Mandalay Resources Announces Closing of C$39 Million Treasury Offering of Common Shares

Not for distribution to U.S. news wire services or dissemination in the United States.

TORONTO, July 26, 2016 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation (TSX:MND) ("Mandalay") announced today that it has closed its previously announced treasury offering (the "Offering") of 33,915,000 common shares of Mandalay (the "Common Shares") (including 3,475,000 Common Shares issued and sold pursuant to the over-allotment option granted by the Company to the underwriter) at a price of C$1.15 per Common Share (the "Offering Price") for aggregate gross proceeds of C$39,002,250. The Offering was completed on a bought deal basis and was underwritten by BMO Capital Markets.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

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, copper, silver and antimony projects in Australia, the Americas, and Europe to generate near-term cash flow and shareholder value.

For further information:

Mark Sander 
Chief Executive Officer

Greg DiTomaso 
Investor Relations

Contact: 
647.260.1566