Mandalay Resources Corporation announced successful results from its regional target testing drill campaigns approximately 6 km to the southwest of the Björkdal Mine. This release is the third and final in a series of updates on recent regional exploration programs at Björkdal. Program Highlights: Drilled 26 holes and 6,295 meters of diamond drilling to test high priority regional targets near the Björkdal Mine; Intercepted high-grade gold in multiple holes at Lapptjärn including one long interval; Returned encouraging results and high-grade gold assay from Granholm; and Identified semi-massive sulphide within Tarsnäs with elevated zinc and copper assays.

Assay Highlights: Lapptjärn: 5.3 g/t gold over 7.05 m (ETW 5.40m) in LP-6; and 8.6 g/t gold over 0.70 m (ETW 0.35m) in LP-12. Granholm: 14.9 g/t gold over 0.5 m (ETW 0.38m) in GH-2. The Björkdal mine is located within the well-endowed Skellefteå mining district in Northern Sweden, which is characterized by its extensive mineralization and diverse geological features. The region hosts several world-class Volcanogenic Massive Sulphide ("VMS") and orogenic gold deposits, that have been actively mined for over a century.

Geologically, the district spans a 120 by 30 km ore-bearing belt dominated by Paleoproterozoic volcanic rocks. This belt is part of a larger volcanic arc formation that emerged between the Bothnian basin to the south and the volcanic rocks of the Arvidsjaur group to the north. During 2022 and 2023, diamond drilling targeted four prospects located approximately 7 km southwest of the Björkdal mine site.

The prospects Lapptjärn, Granholm, Tarsnäs and Nyholm are located along a 5 km long, NW-SE striking fold structure that is overprinted by later shear systems. In the southeast, this mineralized corridor terminates against the stratigraphic contact between the regional Skellefte and Vargfors Groups. The prospects are largely hosted within mafic to felsic volcanics of the Upper Skellefte Group, close to the contact with the Vargfors Group. The presence of marble lenses also indicate that they are located in the same stratigraphic interval as the Björkdal, Storheden and Norrberget deposits.

In 2022 and 2023, Mandalay targeted Lapptjärn with two successive diamond drill campaigns, totaling 3,347 m across 13 drill holes, focusing on gold-in-till anomalies initially discovered by Terra Mining AB in 1986 ("Kalkberget project") and previously only tested with reconnaissance percussion drilling between 1986-1988. Mineralization at Lapptjärn is associated with structurally controlled lodes of disseminated arsenopyrite or irregular, arsenopyrite-bearing, Quartz-Carbonate veins. The mineralized zone is associated with silica-sericite-chlorite alteration and hosted within a folded sequence of felsic to mafic volcaniclastics belonging to the Skellefte Group, with interbedded marble lenses and graphitic shale.

Several drill holes at Lapptjärn intercepted mineralized intervals, which appear to form a network of lodes over a strike length of 200 m, centered on high-grade intercepts in holes LP- 3 and LP-6. Although the high-grade intervals appear to have relatively limited strike and dip extent, the down-dip continuation of mineralization was confirmed by hole LP-12, leaving the system open at depth. During the summer of 2022, Mandalay Resources targeted Granholm with a diamond drill campaign totaling 1,016 m across 5 holes. The campaign aimed to verify and extend upon historical drilling from 1994-1995 by a joint venture between Boliden AB and COGEMA, which targeted an outcropping system of quartz veins associated with arsenopyrite, rare visible gold and zones of moderate to intense sericite alteration.

The mineralization is hosted in folded and sheared rhyolitic to andesitic volcanic successions belonging to the Skellefte Group. Holes GH-1, GH-2 and GH-3 intercepted mineralized quartz veins, with the highest grades occurring in veins containing a core of massive arsenopyrite. Lower grades were observed in veins in which arsenopyrite typically occurs as a dissemination in the adjacent wall rock or along the contact of the vein.

No visible gold was observed in drill core, however, grab samples from an outcropping Quartz vein include rare <1 mm grains of visible gold, demonstrating the potential for free-milling gold within the system. Holes GH-1 and GH-4 intercepted broad intervals of sericite schist that is crosscut by the later veins. The sericite schist itself is not mineralized but is indicative of a significant hydrothermal system within the prospect.

Strong sericite alteration has been reported from the nearby Boliden deposit and the nature of the alteration system at Granholm is the subject of ongoing investigation. Mandalay targeted Tarsnäs with two successive drill campaigns in 2022 and 2023, totaling 1,493 m across 5 drill holes, focusing on an untested section of the Skellefte-Vargfors contact to the south of historical drill sites by Boliden AB and COGEMA in 1994-1995 and Eagle Mining AB in 2007-2008. These had previously intercepted auriferous arsenopyrite-bearing Quartz veins situated along the deformed and sericite-chlorite-silica altered contact between the Skellefte and Vargfors Groups.

Nyholm is located approximately 8 km southwest of the Björkdal mine site, along a segment of the Skellefte-Vargfors contact which has historically been reported as hosting arsenopyrite- bearing quartz veins with anomalous gold. At Björkdal, all diamond drill core was logged and sampled by Björkdal geologists. Exploration drill hole samples were sent to CRS Laboratories Oy ("CRS") in Kempele, Finland for sample preparation and assaying.