TSX // MND. Andre Booyzen, GM Australasian Operations, Mandalay Resources Changsha, China May 20 21, 2015

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1 WORLD ANTIMONY FORUM ANTIMONY RESOURCES IN AUSTRALIA Andre Booyzen, GM Australasian Operations, Mandalay Resources Changsha, China May 20 21, 2015 TSX // MND

2 Antimony in Australia 1. Mandalay Resources 2. Antimony in Australia 3. Costerfield Mine 2

3 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 Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forwardlooking 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 The exploration program at Costerfield is supervised by Chris Gregory (Member, Australian Institute of Geoscientists accredited Chartered Professional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under National Instrument Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical information contained in this presentation. The exploration programs on the Cerro Bayo project is supervised by Ronald Luethe (Member: American Institute of Professional Geologists and an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person as defined under National Instrument Mr. Luethe visits the Cerro Bayo project often, supervises the collection and interpretation of scientific and technical information contained in this 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 3

4 US$ MM US$ MM A Profitable, Dividend-Paying Company (4.6% 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 Costerfield, Australia Gold & Antimony 2010 Cerro Bayo, Chile Silver & Gold TIMELINE 2013 Challacollo, Chile Silver & Gold 2014 Björkdal, Sweden Gold Revenue, EBITDA (1) & Dividends (2) 2015 Quarterly Financial Measures Revenue EBITDA Dividends $171.8 $184.6 $166.9 $92.2 $79.9 $67.7 $64.4 $32.0 $20.6 $1.7 $3.2 $11.1 $ $56.7 $24.3 $4.0 $3.4 Q Q Q Q (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. (2) 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 4

5 Operational Locations and Tradeflows Mining friendly operational jurisdictions with strong and diversified customer base 5

6 Oz Au Eq. Annual Production Oz Au Eq. Year-End Reserves Growing Production and Reserves 300, , , , ,000 50,000 0 Reserves Production 15, , ,175 63, , , , ,908 1,123, , , ,000 E ,200,000 1,000, , , , ,000 0 Bjorkdal M&I Resource Additions & Depletion (Au oz) 6 Cerro Bayo M&I Resource Additions & Depletion (Ag oz) Costerfield M&I Resource Additions & Depletion (Au Eq oz) Challacollo M&I Resource Additions & Depletion (Ag oz) 6

7 Q Mandalay Performance Operational Performance Q1, YE Q1, YE Saleable Silver oz produced 590,755 3,329, ,569 3,145,537 Saleable Gold oz produced 27,740 77,900 13,105 50,240 Saleable Antimony t produced 969 3, ,275 Financial Performance Q1, YE Q1, YE Net Cash/All-in cost/oz Ag at Cerro Bayo, $ / / / / Net Cash/All-in cost/oz Au Eq. at Costerfield, $ 566 / / 1, / 1, / 1,062 Net Cash/All-in cost/oz Au Eq. at 797 / / 1,023 - (1) - (1) Björkdal, $ (1) EBITDA, $ million Net Income, $ million Cash and cash equiv., $ million (1) Björkdal Acquired September 10, 2014 Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation, accretion and write-off of exploration and evaluation. 7

8 Mandalay 2015 Full Year Production and Cost Guidance Saleable gold production (oz) Saleable silver production (million oz) Saleable antimony production (t) Gold equivalent production (oz) Cash cost $/oz silver net by-product Cash cost $/oz gold or gold equivalent Capital expenditures ($ million) Total Cerro Bayo Costerfield Björkdal 101, ,000 23,000 27,000 32,000 37,000 46,000 52, ,200 3, ,200 3, , , Exploration ($ million)

9 Antimony in Australia 1. Mandalay Resources 2. Antimony in Australia 3. Costerfield Mine 9

10 Antimony Deposits in Australia DARWIN CAIRNS BRISBANE PERTH ADELAIDE SYDNEY MELBOURNE 10

11 World Antimony Production (share of tons produced) 3% 3% 2% 2% China 6% Tajikistan Australia Bolivia Russia South Africa Turkey Thailand 82% Krygistan Source: 2013 World Antimony Conference presentation 11

12 World Antimony Reserves (metal tonnes) 90, , , , , , , ,000 2,400,000 China Thailand Russia Bolivia Australia South Africa Tajikistan USA Other countries Source: 2013 World Antimony Conference presentation 12

13 Global Antimony Production (estimated tonnes) Estimated Current 22fAntimony Production (Estimate) Country Tonnes China 102,000 Bolivia 2,500 Russia 6,500 Australia (5%) 6,500 Canada 0 South Africa 2,000 Tajikistan 3,500 Other 5,440 Total 128,440 Source: 2013 World Antimony Conference presentation 13

14 Antimony Imports to China Sb Ores/Concs Import (DMT) by China Russia 10,702 18,851 20,761 16,055 Tajikistan 13,812 13,865 9,727 14,361 Australia (21%) 5,629 6,968 9,820 12,329 Myanmar 6,228 7,876 9,291 3,917 Kazakhstan 1,354 1,261 1,711 1,538 Bolivia ,600 1,516 Thailand 7,989 6,059 5,238 1,490 Mexico 1,542 1, ,302 Laos 574 1,743 1,956 1,020 Peru Zimbabwe Turkey Honduras Iran Kyrgyzstan India Morocco Ecuador South Africa Indonesia North Korea Canada 9,574 6,811 1,237 0 Pakistan ,004 0 Nigeria Guatemala Albania Japan Vietnam 1, Chile TOTAL 59,961 68,580 64,515 56,649 Source: 2013 World Antimony Conference presentation 14

15 Antimony Resources in Australia 15

16 Future of Antimony Mining in Australia Major deposits around Costerfield region. Long history of 150 years of mining antimony. Deposits in Western Australia likely require substantially higher antimony and/or gold prices. Hillgrove is understood to be ramping-up production, but not a public company so current scale unconfirmed. Capital constraints exist for antimony exploration funding today is from active mine production. Unlikely to see new antimony ore producers from Australia in the near future. Costerfield is Australian antimony mining success story. 16

17 Antimony in Australia 1. Mandalay Resources 2. Antimony in Australia 3. Costerfield Mine 17

18 Costerfield Gold-Antimony Mine: Overview Land package 1,293 hectares Ownership 100% 2014 gold production 35,751 oz 2014 antimony production 3,639 t 2015E gold production 32,000 37,000 oz 2015E antimony production 3,200 3,500 t P&P Reserves (1) 430, g/t Au; 3.6% Sb Current throughput 400 tpd Plant recoveries (Q1 2015) Au: 89.9%, Sb: 95.0% 2015E Cash cost/oz Au Eq. / 2014A $625 - $750 / $ Planned Exploration Budget $1 million (1) Refer to notes on reserves in the Appendix 18

19 Augusta Mine Site 19

20 Ounces Per Quarter USD/ Oz Au Eq. Tonnes Per Quarter USD/ Tonne Tonnes Per Quarter USD/ Tonne Costerfield Operating Performance 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Mining Rate and Unit Cost 45,000 40,000 35,000 Q4-09Q2-10Q4-10Q2-11Q4-11Q2-12Q4-12Q2-13Q4-13Q2-14Q ,000 (Dec. 25,000 only) t Mined Cost/ t Mined 20,000 15,000 10,000 5,000 20, ,000 Q4-09 (Dec. only) t Processed $400 $300 $200 Processing Rate $100 and Unit Cost $0 Q2-10 Q4-10 Q2-11 Q ,000Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q ,000 12,000 10,000 Cost/ t Processed 8,000 6,000 4,000 2,000 0 $120 $100 $80 $60 $40 Au Equivalent Production and Cost $20 $0 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Oz Au Eq. Cost/ Au Eq. Oz 20

21 Costerfield Reserves Costerfield Reserves (1) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Proven Reserves 98, , ,000 Probable Reserves 333, , ,000 P&P Reserves 431, , ,000 1 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI Technical Report Filed on March 31, 2015 Numbers may differ slightly from source documents due to rounding 21

22 Costerfield Resources Costerfield Resources (1) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Measured Resources 213, % 9, ,000 Indicated Resources 786, % 26, ,000 M&I Resources 999, % 35, ,000 Inferred Resources 519, % 13, ,000 1 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2014, documented in an independent NI Technical Report Filed on March 31, 2015

23 Costerfield Operations Area first mined in mid-1800 s - Augusta Mine operating since 2005 Employ almost 200 people mostly from local area Has seen growth and prosperity in local area over the last 3 years Spend almost $60 million per annum in local economy Strong exploration & capital program to increase mine life Gold & antimony Ore widths average 300mm. Gold grades range from 8-20g/t Antimony grades range from 3-5% Sb. High confidence mine life of approximately four years Currently processing over 13,000 tonnes per month Cost reduction efforts paying off with less than $800/ Au Equivalent Ounce 23

24 Costerfield Challenges in 2010 now overcome Safety was unacceptable Staff morale poor ineffective workforce Land acquisition infrastructure and water disposal challenging Lack of cash not making money Political and regulatory support High and rising costs Skills shortage in many areas Ground conditions Specialised narrow vein mine labour intensive Operating restrictions noise and zero discharge Electrical power required for growth Inefficient operations 24

25 Highlights From 2010 to 2014 Increases in: Saleable Sb tonnes produced from 1,106 to over 3,639 Saleable Au oz. produced from 7,661 to 35,751 Revenue from $22m to $78m Earnings (EBITDA) from $5.4m to $29m Capital spend from $2.8m to $7.8m Opex spend from $16.5m to $32m Safety - 80% improvement in safety LTI and MTI Low staff turnover from 72% per annum to less than 8% 25

26 Mandalay Culture Culture of continuous improvement Incremental improvements across mining operations Empowered staff to realise cost savings in their own areas Improvement ongoing to drive bottom line and revenue growth Simple key indicators to manage the mine Management and supervisors enrolled in the culture 26

27 Questions? For more information, please contact: Greg DiTomaso Director, Investor Relations Tel: Company Website: 27