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Last updated on April 16, 2014 at 13:13 EDT

Mandalay Resources Corporation extends mineralized zones at its Costerfield gold-antimony mine, Australia

January 7, 2013

TORONTO, Jan. 7, 2013 /CNW/ – Mandalay Resources Corporation (“Mandalay”
or the “Company”) (TSX: MND) is pleased to provide drilling results
from its 100%-owned Costerfield gold-antimony mine in Victoria,
Australia. Results presented here were acquired between the cutoff date
for the Company’s previous exploration update for Costerfield on July
9, 2012 and December 31, 2012.

Highlights include:

        --  N-Lode - New, widely spaced drill intercepts have confirmed
            much of the northward extension of the N-Lode mineralization
            toward the previously reported high-grade intercept located
            approximately 300 metres ("m") north of the previous limit of
            Inferred Mineral Resources. Infill drilling and mine
            development sampling in the area of the previously Inferred
            Resources has increased confidence in the resource and is
            supporting ongoing successful mining.

        --  Cuffley Lode - New, widely spaced drill intercepts have
            confirmed partial southward and depth extension of Cuffley
            mineralization toward previously reported high-grade intercepts
            approximately 100 m south of and approximately 150 m below the
            previous limit of Inferred Mineral Resources.  Closely spaced
            infill drilling of two panels within the Cuffley Inferred
            Resource has established short-range continuity of the
            mineralization.

        --  W-Lode - Infill drilling and development sampling in the area
            of previously Inferred Mineral Resource has increased
            confidence in the minability of W-Lode. Capital development to
            the 860 m level continues. A new vein intercept approximately
            150 m below the previous limits of drilling, though itself of
            low-grade, suggests further exploration potential at depth.

These new drill results will be incorporated in an independent NI 43-101
compliant technical report updating Mineral Resources and Reserves,
planned for release in the first quarter of 2013.

Brad Mills, CEO of Mandalay, commented, “We continue to achieve
significant exploration success at Costerfield. In extending the
drilled areas of high-grade gold and antimony mineralization in the
N-Lode to the north and Cuffley to the south, we have not only
demonstrated the potential for a larger resource than previously
estimated, but also shown at least 300 m of strike length overlap of
the two veins.  This new geometry requires careful reconsideration of
capital development and mine design for Costerfield, which we expect
will ultimately support significant improvements in the amount, timing,
and rate of mill feed relative to previous concepts. Given this rapidly
changing picture, we have postponed completion of the Preliminary
Economic Analysis on the Cuffley project.  We will incorporate all of
the currently reported drilling, plus further infill and extension
drilling planned on Cuffley over the next two quarters, into a capital
development plan and decision by mid-year 2013, accompanied by a
determination of the optimum mining and processing rate.”

Costerfield drilling, sampling, and assaying

During the second half of 2012, Mandalay drilled 11,712 m in 50 holes
for a total investment of approximately US$2.3 million. In addition,
the Company completed 2,726 m of on-vein operating development and
associated sampling of the E-, W- and N-Lodes in the Augusta mine.

Drill core was logged and sampled by Costerfield geologists, who also
performed mine sampling of the development advances.  All samples were
sent to Onsite Labs in Bendigo, Victoria, Australia, for sample
preparation and assay. Site geological and metallurgical personnel have
implemented a QA/QC process that includes the regular submission of
standard reference materials and blanks with drill and face samples
submitted for assay. Standard reference materials have been certified
by Geostats Pty Ltd. (see March 2012 technical report entitled
“Mandalay Resources Corporation: Costerfield (Augusta) Gold-Antimony
Mine: Mineral Resource and Mineral Reserve Estimate”, available on
SEDAR (www.sedar.com), which contains a complete description of drilling, sampling, and
assaying procedures.)

Costerfield drill results

For the locations of the N-Lode, Cuffley Lode, and W-Lode, click here for Figure 1.

N-Lode

Drilling results for N-Lode appear in Table 1.  Click here for Figure 2, which displays drill results and mine sampling results in
long section.

Table 1:  N-Lode drill results

     ____________________________________________________________________________
    |Hole |   Hole   |   Hole   |Intercept|Intercept|  RL  |*True| Gold |Antimony|
    | ID  |Completion|Completion|Northing | Easting |(Mine |Width|Grade | Grade  |
    |     |  Depth   |   Date   |  (Mine  |  (Mine  |Grid) | (m) |(g/t) |  (%)   |
    |     |   (m)    |          |  Grid)  |  Grid)  | (m)  |     |      |        |
    |     |          |          |   (m)   |   (m)   |      |     |      |        |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH258|   196.3  |26/Mar/12 |   4487  |   15318 |  884 |0.93 | 18.0 |   5.1  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH259|   195.4  | 3/Apr/12 |  4367.6 | 15285.2 |916.9 |0.55 |  3.5 |   0.3  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH261|   185.5  |23/May/12 |   4458  |   15305 |  911 |0.12 | 70.2 |   0.2  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH262|   272.5  | 4/Jun/12 |  4404.5 | 15302.0 |889.2 |0.08 |  1.6 |   4.3  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH263|   225.2  | 7/Jun/12 |  4451.0 | 15305.8 |870.6 |0.60 |  0.5 |   0.0  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH264|   143.3  | 2/Jul/12 |  4582.5 | 15318.5 |1028.9|0.74 | 15.2 |   15.2 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH265|   147.4  | 5/Jul/12 |  4601.8 | 15316.7 |995.5 |2.72 | 13.3 |   6.7  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH266|   141.1  |10/Jul/12 |  4622.5 | 15324.8 |1018.4|0.10 | 27.5 |   15.3 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH267|   230.7  |16/Jul/12 |  4563.1 | 15298.4 |873.6 |0.92 | 28.8 |   23.9 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH268|   162.8  |14/Jun/12 |  4560.3 | 15310.4 |977.0 |0.36 | 27.4 |   2.5  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH269|   157.2  |20/Jun/12 |  4563.7 | 15299.6 |937.3 |1.14 | 11.4 |   1.3  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH270|   210.0  |26/Jun/12 |  4559.9 | 15300.2 |902.3 |0.92 | 25.7 |   14.7 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH274|   150.2  |18/Jul/12 |  4616.2 | 15298.1 |967.8 |0.04 | 13.8 |   6.5  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH275|   190.1  |30/Jul/12 |  4615.0 | 15295.2 |918.3 |0.37 | 37.9 |   27.9 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH276|   199.2  | 2/Aug/12 |  4611.5 | 15302.5 |880.1 |0.73 |  3.1 |   0.8  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH273|   332.0  | 8/Aug/12 |  4612.8 | 15312.8 |1065.2|0.07 |  1.1 |   2.0  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |AD027|   327.7  |21/Jun/12 |  4697.8 | 15335.9 |1003.1|0.13 | 56.1 |   36.7 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |AD028|   380.5  |16/Jul/12 |  4730.9 | 15334.8 |927.9 |0.76 |  4.5 |   4.6  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |AD024|   471.0  |20/Aug/12 |  4847.0 | 15367.0 |1109.0|0.43 |  3.3 |   1.1  |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH298|   168.3  |17/Oct/12 |  4530.1 | 15303.9 |960.8 |0.47 |150.10|  30.90 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH299|   171.4  |22/Oct/12 |  4533.0 | 15303.4 |929.4 |0.28 |181.90|   0.97 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH300|   187.8  |24/Oct/12 |  4539.0 | 15305.9 |900.9 |0.19 | 8.28 |   6.80 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH314|   189.2  |12/Nov/12 |  4656.9 | 15342.5 |1037.4|0.14 |82.70 |  39.90 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH315|   207.4  |15/Nov/12 |  4660.5 | 15312.0 |964.7 |0.19 |32.60 |  30.00 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH316|   222.1  |21/Nov/12 |  4658.9 | 15302.9 |904.9 |0.09 |46.30 |  20.50 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MH317|   261.3  |26/Nov/12 |                  Assays Not Yet Received       |
    |_____|__________|__________|________________________________________________|
    |MH318|   285.3  |28/Nov/12 |                  Assays Not Yet Received       |
    |_____|__________|__________|________________________________________________|
    |MB017|   261.1  | 5/Oct/12 |  4785.8 | 15356.3 |1046.4|0.26 | 13.8 |   16.0 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MB018|   402.3  |30/Oct/12 |  4783.4 | 15342.8 |942.5 |0.05 | 7.78 |   4.79 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MB020|   256.8  |15/Oct/12 |  4941.9 | 15365.7 |1047.1|0.14 | 3.97 |   1.47 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MB021|   359.3  | 1/Nov/12 |  4936.4 | 15362.0 |976.5 |0.10 | 5.44 |  10.30 |
    |_____|__________|__________|_________|_________|______|_____|______|________|
    |MB022|          |          |         |         |      |     |      |        |
    |W2   |   353.5  | 3/Dec/12 |  4941.9 | 15358.3 |891.2 |0.08 | 31.5 |   0.48 |
    |_____|__________|__________|_________|_________|______|_____|______|________|

*True width is a preliminary estimate only and may not reflect final
true width used in resource estimate

On N-Lode, widely spaced drilling has generated multiple high-grade
intercepts spanning the 300 m north-south gap between the limits of
previously Inferred Resources (announced on July 9, 2012) and a
high-grade intercept previously reported on the vein at approximately
4850 Northing.  The northern limit of N-Lode mineralization is
currently understood to be represented by the vertical line of
low-grade intercepts in MB020, MB021 and MB022 at approximately 4950
Northing.

In addition, closely spaced drilling and mine sampling at the southern
end of N-Lode confirms and fills in the previous Inferred Resource.

With these reported results, the Company expects its 2012 Mineral
Resource and Reserve estimate will include a significant increase in
Inferred and Indicated Mineral Resources in N-Lode.

Cuffley Lode

Drilling results for Cuffley Lode appear in Table 2.  Click here for Figure 3, which displays drill results in long section.

Table 2:  Cuffley Lode drill results

     ______________________________________________________________________________
    |Hole ID|   Hole   |   Hole   |Intercept|Intercept|  RL  |*True| Gold |Antimony|
    |       |Completion|Completion|Northing | Easting |(Mine |Width|Grade | Grade  |
    |       |  Depth   |   Date   |  (Mine  |  (Mine  |Grid) | (m) |(g/t) |  (%)   |
    |       |   (m)    |          |  Grid)  |  Grid)  | (m)  |     |      |        |
    |       |          |          |   (m)   |   (m)   |      |     |      |        |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD021  |   436.3  | 4/Jun/12 |  4604.9 | 15135.1 |910.8 |1.96 | 1.34 |   0.52 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD023W1|   369.3  | 5/Jul/12 |  4763.5 | 15159.9 |924.2 |0.77 |90.84 |  10.14 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD024  |   471.0  |20/Aug/12 |  4851.2 | 15193.3 |842.2 |0.16 |59.80 |   0.08 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD025  |   432.0  |25/Jul/12 |  4768.0 | 15183.1 |838.1 |0.59 |11.17 |  26.94 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD027  |   327.7  |21/Jun/12 |  4738.0 | 15230.9 |1102.6|0.25 | 8.45 |   6.70 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD028  |   380.5  |13/Jul/12 |  4757.6 | 15224.6 |1071.9|0.11 | 5.34 |   0.01 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD029  |   315.9  | 6/Sep/12 |  4856.1 | 15172.2 |935.1 |0.46 | 0.06 |   0.00 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD033  |   296.2  |20/Sep/12 |  4945.7 | 15176.3 |964.8 |0.90 | 5.70 |   1.69 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD035  |   334.8  | 1/Aug/12 |  4994.8 | 15187.2 |946.4 |0.05 | 1.08 |  18.50 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD036  |   335.0  |16/Aug/12 |  5032.6 | 15194.5 |955.8 |0.22 |138.10|  24.80 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD037  |   326.3  | 4/Sep/12 |  5048.1 | 15195.9 |933.0 |0.45 |78.31 |  35.04 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |AD038  |   300.8  | 2/Oct/12 |  5068.2 | 15190.7 |966.2 |1.84 |80.99 |  16.15 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |MH282  |   239.2  |31/Oct/12 |  4493.4 | 15131.4 |942.5 |0.11 | 0.03 |   0.00 |
    |_______|__________|__________|_________|_________|______|_____|______|________|
    |MH283  |   252.2  | 5/Nov/12 |  4494.4 | 15128.2 |860.9 |0.70 | 7.42 |   0.01 |
    |_______|__________|__________|_________|_________|______|_____|______|________|

*True width is a preliminary estimate only and may not reflect final
true width used in resource estimate

Holes AD021, AD023, AD024 and AD025 tested the Cuffley Lode toward two
previously reported mineralized intercepts – one approximately 100 m
south of, and the other approximately 150 m below, the previous limits
of Inferred Resources. Encouraging results in these holes suggest that
more drilling in this area, planned for the first half of 2013, will
eventually delineate a significantly expanded resource, although only a
modest increase is expected in the end-of-2012 estimation.

MH282 and MH283 are low-grade intercepts along the 4500 Northing. They
may serve to bound the southern limit of Cuffley mineralization.

Holes AD033, AD035, AD036, AD037 and AD038 commenced closely spaced
infill drilling on two mining panels to gain early confidence in
continuity of grade and geology within the existing Cuffley Inferred
Resource. Figure 3 shows that results were generally consistent with previous, widely
spaced drilling.

W-Lode

Drilling results for W-Lode appear in Table 3.  Click here for Figure 4, which displays drill results and mine sampling results in
long section.

MH 279, MH 280, MH 281 and MH284 were step-out holes designed to test
extension of W-Lode at depth. The last of these, MH284, intersected
W-Lode 130 m below the previous deepest intercept. It contains weakly
mineralized vein material, which is interpreted to represent W- and/or
N-Lodes offset by a possible low-angle fault. Future drilling to probe
for high-grade segments below this fault is planned in 2013.

MH 258 through MH 263 were infill holes. These, in conjunction with
geologic interpretations from underground mapping and sampling,
increase confidence in the resource and provide support for optimized
mining.

Table 3: W-Lode drill results

     ______________________________________________________________________________
    |Hole ID|   Hole   |   Hole   |Intercept|Intercept|  RL   |*True|Gold |Antimony|
    |       |Completion|Completion|Northing | Easting | (Mine |Width|Grade| Grade  |
    |       |  Depth   |   Date   |  (Mine  |  (Mine  | Grid) | (m) |(g/t)|  (%)   |
    |       |   (m)    |          |  Grid)  |  Grid)  |  (m)  |     |     |        |
    |       |          |          |   (m)   |   (m)   |       |     |     |        |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH258  |   196.3  |26/Mar/12 |  4487.4 | 15318.0 | 883.9 |0.42 |47.5 |   12.8 |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH259  |   195.4  | 3/Apr/12 |  4360.8 | 15302.1 | 924.9 |0.18 | 9.0 |   4.7  |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH261  |   185.5  |23/May/12 |  4457.8 | 15307.9 | 912.7 |0.10 | 1.2 |   7.3  |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH262  |   272.5  | 4/Jun/12 |  4408.7 | 15309.5 | 895.2 |0.19 | 4.4 |   3.4  |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH263  |   225.2  | 7/Jun/12 |  4453.4 | 15318.1 | 882.6 |0.14 |11.4 |   18.7 |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH279  |   338.6  | 6/Sep/12 |  4259.3 | 15273.4 | 902.0 |0.47 |9.48 |   0.00 |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH280W1|   130.5  |12/Oct/12 |  4273.3 | 15283.8 | 935.7 |1.54 |7.41 |   1.18 |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH284  |     387  |10/Oct/12 |4481.546 |15252.56 |698.247|0.19 |0.25 |   0.07 |
    |_______|__________|__________|_________|_________|_______|_____|_____|________|
    |MH281  |   184.9  |26/Sep/12 |               No Significant Intersection      |
    |_______|__________|__________|________________________________________________|

*True width is a preliminary estimate only and may not reflect final
true width used in resource estimate

Qualified Person:

Chris Gregory, General Manager of Australasian Corporate Development and
Exploration for Mandalay Resources, a Member of Australian Institute of
Geoscientists (AIG) and a Qualified Person as defined by NI 43-101. He
has reviewed and approved the technical and scientific information
contained in this release.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with
producing assets in Australia and producing and exploration projects in
Chile. The Company is focused on executing a roll-up strategy, creating
critical mass by aggregating advanced or in-production gold, copper,
silver and antimony projects in Australia and the Americas to generate
near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains “forward-looking statements” within the
meaning of applicable securities laws, including statements regarding
the Company’s mineral Resources, mineral Reserves, the timing of an
updated technical report for Costerfield, the Company’s expectation of
significant increases in mineral Resources and Reserves at Costerfield,
anticipated changes to the Costerfield life of mine production
estimates and the Company’s planned 2013 exploration program. Readers
are cautioned not to place undue reliance on forward-looking
statements. Actual results and developments may differ materially from
those contemplated by these statements depending on, among other
things, 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, 2012, a
copy of which is available under Mandalay’s profile at
www.sedar.com. In addition, there can be no assurance that any current or future
Inferred Resources that are discovered as a result of additional
drilling will ever be upgraded to Proven or Probable Reserves. 
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.

SOURCE Mandalay Resources Corporation

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Source: PR Newswire