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Mandalay Resources continues infill and extensional drilling on N- and Cuffley lodes at its Costerfield gold-antimony mine, Victoria, Australia

July 17, 2014

TORONTO, July 17, 2014 /CNW/ – Mandalay Resources Corporation
(“Mandalay” or the “Company”) (TSX: MND) is pleased to announce drill
results from its infill and extensional drilling at the Costerfield
gold-antimony mine, Victoria, Australia during the first half of 2014.
Highlights include:

        --  Cuffley lode
            (Figure 1andTable
            1)--New intercepts have infilled a 50 m by 100 m area of
            previously Inferred Mineral Resource at the southern end of the
            lode and added a further 50 m strike length of new
            mineralization. The Cuffley lode is now closed off to the
            south. New intercepts and mine development have also confirmed
            previously Inferred Mineral Resource in a trapezoid 100 m along
            strike at the top, 200 m along strike at the bottom, and 100 m
            down dip at the northern end of Cuffley.

        --  N-lode
            (Figure 2
            and Table 2)-- New intercepts and vein development have
            infilled a 100 m by 50 m area of previously Inferred Mineral
            Resource along the bottom of N-lode.

In addition, initial drill testing of high priority new targets beneath
and along the main lines of lode in the district (Figure 3 and Table 3), including from south to north the Margarets, Augusta
East, Tin Pot Gully, and Brunswick targets, has not yet generated
evidence of a new orebody.

Brad Mills, CEO of Mandalay, commented, “The infill and extensional
drilling results so far this year give us confidence in being able to
once again increase our Reserves and Resources in the year-end 2014
estimations. In particular, drilling continues to generate some
extremely high-grade intercepts on the Cuffley lode, for example AD093
(6.7 m true width at 31.4 g/t Au and 25.5% Sb), AD092A (0.63 m true
width at 7.0 g/t Au and 43.9% Sb), AD076 (2.19 m true width at 19.7 g/t
Au and 7.3% Sb), and AD074 (0.36 m true width at 44.5 g/t Au and 62.7%
Sb). We plan to complete infilling the Cuffley lode extensions by the
end of the year.”

Mr. Mills continued, “We also drilled several wide step-out holes to
test new targets along the Costerfield district strike. While no
significant new discoveries were made in the brownfields drilling,
previous high-grade intercepts at Margarets to the south and the
Bombay-Minerva-Costerfield area to the north remain to be followed up.
In addition, there are several targets off the main line-of-lode that
have not yet been tested.”

Costerfield drilling, sampling, and assaying

During the first half of 2014, Mandalay drilled 14,462 m in 42 holes. In
addition, the Company completed 2,299 m of on-vein operating
development and associated sampling of the N- and Cuffley lodes. 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 28, 2014, Technical Report entitled
“Costerfield Operation, Victoria, Australia NI 43-101 Report”,
available on SEDAR (www.sedar.com), which contains a complete description of drilling, sampling, and
assaying procedures.)

Drill Results

Table 1: New drill intercepts on Cuffley lode

     _________________________________________________________________________________
    | Hole |   Hole   |Intercept|Intercept|Elevation| True |Gold |Antimony|AuEq |Total|
    |  ID  |completion| Easting |Northing |  (m)    |Width*|Grade| Grade  |(g/t)|Hole |
    |      |   Date   |  (Mine  |  (Mine  |         | (m)  |(g/t)|  (%)   |over |Depth|
    |      |          |Grid, m) |Grid, m) |         |      |     |        |1.8m | (m) |
    |      |          |         |         |         |      |     |        | **  |     |
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD070 |29-Jan-14 | 15147.3 |  4696.4 |   916.2 | 0.12 | 8.4 |   7.9  | 1.7 |183.5|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD071 | 3-Feb-14 | 15163.7 |  4696.8 |   850.3 | 0.15 |43.1 |   0.0  | 3.6 |260.8|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD072 | 4-Feb-14 | 15139.9 |  4628.0 |   930.5 |  0.8 | 4.0 |   0.9  | 2.7 |198.4|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD073A|23-Jan-14 | 15145.0 |  4685.6 |   962.1 | 0.46 | 7.7 |   3.0  | 3.5 |390.0|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD074 | 7-Feb-14 | 15153.5 |  4658.8 |   852.2 | 0.36 |44.6 |   62.7 |35.0 |273.4|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD075 |20-Dec-13 | 15142.6 |  4666.0 |   920.0 | 0.14 |10.8 |   1.3  | 1.0 |401.5|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD076 |20-Feb-14 | 15137.2 |  4613.7 |   874.6 | 2.19 |19.7 |   7.3  |42.6 |257.8|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD077 |25-Feb-14 | 15105.4 |  4551.0 |   967.6 | 0.13 | 1.3 |   0.0  | 0.1 |180.1|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD078 |26-Feb-14 | 15134.0 |  4549.2 |   922.8 | 0.06 | 0.1 |   0.0  | 0.4 |207.0|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD079 | 3-Mar-14 | 15135.4 |  4551.1 |   872.6 | 0.31 |2.35 |   0.0  | 0.4 |240.2|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD081 | 6-Jan-14 | 15196.0 |  5163.4 |   923.7 | 1.95 | 6.4 |   0.1  | 6.6 |397.7|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD082 |21-Jan-14 | 15203.7 |  5161.1 |   894.3 | 3.64 | 2.2 |   0.0  | 2.2 |380.3|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD083 | 7-Feb-14 | 15195.0 |  5128.4 |   973.3 | 0.50 | 3.1 |   2.0  | 2.0 |311.3|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD084 |20-Feb-14 | 15203.4 |  5157.2 |  1035.7 | 0.13 | 1.3 |   0.0  | 0.1 |260.3|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD085 |17-Feb-14 | 15182.4 |  4738.1 |   815.4 | 0.20 | 2.2 |   0.0  | 0.2 |404.8|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD086A|31-Mar-14 | 15161.2 |  4630.2 |   990.9 | 1.02 | 6.8 |   15.9 |22.5 |194.9|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD088 |12-May-14 | 15170.9 |  4928.2 |   776.1 | 0.10 |14.1 |   1.8  | 1.0 |300.6|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD089 |19-May-14 | 15169.3 |  4924.7 |   738.8 | 0.60 | 1.7 |   0.7  | 1.1 |345.5|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD090 |22-May-14 | 15191.2 |  4950.0 |   818.2 | 0.24 | 0.6 |   0.0  | 0.1 |219.6|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD091 |27-May-14 | 15203.3 |  4995.5 |   838.8 | 0.29 |25.1 |   9.9  | 7.3 |242.3|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD092A| 2-Jun-14 | 15197.4 |  4991.1 |   879.4 | 0.63 | 7.0 |   43.9 |34.7 |233.6|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD093 | 5-Jun-14 | 15179.8 |  5088.5 |   850.5 | 6.70 |31.4 |   25.5 |314.5|250.4|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AS001 |21-Feb-14 | 15187.7 |  4806.7 |  1028.8 | 0.43 | 2.5 |   4.5  | 4.3 |317.1|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AS003 |21-Mar-14 | 15188.4 |  4999.2 |  1079.2 | 0.02 | 0.6 |   0.0  | 0.0 |266.5|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |CN001 | 5-Dec-13 | 15226.0 |  5347.0 |  1041.4 | 0.08 | 3.2 |   0.1  | 0.2 |320.8|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |AD094 |12-Jun-14 | 15174.3 |  5135.5 |   782.0 | 0.56 | 5.5 |   0.6  | 2.1 |323.3|
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|
    |      |          |         |         |         |      |     |        |     |     |
    |______|__________|_________|_________|_________|______|_____|________|_____|_____|

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



**AuEq(g/t) = Au(g/t) + Sb(%) x –Price per 10 Antimony kilograms x Sb recovery—- (%)

–Price per 1 Gold gram
x Au recovery—— (%)



–Gold factor used: 2.08; —-Total metallurgical Sb recovery 59.4%;
——Total metallurgical Au recovery 71%


Table 2: New drill intercepts on N-lode

     ________________________________________________________________________________
    | Hole |   Hole  |Intercept|Intercept|Elevation| True |Gold |Antimony|AuEq |Total|
    |  ID  |  Compl. |Northing | Easting |   (m)   |Width*|Grade| Grade  |(g/t)|Hole |
    |      |   Date  |  (Mine  |  (Mine  |         | (m)  |(g/t)|  (%)   |over |Depth|
    |      |         |Grid) (m)|Grid) (m)|         |      |     |        |1.8m | (m) |
    |      |         |         |         |         |      |     |        | **  |     |
    |______|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MH370 |3-Dec-13 |  4859.8 | 15341.3 |   859.3 | 0.49 | 3.2 |   5.7  | 4.1 | 162 |
    |______|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MH355A|11-Dec-13|  4695.9 | 15312.2 |   873.8 | 0.19 | 1.2 |   0.1  | 0.1 |269.1|
    |______|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MH359 |9-Jan-14 |  4738.9 | 15317.1 |   873.9 | 1.62 | 3.2 |   2.1  | 6.7 | 285 |
    |______|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MH360 |22-Jan-14|  4776.0 | 15324.2 |   886.6 | 1.32 | 8.1 |   8.6  |19.0 |319.1|
    |______|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MH368 |15-Jan-14|                     No Significant Intersections        |280.7|
    |______|_________|_________________________________________________________|_____|

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



**AuEq(g/t) = Au(g/t) + Sb(%) x –Price per 10 Antimony kilograms x Sb recovery—- (%)

–Price per 1 Gold gram
x Au recovery—— (%)



–Gold factor used: 2.08; —-Total metallurgical Sb recovery 59.4%;
——Total metallurgical Au recovery 71%



Table 3: New drill intercepts testing for new targets

     _______________________________________________________________________________
    |Hole |   Hole  |Intercept|Intercept|Elevation| True |Gold |Antimony|AuEq |Total|
    | ID  |  Compl. |Northing | Easting |   (m)   |Width*|Grade| Grade  |(g/t)|Hole |
    |     |   Date  |  (Mine  |  (Mine  |         | (m)  |(g/t)|  (%)   |over |Depth|
    |     |         |Grid) (m)|Grid) (m)|         |      |     |        |1.8m | (m) |
    |     |         |         |         |         |      |     |        | **  |     |
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |AE001| 2-Apr-14|                     No Significant Intersections        |301.8|
    |_____|_________|_________________________________________________________|_____|
    |MM007|12-May-14|   2981.8|  14946.4|   1125.0|  0.05|  7.1|     5.0| 0.49|148.9|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MM007|12-May-14|   2981.8|  14954.4|   1118.2|  0.13|  1.8|     7.4| 1.27|148.9|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MM006| 6-May-14|   2868.4|  14953.5|   1103.8|  0.08|  1.9|     0.9| 0.17|200.3|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MB044| 1-Apr-14|   5617.9|  14754.6|    987.0|  0.08|  0.3|     0.0| 0.01|400.8|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MB043| 8-Apr-14|   5138.3|  14649.8|   1032.8|  0.10|  0.5|     0.2| 0.05|251.3|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |MB045|17-Apr-14|   5270.1|  14675.2|    999.3|  1.32|  0.6|     0.0|  0.5|338.4|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |TP015|16-Apr-14|   5489.8|  15246.0|   1035.6|  0.12|  3.6|     0.0|  0.2|350.6|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |TP016| 6-May-14|   5816.3|  15180.7|   1138.1|  0.10|  4.9|     2.9| 0.57|371.5|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |TP017|19-May-14|   6014.9|  15239.7|   1001.6|  0.25|  0.7|     0.0| 0.10|354.1|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|
    |TP018| 3-Jun-14|   6445.2|  15334.1|   1139.6|  0.08|  1.2|     0.0| 0.05|312.6|
    |_____|_________|_________|_________|_________|______|_____|________|_____|_____|

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



**AuEq(g/t) = Au(g/t) + Sb(%) x –Price per 10 Antimony kilograms x Sb recovery—- (%)

–Price per 1 Gold gram
x Au recovery—— (%)



–Gold factor used: 2.08; —-Total metallurgical Sb recovery 59.4%;
——Total metallurgical Au recovery 71%


Qualified Person:

Chris Gregory, General Manager of Australasian Corporate Development and
Exploration for Mandalay Resources, is a Member of the 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 development 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, ongoing exploration
plans and goals. 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 28, 2014, 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


Source: PR Newswire



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