Mr. Bradford Mills of Mandalay reports

MANDALAY ADVANCES BRIDGE LOAN TO ELGIN MINING

Mandalay Resources Corp. has advanced, by way of the previously disclosed convertible bridge loan, approximately $5-million to Elgin Mining Inc.

Elgin used the proceeds of the loan to repay its existing loan from Sprott Resource LP and has now settled all outstanding reclamation obligations relating to its former coal operations in Kentucky.

The bridge loan bears interest at a rate of 10 per cent per year, has a term of six months, is convertible into Elgin common shares at Mandalay's option at a price of 15.7 cents per share and is secured by, among other things, a pledge of all of the shares of Elgin's Swedish subsidiaries (Bjorkdalsgruvan Aktiebolag and Bjorkdal Exploration AB).