Mandalay Resources Corp (MNDJF)

[NYBob]

Mandalay Resources Corporation Provides Exploration Update and Announces Optimization of its Björkdal Operation
TORONTO, June 18, 2019 (GLOBE NEWSWIRE) --

Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, OTCQB: MNDJF) is pleased to announce the commencement of its 2019 exploration campaign at its Costerfield operation in Victoria, Australia, as well as its Björkdal operation in Sweden.
The Company is also pleased to report additional diamond drilling results from both operations based on drilling that was carried out since the Company’s last exploration release on November 14, 2018. Readers are advised to review the corresponding figures found at the end of this press release.

Mandalay’s drilling programs since the fourth quarter of 2018 have
continued to yield encouraging results.

At Costerfield, the Company is testing extensions to the Youle orebody
(see tables 1 and 2) and has commenced a deep drilling program under
the known Costerfield mineral systems to test for potential high-grade
mineralization similar to Fosterville’s Swan zone.

At Björkdal, the Company has expanded the Aurora mineralization, and in
addition is pleased to provide drilling results for newly discovered
high-grade skarn at the Lake zone (see tables 3, 4, and 5).

Dominic Duffy, President and CEO of Mandalay, commented,
“We are pleased to announce that we have commenced our 2019 exploration
programs at both of our sites.
We believe that the most recent drilling results at Costerfield and
Björkdal are very positive and suggest further opportunities for
increasing the value of our operations.

“At Costerfield, we commenced drilling to test the northern extension of
the high-grade Youle lode in May 2019 and met with immediate success in
the first hole (BC068), which intercepted 0.5 metres (true width) at
39 grams per tonne of gold equivalent.
This result is encouraging as it gives us increased confidence about
the continuity of Youle to the north. Currently, the Youle lode is open
to extension in all directions.
We expect to commence mining of this high-grade lode in the fourth
quarter of this year, with the opportunity for further expansion from
underground drill platforms when we get there.”

Mr. Duffy continued, “We also began phase one of our deep drilling program at Costerfield in May 2019.
This is the first phase of a program that is expected to continue over the coming twelve months. The objective of the first phase of deep drilling is to establish the geological and stratigraphic context for where a high-grade gold deposit would likely be found. We have begun the first of two deep holes (approximately 1,000 metres deep and 1,500 metres hole length) and we will be wedging off of each hole to get a clearer picture of the structural setting further up dip. We believe this program will provide a strong framework for understanding the geology and potential styles of mineralization that may exist at depth, to allow planning of the future deep drilling program.”

Mr. Duffy concluded, “At Björkdal, drilling at the Aurora zone in the
fourth quarter of 2018, together with further drilling in the second
quarter of 2019, has continued to expand the size of the deposit, which
is still open both vertically and along strike.
Aurora currently measures 500 metres in strike length and 300 metres in
height with significantly larger widths than we are currently mining.
In addition to further delineating Aurora, we are pleased to also
announce high-grade drill results from the newly discovered Lake zone
skarn deposit.
The skarn deposit adds a new dimension to the Björkdal by reporting
significantly higher grades than are typically mined at the operation.”

Mandalay Drilling Programs

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