each of 2 m• Estimated cost of next lift USD930,000 (in plan)

Cerro Bayo District Targets

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1: TARGET GENERATION 2: BLUE SKY ‐ New Target Testing 3b1:    EXTENSIONS/POTENTIAL Neighboring known reserves (Inferred 

Resources Definition)

3b2:    EXTENSIONS/POTENTIAL Neighboring known reserves (Inferred 

Resources Definition)

1a Brillantes 2a Prospecting Laguna Flamenco

Fernanda Esperanza Marcela Zone Gabriela Zone

Roberta Inara Marcela N Gabriela

Constanza Sb Raúl N Gabriela Este

Brillantes Roadside Marcela S Lazo Gaby W

Francisca 2b Mallines W Raul Zone Josefina

1b Pampa La Perra Veta Larga Raul/Cindy Josefina Este

Pilar Mallines W Pascuerito Leyla

Elsa Jermy Raul W Guanaco Zone

Guanaco VII Graciela Cerro Bayo Guanaco I

1c Caiquenes Lourdes W Guanaco I Oeste

Caiquenes IV 3a: UNDERGROUND ‐ Neighboring known reserves (Inferred Resources Definition)

Lucero NW Guanaco II

Caiquenes III Lucero S Taitao

Tranque Dagny to Delia  Myriam E Condor I

1d Mallines E Dagny to Fabiola/Yasna Mercedes Condor III

Meseta Fabiola to Coyita/Yasna Cascada Zone Taitao I

Aguila Fabiola to Delia/Dagny Cascada Taitao II

Sinter Hill Cascada E Taitao II Lazo

Leonora Coigues Taitao III Sur

1e Veta Madre Coigües Este Olivia

Madre Coigües Central Laguna Verde Open

Paralela Chinita zone

Segunda Chinita + other

1f Bahía Jara Chatito

1g Laguna Verde

4: INFILL‐ HIGHLY CERTAIN

Marcela Sur

Coyita

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Cerro Bayo District - targets

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Cerro Bayo District – evolving conceptsDeep Level Exposures

Irreg. bx

Multiple generationsqtx veinLarge volume of low grade Ag>Au

High Mo

Mid Level Exposures

Through‐going veins

Quiescent fill??

Limited bx

Limited alteration

Variable Ag> Au, b.m.

Historic mining only on outcropping ore shoots

High Level Exposures

High Au

Intense silicification

Calcite replacement

Hydrothermal bx

Open space fill textures

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Approx. 1m

Breccia in pit wall

Py-Mo breccia in pit wall with older & younger qtz. vns.

8) Deep LevelOpen pit: py-mo bx cutting and cut by qtz veins

5 Mt of possibly economic low-grade dumps

Chinita Sector Veins

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Chinita vn.Partly mined

22.4 g/t Au,5090 g/t Ag

7.1 g/t Au,396 g/t Ag

Chinita split? – 1.8m48.7 g/t Au, 28 g/t Ag

Upper LevelSinter Hill & Veta Madre

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Sinter Hill

Cascada Vein

Veta Madre

Mandalay Resources – Cerro Bayo

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1 Source: Roscoe Postle Associates, March 2013, documented in an independent NI 43 – 101 report to be filed within 45 days of March 6, 2013

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