Mandalay Resources Corporation December 2013 Investor Presentation

DELIVERING

VALUE AND GROWTH

DEC 2013

This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life of

mine production plans and exploration plans and the growth and strategy of Mandalay. Readers are cautioned not to place undue reliance on

forward-looking statements. Actual results and developments may differ materially from those contemplated by these statements depending on,

among other things, that exploration results at Cerro Bayo, Costerfield, and La Quebrada may not meet management’s expectations, that Cerro

Bayo and Costerfield capital, production and operating cost results may not meet current plans, that reclamation costs associated with

Mandalay’s Furioso property may exceed current estimates, and changes in commodity prices and general market and economic conditions.

The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Although Mandalay has

attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-

looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be

no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those

anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Quality Control and Assurance

Quality control and assurance programs are implemented in line with the standards of National Instrument 43-101.

The exploration program at Costerfield is supervised by Chris Gregory (Member, Australian Institute of Geoscientists accredited Chartered

Professional (Mining)), General Manager of Australasian Business Development for Mandalay and a Qualified Person as defined under National

Instrument 43-101. Mr. Gregory regularly visits Costerfield, supervises the collection and interpretation of scientific and technical information

contained in this presentation..

The exploration programs on the Cerro Bayo and La Quebrada projects are supervised by Ronald Luethe (Member: American Institute of

Professional Geologists and an Idaho Registered Professional Geologist), General Manager of Mandalay Chile Ltda. and a Qualified Person as

defined under National Instrument 43-101. Mr. Luethe visits the Cerro Bayo and La Quebrada projects often, supervises the collection and

interpretation of scientific and technical information contained in this presentation.

Dr. Mark Sander (Member: AusIMM), President of Mandalay, has visited the Costerfield, Cerro Bayo, and La Quebrada projects several times

during 2010, 2011 and 2012 and has supervised the preparation of this presentation.

Forward-looking Statements

2

Vision

3

To create exceptional shareholder value through the acquisition of undervalued assets that

can rapidly become cash generative, self fund exploration, establish and maintain high

operating margins and return cash to shareholders within a planned period of time.

Mandalay is committed to operating safely and in an environmentally responsible manner,

while developing a high level of community and employee engagement.

Locations and Tradeflows

4

5

Mandalay in Today’s Market

Markedly lower metal prices

Producers must be responsive to large swings in metal prices

Focus on growth of sustainable cash margins and return of capital

Mandalay well positioned for profitability in this environment

Mandalay strategy robust: low total cost producer

• Low acquisition cost of producing assets

• Low sustaining and incremental expansion capex; no large, risky new project

construction capex

• Low risk, head frame exploration drilling for low discovery cost per ounce

• Low overhead virtual organization

• Operational improvements result in cash cost reductions year-over-year

• With no overextension, no disruptive changes in plans with price declines

Healthy cash margins: EBITDA of $22.9 million in the third quarter of 2013

No impairment charges

Dividend predictable and sustainable – automatically adjusts with metal price at

6% gross revenue

Strong support for equity

NCIB program in place: 1,832,100 shares purchased as of September 30, 2013

Management and insiders own 53.76% of shares outstanding as of August 8, 2013

Mandalay Q3 2013 Financial Performance

Q3, 2013 Q3, 2012

Net Cash/All-in Cost/oz Ag at Cerro Bayo, USD 6.41 / 12.05 5.00 / 9.54

Net Cash/All-in Cost/oz Au Eq. at Costerfield, USD 626 / 873 1,278 / 1,479

EBITDA, USD million 22.9 23.4

Net Income, USD million 10.9 9.0

Cash and cash equiv. at end of period, USD million 27.7 6.4

6

Mandalay Q3 2013 Operational Performance

Q3, 2013 Q3, 2012

Saleable Silver oz produced 733,659 804,779

Saleable Gold oz produced 14,442 9,104

Saleable Antimony t produced 966 594

7

Management and Board of Directors

Senior Management

Board of Directors

Brad Mills, CEO and

Executive Director

Former CEO Lonmin

plc, over 30 years of

experience in Copper,

Gold, PGMs

Mark Sander, President

28 years of experience in

exploration, strategy and

operating improvements

Sanjay Swarup, CFO

and Executive Director

Former Lonmin plc, over

20 years of industry

experience

Belinda Labatte,

Corporate Secretary

Over 10 years of

experience in capital

markets and investment

banking

Braam Jonker,

Chairman

Peter R. Jones,

Independent Director

Tony Griffin,


Robert Doyle,


Dominic Duffy, COO

Mining Engineer with

extensive technical and

operational management

experience

**The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA is presented because the Company

believes it is a useful indicator of relative operating performance. EBITDA should not be considered by an investor as an alternative to net income

or cash flow as determined in accordance with IFRS.

***Annual cash dividend paid quarterly, based on 6% of the Company’s trailing quarter’s gross revenue and the future cash requirements of the Company. 8

Strategy: Rapid Value Generation and Returns

0.3 20.6

92.2

171.8

2009 2010 2011 2012

Increase Revenues ($US MM)

-1.0 1.7

32.0

79.9

2009 2010 2011 2012

Generate Cash (EBITDA - $US MM**)

Focus and Results Entry Strategy:

Acquire high-quality assets at a low cost

relative to ultimate value

Apply management’s extensive operational

and exploration expertise to turn around, grow

and/or develop the assets

Focus on cash returns to shareholders and

prudent use of leverage

Operationally, Mandalay is focused on:

High-margin projects where the Company can

achieve rapid production ramp-ups from

restarts, turn around situations or late-stage

development

Early cash flow to fund exploration, growth and

operational improvements

Building critical mass through acquisition

Capital strategy: Reduce dilution and return

cash to shareholders

Announced dividend policy, currently paying

annualized dividend of 6% of gross revenue***

NCIB: Repurchasing up to 5% of the Company

from operational cash flow over 1 year

2012 A 2013 A

$3.2

Dividend Payouts ($CAD MM)

$10.9

(1) Exercise price: C$0.255 - C$0.83; Expiry date: Dec 7, 2014 - Mar 18, 2018 (2) Exercise price: C$0.31 - C$0.465; Expiry date: Nov 30, 2014 (3) Assuming US$ 1 = C$ 1.0421 (4) As of November 5, 2013, the directors and executive officers of the Corporation, as a group, beneficially owned, or controlled or directed, directly or indirectly, approximately

173,783,259 Common Shares, representing approximately 53.76% of the outstanding Common Shares

Capital Structure and Ownership

9

Major Shareholders(4)

Holders % Shares (Million)

West Face Capital 42.3% 136.9

Plinian + Management 11.0% 35.8

Sprott Asset Management 10.4% 33.5

Arcourt (Byrne) 3.6% 11.7

Baker Steel 3.4% 11.1

Capital Structure as at November 25, 2013 Millions

(Except Share Price Information)

Share price (Nov. 25, 2013 - close) (CAD$) 0.79/shr

Shares Outstanding 323.3

Options(1) 16.2

Warrants(2) 21.0

Fully Diluted Shares Outstanding 360.5

Market Capitalization (CAD$) 255.4

Cash and Cash Equivalents (CAD$) (as of September 30, 2013)(3) 27.7

Total Debt (CAD$) (as of September 30, 2013)(3) 0

Total Enterprise Value (CAD$) 227.7

10

Management Track Record: Execution, Value Creation

Company History and Milestones

2009 Q4 2010 2011 2012 2013

Financial/

Corporate

• Acquired

Costerfield gold-

antimony mine for

Mandalay stock

• Listed on TSX main

board from TSX-V

• Raised $23 million for

purchase and restart of

Cerro Bayo silver-gold

mine

• Announced Normal

Course Issuer Bid

(“NCIB”) to buy back

5% of Company’s

shares

• Completed

Substantial Issuer

Bid; reduced FD

share count by 8%

• Completed and

Renewed NCIB

• Paid $3.2 million in

dividends

• Extended credit

facility by $10 million

• NCIB renewed

• Paying $10.9 million

in dividends

(2013 est.)

Operational • Began Production

at Costerfield

(Dec 2009)

• Began production at

Cerro Bayo (Sept 2010)

• Began milling &

shipping at Cerro

Bayo (Jan 2011)

• Increased production

at both projects

• Doubled silver

reserves, boosted

gold reserves 85%

• Reached design

production at both

operations

• Extended Costerfield

mine life to 4 years

• Began ramp up at

Cerro Bayo to 1,400

tpd

50

100

150

200

250

300

350

400

450

500

Ind

ex (

Au

gu

st

3, 2009 =

100)

Mandalay Resources Peers* Gold Silver S&P/TSX Composite Index S&P/TSX Global Mining Index

Mandalay: 196%

(total return)

Peers: 80%

Silver: 39%

Gold: 30%

TSX Composite: 22%

TSX Mining: -21%

*Peer group includes: Coeur Mining, Endeavour Silver, First Majestic Mines, Fortuna Silver, and Primero Mining

Share prices as at November 25, 2013

Q4 2009 - New Management Team

(Mills, Sander & Swarup)

Cerro Bayo Silver-Gold Mine

11

Land package 23,096 hectares

Ownership 100%

2012 silver production 2,911,595 oz

2012 gold production 17,089 oz

2013E / 2014E silver production 2.8 – 3.1 Moz / 3.0 – 3.2 Moz

2013E / 2014E gold production 18,000 – 21,000 oz / 23,000 – 27,000 oz

Current throughput / Goal approx. 1,200 tpd / 1,400 tpd (end Q1 2014)

P&P Reserves 2.3 Mt @ 241 g/t Ag; 2.2 g/t Au

Current recoveries (Q3 2013) Ag: 91.06%, Au: 88.64%

2013E Cash costs/oz Ag

net Au credits / 2014E

$4 – $6 / $6 – $8

2013 Planned Exploration

Metres 60,000

Budget $6-7 million

Cerro Bayo Operating Performance

12

$0

$10

$20

$30

$40

$50

$60

$70

0

20,000

40,000

60,000

80,000

100,000

120,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-2013

USD

/ To

nn

e

Ton

nes

Per

Qu

arte

r

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$10

$20

$30

$40

$50

$60

$70

0

20,000

40,000

60,000

80,000

100,000

120,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13

USD

/ To

nn

e

Ton

ne

s P

er

Qu

arte

r

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$0

$5

$10

$15

$20

0

200,000

400,000

600,000

800,000

1,000,000

Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 USD

/ o

z A

g N

et

Byp

rod

uct

Ou

nce

s Si

lve

r P

er

Qu

arte

r

Saleable Silver Produced & Unit Cost

Ag oz Cost/ oz Ag net Au

13

Cerro Bayo District: Target-rich Land Package

NI43-101 Reserve-Resource veins

2013 Infill and Step-Out Drilling

2012 New infill from 2011 Blue Sky successes

2013 Scheduled Blue Sky drill targets

2013- Field work to prep for 2014 drilling

Lucia

Chatito Sb Anomaly

Roadside

Brillantes

Cerro

Viento

Aquila

Sinter Hill

Laguna Verde

High level, Madre-

Aquila-Meseta

Cerro Bayo

Guanaco

Esperanza

Sb Anomaly

Marcela Roadside

Cerro

Viento

Brillantes

Coigues

14

Cerro Bayo: Laguna Verde Area

Tailings Mill

LAGUNA VERDE

DELIA NW

FABIOLA DAGNY COYITA

DALILA

YASNA

Producing Mine or Planned Mine 2013 Infill/Extensional Drilling Exploration Vein

BIANCA

Trinidad

DELIA SE.

Gabriela Orieta

Carola

15

Dagny vein completely delimited under the lake

Coyita vein extends under the lake to limit of drilling

16

Fabiola vein planned drilling under the lake

Yasna vein planned drilling under the lake

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

2010 2011 2012 2013 2014

Ozs

Ag

CUMULATIVE DEPLETION Dagny Fabiola

Delia NW Delia SE Marcela Sur

Yasna Coyita Dalila

Bianca

Cerro Bayo M&I resource growth net of depletion

17

Costerfield Gold-Antimony Mine: Overview

18

2013 Planned Exploration

Metres ~13,000

Budget $3.5 million


Ownership 100%

2012 gold production 18,036 oz

2012 antimony production 2,481 t

2013E gold production / 2014E 20,000 – 25,000 oz / 37,000 – 43,000 oz

2013E antimony production / 2014E 2,800 – 3,000 t / 3,000 – 3,300 t

Current throughput / 2014E 340 tpd / 400 tpd

P&P Reserves 178,000 tonnes @ 8.9 g/t Au; 4.1% Sb

Current recoveries (Q3 2013) Au: 90.17%, Sb: 95.58%

2013E Cash cost/oz Au Eq. (US$) / 2014E $950 – $1,000 / $675 – $775

Costerfield Operating Performance

19

$0

$100

$200

$300

$400

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13

AU

D/

Ton

ne

Ton

ne

s P

er

Qu

arte

r

Mining Rate and Unit Cost

t Mined Cost/ t Mined

$0

$20

$40

$60

$80

$100

$120

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13

AU

D/

Ton

ne

Ton

ne

s P

er

Qu

arte

r

Processing Rate and Unit Cost

t Processed Cost/ t Processed

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q4-09(Dec.only)

Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13

USD

/ O

z A

u E

q.

Ou

nce

s P

er

Qu

arte

r

Au Equivalent Production and Cost

Oz Au Eq. Cost/ Au Eq. Oz

Cuffley PEA – Development and Mining Plan

20

Subparallel and adjacent to N-lode

Same mining technique as N-lode • Long hole stoping 10 m lifts

• CRF backfill

• Better ground conditions

Well-known productivities and costs

Cuffley Lode

N-lode

W-lode

E-lode

Cuffley PEA Basis – Extended Mine Life at High Current Production and Low Current Cost Performance

21

Expanded resources in Cuffley

and N-lode (see appendix for

continued exploration potential)

PEA mine life through Q2 2017

at current production rate and

costs: 10,000 to 12,000 tpm

Proportion of gravity gold

continues as per experience in

N-lode and projected in Cuffley

Current plant performance and

costs

Current smelting agreement

Metal prices and exchange rates

conform to new realities

Cuffley PEA Financial Results

22

>50,000 oz Au Eq. /yr avg.

$766/oz Au Eq. cash cost

$898/oz Au Eq. P&L cost

Nearly self-funding

$67 million NPV

Oz Eq

23

Costerfield M&I Resource Growth Net Depletion

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Au E

q O

z (

00

0's

)

CUFFLEY AUGUSTA Depletion Yearly Depletion

10-Sep-2013

24

Costerfield – Long Section

La Quebrada Copper-Silver Project: Overview

25


Ownership 100%

Location 45 km NW of La Serena

Mineralization Cu-Ag mantos

Elevation 1,000 – 1,500 metres ASL

M&I Resource 34.8 Mt @ 10 g/t Ag, 0.6% Cu

La Quebrada

26

Next steps:

Drilling for modest

expansion of

Casa de Piedra

District

exploration – new

concepts

Basic engineering

studies

Conversation for

district

consolidation

La Quebrada Total Resources(1)

Rock (t) Ag Grade (g/t) Ag (cont. oz) Cu Grade (%) Cu (cont. lb)

Measured 0 0 0 0 0

Indicated 34,800,000 10 11,188,272 0.6% 459,360,000

Measured & Indicated 34,800,000 10 11,188,272 0.6% 459,360,000

Inferred 1,000,000 11 353,652 0.6% 13,200,000

(1) La Quebrada Independent Technical Report filed 16-Aug-2012.

Tugal Pit

1 Source: Roscoe Postle Associates, March 2013, documented in an independent NI 43-101 report filed March 28, 2013

Source for Dalila vein: Internal Company Report, prepared under the supervision of Qualified Person Ron Luethe

2 Source: SRK Consulting (Australia), March 2013, documented in an independent NI 43-101 report filed March 28, 2013

3 Source: La Quebrada Independent Technical Report, filed Aug 16, 2012.

Average guidance range graphed for 2013E and 2014E

Discovery-fuelled Organic Growth – 2013E & 2014E

27

$8-$9 million

$6-$7 million

$4-$5 million

Capital Expenditure(PP&E)

Capital Development

Capitalized Exploration

1.3 million

2.9 million

2.8 - 3.1 million

3.0 - 3.2 million

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2011 2012 2013E 2014E

Silver (oz)

12,244

17,089

18,000- 21,000

23,000– 27,000

0

5,000

10,000

15,000

20,000

25,000

30,000

2011 2012 2013E 2014E

Gold (oz)

6,678

18,036

20,000– 25,000

37,000– 43,000

0

10,000

20,000

30,000

40,000

50,000

2011 2012 2013E 2014E

Gold (oz)

0

200

400

600

2010 2011 2012

Cu (cont. lbs MM)

Significant M&I Resource Growth (1,2,3)

Costerfield Budget and Production (2014E)

Cerro Bayo Budget and Production (2014E)

$11-$12 million

$13-$14 million

$4-$5 million

Capital Expenditure(PP&E)

Capital Development

Capitalized Exploration

1,576

2,481

2,800 – 3,000

3,000 –3,300

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2011 2012 2013E 2014E

Antimony (Sb)

0

10,000,000

20,000,000

30,000,000

40,000,000

2010 2011 2012

Ag (cont. oz)

0

200,000

400,000

600,000

2010 2011 2012 2013

Au (cont. oz)

0

10,000

20,000

30,000

2010 2011 2012 2013

Sb (cont. t)

28

Peer Comparison: Production, Cost, Financials

Source: Company reports and Bloomberg

Market capitalization as at November 25, 2013

Ag Eq oz converted at 55/1 Au/Ag. Metal prices: Ag price of $28.92 and Au price of $1,578

P+P Reserves Market Comparables

Ag

(oz)

Au

(oz)

Other Reserve Grade

Ag Eq (g/t)

(Au + Ag)

Market

Capitalization FD

(CAD$MM)

EPS

9M Dividend

Paid/Share

Mandalay Resources 18,250,000 214,000 7,200t Sb 361 285.2 $0.07 $0.02429

Coeur Mining 261,528,000 2,286,000 - 51 1,149.1 ($0.67) $0

Endeavour Silver 23,057,200 222,300 - 253 434.3 $0.26 $0

First Majestic Mines 90,800,000 0 - 161 1,264.7 $0.37 $0

Fortuna Silver 42,700,000 266,100 - 216 479.4 ($0.03) $0

Primero Mining 39,377,000 660,000 - 513 803.3 $0.31 $0

9M 2013A Production 9M 2013A Financials

Ag

(oz)

Au

(oz)

Other Ag Eq (oz)

(Au + Ag)

Revenue

(US$MM)

EBITDA

(US$MM)

EBITDA Margin

(%)

Mandalay Resources 2,266,995 38,123 2,500 t Sb 4,347,150 127.8 53.8 42.1

Coeur Mining 12,671,584 181,438 - 22,571,624 577.2 145.9 25.3

Endeavour Silver 4,881,435 57,894 - 8,040,381 208.9 69.9 33.5

First Majestic Mines 7,894,867 - - 7,894,867 192.3 78.3 40.7

Fortuna Silver 3,171,139 14,191 16,300 t Pb+Zn 3,945,461 101.0 29.4 29.1

Primero Mining 4,450,000 82,886 - 9,002,618 152.6 71.2 46.7

29

Mandalay Compares Favourably to its Peers

0

100

200

300

400

500

600

P+P Reserve GradeFully Diluted Ag Eq (g/t)

Mandalay Resources

Coeur Mining

Endeavour Silver

First Majestic Mines

Fortuna Silver

Primero Mining

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

9M 2013 EBITDA Margin

$0

$5

$10

$15

$20

$25

Fully Loaded 9M 2013Cash Cost/Ag Eq oz

$0

$20

$40

$60

$80

$100

$120

Market Cap per 2013EAg Eq Production (oz)

$0.000

$0.005

$0.010

$0.015

$0.020

$0.025

$0.030

9M 2013 Dividend Paid perShare

$0

$2

$4

$6

$8

$10

$12

$14

Market Cap per P+PReserves (Ag Eq oz)

Market capitalization as at November 25, 2013

Ag Eq oz converted at 55/1 Au/Ag

Metal prices: Ag price of $28.92 and Au price of $1,578

Second highest grade

reserves

(Ag Eq oz)

Second highest EBITDA

margin

Lowest fully loaded cost

(Ag Eq oz)

Second lowest market

cap per estimated annual

production of Ag Eq oz

Third lowest market cap

per P+P reserves oz

Highest dividend paid per

share

Highlights and Catalysts

30

Cerro Bayo

Ramp up to 1,400 tpd on track for Q1 2014

5 owned rigs drilling now – resource and reserve update in Q1 2014

Costerfield

Currently at 340 tpd, exceeding design production rate of 250 tpd, significant cost

reduction

Increased metal production from higher grade ore and higher throughput

Cuffley lode development proceeding

• First development ore expected Q4 2013

• Growing resources at Cuffley lode and Augusta extensions with 3 rigs

• Resource and reserve update in Q1 2014 (converting Cuffley M&I to P&P)

Continuing district exploration for longer mine life

La Quebrada

Infill drilling completed; indicated NI 43-101 Resource filed August 2012

Metallurgical and engineering studies

District consolidation

31

Investment Proposition Execution-focused management with track record of operational and exploration success, growth and

value generation

High-quality, cash flowing asset portfolio with major exploration upside

Strong balance sheet, self-funding projects, zero net debt

Rapid increase in production and margins through low-capex organic growth and operational

efficiencies

Returning cash to shareholders and reducing dilution wherever possible

Company paying annual dividend equal to 6% of the Company’s trailing quarter’s gross revenue

Continued growth through further acquisitions

DELIVERING

VALUE AND GROWTH

DEC 2013

For more information, please contact:

Greg DiTomaso

Tel: 647.260.1566

Email: [email protected]

Company Website: www.mandalayresources.com

Twitter: @MandalayAuAg

Numbers may differ slightly from Source documents due to rounding

33

Mandalay Reserves

Cerro Bayo Reserves (1) Ore

(t)

Ag Grade

(g/t)

Ag

(cont. oz)

Au Grade

(g/t)

Au

(cont. oz)

Proven Reserves 420,000 356 4,803,000 2.2 30,000

Probable Reserves 1,934,000 216 13,447,000 2.1 133,000

P&P Reserves 2,354,000 241 18,250,000 2.2 163,000

Costerfield Reserves (2) Ore

(t)

Sb Grade

(%)

Sb

(cont. t)

Au Grade

(g/t)

Au

(cont. oz)

Proven Reserves 48,000 6.5 3,100 11.0 17,000

Probable Reserves 130,000 3.2 4,100 8.1 34,000

P&P Reserves 178,000 4.1 7,200 8.9 51,000

TOTAL RESERVES:

31-December-2012

Ag

(cont. oz)

Au

(cont. oz)

Sb

(cont. t)

Mandalay Proven Reserves 4,803,000 47,000 3,100

Mandalay Probable

Reserves 13,447,000 167,000 4,100

Mandalay P&P Reserves 18,250,000 214,000 7,200


2 Source: SRK Consulting (Australia), March 2013, documented in an independent NI 43-101 report filed March 28, 2013

34

Mandalay Resources

3 Source: La Quebrada Independent Technical Report filed Aug 16, 2012.

Numbers may not add due to rounding

Cerro Bayo Resources (1) Resource

(t)

Ag Grade

(g/t)

Ag

(cont. oz)

Au Grade

(g/t)

Au

(cont. oz)

Measured Resources 327,000 525 5,521,000 3.2 33,000

Indicated Resources 1,562,000 334 16,754,000 3.2 160,000

M&I Resources 1,889,000 367 22,275,000 3.2 194,000

Inferred Resources 452,000 201 2,922,000 2.4 35,000

Costerfield Resources (2) Resource

(t) Sb Grade

(%)

Sb

(cont. t)

Au Grade

(g/t)

Au

(cont. oz)

Measured Resources 184,000 4.3% 8,000 7.1 42,000

Indicated Resources 534,000 3.7% 20,000 11.1 190,000

M&I Resources 718,000 3.9% 28,000 10.1 232,000

Inferred Resources 680,000 2.6% 18,000 6.4 140,000

La Quebrada Resources (3) Resource

(t) Cu Grade

(%)

Cu

(cont. lb)

Ag Grade

(g/t)

Ag

(cont. oz)

Measured Resources 0 0 0 0 0

Indicated Resources 34,800,000 0.6% 459,360,000 10 11,200,000

M&I Resources 34,800,000 0.6% 459,360,000 10 11,200,000

Inferred Resources 1,000,000 0.6% 13,200,000 11 354,000

TOTAL RESOURCES Ag

(cont. oz) Au

(cont. oz) Sb

(cont. t) Cu

(cont. lb)

Measured Resources 5,521,000 75,000 8,000 0

Indicated Resources 27,954,000 350,000 20,000 459,360,000

M&I Resources 33,475,000 425,000 28,000 459,360,000

Inferred Resources 3,276,000 175,000 18,000 13,200,000


2 Source: SRK Consulting (Australia), September 10, 2013, documented in an independent NI 43-101 report filed October 20, 2013

35

Safety, Health, Environment and Community

Safety & Health Environment & Community Employees

ACTIONS

• Spending on S&H (including

safety training) tripled in last

two years

• Focus on line management

safety leadership, systems and

behaviours

• Improved S&H safety

processes & compliance

• Implementation of DuPont

safety system in 2013 at both

operations

• Extensive training and

equipping of mine rescue team

at Cerro Bayo

• Spent over 200% more in 2012

on environment & community

projects as compared to 2011

• Commitment to local purchases

& payrolls

• Development of new water &

mine waste solutions at

Costerfield

• Closure works completion at

Furioso Mine Site

• Supplying various workshops for

local community at Cerro Bayo

• University scholarships for local

school leavers at Cerro Bayo

• Employee selection process

improved

• Focus on local hires including

management positions

• Increased hours of training in 2012

by +80% as compared to 2011

• High level executive coaching for leadership team

RESULTS

• Consolidated lost time injury

frequency rate approximately

halved

• Improved return to work

performance

• Maintained high levels of

attendance at mine sites

• More prosperous local

communities

• Reduced impacted land area

• Zero incidences of unpermitted

discharge at both operations

• 3 year collective contract signed

with Cerro Bayo union in 2012

• Increased presence of local hires

among workforce and supervisors

• Reduced employee turnover at mine

sites

• More productive employees, leading

to lower unit costs

Metal Price Update

36

1,0001,1001,2001,3001,4001,5001,6001,7001,800

01

/Ju

l/13

07

/Ju

l/13

13

/Ju

l/13

19

/Ju

l/13

25

/Ju

l/13

31

/Ju

l/13

06

/Au

g/1

3

12

/Au

g/1

3

18

/Au

g/1

3

24

/Au

g/1

3

30

/Au

g/1

3

05

/Sep

/13

11

/Sep

/13

17

/Sep

/13

23

/Sep

/13

29

/Sep

/13

05

/Oct

/13

11

/Oct

/13

17

/Oct

/13

23

/Oct

/13

29

/Oct

/13

04

/No

v/1

3

Au

pri

ce U

SD/o

z

GOLD PRICE - DAILY SPOT LME

Target- Operating Plan Au-Price LME USD Actual Au-Price LME USD

15.00

20.00

25.00

30.00

35.00

40.00

01

/Ju

l/13

07

/Ju

l/13

13

/Ju

l/13

19

/Ju

l/13

25

/Ju

l/13

31

/Ju

l/13

06

/Au

g/1

3

12

/Au

g/1

3

18

/Au

g/1

3

24

/Au

g/1

3

30

/Au

g/1

3

05

/Sep

/13

11

/Sep

/13

17

/Sep

/13

23

/Sep

/13

29

/Sep

/13

05

/Oct

/13

11

/Oct

/13

17

/Oct

/13

23

/Oct

/13

29

/Oct

/13

04

/No

v/1

3

Ag

pri

ce U

SD/o

z

SILVER PRICE - DAILY SPOT LME

Target- Operating Plan Ag-Price LME USD Actual Ag-Price LME USD

9,000

10,000

11,000

12,000

13,000

14,000

01

/Ju

l/13

07

/Ju

l/13

13

/Ju

l/13

19

/Ju

l/13

25

/Ju

l/13

31

/Ju

l/13

06

/Au

g/1

3

12

/Au

g/1

3

18

/Au

g/1

3

24

/Au

g/1

3

30

/Au

g/1

3

05

/Sep

/13

11

/Sep

/13

17

/Sep

/13

23

/Sep

/13

29

/Sep

/13

05

/Oct

/13

11

/Oct

/13

17

/Oct

/13

23

/Oct

/13

29

/Oct

/13

04

/No

v/1

3

Sb p

rice

USD

/t

ANTIMONY PRICE - DAILY ROTTERDAM WAREHOUSE

Target- Operating Plan Sb-Price Market USD Actual Sb-Price Market USD

2.70

2.90

3.10

3.30

3.50

3.70

01

/Ju

l/13

07

/Ju

l/13

13

/Ju

l/13

19

/Ju

l/13

25

/Ju

l/13

31

/Ju

l/13

06

/Au

g/1

3

12

/Au

g/1

3

18

/Au

g/1

3

24

/Au

g/1

3

30

/Au

g/1

3

05

/Sep

/13

11

/Sep

/13

17

/Sep

/13

23

/Sep

/13

29

/Sep

/13

05

/Oct

/13

11

/Oct

/13

17

/Oct

/13

23

/Oct

/13

29

/Oct

/13

04

/No

v/1

3

CU

pri

ce U

SD/l

b

COPPER PRICE - DAILY SPOT LME

Target- Operating Plan Cu-Price LME USD Actual Cu-Price LME USD

37

Cuffley decline

progress to

July 31, 2013

Intercepts extending

limits of mineralization

10 m levels with good

grades extending out

into inferred and

undrilled areas

38

Cuffley decline

progress to

July 31, 2013

New intercepts confirm

mineralization between

unnamed flat fault and

King Cobra fault; not

yet inferred

Enlarged volume of

Indicated Resource

Antimony Facts

39

140,000 t/y global market

• Sold either as metal ingots or various grades of antimony oxides and trioxides

• Primary use as fire retardant in fabrics and plastics (trioxides)

• Relatively minor uses in electronics, with possible new uses in development, e.g.

in batteries

• Ingredient of lead alloys as hardener (antimony metal)

• Consumption growth in line with global GDP growth

Market dominated and prices set by China

• Declining Chinese mine production as reserves depleted and environmental

controls strengthened, closing marginal mines

• Chinese beginning to invest in mines outside China

• Two dominant Chinese smelters, only one of which recovers Au

Gold Equivalent Ounces Calculation

40

***Au Eq. oz produced is calculated by multiplying the saleable quantities of Au, Ag, and Sb in the period by the respective average market prices of the commodities in the

period, adding the three amounts to get a “total contained value based on market price”, and then dividing that total contained value by the average market price of Au in the

period. Average Au price in the period is the average of the monthly LME PM fix, average Sb price is the average of the monthly high and low Rotterdam warehouse prices,

and average Ag price is the average of the monthly London Broker’s silver spot price, all reported in www.metalbulletin.com. The monthly commodity prices are calculated as

the average of the daily prices, with holiday and weekend day prices carried forward from the last business day.

Au Eg. oz for each of the low range and high range guidance is calculated by multiplying (i) total Au oz by an assumed US$1,600/oz Au price, (ii) total Ag oz by an assumed

US$32.00/oz Ag price and (iii) total Sb tonnes times an assumed US$12,000/t Sb price, then, in each case, dividing by the assumed US$1,600/oz Au price.

Silver Equivalent Ounces Calculation

Ag Eq oz converted at 54/1 Au/Ag at metal prices: Ag price of $28.92 and Au price of $1,578.00