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Mandalay Resources Reports Another Excellent Period with Strong Second Quarter 2024 Production and Cash Generation Results

Press Release

TORONTO, ON, July 10, 2024 — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) announces strong second quarter production results, highlighted by continued cash generation and increased working capital. All currency references in this press release are in U.S. dollars except as otherwise indicated.

Second Quarter Highlights:

• Quarter-end cash balance was $63 million, an increase of $16 million from the previous quarter;

• Consolidated gold equivalent production of 26,372 ounces;

o Costerfield production increased to 13,773 gold equivalent ounces, 32% higher than Q2 2023;

o Björkdal production increased to 12,599 gold ounces, 21% higher than Q2 2023 and highest since Q2 2019;

• Consolidated gold equivalent sold was 26,759 ounces, 32% higher than Q2 2023;

o Costerfield sold 14,439 gold equivalent ounces, 40% higher than Q2 2023;

o Björkdal sold 12,320 gold ounces, 24% higher than Q2 2023, and highest since Q3 2019.

Based on its strong quarter-end cash position and ongoing cash flow expectations, Mandalay repaid the entire outstanding balance ($20 million) of its Revolving Credit Facility in July 2024. As a result, Mandalay currently has no indebtedness other than obligations under equipment loan facilities and $35 million in undrawn availability under its Revolving Credit Facility. Frazer Bourchier, President and CEO, commented:

“Mandalay again reported solid production results with over 26,000 gold equivalent ounces across both of our operations in the second quarter. I am pleased that we are executing operationally, consistently delivering results as per plan and are poised to meet our 2024 guidance targets, while solidifying our stable operational track record. Additionally, since the start of 2024, Mandalay has increased its cash balance by nearly $36 million, resulting in a robust closing quarter cash balance of approximately $63 million prior to the subsequent repayment of all outstanding amounts under our Revolving Credit Facility.”

Ryan Austerberry, COO, commented:

“At Costerfield, we produced 13,773 gold equivalent ounces during Q2 2024, an increase of approximately 32% compared to the same period last year. There was a slight quarter-over-quarter decrease in output primarily due to lower mill throughput from an extended maintenance stop for planned capital improvements with a focus on plant optimization. The site team is working on continued planned improvement projects over the coming months, with no expected adverse impacts for the balance of the year. Additionally, the site faced manageable geotechnical challenges that required some adjustments to the mine schedule sequence, affecting the timing of accessing
higher-grade stopes. For the quarter, average processed grades were 12.1 g/t for gold and 2.1% for antimony. For the second half of the year, we anticipate improved plant throughput from increased availability and maintaining similar gold equivalent mining grades as we regain access to higher grade production fronts.

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