DELIVERING VALUE AND GROWTH SEPT 214
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 28, 214 and in its final prospectus dated September 2, 214, copies of which are available under Mandalay's profile at www.sedar.com. 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 43-11. 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 43-11. 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 and La Quebrada projects are 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 43-11. Mr. Luethe visits the Cerro Bayo and La Quebrada projects 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, and La Quebrada projects several times during 21, 211, 212 and 213 and has supervised the preparation of this presentation. He has also visited the Challacollo project in 213 and 214. All currency references in US$ unless otherwise indicated 2
Oz Au Eq. Annual Production Oz Au Eq. YEar-End Reserves US$ MM A Profitable and Growing Dividend-Paying Company 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. 29 Costerfield, Australia Gold & Antimony 21 Cerro Bayo, Chile Silver & Gold TIMELINE 213 Challacollo, Chile Silver & Gold 214 Björkdal, Sweden Gold Revenue, EBITDA & Dividends 2 15 1 Revenue EBITDA $171.8 $166.9 Dividends $92.2 $79.9 $67.7 $83. 5 $32. $32.4 $2.6 $3.2 $11.1 $8. $1.7 21 211 212 213 214 (1H) Production & Reserves 2, 15, 1, 5, Reserves Production 15,854 253,796 52,175 63,351 633, 17,941 771,5 126,98 138, 148, E 21 211 212 213 214 1,, (1) The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA should not be considered by an investor as an alternative to net income or cash flow as determined in accordance with IFRS. 3 (2) Annual cash dividend paid quarterly, based on 6% of the Company s trailing quarter s gross revenue and the future cash requirements of the Company (3) Refer to notes on Mineral Reserves in the Appendix (4) Refer to notes on gold equivalent ounces in the Appendix (5) Not including Elgin Reserves 8, 6, 4, 2,
Index (August 4, 29 = 1) Index (August 4, 29 = 1) Index (August 4, 29 = 1) Value Creation Track Record 55 5 45 4 35 3 25 2 15 1 5 Mandalay Resources Peers (1) S&P/TSX Composite Index S&P/TSX Global Mining Index Q4 29 - New Management Team (Mills, Sander & Swarup) Mandalay: 325% (total return (2) ) Peers: 149% TSX Composite: 42% TSX Mining: -1% 25 2 Gold 15 1 Gold: 33% 5 4 35 3 25 2 15 1 5 Silver Silver: 33% (1) Peer group includes: Endeavour Silver, First Majestic Silver, Fortuna Silver, McEwen Mining, and Primero Mining (2) Includes dividends paid and average SIB benefit to shareholders 4 Share prices as at Sept 3, 214
Capital Structure and Ownership Post Elgin Shares, options, and warrants as at Sept 1, 214 Millions (Except Share Price Information) Share price (Sept 1, 214 - close) (C$) Major Shareholders (4) Holders % Shares (Million) West Face Capital 23.2% 91. Plinian + Management 8.4% 33. Sentry Investments 8.4% 32.8 Sprott Asset Management 8.3% 32.3 Baker Steel Capital Managers 3.8% 15. GMT Capital 3.2% 12.5 (1) Exercise price: C$.255 - C$1.13; Expiry date: Dec 7, 214 - Mar 24, 219 (2) Exercise price: C$.31 - C$.465; Expiry date: Nov 3, 214 (3) Assuming C$ 1 = US$.94 5 (4) As of September 1, 214, the directors and executive officers of the Corporation, as a group, beneficially owned, or controlled or directed, directly or indirectly, approximately 125,98,112 Common Shares, representing approximately 32% of the outstanding Common Shares 1.8/shr Shares Outstanding 392.1 Options (1) 18.4 Warrants (2) 15.8 Fully Diluted Shares Outstanding 426.3 Market Capitalization (C$) 423.5 Cash and Cash Equivalents (US$) 69. Total Debt (US$) 6. Total Enterprise Value (3) (US$) 414.5
Operational Locations and Tradeflows Mining friendly operational jurisdictions with strong customer base 6
Resource and Reserves Growth Inferred Resources (1) 4,, Ag (cont. oz) 3, Au (cont. oz) 3, Sb (cont. t) 2 Cu (MMlbs) 3,, 2,, 1,, 2, 1, 2, 1, 15 21 211 212 213 21 211 212 213 21 211 212 213 1 212 213 M&I Resources (1) 6,, Ag (cont. oz) 6, Au (cont. oz) 4, Sb (cont. t) 6 Cu (MMlbs) 4,, 2,, 4, 2, 3, 2, 1, 4 2 21 211 212 213 21 211 212 213 21 211 212 213 212 213 P&P Reserves (1) 2,, 15,, Ag (cont. oz) 8, 6, Au (cont. oz) 324,313 oz Au P&P from Elgin Acquisition 2, Sb (cont. t) 1,, 4, 1, 5,, 2, 21 211 212 213 21 211 212 213 (1) Refer to notes on Mineral Resources and Mineral Reserves in the Appendix 7 21 211 212 213
Strong Annual Production Growth 16, Total MND Production (AuEq oz) 12, 17,941 126,98 138, - 148, 8, 63,351 4, 15,854 Costerfield Production (214E) Cerro Bayo Production (214E) Björkdal Production (214E) 8, 1, oz Au attributable to MND, in Q4 214E 21 211 212 213 214E 3,5 3, 2,5 2, 1,5 1, 5 3,5, 3,, 2,5, 2,, 1,5, 1,, 5, 1,16 Silver (oz) 19,337 Antimony (Sb) 1,571 1,318,655 2,481 3,275 3,145,537 2,911,595 3, 3,3 21 211 212 213 214E 3,, 3,2, 21 211 212 213 214E 5, 4, 3, 2, 1, 3, 25, 2, 15, 1, 5, 2, 15, 1, 5, 7,661 6,678 334 Gold (oz) Gold (oz) 12,244 18,36 17,89 28,758 21,482 37, 43, 21 211 212 213 214E 23, 27, 21 211 212 213 214E Gold (oz) 8, - 1, Refer to notes on gold equivalent ounces in the Appendix 8 21 211 212 213 214E
Current Mandalay Performance (Q2 214) Current Operational Performance (Q2 214) Q2, 214 213YE Q2, 213 212YE Saleable Silver oz produced 741,382 3,145,537 921,895 2,911,595 Saleable Gold oz produced 14,79 5,24 13,46 35,125 Saleable Antimony t produced 855 3,275 738 2,481 Current Financial Performance (Q2 214) Q2, 214 213YE Q2, 213 212YE Net Cash/All-in Cost/oz Ag at Cerro Bayo, $ 5.83 / 12.8 6.84 / 12.7 6.12 / 11.54 5.67 / 1.7 Net Cash/All-in Cost/oz Au Eq. at Costerfield, $ 989 / 1,278 819 / 1,62 917 / 1,178 1,112 / 1,34 EBITDA, $ million 16.4 67.7 11. 79.9 Net Income, $ million 4.9 29.4 3.1 41.7 Cash and cash equiv., $ million 69. 33.5 23.9 17.3 9
Acquisition of Elgin Mining Mandalay Acquired 1% of Elgin Mining in September 214 Benefits to Mandalay Shareholders: Acquired the Björkdal Gold Mine, adding a third producing and cash flowing mine, to Mandalay s portfolio Increases and diversifies Mandalay s production profile by adding Björkdal s annual production of ~5koz Au to Mandalay s current 13-143koz/yr AuEq production rate Accretive to Mandalay shareholders on all major metrics Opportunity to generate additional value through Mandalay s demonstrated capabilities to grow production, lower costs, and increase reserves to Björkdal s operations in the near-term Provides Mandalay with positive EBITDA and cash flow at current gold prices and current AISC levels at Björkdal Includes large resources and excellent exploration potential for potentially long mine life and/or significant organic growth profile Acquisition Details MND acquires 1% of the outstanding common shares of Elgin Mining Elgin shareholders will receive in exchange for each Elgin share: o o C$.37 cash; or.4111 of an MND common share Subject to pro-ration to a max. of 5,, shares and max. of C$27 million cash Offer Value Total equity value of approx. C$7 million 85% premium to Elgin s last close on the TSX on June 3, 214 (C$.2) 53% premium to Elgin s 2-d VWAP on the TSX on June 3, 214 (C$.24) 1
Björkdal Gold Mine: Overview Land package 6,862 hectares Ownership 1% 213 gold production 46,946 oz 214E gold production P&P Reserves (1) 8, 1, oz (Q4 214E production attributable to Mandalay) 7.6 Mt @ 1.33 g/t Au Plant recoveries (213) Au: 87.5% 213A Cash costs/oz Au $1,97 1 Refer to notes on reserves in the Appendix 11
Björkdal Value Creation Plan Introduce best practice mapping, drilling, sampling, and modelling of high nugget-effect gold deposits Produce a more refined resource model to support more selective underground open pit mining techniques Increase grade of mill feed through selective mining and ore sorting technologies Increase funding for exploration Goal: Provide factual basis for more selective mining to increase mill grades; will also reduce total exploration cost by accelerating wide-spaced and infill drilling while reducing the expensive practice of exploration by large-scale drifting across and on veins Goal: Allow for a revised mine plan that improves planned delivered grades from mine to mill, so more gold will be produced from the current capacities, resulting in an expected decrease in cost per ounce Goal: Margin expansion by producing more gold at reduced cost per ounce from the same, largely fixed-cost operation. Optimized mill feed grade expected to improve recoveries Goal: Extend mineralization along strike and down dip by increasing the rate of infill drilling on currently defined Inferred Mineral Resources Timeline Dec 214 Dec 214 216 216 12
Björkdal Exploration Potential Plan View A In plan view Down dip along historic vein swarm Extend vein swarm to SE Extend vein swarm to NW (Lake Z.) Lake Z. open to NE and SW A Sectional View In sectional view Extend down dip Veins in tailings area may signify leakage from far down-dip Source: Elgin investor presentation, annual information form, other Elgin company disclosure 13
Cerro Bayo Silver-Gold Mine Land package 23,96 hectares Ownership 1% 213 silver production 3,145,537 oz 213 gold production 21,482 oz 214E silver production 214E gold production Current throughput / Goal P&P Reserves 3. 3.2 Moz 23, 27, oz 1,4 tpd 2.5 Mt @ 224 g/t Ag; 2.2 g/t Au Plant recoveries (Q1 214) Ag: 91.%, Au: 87.25% 213A Cash costs/oz Ag net Au credits / Q2 214 $6.84 / $5.83 214 Planned Exploration Budget $3 4 million 14
Ounces Silver Per Quarter $/ oz Ag Net Byproduct Tonnes Per Quarter $/ Tonne Tonnes Per Quarter $/ Tonne Cerro Bayo Operating Performance 15, Mining Rate and Unit Cost $8 1, 5, $6 $4 $2 1, 5, Q4-1 Q2-11 Q4-11 Q2-12 15, Q4-12 Q2-213 t Mined Cost/ t Mined Q4-213 Q2-214 $ Processing Rate and Unit Cost $6 $4 $2 Q4-1 Q2-11 Q4-11 Q2-12 Q4-12 1,, Q2-13 Q4-13 Q2-14 t Processed Cost/ t Processed 8, 6, 4, 2, $ Saleable Silver Produced & Unit Cost $2 $15 $1 $5 $ Q4-1 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Ag oz Cost/ oz Ag net Au 15
Emerging Extensions and New Veins Under Laguna Verde LAGUNA VERDE 16
Costerfield Gold-Antimony Mine: Overview Land package 1,293 hectares Ownership 1% 213 gold production 28,758 oz 213 antimony production 3,275 t 214E gold production 37, 43, oz 214E antimony production 3, 3,3 t Current throughput 4 tpd P&P Reserves 42, tonnes @ 9.2 g/t Au; 3.6% Sb Plant recoveries (Q1 214) Au: 9.75%, Sb: 94.18% 213A Cash cost/oz Au Eq. / Q2 214 $819 / $989 214 Planned Exploration Budget $4 5 million 17
Ounces Per Quarter USD/ Oz Au Eq. Tonnes Per Quarter AUD/ Tonne Tonnes Per Quarter AUD/ Tonne Costerfield Operating Performance 45, 4, 35, 3, 25, 2, 15, 1, 5, Q4-9 (Dec. only) t Mined Mining Rate and Unit Cost Processing Rate $1 and Unit Cost 35, $ 3, Q2-1 Q4-1 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 25, Cost/ t Mined 4, 2, 15, 1, 5, Q4-9 (Dec. only) t Processed $4 $3 $2 $12 $1 $2 18, 16, $ Q2-1 Q4-1 Q2-11 14, Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 12, 1, Cost/ t Processed 8, 6, 4, 2, Q4-9 Q2-1 Q4-1 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 (Dec. only) $8 $6 $4 Au Equivalent Production and Cost $3, $2,5 $2, $1,5 $1, $5 $ Oz Au Eq. Cost/ Au Eq. Oz 18
Challacollo Silver-Gold Project: Overview Land package 4, hectares Ownership 1% Location Mineralization Elevation Resource 13 km SE of Iquique, Chile Epithermal, oxidized Ag-Au approx. 1,5 metres ASL Indicated: 1 mt @ 242 g/t Ag; Inferred: 4 mt @193 g/t Ag 19
Challacollo Development Plan 12 mo Feasibility Study: $7 $8 million on track Hire GM and Construction Manager to run feasibility study done Environmental, community, cultural baselines for permitting in progress Drill 8, m for infilling existing Inferred Resource and extensions infill complete; finishing new target testing Resource update due EOY 214 Metallurgical testing crushing, grinding, agitation leach in progress Mine design, plant design after resource model and metallurgical testing complete Capital and operating costing after mine and plant design Financial case and conversion to reserves Q1, 215 Permitting Build Submission of EIA Q1, 215 Receipt of permits Goal: EOY 215 12 months build (est.) in 216 Production First production Goal: Q1 217 2
Lolon Vein Challacollo Resources (3) Resource Au Grade Ag Grade Au Ag (t) (g/t) (g/t) (cont. oz) (cont. oz) Measured Resources - - - - - Indicated Resources 1,3,.4 242 13, 8,, M&I Resources 1,3,.4 242 13, 8,, Inferred Resources 3,9,.3 193 4, 24,3, Source News Release, Mandalay Resources Corporation Provides Update on Challacollo Infill Drilling and Feasibility Study Progress. Filed September 1, 214 21 (1) Source Challacollo: NI 43-11 Technical Report on the Challacollo Silver-Gold Project, Region 1, Chile. Effective date January 3, 214. Filed on SEDAR February 7, 214.
Peer Comparison: Production, Cost, Financials Ag (oz) Au (oz) 1H 214 Production Other Ag Eq (oz) (Au + Ag) Revenue ($MM) 1H 214 Financials EBITDA ($MM) EBITDA Margin (%) Mandalay Resources 1,484,951 27,274 1,713 t Sb 2,973,138 83. 32.4 39.1 Endeavour Silver 3,568,68 33,65-5,44,697 17.8 37. 34.3 First Majestic Silver 5,993,715 6,176 1,456 t Pb+Zn 6,33,74 132.2 43.2 32.7 Fortuna Silver 3,167,281 16,669 9,562 t Pb+Zn 4,76,814 89.8 31.4 35. McEwen Mining 1,465, 39, - 3,593,8 22.8 (12.9) - Primero Mining 3,, 82,339-7,492,771 127.9 39.3 3.7 Ag (oz) Au (oz) P+P Reserves Other Reserve Grade Ag Eq (g/t) (Au + Ag) Market Capitalization FD (C$MM) Market Comparables 1H 214 EPS ($) Last 12M Dividend Paid/Share Mandalay Resources 17,92, 31, 15,t Sb 568 46.3.3 $.334 Endeavour Silver 11,63,2 139,4-27 587.8.4 $ First Majestic Silver 18,627,132 - - 174 1,266.8.13 $ Fortuna Silver 36,3, 235,9-229 684..6 $ McEwen Mining 14,724,5 2,66-899 864.7 (.29) $ Primero Mining 64,814, 2,243, - 146 1,11.8 (.8) $ Source: Company reports and FactSet Market capitalization as at Sept 3, 214 22 Ag Eq oz converted at 55/1 Au/Ag. Metal prices: Ag price of $28.92 and Au price of $1,578
Peer Comparison: Production, Cost, Financials Mandalay Resources Endeavour Silver First Majestic Silver Fortuna Silver McEwen Mining Primero Mining 1 9 8 7 6 5 4 3 45% 4% 35% 3% 25% 2% 15% $35 $3 $25 $2 $15 $1 Second highest grade reserves (Ag Eq oz) Highest EBITDA margin 2 1 $14 P+P Reserve Grade Fully Diluted Ag Eq (g/t) 1% 5% % $4 1H 214 EBITDA Margin $5 $ $.4 Fully Loaded 1H 214 Cash Cost/Ag Eq oz Lowest fully loaded cost (Ag Eq oz) Lowest market cap per estimated annual production of Ag Eq oz Second lowest market cap per P+P reserves oz $12 $1 $8 $6 $4 $35 $3 $25 $2 $15 $1 $.3 $.2 $.1 Highest dividend paid per share $2 $ Market Cap per 214E Ag Eq Production (oz) $5 $ Market Cap per P+P Reserves (Ag Eq oz) $. Last 12M Dividend Paid per Share Market capitalization as at Sept 3, 214 Ag Eq oz converted at 55/1 Au/Ag Metal prices: Ag price of $28.92 and Au price of $1,578 23
Investment Proposition Execution-focused management with track record of acquisition, operational and exploration success, growth and value generation High-quality, cash flowing asset portfolio with major exploration upside and full project pipeline Strong balance sheet, Company s development and capital programs funded Rapid increase in production and margins through low-capex organic growth and operational efficiencies Returning cash to shareholders and reducing dilution share buyback program in place Company dividend policy based on 6% trailing revenues 24
DELIVERING VALUE AND GROWTH SEPT 214 For more information, please contact: Greg DiTomaso Tel: 647.26.1566 Email: g.ditomaso@mandalayresources.com Company Website: www.mandalayresources.com Twitter: @MandalayAuAg
Management and Board of Directors Senior Management Brad Mills, CEO and Executive Director Former CEO Lonmin plc, over 3 years of experience in Copper, Gold, PGMs Sanjay Swarup, CFO and Executive Director Former Lonmin plc, over 2 years of industry experience Mark Sander, President 28 years of experience in exploration, strategy and operating improvements Dominic Duffy, COO Mining Engineer with extensive technical and operational management experience Belinda Labatte, Corporate Secretary Over 1 years of experience in capital markets and investment banking Board of Directors Braam Jonker, Chairman Peter R. Jones, Independent Director Tony Griffin, Independent Director Robert Doyle, Independent Director 26
Mandalay Reserves Cerro Bayo Reserves (1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Proven Reserves 516, 283 4,75, 2.5 41, Probable Reserves 1,967, 29 13,197, 2.1 134, P&P Reserves 2,483, 224 17,91, 2.2 174, Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Proven Reserves 71, 4.4 3, 8.3 2, Probable Reserves 35, 3.4 12, 9.4 16, P&P Reserves 42, 3.6 15, 9.2 126, TOTAL RESERVES (excluding Björkdal) 31-December-213 Ag (cont. oz) Au (cont. oz) Sb (cont. t) Mandalay Proven Reserves 4,75, 61, 3, Mandalay Probable Reserves 13,197, 24, 12, Total Mandalay P&P Reserves 17,92, 31, 15, Bjorkdal Open-Pit Tonnes Grade Reserves (3) (1, s) (g/t) Ounces Proven 49.6 1.48 2,366 Probable 5,454.4 1.4 182,858 Total 5,54. 1.5 185,224 Bjorkdal Underground Tonnes Grade Ounces Reserves (3) (1 s) (g/t) Proven 36.2 2.2 2,357 Probable 2,54.7 2.7 136,732 Total 2,9.9 2.7 139,89 Numbers may differ slightly from source documents due to rounding 1 Source: Roscoe Postle Associates, March 214 documented in an independent NI 43-11 report filed March 28, 214 2 Source: SRK Consulting (Australia), March 214, documented in an independent NI 43-11 report filed March 28, 214 3 Source: A qualified person within the meaning of NI 43-11 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves; Mandalay is not treating the historical estimate as current Mineral Resources and Mineral Reserves. 27
Mandalay Resources Cerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz) Measured Resources 411, 423 5,596, 3.6 48, Indicated Resources 1,633, 38 16,172, 3.2 167, M&I Resources 2,44, 331 21,768, 3.3 214, Inferred Resources 433, 4 5,58, 3.3 46, Challacollo Resources (3) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz) Measured Resources - - - - - Indicated Resources 1,3,.4 242 13, 8,, M&I Resources 1,3,.4 242 13, 8,, Inferred Resources 3,9,.3 193 4, 24,3, Costerfield Resources (2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz) Measured Resources 191, 4.3% 8, 8.4 51, Indicated Resources 65, 3.7% 22, 9.6 187, M&I Resources 796, 4.1% 32, 9.3 238, Inferred Resources 569, 3.8% 22, 7.4 135, La Quebrada Resources (4) Resource (t) Cu Grade (%) Cu (cont. lb) Ag Grade (g/t) Ag (cont. oz) Measured Resources Indicated Resources 34,8,.6% 459,, 1 11,2, M&I Resources 34,8,.6% 459,, 1 11,2, Inferred Resources 1,,.6% 13,, 11 4, TOTAL RESOURCES (Excluding Björkdal) Ag (cont. oz) Au (cont. oz) Sb (cont. t) Cu (cont. lb) Measured Resources 5,596, 99, 8, Indicated Resources 35,372, 367, 22, 459,, Total M&I Resources 4,968, 465, 32, 459,, Total Inferred Resources 3,28, 221, 22, 13,, Björkdal Resources (5) Measured Au (cont. oz) Indicated Au (cont. oz) Open Pit 2,746 229,611 232,357 111,97 Underground 12,624 765,319 777,944 64,972 Totals 15,37 994,93 1,1,31 752,879 1 Source: Cerro Bayo - Roscoe Postle Associates, March 214 documented in an independent NI 43-11 report filed March 28, 214 2 Source: Costerfield - SRK Consulting (Australia), March 214, documented in an independent NI 43-11 report filed March 28, 214 3 Source: Challacollo Roscoe Postle Associates, Jan, 3, 214, in a report filed February 7, 214. 4 Source: La Quebrada Independent Technical Report filed 16-Aug-212. 5 Source: Björkdal - A qualified person within the meaning of NI 43-11 has not done sufficient work to classify the historical estimate as current Mineral Resources or Mineral Reserves; Mandalay is not treating the historical estimate as current Mineral Resources and Mineral Reserves. 28 Measured + Indicated Au (cont. oz) Inferred Au (cont. oz)