Mandalay Resources Corporation Continues to Deliver Positive Exploration Results at its Costerfield and Björkdal Operations

TORONTO, Jan. 14, 2020 (GLOBE NEWSWIRE) — Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to report continuing positive results from the exploration programs at its Costerfield operation in Victoria, Australia, and at its Björkdal operation in Skellefteå, Sweden. This press release discloses diamond drilling results completed since the Company’s previous exploration release on September 30, 2019. Figures illustrating the results can be found at the end of this press release.

Highlights

Costerfield

New close spaced drilling has increased confidence in the upper section of the Youle vein, where mining is underway;

Step out drilling on the Youle vein and at the historic Costerfield mine to the north has discovered mineralized extensions (see Figures 1 to 6 and Tables 1 to 3 below); and

The first parent and wedge daughter holes on the Costerfield Deeps target have been completed beneath the Youle orebody. Structural knowledge and multielement geochemistry from these holes have been used to target a second parent hole testing the Deeps target under the August Deposits. Drilling of the second program will commence later in 2020.

Björkdal

Extensional drilling at the Aurora zone continues to enlarge the structurally controlled, high-grade mineralization, which trends at depth towards the east (see Figures 7 to 10 and Tables 4 to 7 below);

Drilling of high-grade targets, including skarn mineralization near underground infrastructure, have improved mine planning to deliver sustainable high head grades from the mine; and

Target testing holes have confirmed the continuation of mineralization in new veins up to 500 metres (“m”) northward from the presently defined Aurora zone.

Dominic Duffy, President and Chief Executive Officer of Mandalay, commented, “We are pleased to report continued exploration success at both of our sites. The most recent drilling results at Costerfield and Björkdal confirm the significant upside potential value of our operations.”

Mr. Duffy added, “At Costerfield, optimization drilling within the upper part of the Youle vein has confirmed the high-grade resources previously published for the vein and filled in previous wide-spaced intercepts along a strike of 450 m. These results will support improved planning and execution of mining operations and longer life of the Youle vein.”

Mr. Duffy continued, “We have now concluded the daughter hole wedged off the first Costerfield Deeps hole CD001. The results have advanced our geological understanding of this highly prospective area. This has provided the information for planning the second deep parent and daughter holes to target under the Augusta system, which will be drilled in 2020.”

Mr. Duffy concluded, “At Björkdal, drilling to extend orebodies currently being mined has allowed us to bring higher head grade into the mine plan. Both the Aurora zone and skarn mineralization have been significantly extended. Meanwhile, target testing as much as 500 m north of the Aurora zone has intersected new gold bearing veins.”

Mandalay Drilling Programs