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2016-03-31

Mandalay Resources Corporation: Mandalay Resources Corporation Repurchases 2% NSR Royalty Interest on Its Cerro Bayo Silver-Gold Mine From Coeur Mining

TORONTO, March 31, 2016 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX:MND) is pleased to announce that,
effective March 31, 2016, its Chilean subsidiary, Compania Minera Cerro Bayo
Ltda., has repurchased the 2% Net Smelter Return ("NSR") royalty on silver
and gold production from the Company's Cerro Bayo mine held by a subsidiary
of Coeur Mining, Inc. As a result of this transaction, the royalty has been
cancelled. Total consideration was US$4 million and 2.5 million Mandalay
shares issued at the price of CAD$0.89 per share.

Mark Sander, President and CEO of Mandalay, commented, "We are pleased to
conclude this transaction with Coeur Mining, which enables Mandalay to
receive the full economic benefits of continuing production at Cerro Bayo for
its shareholders. We believe this acquisition to be a prudent use of capital
at this time and welcome Coeur as a shareholder going forward."

Coeur's royalty was established by the sales and purchase agreement between
Mandalay and Coeur for the Cerro Bayo mine, which closed on August 10, 2010.
Mandalay was obligated to pay Coeur a 2% NSR royalty on gold sales over a
cumulative 50,000 ounces and silver sales over a cumulative 5 million ounces
from the property. These triggers were met in 2013 for silver and in 2014 for
gold; they have been paid quarterly ever since. With the acquisition of the
royalty from Coeur by Minera Cerro Bayo, the obligation will be extinguished
and no further payments will be due (other than the royalty payment in
respect of 1st quarter 2016 production) in respect of future periods.

For further information:

Mark Sander
President and Chief Executive Officer

Greg DiTomaso
Director of Investor Relations

Contact: 647.260.1566

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing
assets in Australia, Chile, and Sweden, and a development project in Chile.
The Company is focused on executing a roll-up strategy, creating critical
mass by aggregating advanced or in-production gold, silver, and antimony
projects in Australia, the Americas, and Europe 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. 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, 2016, a copy of which is available under
Mandalay's profile at www.sedar.com. In addition, there can be no assurance
that any 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.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mandalay Resources Corporation via Globenewswire

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