Mandalay Resources Corporation Repays $1.5 Million Promissory Note

TORONTO, Dec. 15 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) announced today that it has repaid the 12-month promissory note in the principal amount of $1,500,000 and interest thereon owed to Cambrian Mining Limited ("Cambrian").  The Company assumed this debt as part of its acquisition of AGD Mining Pty Ltd. ("AGD") in December  2009. With the payment of this promissory note, the Company has completed all outstanding financial obligations related to the AGD acquisition.

Brad Mills, CEO of Mandalay said, "We are pleased that the Company has repaid the Cambrian promissory on its due date.  Within a year of acquiring AGD, the Company's Costerfield Mine in Victoria, Australia is now operating at design capacity and is expected to produce between 2,000 - 2,500 tonnes/year of antimony and 12,000 - 15,000 ounces/year of gold.  With antimony and gold at record prices, we look forward to a strong financial performance at the Costerfield Mine in 2011."

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 complete the transactions described herein on the terms outlined, 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