Mr. Frazer Bourchier reports

MANDALAY RESOURCES CORPORATION RECEIVES MINING PERMIT ON EASTERN EXTENSION ZONE, BJORKDAL MINE, SWEDEN

Mandalay Resources Corp. has received the mining concession permit to produce in the Eastern extension zone at its Bjorkdal operation from Bergsstaten (Mining Inspectorate of Sweden).

Frazer Bourchier, president and chief executive officer of Mandalay, commented:

"I am very pleased to announce that we have successfully obtained the mining concession for the newly designed Eastern extension of our Bjorkdal mine. This significant development grants us the extension of the mining envelope by an additional 350 metres, effectively encompassing the entire resource base that has been drilled and defined over the past two years.

"The inclusion of the Eastern extension area aligns with our strategic objective of incorporating higher gold grade and margin ounces into our near-term production profile at Bjorkdal. By integrating this addition into our mine schedule, we believe that it will further contribute to our intended growth and success at Bjorkdal."

Exploration to date

In 2021, the company discovered the Eastern extension of the Main zone and Central zone. Following the recognition of the mineralized potential, a series of drilling programs were dedicated to defining this enriched veining, with each program yielding exceptional grades and furthering the company's understanding of this domain. For further details, please refer to the news releases dated July 18, 2023, Feb. 22, 2023, June 21, 2022, and Jan. 24, 2022.

About Mandalay Resources Corp.

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine), with projects in Chile and Canada under closure or development status. The company is focused on growing 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 objective is to continue mining the high-grade Youle vein at Costerfield, bring on line the deeper Shepherd veins, both of which will continue to supply high-grade ore to the processing plant and to extend Youle mineral reserves. At Bjorkdal, the company will aim to increase production from the Aurora zone and other higher-grade areas in the coming years in order to maximize profit margins from the mine.

We seek Safe Harbor.