Mandalay Resources Corporation announced that it has expanded the Storheden gold deposit, 600 meters (?m?) from the Björkdal mine, on-strike to over 1.6 kilometers (?km?) and at depth of approximate 200 m with high-grade gold intercepts. This press release is the first in a series of updates on their 2024 regional exploration progress at Björkdal. Program Highlights: Drilling confirms Storheden along strike to over 1.6 km; Doubled known system depth to ~200 m; Mineralization characterized by high grade gold intercepts (assay highlights below); ?

Structural setting akin to multi-million ounce Björkdal deposit located 600 m southwest; and A mining concession was secured in 2018 over a significant portion of the area. Assay Highlights: 70.2 g/t gold over 0.45 m (ETW 0.15 m) in SH-06 at 136 m; 39.7 g/t gold over 0.70 m (ETW 0.45 m) in SH-06 at 120 m; 7.3 g/t gold over 3.05 m (ETW 1.96 m) in SH-11 at 225 m; and 33.0 g/t gold over 0.40 m (ETW 0.26m) in SH-21 at 90 m. Regional Exploration Ramp-up at Björkdal During the summer seasons of 2022 and 2023 a total of 15,444 m, from 67 holes were drilled on prospective targets within the vicinity of the Björkdal mine (Figure 1). These targets were identified through analysis and interpretation of historical datasets and recent fieldwork conducted within Mandalay?s active exploration permits.

They represent areas of high potential for further mineral discoveries and underscore our commitment to advancing exploration efforts in the region. Storheden Focus The Storheden deposit is located roughly 600 m to the Northeast of the Björkdal mine (Figure 2-3). Mineralization was first identified in the area from ?top of bedrock?

geochemical drilling in 1987. Subsequently, while percussion drilling had been undertaken on the target delineating an extensive mineral system, the active mine (Björkdal) has been the focus for exploration efforts leaving Storheden underexplored. In 2017, confirmation drilling and modelling undertaken by Mandalay lead to the granting of a mining concession in 2018 encompassing the confirmed mineralized zone.

During 2023 a total of 5,149 m were drilled across 22 drillholes. Two separate targets were identified for drill testing. Depth extension and verification of system geometries; and Strike extension of the system to the southeast where the Storheden shear is interpreted to interact with the marble horizon.

The primary aim of the 2023 deeps drilling campaign was to validate historical intercepts from percussion drilling and explore the down-dip extensions of the mineralized zone. Investigating the depth potential is important as the deposit is situated in part below the Bjorkdal tailings storage facility. Previous models for the Storheden deposit have been limited by the lack of diamond drill core, with most data derived from percussion drilling.

However, oriented core obtained from drilling during 2023 has made it possible to verify and extend upon existing models, demonstrating the down-dip continuity of mineralized veins controlled by a moderately, N to NE-dipping system of shears that runs parallel to the Skellefte-Vargfors contact. Mineralized fluids appear to have utilized the rheological contact between relatively rigid volcanics of the Skellefte Group and weaker sedimentary sequences of the overlying Vargfors Group during deformation, in a similar manner to how shearing, fluid flow and mineralization in the Björkdal deposit is localized along the marble. Mineralization in the Björkdal deposit has significant vertical continuity, with known mineralization dipping to the north-westalong a slope distance of 1500 m, while remaining open at depth.

The potential for similar down-dip continuity of mineralization in Storheden remains open, with 2023 drilling demonstrating that mineralization extends beneath shallow historical intercepts. Future programs will further test the down-dip potential of mineralization at Storheden, while extending the coverage of oriented drill core to verify historic data obtained from percussion drilling, particularly within the central section of the Storheden deposit. Gold mineralization occurs predominantly in quartz veins, ranging in thickness from less than a centimetre to more than several decimetres.

Gold rich quartz veins are often associated with minor sulphides such as pyrrhotite, pyrite, chalcopyrite and arsenopyrite. In addition, scheelite, tsumoite and free gold are commonly observed in mineralised quartz veins. During 2023, a limited drill program totaling 1,116 m across 6 drill holes targeted the eastern extension of the marble horizon hosting the Björkdal deposit, which is also situated along the projected SE extension of the Storheden shear system (Figure 1).

No drilling has previously targeted this area, however, limited historic drilling to the east has intercepted minor mineralized quartz veins. Despite its promising structural setting, the 2023 drilling showed that this area lacks the pervasive veining characterizing the Björkdal and Storheden deposits. This is tentatively attributed to a thickening of the marble towards the northern margin of the Björkdal dome that may have accommodated strain during deformation, inhibiting fracturing and veining within in its hanging and footwall.

Drilling and Assaying 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. Assaying was primarily conducted utilizing the Pal1000 cyanide leaching processes.

For sulphide -rich samples, Fire-Assaying conducted at MSALABS (FAS-221, 50 g charge) in Canada, following sample preparations (crushing, pulverizing) at CRS Kempele. Mandalay?s rigorous QA/QC program included the use of standard reference samples, blanks, duplicates, repeats, and internal laboratory quality assurance procedures.