BUILDING VALUEACROSS THE CYCLE

MANDALAY RESOURCES

MARCH 2017TSX // MND

This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life ofmine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially fromthose contemplated by these statements depending on, among other things: exploration results or production results not meeting management’sexpectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market andeconomic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Adescription of additional risks that could result in actual results and developments differing from those contemplated by forward lookingstatements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016 andin its final prospectus dated July 18, 2016, copies of which are available under Mandalay's profile at www.sedar.com. 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 can beno assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated 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 ofOperational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfieldand 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 MandalayResources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved thetechnical 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 andhas 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 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 our stakeholders, and coordinated across the Company for maximum effect

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 our stakeholders, and coordinated across the Company for maximum effect

Profitable and Dividend-Paying: (5.6% yield)*

*Trailing 12 months dividends divided by current market capitalization (Mar. 2, 2017)

3

Designed for Value: How We are Different Acquire only when we see

possibility of 3-5X value uplift in 3-5 years

Target cash cost of production: 50% of ‘reversion to mean’ metal price

100% ownership; no private royalties, no streams

4

MINE MINE PEOPLEPEOPLE

Cerro BayoCerro BayoCosterfieldCosterfield

BjörkdalBjörkdal

MINE PEOPLE

Cerro BayoCosterfield

Björkdal

Flat, virtual, low-cost organizational structure; local GM accountability Direct relationships and sales contracts with customers Dividend-paying: 6% of trailing quarterly revenue No hedging of metal prices Lightly levered with low-interest, gold-convertible bonds Stingy with equity Disciplined management processes operated with integrity

1.7

32

79.967.7 64.4 68

50.9

-0.8

30.6

61.275.9

52.473.4

53.7

20.6

92.2

171.8

166.9

184.6194.5

185.51,224

1,5701,670

1,411

1,2651,160 1,248

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

-50

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016

2009• Costerfield, Australia• Gold & Antimony• Costerfield, Australia• Gold & Antimony

2010

• Cerro Bayo, Chile• Silver & Gold• Cerro Bayo, Chile• Silver & Gold

2014• Challacollo, Chile• Silver & Gold• Challacollo, Chile• Silver & Gold

2014

• Björkdal, Sweden• Gold• Björkdal, Sweden• Gold

Results: Consistent Performance Across the 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 – EBITDA figures reflect adjusted EBITDA, please see the Company’s Management’s Discussion and Analysis.

TIMELINE

Mandalay Financial Performance 2010-2016

• No acquisition • Optimize operations• Pay down debt• Exchange warrants• Begin dividends

2011‐2013

5

US$

MM

Gol

d Pr

ice

(US$

)

Revenue EBITDA Cash from Operations Gold Price

6

Based on Matched Production and Reserves

6

With Continuing Capital and Overhead Spending Discipline

15,854 63,351

107,941 126,908

154,810 166,679 254,000

520,000 633,000

772,000

1,123,000 1,054,000 1,024,000

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 2016 2017E

Oz

Au E

q. Y

ear-

End

Res

erve

s

Oz

Au E

q. A

nnua

l Pr

oduc

tion

145,497 138,000 –163,000(1)

3.6 3.4

5.3 5.1

6.7

4.4 4.8

224

54 49 40 44 26 33

-

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Ove

rhea

d sp

ending

per

Au Eq

. $/o

z

Ove

rhea

d sp

ending

($ m

)

Mandalay corporate overhead spending

12.8

24.9

35.9 34.4

40.3 39.5

29.5

810

392 333

271 260 237 203

-

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014 2015 2016-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Cape

x sp

ending

per

oz A

u Eq

. $/o

z

Cape

x sp

ending

($ m

)

Mandalay capital spending at operating mines (excluding exploration)

Acquisition

1. Assumes full-year 2017 prices: Au $1,185/oz, Ag $16.72/oz, Sb $7,701/t

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016

US$

/oz

Au

Eq. P

&P

Add

edMandalay cost of acquiring and discovering 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

And Adding Reserves Cost-effectively

2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb1. Source: BMO

Acquisition + Exploration adds at cumulative average $79/oz Au Eq. (for developed & producing reserves)

Cerro Bayo

Björkdal

Median for all Au sector acquisitions2012 – 2016 = $254/oz Au Eq.(1)

7

50%100%150%200%250%300%350%

Mandalay Cumulative Returns11.5% Annual Compounded Rate of ReturnGoldSilver

(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. (2) Peer Index: Alacer, Argonaut, Dundee PM, Klondex, Perseus, Primero, Richmont. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Randgold. (4) End date as at February 13, 2017.

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 2016

Dividends Paid (USD)**

6% of revenues (dividend contribution)

11.5% Cumulative Total Return (% Value Change)*

*Q3 2010 to Q4 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $0.80.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

0.0

5.0

10.0

15.0

20.0

25.0

$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 Sep-16

Volu

me

(milli

ons)

Inve

stm

ent V

alue

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 today(4):

• Mandalay: $54,710• Peer Index: $14,125• Gold Seniors: $7,509

A $10,000 investment on September 24, 2009 would be worth today(4):

• Mandalay: $54,710• Peer Index: $14,125• Gold Seniors: $7,509

Record Dividends

Approximately Replaced Depletion in 2016

9

RESERVES 2016 2015Au

(koz)Contained

Ag (koz)

Contained

Sb (kt)

Contained

Au(koz)

Contained

Ag(koz)

Contained

Sb (kt)

ContainedProven 55 931 6.4 57 835 5.5Probable 720 7,932 11.1 648 14,041 13.4Proven + Probable 774 8,864 17.5 705 14,876 18.9

RESOURCES 2016 2015Au

(koz)Contained

Ag (koz)

Contained

Sb (kt)

Contained

Au(koz)

Contained

Ag (koz)

Contained

Sb(kt)

ContainedMeasured 96 1,189 11.4 106 1,065 11.0Indicated 1,190 40,466 20.6 1,013 47,411 27.0Measured + Indicated

1,286 41,655 32.0 1,119 48,476 38.0

Inferred 407 10,492 9.2 215 9,884 9.7

1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 20172 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 20173 Source: Challacollo – Mining Plus, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed Mar. 31, 20154 Source: Björkdal – Roscoe Postle Associates, Effective September 30, 2016, documented in an independent NI 43-101 Technical Report filed Jan. 27, 2017

Mandalay 2017 Production Guidance

10

Total Cerro Bayo Costerfield Björkdal Challacollo

Saleable Au Produced oz (‘000) 94-111 12-16 30-37 52-58

Saleable Ag Produced oz (MM) 1.7-2.0 1.7-2.0

Saleable Sb Produced t (‘000) 3.2-3.7 3.2-3.7

Total Saleable Au Eq. Produced* oz (‘000) 138-163

Total Cash Cost per Au Eq. oz* $/oz 860-950 920-1,120 690-780 820-910

Capital Expenditure USD MM 48-61 18-22 9-13 20-25 1

Exploration USD MM 7 2 3 2

*Assumes full-year 2017 prices: Au $1,185/oz, Ag $16.72/oz, Sb $7,701/t

Björkdal• Capital devel. & stripping

$12.1 million• Flotation circuit upgrade-

$2.6 million• Pump station – 340 level

$600,000• Tailings lift

$1.1 million• Fibrecrete station

$400,000

Costerfield• Capital development

$1.9 million• Water storage & evap.

$3.0 million• Power equipment

$1.3 million• Tailings facility

$1.0 million

Cerro Bayo• Capital development

$15.2 million• Tailings Dam

$2.5 million

Major capital items support 2017-2018 production

Broader Ownership and Higher Liquidity Over Time

Major Shareholders(1)

Holders Shares (Million) Shares (Percentage)

GMT Capital 65.0

Ruffer LLP 42.0

Plinian + Management + Directors 31.2

Sentry Investments 30.2

AzValor 21.6

Large Holders (Top-5) 190.0

Other Holders 261.2

TOTAL 451.2

Analyst Coverage

Firm Analyst

BMO Brian Quast

Desjardins Mike Parkin

Raymond James Chris Thompson

Scotia Craig Johnston

Volume

30-day Average Daily Volume 933,114

100-day Average Daily Volume 1,256,682

14.4%

9.3%6.9%

6.7%

4.8%

57.9%

11

Average Daily Volume across all trading platforms (as of Feb 14, 2017)1. Known ownership positions are estimates - as at January 16, 2017 - Ownerships and percentages rounded to one decimal place.

Strong Balance Sheet

121. Exercise Price: C$0.83 – C$0.91 expiry dates ranging from Mar 9, 2017 – Mar 23, 20212. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.75 USD (Mar. 2, 2017)3. Cash and Cash Equivalents and Interest-Bearing Debt as at end of Q4-2016 (Dec 31, 2016)

As at Mar 2, 2017 Millions(Except Share Price Info)

Share price (Mar 02, 2017 - close) (C$) $0.62/shr

Shares Outstanding 451.2

Stock Options(1) 19.2

Fully Diluted Shares Outstanding 470.4

Market Capitalization (C$) $279.7

Cash and Cash Equivalents (US$)(3) $66.9

Total Interest-Bearing Debt (US$)(3) $59.0

Total Enterprise Value (US$)(2,3) $201.9

Björkdal Gold Mine: Investment Thesis DemonstratedLand package 12,949 hectares

Ownership 100%

P&P Reserves(1) 10,600,000 t @ 1.68 g/t Au

2016 Production 48,143 oz Au

13

Key for 2017:

Expected improvements in production and cash cost with continuously improving grade control

Phase 1 (crushing and screening) of low-grade ore sorting program implemented with 50% grade upgrade

Construction of the flotation expansion project to be commissioned later this year

Continued exploration success

(1) Source: Roscoe Postle Associates, Effective September 30, 2016, documented in an independent NI 43-101 Technical Report filed Jan. 27, 2017

14

Björkdal Operating Performance and Improvements

$0$5$10$15$20$25$30

0

100,000

200,000

300,000

400,000

Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16

$/ Ton

ne

Tonn

es Per Qua

rter

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$2

$4

$6

$8

$10

0

100,000

200,000

300,000

400,000

Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16

$/ Ton

ne

Tonn

es Per Qua

rter

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$0

$500

$1,000

$1,500

0

5,000

10,000

15,000

Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16

$/ oz A

u 

Oun

ces G

old Pe

r Qua

rter

Saleable Gold Produced and Unit Cost

Au oz Cost/ oz Au

Björkdal Operational Improvements:

Record High Rate Record Low Cost

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

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

Implemented crushing and screening of low-grade ore for 50% grade improvement

Committed flotation expansion in construction

Björkdal Operational Improvements:

Record High Rate Record Low Cost

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

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

Implemented crushing and screening of low-grade ore for 50% grade improvement

Committed flotation expansion in construction

14

Björkdal Grade Improvements – Now Do it Faster

Low-grade ore screening implemented for 50% grade improvement

15

Onsite assay lab for 24-hour turnaround for improved grade

control

Highest grade open pit A ore since 2006

Highest grade underground A ore since 2010

Björkdal Processing Improvements

16

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 Pilot on-site testing of coarse and ultra fine gold flotation Flotation circuit and ancillary equipment expansion study to

determine OPEX and CAPEX for a flotation circuit expansion. Goal: improve flotation recovery and concentrate grade

Low-grade ore screening for 50% grade improvement for no capital

2017 Planned Improvements: Commissioning the flotation expansion (Q3 2017) for 1.8%

recovery improvement

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

Björkdal: Just Getting Started on Resource Expansion

17Source: Roscoe Postle Associates, Effective September 30, 2016, documented in an independent NI 43-101 Technical Report filed Jan. 27, 2017

2014 2015 2016

Drilled Since Cutoff Date for Sept. 30 Reserves“In the box” and ready for next update

18

Ronnberget

Nylunds and E Pit

Underground

Costerfield Gold-Antimony Mine:Turnaround Complete; Dependable Performance

Land package 1,293 hectares

Ownership 100%

P&P Reserves(1) 619,000 t @ 6.5 g/t Au; 2.8% Sb

2016 Production 41,310 oz Au, 3,598 t Sb

19

Key for 2017:

Restarting capital development to access near-mine shoots and support next few years of production

Tailings lift construction for current LOM tailings

Potential reserve increases at Brunswick and further exploration upside

(1) Source: SRK Consulting (Australia), Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 2017

20

Costerfield: Continuous Improvement

$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 Q4‐16

USD

/ To

nne

Tonn

es Per Qua

rter

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 Q4‐16

USD

/ To

nne

Tonn

es Per Qua

rter

Processing Rate and Unit Cost

t Processed Cost/ t Processed

Cont. Impr.

Start-up

$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 Q4‐16 USD

/ Oz A

u Eq

.

Oun

ces P

er Qua

rter

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 7 years –Cuffley and N-lode

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 7 years –Cuffley and N-lode

20

Start-up

Transformation

Cont. Impr.

Costerfield Exploration Outcomes

21

“0” reserves at purchase; Mined continuously for 7 years; 4 years P&P remaining, plus further upside

Source: SRK Consulting (Australia), Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 2017

Brunswick Lode is Current Target to Convert to Reserves

22

Penguin-Moa panel infilled to indicated

Penguin-Kiwi panel infilled to inferred

Kiwi-Adder panel mineralized, not filled in

Penguin-Moa panel of Indicated not quite sufficient size for financially attractive development

Infilling Penguin-Kiwi panel to Indicated may create acceptable base case project

Confirming and infilling Kiwi-Adder panel provides upside

Cerro Bayo Silver-Gold Mine: Optimizing the FutureLand package 23,106 hectares

Ownership 100%

P&P Reserves(1) 979,000 t @ 282 g/t Ag; 2.29 g/t Au

2016 Production 13,792 oz Au, 1,731,031 oz Ag

23

BRANCA

Emerging Vein

Key for 2017:

Matched 950-1,000 tpd mining/processing rate

Accelerated development rate at Coyita to reach high-grade ore

Beginning drilling under the middle of Laguna Verde in late 2017 for potential reserve increases in Coyita, high-grade Branca vein, and Yasna Inflection zone

Target

(1) Source: Roscoe Postle Associates, Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 2017

MARCELA VEIN (10 KM BEHIND VIEWPOINT)

Cerro Bayo Operating Performance and ImprovementsCerro 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 4 years at 1,400 tpd while mining continuously for 6 years

Ongoing improvements to increase pace of development mining

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 4 years at 1,400 tpd while mining continuously for 6 years

Ongoing improvements to increase pace of development mining

24

$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 Q2‐16 Q4‐16

$/ Ton

ne

Tonn

es Per Qua

rter

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$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 Q2‐16 Q4‐16

$/ Ton

ne

Tonn

es Per Qua

rter

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$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 Q2‐16 Q4‐16 $/ oz A

g Net Byp

rodu

ct

Oz A

g/Qua

rter

Saleable Silver Produced & Unit Cost

Ag oz Cost/ oz Ag net Au

Record High Rate Record Low Cost

Cerro Bayo

25

3 years of reserves at purchase (for 2X worst case value add) Have mined continuously for 6 years 4 years remaining, plus some upside

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2010 2011 2012 2013 2014 2015 2016

OZS Ag

END OF YEAR MEASURED PLUS INDICATED RESOURCES

Cerro Bayo Cumulative M+I Resource Additions & Depletion (Ag Ozs)

CUMULATIVE DEPLETION Dagny Fabiola Delia NWDelia SE Marcela Sur Yasna CoyitaDalila Bianca Trinidad RaulKasia Branca

Source: Roscoe Postle Associates, Effective December 31, 2016, documented in an independent NI 43-101 Technical Report to be filed within 45 days of Feb. 23, 2017

Challacollo Silver-Gold Project 2017

26

Key for 2017: Water exploration and water rights transfer Exploration and optimization

Land package 20,378 hectares

Ownership 100%

Location 130 km SE of Iquique, Chile

Mineralization Epithermal, oxidized Ag-Au

Elevation Approx. 1,500 ASL

Invest With Us: How We Will Deploy Your Capital1. Acquire new assets counter-cyclically – only at deep discount to value• 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

2. Execute focused operational improvement projects at each site

3. Apply relentless, disciplined financial management

• 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 – more diverse customers paying better terms

• 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

4. Engage all stakeholders in a values-based and value-focused organization

27

BUILDING VALUEACROSS THE CYCLE

MANDALAY RESOURCES

For more information, please contact:

Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: g.ditomaso@mandalayresources.comCompany Website: www.mandalayresources.comTwitter: @MandalayAuAg

For more information, please contact:

Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: g.ditomaso@mandalayresources.comCompany Website: www.mandalayresources.comTwitter: @MandalayAuAg