Mandalay Resources Corporation Announces Record Financial Results for the Fourth Quarter and Full Year 2012 and Quarterly

  Mandalay Resources Corporation Announces Record Financial Results for the
           Fourth Quarter and Full Year 2012 and Quarterly Dividend

  PR Newswire

  TORONTO, February 21, 2013

TORONTO, February 21, 2013 /PRNewswire/ --

Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND)
announced today record revenue, EBITDA and earnings per share ("EPS") for the
fourth quarter and full year of 2012. Full year revenue, EBITDA and EPS were
$171.8 million, $79.9 million and $0.14, respectively. For the fourth quarter
of 2012 the Company also achieved record quarterly revenue, EBITDA, and net
income of $55.7 million, $28.8 million and $22.4 million ($0.07 per share)
respectively. All currency references in this press release are in U.S.
dollars except as otherwise indicated.

Mandalay's Board of Directors has declared a quarterly dividend of CDN$0.01
per share, payable on March 14, 2013 to shareholders of record as of March 7,
2013.

Brad Mills, Chief Executive Officer of Mandalay, commented: "Mandalay ended
the year with a very strong fourth quarter as both mines produced record
saleable volumes. This translated into record financial performance. The
Company paid off all remaining debt in the fourth quarter and started
returning cash to shareholders in the form of a dividend. We are now focused
on the next stages of growth for both projects, specifically the development
of the Cuffley lode at Costerfield beginning in mid-year 2013 and the
expansion of Cerro Bayo to 1,400 tonnes per day during the first quarter of
2014."

The Company's audited consolidated financial results for the three and twelve
months ended December 31, 2012, together with its Management's Discussion and
Analysis ("MD&A") for the corresponding periods, can be accessed under the
Company's profile on http://www.sedar.com and on the Company's website at
http://www.mandalayresources.com .

2012 Fourth Quarter Financial Highlights

Revenue for the fourth quarter of 2012 was $55,699,764 versus $24,233,020 in
2011. Profit from mine operations before depletion and depreciation was
$31,700,757 versus $6,266,492 in 2011 and net profit for the quarter was
$22,375,166 or $0.07 per share versus $955,754 or $0.00 per share in 2011.
Excluding non-cash and non-operating expense of $138,747 and deferred income
tax of $5,579,573, profit after tax from underlying operations for the fourth
quarter was $16,934,340 ($0.05 per share).

The following table summarizes the Company's financial results for the three
months ended December 31, 2012 and 2011:

                               Quarter ended       Quarter ended
                             December 31, 2012   December 31, 2011
                                     $                  $
    Revenue                      55,699,764         24,233,020
    EBITDA                       28,843,644          3,376,244
    Income from mine operations  25,847,103          3,236,316
    Net income[1]                22,375,166            955,754
    Total assets                185,290,684        138,894,858
    Total liabilities            42,211,786         39,923,892
    Earnings / (loss) per share        0.07               0.00
    Fully diluted EPS                  0.06               0.00

^[1] Net income is inclusive of non-cash, non-operating expense of $138,747
related to mark-to-market adjustments of silver and gold put options, a silver
note payable to Coeur d'Alene Mines Corporation (the "Silver Note"), and fair
value mark-to-market adjustments related to financing warrants and deferred
income tax income of $5,579,573.

2012 Full Year Financial Highlights :

Revenue for 2012 was $171,805,623 versus $92,163,852 in 2011. Profit from mine
operations before depletion and depreciation was $95,264,831 versus
$41,291,656 in 2011. Net profit for the year 2012 was $41,712,357 or $0.14
per share versus $18,477,317 or $0.07 per share in 2011. Profit, revenue,
operating expenses, and depletion and depreciation were all higher in 2012
than in 2011 due to higher production output and consequent higher sales
volumes at both the mines.

The following table summarizes the Company's financial results for the years
ended December 31, 2012 and 2011:

                                Year ended          Year ended
                           December 31, 2012   December 31, 2011
                                     $                   $
    Revenue                     171,805,623         92,163,852
    EBITDA                       79,935,066         32,013,588
    Income from mine operations  75,925,395         29,419,075
    Net income                   41,712,357         18,477,317
    Total assets                185,290,684        138,894,858
    Total liabilities            42,211,786         39,923,892
    Earnings / (loss) per share        0.14               0.07
    Fully diluted EPS                  0.11               0.05

At December 31, 2012, the Company had working capital of $38,480,236 compared
to $28,178,485 at December 31, 2011. The Company had cash and cash
equivalents of $17,264,446 at the end of the December 31, 2012 as compared to
$12,741,454 at December 31, 2011. The Company had no outstanding debt as at
December 31, 2012.

2012 Corporate Highlights:

  *As at December 31, 2012, the Company had repaid the final installment of
    the Silver Note in the U.S. dollar equivalent amount of 20,833 ounces of
    silver. This Note was originally granted as part of the purchase
    consideration for the Cerro Bayo mine in Chile.
  *On May 30, 2012, the Company and the Bank of Montreal ("BMO") entered into
    a one-year revolving corporate loan facility (the "Corporate Facility")
    for $20 million. The Corporate Facility is for general corporate purposes,
    including working capital, capital expenditures and certain specified
    acquisitions. This facility is currently undrawn.
  *In 2012 the Company fully repaid the loan agreement it entered into with
    Sprott Resource Lending Partnership ("Sprott") in the amount of
    $10,054,000(C$10,000,000).
  *The Company repurchased 2,185,660 common shares at an average price of
    CDN$0.78 per share pursuant to its Normal Course Issuer Bid at a total
    cost of $1,713,011
  *In July 2012 the Company completed a substantial issuer bid for its
    outstanding share purchase warrants. Approximately 72% of the outstanding
    warrants were tendered to the issuer bid and exchanged for an aggregate of
    35,795,052 common shares

Quarterly Dividend

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. Pursuant to this policy, the Board of
Directors has declared a dividend of CDN$0.01 per share for the first quarter
of 2013, payable on March 14, 2013 to shareholders of record on March 7, 2013.
This is designated as an eligible dividend for the purposes of the Income Tax
Act (Canada) and any similar provincial legislation.

2013 Guidance

Guidance for 2013 remains unchanged.

                                  Total                Cerro Bayo          Costerfield
    Saleable Ag Production 2.8 - 3.1 million oz   2.8 - 3.1 million oz                  -
    Saleable Au Production   36,000 - 42,000 oz     18,000 - 21,000 oz  18,000 - 21,000 oz
    Saleable Sb Production      2,800 - 3,000 t                      -     2,800 - 3,000 t
    Au Eq Production[1]    112,000 - 123,000 oz

^[1] Au Eq. oz produced is calculated by multiplying the saleable quantities
of Au, Ag, and Sb in the period by the respective average market prices of the
commodities in the period, adding the three amounts to get a "total contained
value based on market price", and then dividing that total contained value by
the average market price of Au in the period. Average Au price in the period
is calculated as the average of the daily LME PM fixes in the period, with
price on weekend days and holidays taken from the last business day; average
Sb price in the period is calculated as the average of the daily average of
the high and low Rotterdam warehouse prices for all days in the period, with
price on weekend days and holidays taken from the last business day; average
Ag price in the period is calculated as the average of the daily London
Broker's silver spot price for all days in the period, with price on weekend
days and holidays taken from the last business day. The source for all prices
is http://www.metalbulletin.com .

The Company expects that production at Cerro Bayo during the first quarter of
2013 will be affected by the planned partial suspension of processing plant
operations to facilitate the installation of processing plant automation
equipment. This project is expected to improve recovery of gold and silver at
Cerro Bayo in the short to medium term.

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 guidance as to anticipated gold, silver,
and antimony production in 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 http://www.sedar.com . 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. EBITDA is a non-IFRS measure
and does not have a standardized meaning under IFRS. Therefore, this measure
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 fourth quarter and full year 2012.

For further information:  Bradford Mills Chief Executive Officer  Greg
DiTomaso Investor Relations   Contact: +1.647.260.1566


 
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