Mandalay Resources Corporation Announces Financial Results for the Quarter
Ended September 30, 2010

TORONTO, Nov. 15 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) announced today its financial results for the three and nine months ended September 30, 2010 (the "third quarter"). The Company's consolidated financial statements for the three and nine months ended September 2010, together with its Management's Discussion and Analysis of these results, are available for review on the Company's website and under the Company's profile at www.sedar.com.

Brad Mills, Mandalay's Chief Executive Officer commented "We made excellent progress during the third quarter toward becoming a two mine company with operational plans in place to reach 100,000 Au equivalent ounces of production and 2,000 tonnes/year of antimony production by 2012 with the completion of the acquisition of the Cerro Bayo mine. The restart of production at Cerro Bayo is well underway. Costerfield suffered a temporary setback in Q3 due to heavy rains but has rebounded sharply in October. Deep drilling at Costerfield has intersected several zones of very high-grade mineralization and we expect substantial increases to Costerfield's reserves and resources when they are re-evaluated at year end. Metal prices of all our commodities are at or near record levels and we look forward to a very strong financial performance in 2011."

Highlights

• Gold production for the third quarter was 1,848 ounces versus 2,001 ounces in the second quarter of 2010. 267 tonnes of saleable antimony were produced versus 282 tonnes in the second quarter of 2010.  The Company did not produce any gold or antimony in the equivalent period of 2009.
• Third quarter production was negatively impacted by unusually high rainfall at Costerfield.  Increased ground water flows caused ground stability problems in several of the upper levels of the mine and flooded the bottom level of the mine and the decline. As a result, the Company was unable to mine all of the ore as planned during the period. While certain of the upper and lower mining levels were closed, the Company responded by mining and processing other, lower grade, ores. These issues were largely resolved by the end of September and mining and production returned to expected higher levels in October.
• Cash costs per ounce of gold produced net of antimony by-product sales in the third quarter were US$825/ounce versus US$711 in the second quarter. The higher unit costs were primarily due to lower production in the third quarter.
• Net loss for the third quarter was $1,448,671 (loss of $0.01 per share) versus a loss of $37,202 (loss of $0.002 per share) in the same period of 2009.
• The Costerfield mine generated $135,068 in earnings from mine operations for the third quarter versus earnings from mine operations of $1,059,223 in the second quarter. The lower earnings and revenue in Q3 reflect the production impacts described above and the delay of one shipment into the first week of October, which resulted in the deferral of approximately $1.3 million in revenue from the third quarter into the fourth quarter. There will be no significant impact on the Company's future earnings as a result of this delay of shipment. The Company also suspended sales of gold concentrate produced by its gravity circuit in September due to irreconcilable assay differences with the purchaser of the concentrate. The financial effect of this decision is the deferral of approximately $250,000 in revenue and earnings from mine operations from the third quarter into the fourth quarter. 
• On August 10^th, the Company completed its acquisition of Compania Minera Cerro Bayo Ltda. ("Cerro Bayo") from Coeur d'Alene Mines Corp., and an associated equity financing for gross proceeds of $23,000,000.
• Cerro Bayo commenced mining in the Dagny and Fabiola veins during the third quarter, with ore being stockpiled pending the anticipated concentrator start-up.  
• The drilling program at Costerfield, designed to test the depth extension of the Augusta W-Lode oreshoot currently being mined, significantly extended the known depth of potentially economic mineralization (see press release dated August 24^th, 2010). Drilling to define possible resources and reserves is ongoing.

Qualified Persons
Disclosures of a scientific or technical nature in this press release in respect of each of the Company's material mineral resource properties were prepared by, or under the supervision of, the "qualified persons" (as that term is defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators) listed below:

Project

Qualified Person

Relationship to Mandalay Resources

Costerfield

Melanie McCarthy

Employee

Cerro Bayo

Ronald Luethe

Employee

About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia 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. 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, Mandalay's ability to achieve commercial production at Cerro Bayo and increase production at Costerfield in accordance with its plans 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. 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.

For further information:

Bradford Mills
Chief Executive Officer

Greg DiTomaso
Investor Relations
Contact: 647.260.1566
Email: [email protected]  

Company website: www.mandalayresources.com