High Grade Drilling Results Identified At True Blue Prospect

TORONTO - Mandalay Resources Corporation reported high-grade drill results at its True Blue prospect adjacent to the operating Costerfield gold-antimony mine in Victoria, Australia.

High grades intercepted in upward extension of 2024’s maiden Inferred Mineral Resource: 1) 578.0 g/t gold and 20.5% antimony over 0.47 m (ETW 0.33 m) in TB031. 2) 16.8 g/t gold and 2.4 % antimony over 3.98 m (ETW 2.56 m) in TB027, including 172.0 g/t gold and 19.2% antimony over 0.37 m. 3) 161.0 g/t gold over 0.19 m (ETW 0.15 m) in TB029.

Drill testing and soil geochemistry indicate an extensive system with the potential to replicate Costerfield's Central Corridor which has sustained mining the past 15 years. Structural continuity interpreted on 600 m of strike, leaving 3.4 km of the system yet to be tested. Follow-up drilling at True Blue has commenced with now two rigs mobilizing to further define mineralization and increase deposit confidence.

Frazer Bourchier, President and CEO, said, “Mandalay has been producing gold and antimony at Costerfield since we acquired the project 15 years ago. We are excited to see True Blue emerging as a potential new frontier for Costerfield, marking an exciting new chapter for Mandalay. This development reinforces our standing position as a growing gold producer and as the leading Western source of the strategic mineral antimony. Exploration continues to be a key strategic pillar for growth, with a minimum of $9 million allocated for the first half of 2025.”

Chris Davis, VP of Exploration and Operational Geology, said, "Exploration at True Blue has revealed geological similarities to the mined Central Corridor. These parallels in host lithology, structural setting, and fluid transport systems underscore the exceptional potential of True Blue.

These results represent a significant breakthrough, intercepting high-grade mineralization with visible gold and stibnite (antimony mineral) veins. Mineralization extends 130 metres along strike with strong potential for expansion. The surface expression of the system lies 300 metres above these high-grade intercepts, highlighting its significant vertical extent. Encouragingly, drilling also confirmed down-dip mineralization at 590 metres depth with further potential. Step-out drilling of 600 metres to the south uncovered a wide anomalous mineralized zone of approximately 250 metres, with assays up to 3.8 g/t gold, highlighting the system's continuity and scale.

Mandalay is committed to unlocking the full potential of True Blue through an extensive extensional drilling program. Two rigs will commence follow-up drilling in the coming weeks, with results expected in the months ahead. Additional drill metres and drill rig intensity will be determined by staged assessments, as we work toward building a robust Mineral Resource to potentially extend Costerfield's mine life.”