Mandalay Resources Corp. provided an update on drilling results generated by the ongoing exploration program at its 100%-owned Cerro Bayo
silver-gold mine in Aysen, Chile. Results presented here were acquired between the cutoff date for the company's July 9, 2012 exploration update for Cerro Bayo and December 31, 2012. Highlights of these results include: During the period, Mandalay continued extensional and infill drilling on five targets and drilled eight new targets. Extensional drilling on the Delia SE, Dagny, Coyita, Trinidad and Marcela veins successfully extended the known mineralized zones by a collective 800 metres along strike. By the end of the year, only the Dagny vein extension had been fully delineated by drilling. Mineralization remains open, either at depth or along strike, on the other targets. Of the eight new targets tested, all contained either scattered intercepts of potentially economic grades and widths, as yet without demonstrated continuity (Coigues Este and Central, Gabriela, Gabriela Este, Josefina, Josefina Este) or no significant results (Caiquenes and Guanaco 1). In 2013, the company plans to drill approximately 60,000 m at Cerro
Bayo, continuing to test extensions of known mineralized zones at Coyita, Marcela, Delia SE veins, Fabiola, Trinidad and Yasna veins and testing
several new targets in the district.