Australia

Costerfield

Mandalay operates the 100%-owned Costerfield gold-antimony mine in Victoria, Australia, having purchased it on December 1, 2009, from Western Coal. The Company restarted capital development and mining immediately, ramping through year-end 2010 to the planned production rate of 5,000 tonnes per month (“t/m”). Significant improvements in mining and processing methods since then has enabled production to grow to the 10,000-12,000 t/m range by early 2013, a level that is sustainable going forward.

Chile

Cerro Bayo

Compañia Minera Cerro Bayo (“Cerro Bayo” or “CMCB”) owns and operates multiple underground silver (“Ag”)-gold (“Au”) mines in the Cerro Bayo district, Region XI, Chile. The mines feed a single conventional flotation plant. Ag-Au concentrate from the plant is sold to smelters in Asia and North America. Cerro Bayo offers Mandalay shareholders exposure to current, low-cost Ag and Au production and exciting exploration potential in one of the best mining jurisdictions in the world.

Challacollo

The 100% owned Challacollo silver-gold project is located in Region I (Tarapaca) of Chile, approximately 130 km southeast of the port city of Iquique at 20° 57’10” S latitude, 69° 21’20” W longitude. The Project comprises 98 individual mining exploitation concessions totalling 20,803 ha, which grant the owner the right to mine. Mandalay Resources Corporation announced its acquisition of Challacollo on December 20, 2013, with final closing completed on February 7, 2014.

Sweden

Björkdal

Mandalay Resources Corp. acquired 100% interest in the Björkdal (“Birch Valley”) gold mine in September, 2014, when it purchased 100% of Elgin Mining. Björkdal, located in northern Sweden, one of the best mining jurisdictions in the world, produces gold from a combined open pit and underground operation with approximately 60% of plant feed currently delivered from the underground. The plant produces gravity and flotation gold concentrates which are sold to smelters. The acquisition of Björkdal pushes Mandalay into deriving the bulk of its revenues from gold (together with co-product gold production from Costerfield and by-product gold production from Cerro Bayo). Björkdal offers abundant opportunities for optimising both open pit and underground mining, improving processing recoveries, and increasing Mineral Resources, Mineral Reserves, and mine life.