Mandalay Resources Continues to Produce Excellent Results from Its Bjorkdal Eastward Mine Extension Drilling Programs

TORONTO - Mandalay Resources Corporation ('Mandalay' or the 'Company') (TSX: MND, OTCQB: MNDJF) is pleased to provide an update on the eastern extension drilling programs at its Bjorkdal operation in Sweden.

New Drilling Highlights

Central Zone Extension Infill

47.7 g/t gold over 11.7 m (Estimated True Width 'ETW' 5.85 m) in MU21-052: Including 1,056.0 g/t over 0.40 m; 47.5 g/t gold over 6.4 m (ETW 4.11 m) in MU21-047: o Including 716.0 g/t over 0.31 m and 507.0 g/t gold over 0.45 m (ETW 0.23 m) in MU21-051.

Central Zone Extension Testing

45.5 g/t gold over 2.3 m (ETW 1.15 m) in MU21-028; 83.1 g/t gold over 0.4 m (ETW 0.39 m) in MU21-029; 8.4 g/t gold over 5.7 m (ETW 5.35 m) in MU21-030 and 5.1 g/t gold over 8.0 m (ETW 6.13 m) in MU21-031.

Central Zone - Lake Zone Link

13.2 g/t gold over 1.0 m (ETW 0.94 m) in MU21-028 and 19.3 g/t gold over 0.4 m (ETW 0.35 m) in MU21-029.

Dominic Duffy, President and CEO of Mandalay, commented: 'Following the success of the Main and Lake zone extension programs (press released June 29, 2021), Mandalay diverted focus to this high potential area. These recent drilling programs have supported the initial finding with some of the best grades seen at Bjorkdal. Predominantly, the intercepts are interpreted to be direct extensions of the Main and Central zone veining, however, the grades recovered from the Central Extension drilling show a distinct upgrading down plunge.

'The increasing grades within the extensions of the Bjorkdal deposit at depth to the east mark a significant development in the multifaceted efforts to lift ore grades produced from the mine and will be a major focus of our production in the years to come. The Main, Lake and Central zones are all open to the north-east and those drilling results are showing higher grades the deeper and further to the east we drill. This is very exciting, and this drilling will continue to be one the primary exploration focuses over the course of 2022.

'As a result of these excellent results, a mining concession application has already been submitted to the relevant authorities in order to extend the mining license holdings to cover this eastward extension of veining.

'Lastly, a video has been prepared by Chris Davis, Vice President of Operational Geology and Exploration, to further explain the information in this release.

Continued Success Along the Eastern Extension

Since the success of the Lake and Main Zone extension projects, Mandalay has drilled a further 17 holes and 7,253 m into the eastern extension of the Bjorkdal veining in three programs. These are the Central Zone Extension, Central Zone Conversion and Central to Lake Zone Link drilling programs. Currently, these results have been connected to the continuation of 21 existing veins and 16 new veins have been discovered. Significant grade also sits outside of currently modelled veining and it is expected that additional drilling will improve confidence in structural connections leading to further vein definition. So far, and to varying degrees, the veining has been extended up to 350 m from current workings.

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About Mandalay Resources Corporation

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine), with projects in Chile and Canada under closure or development status. The Company is focused on growing its production and reducing costs to generate significant positive cashflow. 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 objective is to continue mining the high-grade Youle vein at Costerfield, bring online 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.

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