Mr. Frazer Bourchier reports

MANDALAY RESOURCES CORPORATION ANNOUNCES EARNINGS RESULTS FOR THE FIRST QUARTER 2023

Mandalay Resources Corp. has released its financial and operational results for the quarter ended March 31, 2023.

The company's condensed and consolidated interim financial results for the quarter ended March 31, 2023, together with its management's discussion and analysis for the corresponding period, can be viewed under the company's profile on SEDAR and on the company's website. All currency references in this press release are in U.S. dollars except as otherwise indicated.

First quarter 2023 highlights:

• Maintained a strong financial position with $34.2-million of cash on hand;
• Generated consolidated quarterly revenue of $42.2-million;
• Consolidated quarterly adjusted EBITDA[1] of $12.9-million;
• Consolidated net income in Q1 2023 was $600,000 (one cent or one Canadian cent per share).

Frazer Bourchier, Mandalay's new director, president and chief executive officer, commented: "Mandalay delivered stable financial results and maintained a healthy net cash position during the quarter, delivering its 11th consecutive profitable quarter. The gold price was strong, and these fundamentals indicate solid future performance. At Costerfield, performance was hindered by lower-than-planned mined ore tonnes and grade predominantly due to non-systemic incidents affecting the quarter. At Bjorkdal, supply chain challenges delayed delivery of underground equipment, which led to lower grade and ore tonnes. We are addressing these production shortfalls with action plans focused on labour, improved infrastructure, mobile equipment availability and increased definition drilling."

Nick Dwyer, chief financial officer of Mandalay, commented: "Mandalay ended the quarter in a strong financial position with $34.2-million in cash on hand and $23.5-million in total interest-bearing debt outstanding, leaving us in a net cash position of $10.7-million. Our consolidated cash costs and all-in sustaining costs per saleable gold equivalent ounce produced during Q1 2023 were $1,222 and $1,596, respectively, up from previous quarters mainly due to lower metal production."

Mr. Bourchier continued: "Looking forward, Mandalay will be free of all hedging encumbrances after [second quarter] 2023, of which we incurred a $3.0-million outlay during the quarter. The hedges were a requirement of the previous, now closed, debt facility. In addition, the company will continue to invest in exploration to both extend mine life in known mineralized areas and to step out for potential new near-mine discoveries. Management remains very focused on improving operational processes and controls to compensate for this Q1 2023 shortfall in order to achieve 2023 guidance. I look forward to further unlocking the considerable value potential I see underlying both assets in the next 12 to 24 months."

First quarter 2023 financial summary

The attached table summarizes the company's consolidated financial results for the three months ended March 31, 2023, Dec. 31, 2022, and March 31, 2022.

Conference call

Mandalay's management will be hosting a conference call for investors and analysts on May 11, 2023, at 8 a.m. Toronto time.

Analysts and interested investors are recommended to join the conference call by registering your name and phone number to receive an instant automated call on your phone to avoid any wait time to talk to an operator.

Alternatively, you may join by using the following dial-in numbers and talking to an operator.

Participant number (North America toll-free):  888-664-6383

Participant number (local):  416-764-8650

Conference ID:  13748019

A replay of the conference call will be available until 11:59 p.m. Toronto time on May 18, 2023, and will be available using the following dial-in numbers.

Encore number (North America toll-free):  888-390-0541

Encore number (local):  416-764-8677

Encore replay code:  748019

About Mandalay Resources Corp.

Mandalay is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The company is focused on increasing its production and reducing costs to generate significant positive cash flow. Mandalay is committed to operating safely and in an environmentally responsible manner, while developing a high level of community and employee engagement.

Mandalay's mission is to create shareholder value through the profitable operation and continuing the regional exploration program, at both its Costerfield and Bjorkdal mines. Currently, the company's main objectives are to continue mining the high-grade Youle vein at Costerfield and bring the deeper Shepherd veins into production, both of which are expected to continue to supply high-grade ore to the processing plant, and to extend Youle's mineral reserves. At Bjorkdal, the company will aim to increase production from the Aurora zone and other higher-grade areas in the coming years to maximize profit margins from the mine.

We seek Safe Harbor.