This presentation contains "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.
Quality Control and AssuranceQuality control and assurance programs are implemented in line with the standards of National Instrument 43-101.
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 supervises the collection and interpretation of scientific and technical information 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 on these projects contained in the presentation.
Dr. Mark Sander (Member: AusIMM), President and CEO of Mandalay, has visited the Costerfield, Cerro Bayo, Challacollo, and Björkdal and
has supervised the preparation of this presentation.
All currency references in US$ unless otherwise indicated
Forward-looking Statements
2
A Values-Based and Value-Focused Company
We 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
WE ARE SUCCESSFUL WHEN:
Our employees live and work safely and experience the personal
satisfaction that comes with high performance and recognition
The communities in which we operate value our presence
Our environmental impact is minimized and causes no permanent harm
We have a large, diversified set of customers who are delighted with
and compete for our products
Our shareholders realize a superior total return on their investment and
support our corporate values
Our values are visibly demonstrated by strong local management, at the
point of impact with or stakeholders, and coordinated across the
Company for maximum effect
Profitable and Dividend-Paying: (2.8% yield)*
*Trailing 12 months dividends divided by current market capitalization (Aug 11, 2016)
3
Designed for Value: How We are Different
Acquire only when we see possibility of 3-5X value uplift in 3-5 years
Target cash cost of production: 50% of ‘reversion to mean’ metal price
• Au <$700/oz
• Ag<$10/oz
100% ownership of all operations; no private royalties, no streams
Flat, virtual, low-cost organizational structure; local GM accountability
Direct relationships and sales contracts with customers
Dividend-paying: 6% of trailing quarterly revenue
No hedging of metal prices
Lightly levered with low-interest, gold-convertible bonds
Stingy with equity
Disciplined management processes operated with integrity
Compensation systems based on value-add
4
2009
• Costerfield, Australia
• Gold & Antimony
2010
• Cerro Bayo, Chile
• Silver & Gold
2013
• Challacollo, Chile
• Silver & Gold
2014
• Björkdal, Sweden
• Gold
Delivering Strong Financial Results Across Price Cycle
1. The Company defines EBITDA as earnings before interest, taxes and non cash charges/ (income). EBITDA should not be considered by an investor as
an alternative to net income or cash flow as determined in accordance with IFRS.
TIMELINE
2016 Quarterly
Financial
Measures
Revenue,
EBITDA(1) &
Cash from
Operations
Revenue
EBITDA
Cash from
Operations
$1.7
$32.0
$79.9$67.7 $64.4 $68.0
-$0.8
$30.6$61.2
$75.9
$52.4
$73.4
$20.6
$92.2
$171.8 $166.9$184.6 $194.5
-50
0
50
100
150
200
250
2010 2011 2012 2013 2014 2015
US
$ M
M
5
Record
Revenue
2nd best EBITDA &
Cash from Operations
$50.4 $54.2
$17.3$22.1
$7.3
$22.3
0
25
50
75
100
Q1-2016 Q2-2016
US
$ M
M
1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb
6
Based on Matched Production and Reserve Growth
6
15,854 63,351
107,941 126,908
154,810 166,679
254,000
520,000 633,000
772,000
1,123,000 1,070,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
50,000
100,000
150,000
200,000
250,000
300,000
2010 2011 2012 2013 2014 2015 2016E
Oz A
u E
q.
Ye
ar-
En
d R
es
erv
es
Oz A
u E
q.
An
nu
al
Pro
du
cti
on
165,000 –
180,000(1)
With Continuing Low Cash and All-In Production Costs
$/O
z A
u E
q. (C
os
t) o
r A
u (
Pri
ce
)
600
800
1,000
1,200
1,400
1,600
1,800
-
10,000
20,000
30,000
40,000
50,000
60,000
Production Cash Cost AISC Average Au price
Au
Eq
. O
z/Q
tr
Reducing volatility with growing number of operations
1 mine restart
1 mine restart
1 mine transformation1 mine restart
1 mine transformation2 mines producing
1 mine transformation
P&L Margin
EBITDA Margin
2010 2011 2012 2013 2014 2015 1H-2016
And Adding Reserves Cost-Effectively
1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb
7
0
20
40
60
80
100
120
140
160
180
2010 2011 2012 2013 2014 2015
US
$/o
z A
u E
q. P
&P
Ad
de
d
Mandalay Cost of Acquiring and Exploring for Reserves
Cumulative Cost per oz Au Eq. Acquired or Discovered
Cost Per oz Au Eq. Discovered in yr
Cost Per oz Au Eq. Acquired in yr
Exploration adds at
cumulative average
$50/oz Au Eq.
Acquisition + Exploration
adds at cumulative
average $78/oz Au Eq.
(for developed &
producing reserves)
(1) Adjusted for reinvested dividends. Assumes investment in Mandalay made as part of private placement announced on 24-Sep-09 to fund acquisition of Costerfield and accounts for warrant exchange offer of
0.47 shares per warrant. (2) Peer Index: Argonaut, Dundee PM, Kirkland, Lake Shore, OceanaGold, Perseus, Primero, Timmins. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields,
Kinross, Newcrest, Newmont, Polyus, Yamana. (4) End date as at July 26, 2016.
Creating Superior Value for Shareholders
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2010 2011 2012 2013 2014 2015 1H-2016
Dividends Paid (USD)**
6% of revenues (dividend contribution)
16.7% Cumulative Total Return (% Value Change)*
*Q3 2010 to Q2 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $1.13.
Graph updated quarterly, prices as at the last trading day of each respective quarter.
**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
0
2
4
6
8
10
12
14
16
18
20
-$20,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15
Volu
me (
mill
ions)
Invest
ment
Valu
e
Mandalay(1) Peer Index(2) Gold Senior(3)
Total Return vs. Peers and Seniors
A $10,000 investment on September 24, 2009 would be worth today(4):
• Mandalay: $77,332• Peer Index: $13,000• Gold Seniors: $8,328
8
Record
Dividends
50%
100%
150%
200%
250%
300%
350%
Q32009
Q12010
Q32010
Q12011
Q32011
Q12012
Q32012
Q12013
Q32013
Q12014
Q32014
Q12015
Q32015
Q12016
Mandalay Cumulative Returns
16.7% Annual Compounded Rate of Return
Gold
Silver
Trading Volume, Ownership and Coverage
Major Shareholders(1)
Holders Shares (Million) Shares (Percentage)
GMT Capital 62.6
Sentry Investments 43.5
Ruffer LLP 42.0
Plinian + Management + Directors 37.5
West Face Capital 35.3
Large Holders (Top-5) 220.9
Other Holders 229.8
TOTAL 450.7
Analyst Coverage
Firm Analyst
BMO Brian Quast
Desjardins Mike Parkin
Haywood Ben Asuncion
Raymond James Chris Thompson
Volume
30-day Average Daily Volume 1,067,859
100-day Average Daily Volume 1,207,267
13.9%
9.7% 9.3%
8.3%
7.8%
51.0%
9
Average Daily Volume across all trading platforms
Known ownership positions as at July 26, 2016
As at August 11, 2016 Millions
(Except Share Price Info)
Share price (August 11, 2016 - close) (C$) 1.15/shr
Shares Outstanding 450.7
Stock Options(1) 20.1
Fully Diluted Shares Outstanding 470.8
Market Capitalization (C$) $518.3
Cash and Cash Equivalents (US$) + Cash Proceeds of Bought Deal(3) $73.7
Total Interest-Bearing Debt (US$) $58.8
Total Enterprise Value (US$)(2) $384.2
Net Cash (US$) $14.9
Strong Balance Sheet
1. Exercise Price: C$0.58 – C$1.13 expiry dates ranging from April 11, 2016 - Mar 24, 2020
2. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.77 USD (Aug 11, 2016) – Debt number as at end Q2-2016
3. Cash position is as at end of Q2-2016, plus the C$36.9 million net proceeds raised on bought deal that closed July 26, 2016
10
Reiterating Corporate Consolidated Guidance
2016E
Au oz Saleable Production 100,000 – 115,000
Ag oz Saleable Production 2.9 million – 3.3 million
Sb t Saleable Production 3,000 – 3,500
Total Forecast Production Au Eq oz 165,000 – 180,000(1,2)
Reiterating corporate total guidance Au Eq. oz and cash cost/saleable oz;
individual sites will vary up or down, balancing out.
Total cash costs per saleable Au Eq oz $690 – $810
Total capex spend $31 million – $37 million(3)
Total exploration spend $7 million(4)
1. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb
2. Actual AuEq production ounces dependent on realized metal prices used for AuEq calculation
3. Excluding Board approved unbudgeted capex of $3.7 million, announced Aug. 11, 2016
4. Excluding Board approved unbudgeted exploration spend increase of $4 million, announced Aug. 11, 2016
11
Corporate Consolidated Guidance – Production, Investment & Costs
Costerfield Gold-Antimony Mine: Turnaround Complete
Land package 1,293 hectares
Ownership 100%
Number of Employees(1) 172 direct, 4 contractors: 176 total
Current throughput (Q2-2016) 405 tpd
Plant recoveries (Q2-2016) Au: 90.73%, Sb: 95.11%
1. As at year-end 2015, filed in Company’s Annual Information Form
12
13
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
Increased sub-level spacing from 5 – 10 m
Replaced mechanized mining fleet
Introduced mobile crusher to decrease particle
size of mill feed (better recoveries, higher
throughput)
Grew mine life from zero reserves to roughly 4
years while mining continuously for 6 years
Operations continue setting records and new
targets being tested
13
Start-up
Transformation
Cont. Impr.
Costerfield H1 2016 Sub-King Cobra Western, Central and East Zones drilling
14
Areas in plane of zone with cluster
of intercepts >1.6 g/t Au over 1.8 m
minimum mining width
WESTERN
PLAN VIEWPlan view– unlabeled dots represent H1 2016 intercepts
Section views– labeled dots represent H1 2016 intercepts;
unlabeled dots represent pre-2016 intercepts
15
Costerfield H1 2016 N-Lode North drilling
Areas in plane of zone with
cluster of intercepts >1.6
g/t Au over 1.8 m minimum
mining width
Section views– labeled dots represent H1 2016 intercepts;
unlabeled dots represent pre-2016 intercepts
Plan view– unlabeled dots represent H1 2016 intercepts
Costerfield H1 2016 New Lode drilling
16
Plan view– unlabeled dots represent H1 2016 intercepts
Areas in plane of zone with cluster
of intercepts >1.6 g/t Au over 1.8 m
minimum mining width
Section views– labeled dots represent H1 2016
intercepts; unlabeled dots represent pre-2016 intercepts
Taits
mine
Figure 5– Costerfield H1 2016 Brunswick Lode drilling
17
Plan view– unlabeled dots represent H1 2016 intercepts
Areas in plane of zone with cluster
of intercepts >1.6 g/t Au over 1.8 m
minimum mining width
Section views– labeled dots represent H1
2016 intercepts; unlabeled dots represent
pre-2016 intercepts
Björkdal Gold Mine: Emerging from Intensive Care
Land package 12,949 hectares
Ownership 100%
Number of Employees(1) 169 direct, 58 contractors: 227 total
Current throughput (Q1-2016) 3,560 tpd
Plant recoveries (Q2-2016) Au: 88.4%
1. As at year-end 2015, filed in Company’s Annual Information Form18
19
Björkdal Operating Performance and Improvements
$0
$5
$10
$15
$20
$25
$30
0
100,000
200,000
300,000
400,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
$/
Ton
ne
Ton
ne
s P
er Q
ua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$2
$4
$6
$8
$10
0
100,000
200,000
300,000
400,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
$/
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
0
5,000
10,000
15,000
Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
$/
oz
Au
Ou
nce
s G
old
Pe
r Q
uar
ter
Saleable Gold Produced and Unit Cost
Au oz Cost/ oz Au
Björkdal 2015 Operational Improvements:
Record High Rate Record Low Cost
Introduced best practice mapping, drilling,
sampling, and modelling of high nugget-
effect gold deposits
Produced a more refined resource model to
support more selective underground & open
pit mining techniques
Establishing a local assay lab for faster
grade control turnaround
2016 Planned Improvements:
Increasing grade of mill feed through more
selective underground and open pit mining at
an increasing rate (making up for discarding
waste)
Pilot optical ore sorting – IN PROGRESS
Pilot coarse and ultra-fine gold float – DONE
19
Transitioning to Proper Longitudinal Grade Control
20
-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Re
con
cile
d m
ill f
eed
gra
de
-g/
t A
uMill Feed Grade
On-vein development ore Stope Ore
Speeding up development & initiatinggrade-controlled stoping
Stockpiling grade-controlled development ore while stoping old way
Traditional on-vein development and without Grade Control while establishing new mapping, sampling,
assaying, planning practice
Proof of concept positive for
5 of 7 mo
Sampling every round results in
Sampling every round results in
discarding 30-40% of material
-
50
100
150
200
250
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Dev
elo
pm
ent
Ad
van
ce (
m)
Accelerating Underground Development x 2
Underground meters - Monthly
Ore sorting at Björkdal Stockpiled Mixed Low-Grade Material
Sorted Waste – no veins Sorted Ore – with veins
Bulk Test Start Grade End Grade Times Upgraded Waste Rejection Gold Retained
g/t Au g/t Au (%) (%)
Underground Ore 1.93 2.97 1.54 43.0 87.0
Stockpile Ore 0.81 1.11 1.37 30.0 96.0
Pilot studies confirm that:
• Au is contained in fragments of
white quartz vein material, not in
black wallrock material
• Can optically sort out 40+% of
black rock and only lose a few %
of gold recovery
Potential to upgrade low-grade
material or even high-grade material
to increase mill head grade,
producing more gold from existing mill
capacity
Onsite pilot plant in operation as of
May 20 on 60,000 – 80,000 t test;
good visual results after first days
Expect test results in July-August
21
Encouraging Initial Results of Pilot-Scale On-Site Test
22
“Ore” – Abundant vein fragments,
presumed increased grade
“Waste” – No vein fragments,
presumed very low-grade
Unsorted low-grade material conveyor
feed to sorter
Björkdal Processing Improvements
23
Completed:
Sampling survey on milling and gravity gold circuits to identify
improvement opportunities
Laboratory flotation recovery study on effect of fineness of
grind, % solids, and residence time – key for decision-making
on possible future flotation circuit expansion
Pilot on-site testing of coarse and ultra fine gold flotation
2016 Planned Improvements:
Milling/Flotation material flow stability survey to identify areas
where automation can be implemented to improve recovery
Introduction of high chrome grinding media for increased wear
resistance, grinding media cost saving and improved pulp
chemistry for improved flotation recovery
Flotation circuit and ancillary equipment expansion study to
determine OPEX and CAPEX for a planned flotation circuit
expansion. Goal: improve flotation recovery and concentrate
grade
24
Björkdal H1 2016 Drill Results
Filling in gap
between Open Pit
and Nylunds
Expanding
underground
footprint
5 km top-of bedrock gold anomaly
extends from open pit to Au
prospect at Ronnberget
DDE2015-006 (assays received in
2016) about halfway along;
intersected 1.05 m @3.91 g/t Au
Cerro Bayo Silver-Gold MineLand package 23,106 hectares
Ownership 100%
Number of Employees(1) 398 direct, 133 contractors: 531 total
Current throughput (Q1-2016) 1,157 tpd
Plant recoveries (Q2-2016) Ag: 87.62%, Au: 84.00%
1. As at year-end 2015, filed in Company’s Annual Information Form
25
Cerro Bayo Operating Performance and Improvements
$0
$50
$100
0
50,000
100,000
150,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16
$/
Ton
ne
Ton
ne
s P
er Q
ua
rter
Mining Rate and Unit Cost
t Mined Cost/ t Mined
$0
$50
0
50,000
100,000
150,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16
$/
Ton
ne
Ton
ne
s P
er
Qu
arte
r
Processing Rate and Unit Cost
t Processed Cost/ t Processed
$0
$5
$10
$15
$20
0
500,000
1,000,000
1,500,000
Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16 $/
oz
Ag
Ne
t B
ypro
du
ct
Oz
Ag/
Qu
arte
r
Saleable Silver Produced & Unit Cost
Ag oz Cost/ oz Ag net Au
Cerro Bayo Operational Improvements:
Shifted the mining method from shrinkage
stoping to completely mechanized blast hole
open stoping;
Ramped up throughput from 0 tpd – 1,400 tpd
from three mines
Installed flotation automation system to
maximize silver and gold recoveries
Extended mine life from 3 years at 1,200 tpd
to 5 years at 1,400 tpd while mining
continuously for 4 years
Ongoing improvements to increase pace of
development mining
26
Record High Rate Record Low Cost
Outcropping, mined, and drilled veins in the Laguna Verde area
27
Veins currently
being mined
circled in RED
Historic veins
mined out by June
30, 2016 circled in
BLACK
Cerro Bayo H1 2016: Drill results in Coyita SE vein
28
• Dots without assay labels are
pre-2016 intercepts
• Dots with number and assay
labels are H1-2016 results
29
Cerro Bayo H1 2016–Branca vein long section showing new drill intercepts
• Dots without assay labels are
pre-2016 intercepts
• Dots with number and assay
labels are H1-2016 results
Challacollo Silver-Gold Project 2016
Land package 20,378 hectares
Ownership 100%
Location 130 km SE of Iquique, Chile
Mineralization Epithermal, oxidized Ag-Au
Number of Employees(1) 6 direct: 6 total
Elevation Approx. 1,500 ASL
1. As at year-end 2014, filed in Company’s Annual Information Form
30
Water exploration and water rights transfer
Exploration and optimization
Invest with Us: How We Will Deploy Your Capital Acquire new assets counter-cyclically – only at a deep discount to value that we can deliver
• Base case returns at least 2x the investment
• Upside case 3-5x over 3-5 years based on specific testable hypotheses
• Keep portfolio evergreen – exit assets that do not fit
Execute focused operational improvement projects at each site• Exploration – project portfolio targeted on discovery of near-term reserves
• Mining – projects focused on safer, more mechanised mining with higher extraction, lower
dilution and reduced cost
• Metallurgical – projects focused on higher recovery, higher availability, higher quality products
with higher payables and reduced costs
• Commercial – create more diverse customers paying better terms
Apply relentless, disciplined financial management• Low cash cost and overheads for high EBITDA margins
• Low DD&A for high P&L margins – low acquisition cost, focused
CAPEX & exploration
• Prudent, low-cost leverage to fund growth when needed
• Minimize shareholder dilution
• Return cash to shareholders: dividend = 6% trailing qtr. revenues
Engage all stakeholders in a values-based and value-focused organization
31
For more information, please contact:
Greg DiTomaso
Director, Investor Relations
Tel: 647.260.1566
Email: [email protected]
Company Website: www.mandalayresources.com
Twitter: @MandalayAuAg
Management and Board of Directors
Senior Management
Board of Directors
Sanjay Swarup, CFO
Former Lonmin plc, over
20 years of industry
experience
Belinda Labatte,
Head of Stakeholder
Engagement & Corporate
Affairs
Over 15 years of industry
experience
Braam Jonker,
Independent Director
Peter R. Jones,
Independent Director
Robert Doyle,
Independent Director
Dominic Duffy, COO
Mining Engineer with
extensive technical and
operational management
experience
Mark Sander,
President and CEO
29 years of experience in
exploration, strategy and
operating improvements
33
Mark Sander,
Director
Brad Mills,
Executive Chairman
Amy Freedman,
Independent Director
Numbers may differ slightly from source documents due to rounding
Mandalay Reserves
Cerro Bayo Reserves(1) Ore (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)
Proven Reserves 133,000 195 835,000 1.98 9,000
Probable Reserves 1,903,000 230 14,041,000 2.18 133,000
P&P Reserves 2,036,000 227 14,876,000 2.16 142,000
Costerfield Reserves (2) Ore (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)
Proven Reserves 125,000 4.4 5,500 12.0 48,000
Probable Reserves 366,000 3.7 13,400 8.2 97,000
P&P Reserves 491,000 3.9 18,900 9.2 145,000
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 20162 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report to filed March 30, 20163 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
TOTAL RESERVES
31-December-2015Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Mandalay Proven Reserves 835,000 57,000 4.4
Mandalay Probable Reserves 14,041,000 648,000 11.2
Total Mandalay P&P Reserves 14,876,000 705,000 15.6
Björkdal Reserves (3) Ore (t) Au Grade (g/t) Au (cont. oz)
Proven - - -
Probable 7,012,000 1.85 418,000
Total 7,012,000 1.85 418,000
34
Mandalay Resources
Cerro Bayo Resources (1) Resource (t) Ag Grade (g/t) Ag (cont. oz) Au Grade (g/t) Au (cont. oz)
Measured Resources 132,000 250 1,065,000 2.46 10,000Indicated Resources 1,699,000 315 17,211,000 3.16 173,000M&I Resources 1,832,000 310 18,276,000 3.11 183,000Inferred Resources 511,000 181 2,984,000 2.32 38,000
Costerfield Resources (2) Resource (t) Sb Grade (%) Sb (cont. t) Au Grade (g/t) Au (cont. oz)
Measured Resources 247,000 4.6 11,000 12.1 96,000
Indicated Resources 798,000 3.4 27,000 7.6 194,000
M&I Resources 1,045,000 3.7 38,500 8.6 290,000
Inferred Resources 491,000 2.0 9,700 4.3 68,000
TOTAL RESOURCES Ag (cont. oz) Au (cont. oz) Sb (cont. t)
Measured Resources 1,065,000 106,000 11,000Indicated Resources 47,411,000 1,013,000 27,000Total M&I Resources 48,476,000 1,119,000 38,000
Total Inferred Resources 9,884,000 215,000 9,700
1 Source: Cerro Bayo - Roscoe Postle Associates, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed March 30, 2016
2 Source: Costerfield - SRK Consulting (Australia), Effective December 31, 2015, documented in an independent NI 43-101 Technical Report Filed March 30, 2016
Challacollo Resources (3) Resource (t) Au Grade (g/t) Ag Grade (g/t) Au (cont. oz) Ag (cont. oz)
Measured Resources - - - - -
Indicated Resources 4,700,000 0.32 200 48,000 30,200,000
M&I Resources 4,700,000 0.32 200 48,000 30,200,000
Inferred Resources 1,600,000 0.31 134 16,000 6,900,000
3 Source: Challacollo – Mining Plus, Effective December 31, 2015, documented in an independent NI 43-101 Technical Report filed Mar. 31, 2015
4 Source: Björkdal – Roscoe Postle Associates, Effective December 31, 2015, please refer to Mandalay Resources’ press release dated Feb. 29, 2016
Björkdal Resources (4) Resource (t) Au Grade (g/t) Au (cont. oz)
Measured Resources - - -
Indicated Resources 7,524,000 2.47 598,000
M&I Resources 7,524,000 2.47 598,000
Inferred Resources 1,552,000 1.86 93,000
35
Q2, 2016 Q2, 2015 2015 2014
Saleable Ag oz
produced
462,462 597,489 2,545,984 3,329,519
Saleable Au oz
produced
28,718 26,418 109,102 77,900
Saleable Sb t
produced
962 842 3,712 3,639
Operational Performance
Financial Performance
Balance Sheet and Current Results
1. Exercise Price: C$0.58 – C$1.13 expiry dates ranging from April 11, 2016 - Mar 24, 2020
2. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.76 USD (July 26, 2016) – Debt number as at end Q2-2016
3. Cash position is as at end of Q2-2016, plus the C$36.9 million net proceeds raised on bought deal that closed July 26, 2016
4. Björkdal Acquired September 10, 2014. Site all-in costs include total cash operating costs, royalty expense, depletion, depreciation and accretion. Björkdal Q1-2015 all-in cost and
net profit figures are restated for additional depletion recognized at 2015 year end.
Q2, 2016 Q2, 2015 2015 2014
Net Cash/All-in cost/oz
Au Eq. at Costerfield, $
530 /
772
578 /
795
559 /
773
772 /
1,036
Net Cash/All-in cost/oz
Ag at Cerro Bayo, $
8.45 /
16.54
7.61 /
14.84
7.50 /
14.69
5.30 /
11.36
Net Cash/All-in cost/oz
Au Eq. at Björkdal, $(4)
967 /
1,212
884 /
1,110
884 /
1,128
870 /
1,024(3)
EBITDA, $ million 22.1 18.2 68.0 64.4
Net Income, $ million 3.6 4.4 14.7 17.6
Cash and cash equiv., $
million
45.7 52.3 49.2 49.0
36
As at July 26, 2016
Millions
(Except
Share
Price Info)
Share price (July 25, 2016 -
close) (C$)
1.15/shr
Shares Outstanding 450.7
Options(1) 21.0
Fully Diluted Shares
Outstanding
471.7
Market Capitalization (C$) $518.3
Cash and Cash Equivalents
(US$) + Cash Proceeds of
Bought Deal(3)
$73.7
Total Interest-Bearing Debt
(US$)
$58.8
Total Enterprise Value
(US$)(2)
$379.0
Net Cash (US$) $14.9
Current Operational Locations: Mining-friendly Jurisdictions
Metal Gold
Ownership 100%
2015
Production &
Cash Cost
44,039 oz
$884/oz Au
2016E
Production &
Cost
50,000 – 55,000 oz
$850-970/oz Au
P&P
Reserves(1)
7.0 Mt @ 1.85 g/t Au
Metal Silver, Gold
Ownership 100%
2015
Production &
Cash Cost
2,545,984 oz Ag
22,572 oz Au
$7.50/oz Ag net Au
2016E
Production
& Cost
24,000 – 30,000 oz Au
2.9 – 3.3 MM oz Ag
$600-$720/oz Au Eq.
P&P
Reserves(1)
2.0 Mt @ 227 g/t Ag;
2.16 g/t Au
Metal Gold, Antimony
Ownership 100%
2015
Production &
Cash Cost
42,491 oz Au
3,712 t Sb
$559/oz Au Eq.
2016E
Production
& Cost
26,000 –30,000 oz Au
3,000 – 3,500 t Sb
$650—$720/oz Au Eq.
P&P
Reserves(1)
491,000 t @ 9.2 g/t Au;
3.9% Sb
2016E
Au oz Saleable Production 100,000 – 115,000
Ag oz Saleable Production 2.9 million – 3.3 million
Sb t Saleable Production 3,000 – 3,500
Total Forecast Production Au Eq oz 165,000 – 180,000(2)
Total cash costs per saleable Au Eq oz $690 – $810
Total capex spend $31 million – $37 million(3)
Total exploration spend $7 million(4)
2016E Corporate Consolidated Guidance – Production, Investment and Costs
1. Refer to notes in the Appendix for Reserves
2. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb
3. Excluding Board approved unbudgeted capex of $3.7 million, announced Aug. 11, 2016
4. Excluding Board approved unbudgeted exploration spend increase of $4 million, announced Aug. 11, 2016
37
MND (301% value change) outperformed through the entire 2009 - 2015 bottom-to-bottom price cycle*:
1. All 6 Currencies (AUD, CAD, GBP, CLP, EU, CNY): 75 – 103%
2. All 3 Precious Metals – (Au, Ag, Pt): 78 – 132%
3. All 4 Base Metals (Pb, Zn, Cu, Ni): 54 – 110%
4. All 7 Gold Mutual Funds: 77 – 104%
5. All 6 Resource/Basic Material Mutual Funds: 88 – 141%
6. All 6 “Big Diversified” Miners: 22 – 86%
7. 8 of 9 “Prospect Generator” Companies: 24 – 486%
8. All 4 “Royalty/Streaming” Companies: 107 – 290%
9. All 3 “Mega Gold” Miners (>$US10 B market cap): 88 – 141%
10. 8 of 9 “Big Gold” Miners (USD1-10B market cap): 25 – 421%
11. 6 of 10 “Mid-Tier Gold” Miners USD0.5-1B market cap): 40 – 12,975%
12. 13 of 18 “Junior Gold” Miners (<USD500M market cap): 12 – 2,533%
13. 14 of 17 “Gold Developers”: 12 – 1,020%
14. 6 of 8 “Big Silver” Miners (>USD400M market cap): 52 – 602%
15. All 2 “Mid Tier Silver” Miners (USD200-400M market cap: 63 – 169%
16. All 5 “Junior Silver” Miners (<USD200M market cap): 49 – 246%
17. All 8 “Silver Developers”: 4 – 266%
18. All 6 “Big Copper” Miners (>USD7B market cap): 42 – 245%
19. 10 of 11 “Base Metals Developers”: 14 – 443%
20. All 6 “Mid-Tier Base Metals” (USD0.25-1B market cap): 28 – 258%
21. All 6 “Junior Base Metals” (<USD250M market cap): 7 – 82%
22. All 9 “PGM Mineral and Developers”: 1 – 176%
23. All 1 “Junior Aluminum Company”: 30%
38
Mandalay versus:
• 164 alternative investments
• In 23 different strategy categories
• Over the 27 quarters from Q3 2009 to
Q2 2016 (period that Plinian has led
Mandalay)
Value metric is:
• For currencies, change in exchange
rate with USD as listed in
www.bankofcanada.com
• For metal prices, change in USD metal
price per lb., oz., or t as listed in
www.metalprices.com
• For mutual funds, change in share
price plus dividends paid as listed in
www.finance.yahoo.com
• For companies, common shareholder
equity value assuming market
purchase of shares, excluding warrants
and special dividends but including
ordinary dividends and stock splits as
listed in www.finance.yahoo.com
38
*Q3 2010 to Q2 2016, includes all dividends paid. Source: MetalPrices.com for metal spot prices Index: September 30, 2009 = 100. Mandalay share price: $1.13.
Prices as at the last trading day of each respective quarter.
Strong Annual Production Growth
109,337
1,318,655
2,911,595 3,145,5373,329,519
2,545,984
0500,000
1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000
2010 2011 2012 2013 2014 2015 2016E
Silver (oz)
334
6,678
17,089
21,482
27,600
22,572
0
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012 2013 2014 2015 2016E
Gold (oz)
7,66112,244
18,036
28,758
35,75142,491
0
10,000
20,000
30,000
40,000
50,000
2010 2011 2012 2013 2014 2015 2016E
Gold (oz)Costerfield Production(2016E)
Cerro Bayo Production(2016E)
1,106
1,571
2,481
3,275
3,639 3,712
0
1,000
2,000
3,000
4,000
2010 2011 2012 2013 2014 2015 2016E
Antimony (Sb)
Björkdal Production(2016E)
14,549
44,039
0
10,000
20,000
30,000
40,000
50,000
60,000
2010 2011 2012 2013 2014 2015 2016E
Gold (oz)
15,854
63,351
107,941126,908
154,810 166,679
0
40,000
80,000
120,000
160,000
200,000
2010 2011 2012 2013 2014 2015 2016E
Total MND Production (AuEq oz)(1)
165,000 - 180,000
26,000 –
30,000
24,000 –
30,000
50,000 -
55,000
3,000 –
3,500
2,900,000 –3,300,000
391. 2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb