Mr. Frazer Bourchier reports

MANDALAY RESOURCES ANNOUNCES PRODUCTION AND SALES RESULTS FOR THE THIRD QUARTER OF 2023

Mandalay Resources Corp. has released its production and sales results for the third quarter of 2023. The company forecasts finishing 2023 on the low end of its previously disclosed production guidance range of 88,000 to 100,000 gold equivalent ounces.

Third quarter production highlights:

• Consolidated saleable gold equivalent production of 22,032 ounces;
• Consolidated saleable gold equivalent sold of 20,568 ounces.

Frazer Bourchier, president and chief executive officer, commented:

"During the third quarter of 2023, our operations performed in line with previous quarters. Costerfield is expecting stronger production in the final quarter to achieve our year-end guidance based on planned mining of higher-grade areas. On a consolidated basis, the company produced 22,032 and 62,868 saleable gold equivalent ounces during Q3 2023 and the first nine months of this year, respectively. Notably, Bjorkdal continues to show improvements and achieved its highest quarterly rate since Q1 2022. At Costerfield, processing of higher-grade ore was delayed during the quarter due to both slower stope progression and lower mill throughput."

Ryan Austerberry, chief operating officer, commented:

"Bjorkdal produced 11,224 saleable gold ounces in Q3 2023. We are seeing encouraging signs of stable stoping tonnes from the underground and improved grades as we start to process material from the higher-grade Eastern Extension zone. We are looking towards building upon this success and will continue to focus on mining from the Eastern Extension while concentrating less on areas that are of lower grade. Over the last quarter of 2023 and into 2024, we are anticipating higher grades due to the steady ramp-up of the Eastern Extension zone's tonnage contribution to the overall mill feed.

"Costerfield produced 10,808 saleable gold equivalent ounces in Q3 2023, as it encountered a few challenges leading to deficits in both milled tonnes and underground gold grades. As we progress more of our production fronts into Shepherd, the processing plant was temporarily challenged with the hardness of the ore encountered transitioning into this zone. We are actively reconfiguring the circuit to optimize the throughput to get back to mill plan. The lower grades can be attributed primarily to a delay in production of high-grade stopes in Youle, which we expect to mine in the future. Although a month later than planned, the replacement loader for the gear lost earlier in the year due to a fire was commissioned in the quarter. We do expect to finish the year strongly, with a third successive quarter-over-quarter improvement."

Mr. Bourchier concluded: "In my first two quarters as CEO, we shifted to continuously monitoring key metrics to better manage challenges and mitigate operational risks. The company remains focused on establishing a sustainable track record of operational results, further ramping up organic exploration spend and capitalizing on any opportunities to underpin future success and growth moving forward."

Saleable production for the quarter ended Sept. 30, 2023:

• In the third quarter of 2023, the company produced a total of 19,601 ounces of gold and 395 tonnes of antimony representing a total of 22,032 ounces of gold equivalent, versus 22,817 ounces of gold and 582 tonnes of antimony in the third quarter of 2022, representing a total of 27,287 ounces of gold equivalent.
• Production at Bjorkdal was 11,224 ounces of gold in the third quarter of 2023 versus 10,291 ounces of gold in the third quarter of 2022.
• Production at Costerfield was 8,377 ounces of gold and 395 tonnes of antimony in the third quarter of 2023 versus 12,526 ounces gold and 582 tonnes antimony in the third quarter of 2022.

Saleable production for the nine months ended Sept. 30, 2023:

• The company produced a total of 53,631 ounces gold and 1,456 tonnes antimony, representing a total of 62,868 ounces of gold equivalent production, versus 66,793 ounces gold and 1,788 tonnes of antimony in the corresponding nine months of 2022, representing a total of 80,223 ounces of gold equivalent.
• Production at Bjorkdal was 30,590 ounces gold.
• Production at Costerfield was 23,041 ounces gold and 1,456 tonnes antimony.

Sales for the quarter ended Sept. 30, 2023:

• In the third quarter of 2023, the company sold a total of 18,106 ounces of gold and 400 tonnes of antimony, representing a total of 20,568 ounces of gold equivalent, versus 22,273 ounces of gold and 557 tonnes of antimony in the third quarter of 2022, representing a total of 26,551 ounces of gold equivalent.
• Bjorkdal sold 10,751 ounces of gold in the third quarter of 2023 versus 10,001 ounces of gold in the third quarter of 2022.
• Costerfield sold 7,355 ounces of gold and 400 tonnes of antimony in the third quarter of 2023 versus 12,272 ounces of gold and 557 tonnes of antimony in the third quarter of 2022.

Sales for the nine months ended Sept. 30, 2023:

• The company sold 53,326 ounces gold and 1,455 tonnes antimony, representing a total of 62,566 ounces of gold equivalent, versus 67,845 ounces gold and 1,832 tonnes antimony in the first nine months of 2022, representing a total of 81,612 ounces of gold equivalent.
• Bjorkdal sold 30,211 ounces gold.
• Costerfield sold 23,115 ounces gold and 1,455 tonnes antimony.

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). 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 objectives are 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.