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The information given in this presentation and during Mandalay Resources Corporation’s September 12, 2016 Investor Day contain "forward-
looking statements" within the meaning of applicable securities laws, including statements relating to life of mine production plans, exploration
plans and the growth and strategy of Mandalay. Actual results and developments may differ materially from those contemplated by these
statements depending on, among other things: exploration results or production results not meeting management’s expectations; capital,
production and operating cost results not meeting current plans; 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. A description of additional
risks that could result in actual results and developments differing from those contemplated by forward looking statements in this news release
can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 30, 2016 and in its final prospectus dated
July 18, 2016, copies of which are available under Mandalay's profile at www.sedar.com. 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.
Qualified Persons
The exploration programs at Costerfield and Björkdal are supervised by Chris Gregory (Member, Australian Institute of Geoscientists, VP of
Operational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101, Mr. Gregory regularly visits Costerfield
and Björkdal and has reviewed and approved the scientific and technical information related to these projects contained in this presentation.
The exploration programs at the Cerro Bayo and Challacollo projects are supervised by Scott Manske, Chief Cordilleran Geologist of Mandalay
Resources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved the
technical and scientific information related to these projects contained in the presentation.
Non-IFRS MeasuresThe presentations given during Mandalay Resources Corporation’s September 12, 2016 Investor Day Presentations include non-IFRS
performance measures including Adjusted EBITDA, cash costs and site all-in costs. These measures are included in these presentations
because the Company believes these are useful indicators to discuss and understand performance of the Company and its operations. These
performance measures do not have a meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented
by other mining companies. These non-IFRS performance measures should not be considered in isolation as a substitute for measures of
performance in accordance with IFRS. For a more detailed discussion of how the Company calculates non-IFRS performance measures and
reconciliations (where applicable) to the nearest IFRS measure please refer to the Company’s management discussion and analysis for the
quarter ended June 30, 2016. All currency references in US$ unless otherwise indicated
Forward-looking Statements
What did Mandalay see at the time of acquisition?
Held in a Canadian coal-focused company
Approached the Company to trade paper for mine + cash to reopen
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Care and maintenance property in a top Fraser jurisdiction
Skeleton crew trying to make a go of leaching tailings to pay C&M costs
250 tpd 25-year old plant, with gravity, flotation and leach circuits
No compliant resources or reserves
Ore exposed in two lodes; also low capital restart
Narrow cut and fill mining in very poor ground conditions
No active concentrate customer
Already permitted and built
Excellent local infrastructure
Local mining workforce
3 year old mine in 100 year old mining district - no exploration for decades
Initially loss-making at a minimal production rate
Motivated seller at the corporate level
Multiple ways in which Mandalay could win
Re-establish relationship with customer and sell Au-Sb concentrate
Immediate low capital restart
Complete first generation resource and reserve estimates
Up-list MND to TSX
Introduce rigorous mine planning and execution
Prove that leaching works or stop the process (which we did)
Improve flotation and gravity gold recovery
Move to 24/7 operations to increase production
Find more ore
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GOAL:
Become cash flow positive in 2010 and be recognized as a producer
on the TSX and in acquisition process for Cerro Bayo
Where are we today, 7 years into Costerfield?
Excellent safety performance
Low staff turnover
Exploration success has allowed mining continuously for 7 years
4 years P&P with good exploration potential to extend mine life
Producing at a rate of 65,000 oz Au Eq/yr @ <$600/oz cash cost
Repaid all start-up loans from Mandalay corporate
Exhausted tax loss carryforwards, now paying full tax
Generating about $5 million/qtr free cash flow for MND
Exporting senior geological and engineering staff to Björkdal
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0
20
40
60
80
100
2010 2011 2012 2013 2014 2015 2016
LT
IFR
351.8 Annual Lost Time Injury Rate
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Costerfield: Safety is everything
Zero lost time injuries since August, 2015
Record low LTIFR in 2016
Dupont STOP system implemented
Because We Care (IIF/JMJ)
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1. What Were The Challenges
2. Options Available To Us
3. What We Achieved
4. How We Achieved Transformation
How did we accomplish this: people and culture
Focus on values & people, who then create process & innovation
Challenges
Poor safety
Poor morale
Skills shortage and high staff turnover
Small land footprint
Proximity to local rural population – mostly supportive (at a cost)
Operating limitations – noise, dust and zero water discharge
Limited grid power
Challenging ground conditions and narrow vein mining
Inefficient operations – no “repeatable, improvable processes”
High and rising costs and losing money
No mining reserves – no exploration pipeline
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Toxic negativity and gossip
No accountability and ownership
Staff resisting change
Previous autocratic management
We quickly learned it was people and culture that needing fixing
Cultural challenges
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1. What Were The Challenges
2. Options Available To Us
3. What We Achieved
4. How We Achieved Transformation
How did we accomplish this: people and culture
Focus on values & people, who then create process & innovation
Lean and Six Sigma – Lean tools
Traditional staff training and development
Traditional management styles and approaches
Throw money at problems – Which we didn’t have
Change strategies – Leading Change (John Kotter) & Influencing
Without Integrity Nothing Works
High Performance Leadership Teams
Committed Speaking and Listening
Traditional improvements available
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1. What Were The Challenges
2. Options Available To Us
3. What We Achieved
4. How We Achieved Transformation
How did we accomplish this: people and culture
Focus on values & people, who then create process & innovation
Employee and community improvements
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Safety – > 90% improvement in safety – LTI and MTI
Ownership of Company values – value driven Company
Reduced community complaints – became partners
Staff health and wellness programmes – site nurse
Very low union membership – less than 5%
Low staff turnover – from 72% per annum to <10%
Sick days reduced by over 70%
Zero discharge
New engagement model with regulators
BECAUSE WE CARE – well-being and not just safety
We have become an employer of choice in the area and are valued by majority of the community
Mining Improvements
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Change to blast hole stoping method with cemented rock fill
Expand mining levels to 10 metres from 5 metres
Lowered mining costs <$200/t
24/7 Roster
Automation – drilling and bogging
Processing Improvements
Added fine crushing with mobile crusher
Replaced & right-sized pumps, sumps, plumbing, cyclones over time
Upgraded the gravity gold recovery circuit – Gold room
Improved Gold recovery from 75% to ~90%+
Improved Antimony recovery from 85% to ~95%+
Reduced unplanned downtime from 21% to <2%
Reduced processing cost per tonne from $95/t to <$50/t
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Costerfield Continuous Improvement
$0
$100
$200
$300
$400
0
10,000
20,000
30,000
40,000
50,000
Q4-09(Dec. only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15
USD
/ To
nn
e
Ton
nes
Pe
r Q
uar
ter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
$100
$150
0
10,000
20,000
30,000
40,000
50,000
Q4-09(Dec. only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15
USD
/ To
nn
e
Ton
ne
s P
er
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
Cont. Impr.
Start-up
$0
$1,000
$2,000
$3,000
0
5,000
10,000
15,000
20,000
Q4-09(Dec.only)
Q4-10 Q4-11 Q4-12 Q4-13 Q4-14 Q4-15 USD
/ O
z A
u E
q.
Ou
nce
s P
er
Qu
arte
r
Au Equivalent Production and Unit Cost
Oz Au Eq. Cost/ Au Eq. Oz
Costerfield Operational Improvements:
Record High Rate Record Low Cost
Improved mine output/mill throughput from
170 tpd to 450 tpd (capped by grid power and
site grinding capacity)
Changed mining method from cut-and-fill to
blast-hole stoping with cemented rock fill
(greater production, lower unit costs)
Introduced contract capital development for
faster and lower cost results
Replaced mechanized mining fleet
Added gold room
Operations continue setting records and new
targets being tested
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Start-up
Transformation
Cont. Impr.
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1. What Were The Challenges
2. Options Available To Us
3. What We Achieved
4. How We Achieved Transformation
How did we accomplish this: people and culture
Focus on values & people, who then create process & innovation
Our philosophy
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People build a business, so we concentrate on building the people!
Everyone supports each other in “committed speaking and listening”
Everyone is accountable and empowered
Supervisors lead high performing teams
Leaders create culture and drive improvements
Everyone encouraged to treat the mine like a business - their own
business
Targets are there to be achieved – production is king
Zero Harm in everything we do
WE CARE about each other
Our approach
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Have a big dream/vision
• Successful and profitable mining operation in Victoria
Have a plan/roadmap
• Accept detours as part of life
Be curious and try new things
• Innovate and experiment without repercussions
Be confident
• Celebrate success
Failures are setbacks
• Plan for and deal with them. Accept failures and don’t punish
Adjust the vision and plan as required
• Don’t be afraid to change direction
Have fun
Getting to the next level: Increased focus on values
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More active participation in industry bodies
Because we care
Automate out air-legs and improve Au
recovery
Culture of improvement –formal training
Next TSF lift includes closure
design
Exploration program
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What remains to be done in the coming year?
Complete infill drilling on new lodes which could convert to reserves
and add several years to mine life
Explore to find future ore to extend life of mine plan with continuous
production profile including new reserves
Re-commence capital development if required
Tailings dam lift
Water re-injection and disposal
Expand remote loader capabilities and surface control
Prove-up development drill rigs – Muki
Improve tailings gold recoveries
Some advanced targets for near-term reserve adds
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Figure to be read with Mandalay Resources
News release dated July 25, 2016
Brunswick
N-Lode North
New Lode
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Visuals
A person who feels appreciated
will always do more than what is
expected….
Manfred Ruff, Controller
Chris Gregory, VP Operational Geology and
Chief Shield Geologist
Dominic Duffy
