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TSX:MNDFEB 2018

HIGH PERFORMERS = BREAKTHROUGH RESULTS

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This presentation contains "forward-looking statements" within the meaning of applicable securities laws, including statements relating to life ofmine production plans, exploration plans and the growth and strategy of Mandalay. Actual results and developments may differ materially fromthose contemplated by these statements depending on, among other things: exploration results or production results not meeting management’sexpectations; capital, production and operating cost results not meeting current plans; and changes in commodity prices and general market andeconomic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. Adescription of additional risks that could result in actual results and developments differing from those contemplated by forward lookingstatements in this news release can be found under the heading “Risk Factors” in Mandalay’s annual information form dated March 31, 2017 andin its short form base shelf prospectus dated February 12, 2018, 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 thosedescribed in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated orintended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differmaterially 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 ofOperational Geology for Mandalay and a “Qualified Person” as defined under National Instrument 43-101. Mr. Gregory regularly visits Costerfieldand 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 MandalayResources, and an Oregon registered Professional Geologist. A “Qualified Person” as defined by NI 43-101, he has reviewed and approved thetechnical 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 andhas supervised the preparation of this presentation.

All currency references in US$ unless otherwise indicated.

Forward-looking Statements

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A Values-Based and Value-Focused Company

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 our stakeholders, and coordinated across the Company for maximum effect

Designed for Value: A Proven Strategy

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1. Acquire producing or near-term, cash-flowing mines at a discount to value we will create• Remedy history of underinvestment in sustaining capital that limits current performance

(e.g. underground development, stripping, maintenance)• Introduce major improvements in mining methods• Modernize plant and operating practices to increase throughput & recovery• Institute operating cost reductions and productivity improvements• Leverage commercial savvy and direct smelter relationships to improve treatment costs• Identify and develop unrecognized or underinvested exploration potential to support

expanded production and/or mine life extension2. Reinvest near-term, growing cash flow to fund turnaround plan3. Return cash to shareholders wherever possible4. Divest mature, optimized mines to parties who can create more value than we see

Mandalay acquires undervalued mines in accretive transactions; turns them around to crystallize increased value in the market; returns cash to shareholders

Mandalay has acquired three mines at discount and turned around all three inseven years; looking for more

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Organized to Deliver Maximum Shareholder ValueAcquire only when we see possibility of an accretive transaction with strong value uplift in 3-5 years

Target cash cost of production: 50% of ‘reversion to mean’ metal price

100% ownership; no private royalties, no streams

Flat, virtual, low-cost organizational structure; local GM accountability

Direct relationships and sales contracts with customers

Return cash to shareholders when possible

No hedging of metal prices

Stingy with equity

Reasonably levered

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1.7

32

79.967.7 64.4 68

50.9 48.6

-0.8

30.6

61.275.9

52.473.4

53.736.2

20.6

92.2

171.8

166.9

184.6194.5

185.51631,224

1,5701,670

1,411

1,2651,160 1,248 1,251

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

-50

0

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016 2017

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 – EBITDA figures reflect adjusted EBITDA, please see the Company’s Management’s Discussion and Analysis.

Mandalay Timeline

2010• Cerro Bayo, Chile• Silver & Gold• Cerro Bayo, Chile• Silver & Gold

2014• Challacollo, Chile• Silver & Gold• Challacollo, Chile• Silver & Gold

2014• Björkdal, Sweden• Gold• Björkdal, Sweden• Gold

• No acquisition • Optimize operations• Pay down debt• Exchange warrants• Begin dividends

2011-2013

Revenue EBITDA Cash from Operations Gold Price

Mandalay Financial Performance 2010-2016

Results: Consistent Performance Across the Price CycleU

S$ M

M

Gol

d Pr

ice

(US$

)

2009• Costerfield, Australia• Gold & Antimony• Costerfield, Australia• Gold & Antimony

2017• Cerro Bayo Inundation,• C&M & re-permitting• Cerro Bayo Inundation,• C&M & re-permitting

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Mandalay’s Strategy in Action: Matched Production and Reserves

With Continuing Capital and Overhead Spending Discipline

15,854 63,351

107,941 126,908

154,810 166,679 131,186

101,000 – 113,000254,000

520,000 633,000

772,000

1,123,000 1,054,000 1,024,000 1,012,000

0

200,000

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600,000

800,000

1,000,000

1,200,000

0

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100,000

150,000

200,000

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2010 2011 2012 2013 2014 2015 2016 2017 2018E

Oz

Au E

q. Y

ear-

End

Res

erve

s

Oz

Au E

q. A

nnua

l Pr

oduc

tion

145,497

3.6 3.4

5.3 5.1

6.7

4.4 4.8

5.4

224

54 49 40 44

26 33 41

-

50

100

150

200

250

2010 2011 2012 2013 2014 2015 2016 2017 -

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Ove

rhea

d sp

endi

ng ($

/oz

Au E

q.)

Ove

rhea

d sp

endi

ng ($

M)

Mandalay Corporate Overhead Spending

12.8

24.9

35.9 34.4

40.3 39.5

29.5

39.3 810

392 333

271 260 237 203 300

- 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0

0100200300400500600700800900

2010 2011 2012 2013 2014 2015 2016 2017

Cap

ex s

pend

ing

($M

)

Cap

ex s

pend

ing

( $/o

z Au

Eq.

)

Mandalay Capital Spending at Operating Mines (excl. Exploration)

8

0

50

100

150

200

250

300

2010 2011 2012 2013 2014 2015 2016 2017

US$

/oz

Au

Eq. P

&P

Add

ed

Mandalay cost of acquiring and discovering 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

Adding Reserves Cost-effectively

2016 metal price assumptions: $1,202/oz Au, $16.87/oz Ag and $6,820/t Sb1. Source: BMO

Acquisition + Exploration adds at cumulative average $75/oz Au Eq. (for developed & producing reserves)

Cerro BayoBjörkdal

Median for all Au sector acquisitions2012 – 2017 = $226/oz Au Eq.(1)

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Creating & Delivering Superior Value for Shareholders

A $10,000 investment on Sept. 24, 2009 would be worth on Feb. 21, 2018(1-4):

• Mandalay: $17,791

• Peer Index: $11,234

• Gold Seniors: $7,192

A $10,000 investment on Sept. 24, 2009 would be worth on Feb. 21, 2018(1-4):

• Mandalay: $17,791

• Peer Index: $11,234

• Gold Seniors: $7,192

Since 2009, Mandalay has returned cash to shareholders via:

• Warrant redemptions

• Share buybacks

• Dividends*

Since 2009, Mandalay has returned cash to shareholders via:

• Warrant redemptions

• Share buybacks

• Dividends*

(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: Alacer, Argonaut, Dundee PM, Kirkland Lake, Klondex, Perseus, Primero, Richmont. (3) Gold Seniors: Agnico Eagle, AngloGold, Barrick, Goldcorp, Gold Fields, Kinross, Newcrest, Newmont, Polyus, Randgold. (4) End date as Feb. 21, 2018.

*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

Despite 2017 share price decline due to Cerro Bayo issues, Mandalay has delivered almost 1.5X value of Peers & almost 2.5X value of Gold Seniors since founding in 2009

Despite 2017 share price decline due to Cerro Bayo issues, Mandalay has delivered almost 1.5X value of Peers & almost 2.5X value of Gold Seniors since founding in 2009

The Mandalay Production and Development Portfolio

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Company-wide production of 131,186 oz AuEq in 2017

• Björkdal targeting long-term production of 70+koz with a mine life of 15 years @ $750/oz cash costs

• Costerfield self-funding to replace P&P Reserves and extend mine life

Björkdal: 2017 Breakthrough Year• 2017 production: 62,028 oz gold• 2017 cash costs: $816/oz• Current mine life: 10 years• Reserve replacement ratio: 12.9

(PRODUCTION SUSPENDED)

Costerfield: 2017 Dependable Performance, Mine life extension at Brunswick lode• 2017 production (AuEq): 52,137 oz• 2017E cash costs: $701/oz• Current mine life: 4 years• Reserve replacement ratio (3-yr Avg): 1.39

Chilean Properties• Cerro Bayo (production suspended)

• Restart currently in permitting• Challacollo

• Feasibility-stage project• Targeting production of approx.

4 Moz Ag for a 10-year mine life

1. Exercise Price: C$0.60 – C$1.13 expiry dates ranging from Mar 18, 2018 – Jun 30, 20242. Market Capitalization converted to US$ using exchange rate of 1 CAD = 0.79 USD (Feb. 20, 2018)3. Cash and Cash Equivalents and Interest-Bearing Debt as at end of Q4-2017 (Dec 31, 2017)

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Strong Balance Sheet as of December 31, 2017

Millions(Except Share Price Info)

Share price (Feb. 20, 2018 - close) (C$) $0.255/shr

Shares Outstanding 451.3

Stock Options(1) 20.9

RSUs 0.7

Fully Diluted Shares Outstanding 472.9

Market Capitalization (C$) $115.1

Cash and Cash Equivalents (US$)(3) $16.9

Total Interest-Bearing Debt (US$)(3) $30.6

Total Enterprise Value (US$)(2,3) $104.7

Mandalay secured US$40 million revolving credit facility July 25, 2017US$25 million undrawn as of December 31, 2017

Mandalay secured US$40 million revolving credit facility July 25, 2017US$25 million undrawn as of December 31, 2017

Mandalay is well-capitalized to fund its capital plans and growth

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Major Shareholders(1)

Holders Shares (Million) Shares (Percentage)

GMT Capital 73.5

Ruffer LLP 56.5

CI Cambridge 46.1

AzValor 33.7

Plinian + Management + Directors 30.5

Large Holders (Top-5) 240.3

Other Holders 211.0

TOTAL 451.3

16.3%

12.5%10.2%

7.5%

6.8%

47.4%

Broader Ownership Over Time

Analyst Coverage

Firm Analyst

BMO Brian Quast

Scotia Trevor Turnbull

Volume

30-day Average Daily Volume 694,844

100-day Average Daily Volume 481,056

Average Daily Volume across all trading platforms (as of Feb. 21, 2018)1. Known ownership positions are estimates - as at Feb. 9, 2018 – Ownerships and percentages rounded to one decimal place.

• Restart Cerro Bayo mine as soon as possible (currently expected Q1, 2019)o Permitting required (underway)o Expected net care and maintenance

cost in 2018: ~$2.6 million• Sell non-core assets – Lupin, La Quebrada• Explore options/partnerships – Challacollo

& Cerro Bayo

• Stable production from current assets, strong cost management and budget control expected to result in growing positive cash flow from operations

• Produce 101-113 koz AuEq from Björkdal and Costerfield operations at consolidated cash costs between $835-$910/oz AuEq., and AISC between $1,155-$1,280/ozAuEq.

Key Objectives for 2018

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Maximize Value of Current Assets

Grow Portfolio through Acquisition• Acquire significant producing asset:

o With precious metals focuso At discount to value we see as

achievable within 3 yearso In an immediately accretive transactiono With optimum mix of debt and equityo With executable integration/turnaround

plan

Grow Reserves & Mine Life• Build on continuing exploration success at

Björkdal, with focus on increasing average grade and open pit life

• Continue building on encouraging high-grade results at Costerfield Deeps as potential next ore shoot

• Total exploration budget: $6.4 million

Strong Operational & Financial Results

2018 Operational GuidanceMandalay expects to produce 101,000 – 113,000 ounces of gold equivalent in 2018 from Björkdal and Costerfield operations

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Björkdal Costerfield Consolidated

Oz Au Eq., ‘000* 56-63 45-50 101-113

Cash cost, $/oz Au Eq** 820-920 720-770 835-910

All-in Cost, $/oz Au Eq** 1,060-1,210 1,150-1,250 1,155-1,280

CAPEX, $/million** 18-21 18-21 37-41

54-6145-50

101-113

0

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80

100

120Mandalay Production 2018E

Bjorkdal Costerfield Consolidated

Gol

d Eq

uiva

lent

Oun

ces

(000

)

*2018E Au Eq assumes full-year 2018 metal prices: Au $1,306/oz and Sb $8.361/t**CAPEX includes exploration at Björkdal and Costerfield, consolidated cost guidance includes $6.0-6.7 million/yr expected for Corporate G&A

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Björkdal: Self-generating anchor assetLand package 12,949 hectares

Ownership 100%

P&P Reserves(1) 11,403,000 t @ 1.60 g/t Au for 587,000 oz

2017 Production 62,028 oz Au @ $816/oz

2018E Production 56,000 – 63,000 oz Au

Key accomplishments in 2017:

Grade control working properly; debottlenecking mine operations has increased rate of delivery of high-grade ore

Flotation expansion project completed on time and on budget, performing as planned (1.7% recovery increase)

(1) Source: Roscoe Postle Associates, Effective December 31, 2017, documented in an independent NI 43-101 Technical Report to be filed within 45 days of February 20, 2018.

Phase 1 of low-grade ore sorting program (crushing and screening) implemented in January with 50% grade upgrade; design and detailed engineering for Phase 2 (optical sorting) complete

Continued exploration success and mine life extension

‐$250

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Saleable Gold Produced and Unit Cost

Au oz Cost/ oz Au

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Björkdal: Gaining Momentum

$0$5$10$15$20$25$30$35

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Björkdal keys to turnaround:

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

Established a local assay lab for faster grade control turnaround

Increased grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste)

Implemented crushing and screening of low-grade ore for 50% grade improvement

Flotation expansion completed on time and on budget

Pilot test and detailed engineering for optical ore sorting

Björkdal keys to turnaround:

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

Established a local assay lab for faster grade control turnaround

Increased grade of mill feed through more selective underground and open pit mining at an increasing rate (making up for discarding waste)

Implemented crushing and screening of low-grade ore for 50% grade improvement

Flotation expansion completed on time and on budget

Pilot test and detailed engineering for optical ore sorting

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0

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1,000,000

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Au

End of Year Measured Plus Indicated Resources

Björkdal Cumulative M+I Resource Additions & Depletion (Au Ozs)

Cumulative Depletion Underground M&I Open Pit M&I Stockpile M&I

2015 2016 2017

Björkdal: M&I Plus Depletion Passes 1 Million Ounces in 2017

Björkdal Operating Strategy: Roadmap to Value Growth

Continued exploration

Appropriate Next. Gen. Mine & Plant

Blending mill feed – cost red. & >0.5% rec. improvement

Study coarse float .

Ore sorting study & design

Crush & screen low-grade in practice upgrades 0.6 g/t to +0.9 g/t

Flotation exp. study Build Float. exp.

Assay lab build

Improve grade control Improve average grade through mill by +/- 0.5 g/t

Resume study coarse float

Study throughput expansion

Permit tailings, with water & throughput upside

Sorting build: $11m

Build tailings

Exploration $3m/yr – reserve increases

Bring online higher grade OP Norrberget

1.7% rec. increase, further improvement with optimization

Upgrades cs rej.

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Costerfield: Dependable Performance and Extended LifeLand package 1,293 hectares

Ownership 100%

P&P Reserves(1) 622,000 t @ 6.1 g/t Au; 2.8% Sb for 122,000 oz Au and 17,200 t Sb

2017 Production 31,512 oz Au, 3,115 t Sb (52,137 oz Au Eq @ $701 oz Au Eq.)

2018E Production 27,000 – 30,000 oz Au, 2,800 – 3,200 t Sb

Key achievements in 2017: May 2017: Completed capital development to access near-mine shoots July 2017: Completed tailings lift construction for current LOM tailings September 2017: Positive initial results of low-cost aquifer injection test (reduced water handling costs) November 2017: Approved Brunswick development and mine life extension EOY 2017: End of year 2017 Mineral Resource and Reserves update reflecting new Brunswick reserves Drill intercepts in Costerfield Deeps & Kendall lodes reveal potential next high-grade shoots to be converted

(1) Source: SRK Consulting (Australia), Effective December 31, 2017, documented in an independent NI 43-101 Technical Report to be filed within 45 days of February 20, 2018.

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Costerfield keys to turnaround: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)

Increased sub-level spacing from 5 to 10 m

Introduced contract capital development for faster and lower cost results

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 7 years – discovered Cuffley and N-lode

Costerfield keys to turnaround: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)

Increased sub-level spacing from 5 to 10 m

Introduced contract capital development for faster and lower cost results

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 7 years – discovered Cuffley and N-lode

Costerfield: Stable, with Continuous Improvement

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Au Equivalent Production and Unit Cost

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-

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1,000,000

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2009 2010 2011 2012 2013 2014 2015 2016 2017

Au E

q. (O

z)

Costerfield Cumulative M+I Additions & Depletion (Au Eq. oz)

B,K,C,P Lodes Cuffley N Lode W Lode E Lode Brunswick Cumulative Depletion

Costerfield: M&I Plus Depletion Passes 1 Million Ounces in 2017

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Milestone Expected Completion

Mobilize capital development contractor Completed November 2017

Begin on-vein development March 2018

Begin stoping June 2018

Complete capital development October 2018

End of currently approved life July 2020

Brunswick Development and Mining Timeline

Brunswick Development Committed and On-Track

Progress thru 2018‐02‐20: 455 m

Costerfield Strategy: Emerging Kendall/Costerfield Deeps Lode: Next Multi-year Orebody?

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Cerro Bayo Silver-Gold Mine: Optimizing the FutureLand package 23,106 hectares

Ownership 100%

P&P Reserves(1) 856,000 t @ 284 g/t Ag; 2.34 g/t Au

2016 Production 13,792 oz Au, 1,731,031 oz Ag

Project Status: Inundation at Delia NW mine on June 9, 2017 Production suspended pending risk assessment for restart Independent root cause investigation report ongoing Risk assessment on restart of Laguna Verde mines ongoing

No significant loss of Reserves or LOM production in long-term Restart timing depends on receipt of multiple permits required for

the LOM, some of which have been in progress for many months

(1) Source: Current Mineral Reserves number depleted for 2017 production and Reserves sterilized by inundation at Delia NW. Depletion taken from Reserve position contained in NI 43-101 Technical Report prepared by Roscoe Postle Associates, Effective December 31, 2016 filed on SEDAR March 31, 2017

BRANCA

Target

MARCELA & RAUL VEINS (10 KM BEHIND VIEWPOINT)

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Challacollo Silver-Gold Project 2017

Key for 2017: May 2017: Water sufficient to support eventual operation discovered Perfection of water rights and permitting for further exploration drilling in process Option to optimize project for lower CAPEX

Land package 20,378 hectares

Ownership 100%

Location 130 km SE of Iquique, Chile

Indicated Resource 4.7 MM t @ 200 g/t Ag for 30 MM oz Ag

Elevation Approx. 1,500 ASL

Readjusting the portfolio in 2018

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Completing sale of non-core assets• Norrliden, Sweden – Farmed out in Q3, 2017 DONE• Ulu, Nunavut – Definitive option agreement signed Q1, 2018 DONE• Lupin, Nunavut – Definitive option agreement anticipated Q1, 2018• La Quebrada, Chile – Active process ongoing from Q4, 2017

Exploring options/partnering on development/restart assets• Cerro Bayo• Challacollo

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Invest With Us: How We Will Deploy Your Capital1. Acquire new assets counter-cyclically – at discount to value• Acquire only when we see possibility of an accretive transaction with strong value uplift in 3-5 years• Keep portfolio evergreen – exit assets that do not fit

2. Execute focused operational improvement projects at each site

3. Apply relentless, disciplined financial management

• Maintain good Björkdal performance; further upside includes optical ore sorting, extended mine life with exploration, possibility of significant higher-grade plant feed, plant expansion

• Extend Costerfield life with Brunswick lode development and beyond with further exploration• Restart Cerro Bayo with optimized, risk-assessed plan• Optimize Challacollo feasibility with lower capital and operating costs and more resource• Mining – projects focused on safer, more mechanized 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 – more diverse customers paying better terms

• Reduce cash cost and overheads for higher 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• Compare all potential uses of cash to the benefits of returning cash to shareholders

4. Engage all stakeholders in a values-based and value-focused organization

TSX:MND

For more information, please contact:

Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: g.ditomaso@mandalayresources.comCompany Website: www.mandalayresources.comTwitter: @MandalayAuAg

For more information, please contact:

Greg DiTomasoDirector, Investor RelationsTel: 647.260.1566Email: g.ditomaso@mandalayresources.comCompany Website: www.mandalayresources.comTwitter: @MandalayAuAg