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Mandalay Resources Corporation Announces Record Third Quarter Financial Results and Initial Dividend

   Mandalay Resources Corporation Announces Record Third Quarter Financial
                         Results and Initial Dividend

  PR Newswire

  TORONTO, Nov. 8, 2012

TORONTO, Nov. 8, 2012 /PRNewswire/ -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX: MND) announced today revenues of $48.8
million and EBITDA of $23.4 million for the third quarter of 2012. These
record quarterly results were achieved as both of the Company's mines, Cerro
Bayo and Costerfield, reached design production and reduced costs.

Given the excellent third quarter 2012 financial results, Mandalay's Board of
Directors has declared the Company's first dividend - an initial quarterly
dividend of CDN$0.01 per share, payable on December 5, 2012 to shareholders of
record as of November 20, 2012.

Brad Mills, Chief Executive Officer of Mandalay, commented: "From a financial
perspective, Mandalay performed extremely well in the third quarter, repaying
substantially all of our debt and achieving record revenue and EBITDA. We are
now generating significant amounts of cash flow after all capital and
exploration requirements. Looking forward to 2013, we currently expect the
Company's gold equivalent production to increase by between 12%-23%."

The Company's unaudited consolidated financial results for the three and nine
months ended September 30, 2012, together with its Management's Discussion and
Analysis ("MD&A") for the corresponding periods can be accessed under the
Company's profile on www.sedar.com and on the Company's website at
www.mandalayresources.com . All currency references in this press release are
in U.S. dollars except as otherwise indicated.

Third Quarter 2012 Financial Highlights

The following table summarizes the Company's financial results for the three
and nine months ended September 30, 2012, and September 30, 2011.

                         Three months   Three months  Nine months Nine months
                        ended Sept 30, ended Sept 30, ended Sept  ended Sept
                             2012           2011       30, 2012    30, 2011
                              $              $             $           $
Revenue                     48,847,630     26,960,784 116,105,859  67,930,832
EBITDA                      23,399,401     10,968,335  51,091,422  28,637,354
Income from
MineOperations              24,094,727     10,260,134  50,078,292  26,182,769
Net Income / (loss)          9,011,008     13,177,845  19,337,192  17,521,563
Total Assets               163,483,354    135,162,587 163,483,354 135,162,587
Total Liabilities           41,266,533     38,683,332  41,266,533  38,683,332
Earnings / (loss) per
share                             0.03           0.05        0.07        0.07
Underlying Earnings /
(loss)*                     16,090,881      5,712,154  32,203,462  15,721,547
Underlying Earnings /
(loss) per share**                0.05           0.02        0.11        0.06

*Underlying Earnings is Net Income before fair value and deferred tax
adjustments ** Underlying Earnings per share is Net Income before fair value
and deferred tax adjustments per share

In the third quarter of 2012 the Company achieved revenue, EBITDA, and net
income of $48.8 million, $23.4 million and $9.0 million ($0.03 per share)
respectively.

Net income is inclusive of non-cash, non-operating expense of $4,713,133
related to mark-to-market adjustments of silver and gold put options[1]
("puts"), a silver note payable to Coeur d'Alene Mine Corporation (the "Silver
Note"), fair value expense related to financing warrants of $1,657,000 and
deferred tax expense of $709,740. Excluding these items, profit after tax from
underlying operations for the third quarter was $16,090,881 ($0.05 per
share). By comparison, in the third quarter of 2011 the Company's net income
of $13,177,845 ($0.05 per share) was inclusive of a $7,465,691 positive mark
to market adjustment for puts. Excluding that adjustment, profit from
underlying operations in Q3 of 2011 was $5,712,154 ($0.02 per share).

During the quarter, the Company used $9 million of internally generated cash
to repay all of the amounts outstanding under its revolving corporate loan
facility with Bank of Montreal and equipment loan facilities in Australia and
to make the penultimate payment of the Silver Note. In addition, the Company
repurchased and cancelled 1,312,000 shares at a cost of $1,062,904 in the
third quarter of 2012. At the end of the third quarter of 2012, the Company
had just $945,949 in total outstanding debt and $6.4 million in cash. All
remaining debt will be repaid before year end.

Dividend Policy

Mandalay's Board of Directors has adopted a dividend policy that provides for
a quarterly discretionary cash dividend based on financial results and the
future cash requirements of the Company.

Given the excellent third quarter 2012 financial results, the Board of
Directors has declared an initial quarterly dividend of CDN$0.01 per share,
payable on December 5, 2012 to shareholders of record as of November 20, 2012.

This is designated as an eligible dividend for the purposes of the Income Tax
Act (Canada) and any similar provincial legislation.

Production, Cost and Capital Expenditure Guidance for 2013

                                Total        Cerro Bayo       Costerfield
                                 2.8 - 3.1       2.8 - 3.1
Saleable silver production      million oz      million oz
                           36,000 - 42,000 18,000 - 21,000
Saleable gold production                oz              oz 18,000 - 21,000 oz
Saleable antimony
production                 2,800 - 3,000 t                    2,800 - 3,000 t
                                 112,000 -
Gold equivalent production      123,000 oz
Cost/oz silver net
by-product                                   $4.00 - $6.00
Cost/oz gold equivalent                                         $950 - $1,000
Capital expenditure            $37 million     $21 million        $16 million
Exploration expenditure        $11 million      $7 million         $4 million

_________________________ [ 1] These put options gives the Company the right,
but not the obligation, to sell a specified amount of gold or silver at a
specified price within a specified time.

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
anticipated production of gold, silver and antimony for the 2012 fiscal year
and production, cost and capital expenditure guidance for 2013. 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 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.

Non-IFRS Measures

This news release contains references to EBITDA and Underlying Earnings both
of which are non-IFRS measures and do not have standardized meanings under
IFRS. Therefore, these measures may not be comparable to similar measures
presented by other issuers.

The Company defines EBITDA as earnings before interest, taxes and non cash
charges. EBITDA is presented as the Company believes it is a useful indicator
of relative operating performance. EBITDA should not be considered by an
investor as an alternative to net income or cash flows as determined in
accordance with IFRS. For a detailed reconciliation of net income to EBITDA,
please refer to page 9 of Management's Discussion and Analysis of the
Company's financial statements for the third quarter of 2012.

For further information:

Bradford MillsChief Executive Officer

Greg DiTomasoInvestor Relations

Contact:647.260.1566

(MND.WT. MND.)

Website: http://www.mandalayresources.com