Mr. Frazer Bourchier reports

MANDALAY RESOURCES ACHIEVES 2023 PRODUCTION GUIDANCE WITH A STRONG Q4 AND PROVIDES OUTLOOK FOR 2024

Mandalay Resources Corp. has released its operating results for the fourth quarter and full-year 2023 and has provided production and cost guidance for 2024. All currency references in this press release are in United States dollars except as otherwise indicated.

Fourth quarter and full-year 2023 production highlights:

• Consolidated full-year 2023 metal production was 89,809 gold equivalent ounces;
• Costerfield's highest quarterly gold production since Q4 2021, with 13,016 ounces contributing to 15,383 gold equivalent ounces of total production in Q4 2023; and
• Bjorkdal's highest quarterly gold production since Q1 2022, with 11,558 ounces.

2024 production and cost guidance:

• Consolidated annual production guidance of 90,000 to 100,000 gold equivalent ounces;
• Cash cost and all-in sustaining cost1 of $1,050 to $1,170 and $1,450 to $1,580 per gold equivalent ounce, respectively;
• Consolidated capital expenditures of $41-million to $49-million, inclusive of capital exploration spending, of:
  • Costerfield: $9-million to $11-million;
  • Bjorkdal: $3-million to $4-million.

Frazer Bourchier, president and chief executive officer, commented:

"Mandalay demonstrated resilience and the strength of our operating model by overcoming multiple production challenges throughout 2023. Both sites delivered a strong fourth quarter to close out the year, enabling the company to achieve its 2023 revised production guidance with 89,809 gold equivalent ounces produced. This operational improvement as the year progressed was matched by an impressive safety record, with incident rates well below industry averages. We anticipate that this stronger operational performance will continue with an expected increase in the annual production profile to 90,000 to 100,000 gold equivalent ounces in 2024."

Ryan Austerberry, chief operating officer, commented:

"During Q4 2023, Mandalay produced 26,941 gold equivalent ounces. Notably, as compared to the previous quarter, Costerfield's gold equivalent production increased by 42 per cent to 15,383 gold equivalent ounces. This significant increase was mostly due to higher underground mined gold grades during the quarter. Additionally, the issues leading to lower milled tonnes stemming from processing transitional Youle to Shepherd ore have been mostly rectified with planned ongoing improvements to aid consistency of throughput. For 2024, both the Youle and Shepherd deposits remain major contributors to our production profile.

"Bjorkdal continued to show progress with its third consecutive quarter-over-quarter improvement, producing 11,558 gold ounces, which was its highest quarterly result since Q1 2022. This improvement is mainly underpinned by increased grades from the Eastern extension zone and reliable mine production. The operation intends to prioritize higher-gold grade areas with higher-margin ore while commissioning the recently completed mill expansion project to reach the target annualized rate of approximately 1.45 million tonnes by Q2 2024."

Mr. Bourchier concluded: "Two thousand twenty-four will be a pivotal year as we strive to build upon the company's solid platform of two operating assets in excellent jurisdictions, while continuing our focus on key operational metrics to better manage mine site challenges and risks. We expect to extend our track record of operational success and cash flow generation. In 2024, we will invest heavily in exploration; planned expenditures are expected to approach $15-million with the objective of replacing mine depletion at both sites and extending the mine life at Costerfield. We have opportunities at both sites to extend known mineralized areas and make new near-mine discoveries. This organic growth focus coupled with several exciting external growth opportunities leads me to believe 2024 will be an exciting and transformational year for Mandalay. Lastly, I would like to express my appreciation for the team's hard work at both sites and their commitment to operational excellence. It's through the collective efforts of our talented people that we will continue to strive to reach new heights in 2024."

Production for the quarter ended Dec. 31, 2023:

• The company produced a total of 24,574 ounces of gold and 404 tonnes of antimony representing a total of 26,941 ounces of gold equivalent, versus 22,341 ounces of gold and 504 tonnes of antimony in the fourth quarter of 2022, representing a total of 25,683 ounces of gold equivalent.
• Production at Bjorkdal was 11,558 ounces of gold versus 10,256 ounces of gold in the fourth quarter of 2022.
• Production at Costerfield was 13,016 ounces of gold and 404 tonnes of antimony versus 12,085 ounces gold and 504 tonnes antimony in the fourth quarter of 2022.

Production for the year ended Dec. 31, 2023:

• The company produced a total of 78,205 ounces gold and 1,860 tonnes antimony, representing a total of 89,809 ounces of gold equivalent production, versus 89,134 ounces gold and 2,292 tonnes of antimony, representing a total of 105,906 ounces of gold equivalent in 2022.
• Production at Bjorkdal was 42,148 ounces gold.
• Production at Costerfield was 36,057 ounces gold and 1,860 tonnes antimony.

Sales for the quarter ended Dec. 31, 2023:

• The company sold a total of 23,201 ounces of gold and 454 tonnes of antimony, representing a total of 25,861 ounces of gold equivalent, versus 21,272 ounces of gold and 484 tonnes of antimony in the fourth quarter of 2022, representing a total of 24,482 ounces of gold equivalent.
• Bjorkdal sold 11,458 ounces of gold 3 versus 9,569 ounces of gold in the fourth quarter of 2022.
• Costerfield sold 11,743 ounces of gold and 454 tonnes of antimony versus 11,703 ounces of gold and 484 tonnes of antimony in the fourth quarter of 2022.

Sales for the year ended Dec. 31, 2023:

• The company sold 76,527 ounces gold and 1,909 tonnes antimony, representing a total of 88,427 ounces of gold equivalent, versus 89,117 ounces gold and 2,316 tonnes antimony, representing a total of 106,094 ounces of gold equivalent in 2022.
• Bjorkdal sold 41,669 ounces gold.
• Costerfield sold 34,858 ounces gold and 1,909 tonnes antimony.

Mandalay 2024 guidance

Mandalay's 2024 production guidance is based on:

• Foreign exchange assumptions:
  • Average 2023 rates: Australian dollar/U.S. dollar 0.665 and U.S. dollar/Swedish krona 10.61;
• Guidance 2024 rates: Australian dollar/U.S. dollar 0.670 and U.S. dollar/Swedish krona 10.30;
• Capital expenditures at Costerfield to be carried out at the tailings storage facilities of $4-million to $6-million.
• Capitalized exploration expenditures of:
  • Costerfield: $9-million to $11-million;
  • Bjorkdal: $3-million to $4-million.

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 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 in order to maximize profit margins from the mine.

We seek Safe Harbor.