Cerro_Bayo_ Fabiola Vein NI-43-101_Final_Mar-2015

March 13, 2015
RPA Inc. T55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I + 1 (416) 947 0907 www.rpacan.com
MANDALAY RESOURCES CORPORATION
TECHNICAL REPORT ON THE
CERRO BAYO PROJECT,
REGION XI (AISÉN), CHILE
NI 43-101 Report
Qualified Persons:
Normand L. Lecuyer, P.Eng.
Rosmery Julia Cárdenas Barzola, MAusIMM CP (Geo)

Report Control Form
Document Title Technical Report on the Cerro Bayo Project, Region XI
(AISÉN), Chile
Client Name & Address Mandalay Resources Corporation
76 Richmond Street East, Suite 330
Toronto, Ontario
M5C 1P1
Document Reference
Project #2366
Status &
Issue No.
FINAL
Version
Issue Date March 13, 2015
Lead Author Rosmery Cardenas
Normand Lecuyer
(Signed)
(Signed)
Peer Reviewer Luke Evans
Jason J. Cox
(Signed)
(Signed)
Project Manager Approval Luke Evans (Signed)
Project Director Approval Deborah A. McCombe (Signed)
Report Distribution Name No. of Copies
Client
RPA Filing 1 (project box)
Roscoe Postle Associates Inc.
55 University Avenue, Suite 501
Toronto, ON M5J 2H7
Canada
Tel: +1 416 947 0907
Fax: +1 416 947 0395
mining@rpacan.com

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Mandalay Resources Corporation – Cerro Bayo Project, Project #2366
Technical Report NI 43-101 – March 13, 2015 Page i
TABLE OF CONTENTS
PAGE
1 SUMMARY ........................................................................................................................ 1-1
Executive Summary......................................................................................................... 1-1
Technical Summary......................................................................................................... 1-6
2 INTRODUCTION............................................................................................................... 2-1
3 RELIANCE ON OTHER EXPERTS................................................................................... 3-1
4 PROPERTY DESCRIPTION AND LOCATION ................................................................. 4-1
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY................................................................................................................. 5-1
6 HISTORY........................................................................................................................... 6-1
7 GEOLOGICAL SETTING AND MINERALIZATION........................................................... 7-1
Regional Geology ............................................................................................................ 7-1
Local and Property Geology ............................................................................................ 7-4
Mineralization .................................................................................................................. 7-9
8 DEPOSIT TYPES.............................................................................................................. 8-1
9 EXPLORATION................................................................................................................. 9-1
Exploration Potential........................................................................................................ 9-2
10 DRILLING...................................................................................................................... 10-1
Previous Drilling............................................................................................................. 10-1
Mandalay Drilling ........................................................................................................... 10-3
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................ 11-1
Previous Work ............................................................................................................... 11-1
Mandalay Work.............................................................................................................. 11-3
12 DATA VERIFICATION................................................................................................... 12-1
13 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................... 13-1
14 MINERAL RESOURCE ESTIMATE .............................................................................. 14-1
Cut-off Grade............................................................................................................... 14-46
Mineral Resource Estimate ......................................................................................... 14-48
15 MINERAL RESERVE ESTIMATE ................................................................................. 15-1
Reserve Estimation Methodology.................................................................................. 15-1
Dilution and Extraction Factors...................................................................................... 15-3
Reconciliation ................................................................................................................ 15-5
16 MINING METHODS....................................................................................................... 16-1
Mine Design and Mining Method ................................................................................... 16-1
Geomechanics and Ground Support ........................................................................... 16-11
Pre-production Schedule ............................................................................................. 16-15

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Technical Report NI 43-101 – March 13, 2015 Page ii
Life of Mine Plan.......................................................................................................... 16-16
Infrastructure ............................................................................................................... 16-18
17 RECOVERY METHODS ............................................................................................... 17-1
Historical Recovery........................................................................................................ 17-1
Current Recovery .......................................................................................................... 17-3
18 PROJECT INFRASTRUCTURE.................................................................................... 18-1
19 MARKET STUDIES AND CONTRACTS ....................................................................... 19-1
Markets.......................................................................................................................... 19-1
Contracts ....................................................................................................................... 19-1
20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT
............................................................................................................................................20-1
Environmental Studies and Information......................................................................... 20-1
Project Permitting .......................................................................................................... 20-3
Social or Community Requirements ............................................................................ 20-11
Mine Closure Requirements ........................................................................................ 20-11
21 CAPITAL AND OPERATING COSTS ........................................................................... 21-1
Capital Costs ................................................................................................................. 21-1
Operating Costs............................................................................................................. 21-2
22 ECONOMIC ANALYSIS ................................................................................................ 22-1
23 ADJACENT PROPERTIES ........................................................................................... 23-1
24 OTHER RELEVANT DATA AND INFORMATION......................................................... 24-1
25 INTERPRETATION AND CONCLUSIONS ................................................................... 25-1
26 RECOMMENDATIONS ................................................................................................. 26-1
27 REFERENCES.............................................................................................................. 27-1
28 DATE AND SIGNATURE PAGE ................................................................................... 28-1
29 CERTIFICATE OF QUALIFIED PERSON..................................................................... 29-1
LIST OF TABLES
PAGE
Table 1-1 Summary of Mineral Resources Inclusive of Mineral Reserves – December 31,
2014...................................................................................................................................... 1-2
Table 1-2 Summary of Mineral Reserves – December 31, 2014 ....................................... 1-2
Table 1-3 LOM Capital Costs ........................................................................................... 1-12
Table 1-4 Operating Costs ............................................................................................... 1-12
Table 4-1 Property List ....................................................................................................... 4-1
Table 5-1 Water Permits..................................................................................................... 5-3
Table 6-1 Historical Mineral Resources.............................................................................. 6-3
Table 6-2 Historical Mineral Reserves................................................................................ 6-3
Table 6-3 Production History.............................................................................................. 6-4
Table 10-1 Drill Hole Database ........................................................................................ 10-1

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Technical Report NI 43-101 – March 13, 2015 Page iii
Table 13-5 Production Summary - Actual 2014................................................................ 13-9
Table 13-6 Production Summary - Budget 2014 ............................................................ 13-10
Table 14-1 Summary of Mineral Resources Inclusive of Mineral Reserves – December 31,
2014.................................................................................................................................... 14-1
Table 14-2 Resource Databases...................................................................................... 14-3
Table 14-3 Grade Capping Levels.................................................................................. 14-15
Table 14-4 Block Model Parameters .............................................................................. 14-23
Table 14-5 Vulcan Domain Search Directions................................................................ 14-26
Table 14-6 Grade Estimation Parameters ...................................................................... 14-27
Table 14-7 Diluted Vein Grades ..................................................................................... 14-29
Table 14-8 Comparison of RPA and Previous Resource Estimates Inclusive of Mineral
Reserves .......................................................................................................................... 14-45
Table 14-9 Reserve Cut-off Grade Assumptions............................................................ 14-46
Table 14-10 Mineral Resources Inclusive of Mineral Reserves by Domain – December 31,
2014.................................................................................................................................. 14-48
Table 15-1 Conversion of Resources to Reserves - Yasna Vein ..................................... 15-2
Table 15-2 Dilution Grades 2014 Reserves ..................................................................... 15-3
Table 15-3 Mineral Reserves – December 31, 2014........................................................ 15-4
Table 15-4 Production Results - 2014 .............................................................................. 15-5
Table 16-1 Geomechanical Characteristics - “Q” (Barton) vs. MRMR (Laubscher) ....... 16-12
Table 16-2 Stope Safety Factor – Walls......................................................................... 16-13
Table 16-3 Stope Safety Factors - Roof......................................................................... 16-13
Table 16-4 Ground Support Recommendations............................................................. 16-14
Table 16-5 Mine Development ....................................................................................... 16-16
Table 16-6 LOM Production Schedule ........................................................................... 16-17
Table 16-7 Ventilation Requirements ............................................................................. 16-22
Table 16-8 Underground Equipment .............................................................................. 16-27
Table 16-9 Surface Equipment....................................................................................... 16-28
Table 16-10 Equipment Availability ................................................................................ 16-29
Table 17-1 Historical Mill Performance............................................................................. 17-2
Table 17-2 Mill Performance in 2014................................................................................ 17-3
Table 20-1 Project Permits – Laguna Verde Sector ......................................................... 20-4
Table 20-2 Project Permits – Furioso Sector.................................................................... 20-5
Table 20-3 Project Permits – Cerro Bayo Sector ............................................................. 20-5
Table 20-4 Project Permits – Cascada Sector ................................................................. 20-6
Table 20-5 Project Permits – Guanaco Sector................................................................. 20-6
Table 20-6 Closure Costs Breakdown by Year .............................................................. 20-12
Table 21-1 Capital Costs.................................................................................................. 21-1
Table 21-2 LOM Operating Costs..................................................................................... 21-2
Table 21-3 Company Manpower ...................................................................................... 21-2
Table 21-4 Contract Manpower ........................................................................................ 21-3
LIST OF FIGURES
PAGE
Figure 4-1 Location Map..................................................................................................... 4-5
Figure 4-2 Property Map..................................................................................................... 4-6
Figure 7-1 Regional Geology.............................................................................................. 7-3
Figure 7-2 Property Geology .............................................................................................. 7-7

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Technical Report NI 43-101 – March 13, 2015 Page iv
Figure 7-3 Property Geology Legend ................................................................................. 7-8
Figure 8-1 Regional Deposits............................................................................................. 8-3
Figure 14-1 Fabiola Au Grade Comparison...................................................................... 14-4
Figure 14-2 Fabiola Ag Grade Comparison...................................................................... 14-5
Figure 14-3 Dagny Au Grade Comparison....................................................................... 14-6
Figure 14-4 Dagny Ag Grade Comparison....................................................................... 14-7
Figure 14-5 Vein Models in Laguna Verde Area Showing Drill Holes .............................. 14-9
Figure 14-6 Marcela Sur And Raul Vein Models in Cerro Bayo Area Showing Drill Holes......
..........................................................................................................................................14-10
Figure 14-7 Ag Box Plot and Assay Statistics – Laguna Verde Area ............................. 14-11
Figure 14-8 Au Box Plot and Assay Statistics - Laguna Verde Area.............................. 14-12
Figure 14-9 Ag Box Plot and Assay Statistics - Cerro Bayo Area .................................. 14-13
Figure 14-10 Au Box Plot and Assay Statistics – Cerro Bayo Area ............................... 14-14
Figure 14-11 Fabiola Ag Histogram – Channel Samples ............................................... 14-16
Figure 14-12 Fabiola Ag Probability Plot – Channel Samples........................................ 14-17
Figure 14-13 Fabiola Vein Channel samples - Ag Cutting Curve................................... 14-18
Figure 14-14 Ag Box Plot and Composite Statistics - Laguna Verde Area .................... 14-19
Figure 14-15 Au Box Plot and Composite Statistics - Laguna Verde Area .................... 14-20
Figure 14-16 Ag Box Plot and Composite Statistics – Cerro Bayo Area ........................ 14-21
Figure 14-17 Au Box Plot and Composite Statistics – Cerro Bayo Area ........................ 14-22
Figure 14-18 Dagny Variogram ...................................................................................... 14-25
Figure 14-19 Dagny Vein Ag Block Grades.................................................................... 14-30
Figure 14-20 Coyita NW Vein Ag Block Grades............................................................. 14-31
Figure 14-21 Coyita SE Vein Ag Block Grades.............................................................. 14-32
Figure 14-22 Dalila Vein Ag Block Grades ..................................................................... 14-33
Figure 14-23 Delia NW Vein Ag Block Grades............................................................... 14-34
Figure 14-24 Delia SE Vein Ag Block Grades ................................................................ 14-35
Figure 14-25 Fabiola Vein Ag Block Grades .................................................................. 14-36
Figure 14-26 Yasna Vein Ag Block Grades.................................................................... 14-37
Figure 14-27 Kasia Vein Ag Block Grades ..................................................................... 14-38
Figure 14-28 Trinidad Vein Ag Block Grades ................................................................. 14-39
Figure 14-29 Marcela Sur Vein Ag Block Grades........................................................... 14-40
Figure 14-30 Raul Vein Ag Block Grades....................................................................... 14-41
Figure 14-31 Example of Resource and Reserve Seam Block Model ........................... 14-42
Figure 15-1 Coyita NW Vein Longitudinal Section - Drilling and Mining Plan .................. 15-7
Figure 15-2 Coyita SE Vein Longitudinal Section - Drilling and Mining Plan.................... 15-8
Figure 15-3 Dagny Vein Longitudinal Section - Drilling and Mining Plan ......................... 15-9
Figure 15-4 Dalila Vein Longitudinal Section - Drilling and Mining Plan......................... 15-10
Figure 15-5 Delia NW Vein Longitudinal Section – Drilling and Mining Plan.................. 15-11
Figure 15-6 Delia SE Vein Longitudinal Section – Drilling and Mining Plan................... 15-12
Figure 15-7 Fabiola Vein Longitudinal Section – Drilling and Mining Plan ..................... 15-13
Figure 15-8 Yasna Vein Longitudinal Section – Drilling and Mining Plan....................... 15-14
Figure 15-9 Trinidad Vein Longitudinal Section – Drilling and Mining Plan.................... 15-15
Figure 15-10 Marcela Vein Longitudinal Section – Drilling and Mining Plan .................. 15-16
Figure 15-11 Raul Vein Longitudinal Section – Drilling and Mining Plan ....................... 15-17
Figure 16-1 Ramp Dimensions......................................................................................... 16-3
Figure 16-2 General Plant Layout .................................................................................... 16-4
Figure 16-3 Schematic Section of Longhole Retreat Stoping Method.............................. 16-5
Figure 16-4 Dagny Mine - Production Drilling Cross Section (Typical)............................. 16-6
Figure 16-5 Delia NW Production Drilling Cross Section (Fan Drilling)............................ 16-7
Figure 16-6 Fabiola Vein Longitudinal Section (2015-2016 Production) .......................... 16-8
Figure 16-7 Delia Vein Longitudinal Section (2015-2016 Production).............................. 16-9

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Technical Report NI 43-101 – March 13, 2015 Page v
Figure 16-8 Dagny Vein Longitudinal Section (2015-2016 Production) ......................... 16-10
Figure 16-9 Stability Graph – MRMR vs. HR.................................................................. 16-12
Figure 16-10 Fabiola Mine Underground 3D View ......................................................... 16-19
Figure 16-11 Dagny Mine Underground 3D View........................................................... 16-20
Figure 16-12 Fabiola 177 Level Plan.............................................................................. 16-21
Figure 16-13 Fabiola Mine Ventilation System............................................................... 16-23
Figure 16-14 Delia Mine Ventilation System .................................................................. 16-24
Figure 16-15 Dagny Mine Ventilation System ................................................................ 16-25
Figure 17-1 Crushing/Grinding Flow Sheet ...................................................................... 17-4
Figure 17-2 Flotation Circuit ............................................................................................. 17-5
Figure 17-3 Reagent Dosages ......................................................................................... 17-6
Figure 17-4 Process Plant Water Balance ....................................................................... 17-7
Figure 18-1 General Site Layout ...................................................................................... 18-3
Figure 18-2 Satellite View of Surface-Laguna Verde ....................................................... 18-4
Figure 18-3 Tailings Facility.............................................................................................. 18-5

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Technical Report NI 43-101 – March 13, 2015 Page 1-1
1 SUMMARY
EXECUTIVE SUMMARY
Roscoe Postle Associates Inc. (RPA) was retained by Mandalay Resources Corporation
(Mandalay) to prepare updated Mineral Resource and Mineral Reserve estimates and an
independent Technical Report on the Cerro Bayo Project (the Project), in the Aisén Region,
near Chile Chico, Chile. The purpose of this report is to update Mineral Reserves and Mineral
Resources based on 2014 drilling and mine development. This Technical Report conforms to
National Instrument 43-101 (NI 43-101) Standards of Disclosure for Mineral Projects. RPA
most recently visited the property from January 8 to 10, 2014.
The Project consists of underground mines containing silver and gold veins, five of which are
currently mined from three individual portals. Veins with estimated Mineral Resources include
the Yasna, Fabiola, Dalila, Coyita, Dagny, Delia NW, Delia SE, Trinidad, Kasia, Marcela Sur,
and Raul. A processing facility, rated at 1,650 tonnes per day (tpd), is located on the site and
is operational. The plant produces a silver and gold flotation concentrate that is trucked to the
port of Puerto Chacabuco, Chile, and shipped to a client in Japan. Tailings are disposed of in
a tailings facility located on site, with process water recycled from the tailings facility. Power
is generated on site from a 7 MVA diesel power plant for the processing plant and surface
facilities and a 2.8 MVA diesel plant for the underground mines.
In August 2010, Mandalay purchased 100% of Compañía Minera Cerro Bayo Ltda. (CMCB),
then a subsidiary of Coeur d’Alene Mines Corporation (Coeur). At that time, the Project was
under care and maintenance. Mining commenced in September 2010, with processing
initiated in January 2011. The current Life of Mine (LOM) plan, based on Proven and Probable
Reserves, outlines a mine life of 5.5 years with an average production rate of 1,250 tpd.
RPA previously completed Mineral Resource and Mineral Reserve estimates and NI 43-101
Technical Reports on the Project in March 2012, March 2013, and March 2014.
MINERAL RESOURCES AND MINERAL RESERVES
The Mineral Resource estimate as of December 31, 2014, is summarized in Table 1-1 at a cut-
off grade of 150 g/t of silver equivalent (AgEq).

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TABLE 1-1 SUMMARY OF MINERAL RESOURCES INCLUSIVE OF MINERAL
RESERVES – DECEMBER 31, 2014
Mandalay Resources Corporation – Cerro Bayo Project
Category
Tonnes
(000)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AgEq
(g/t)
Au
Ounces
(000)
Ag
Ounces
(000)
Ag Eq
Ounces
(000)
Measured 310 2.63 315 472 26 3,143 4,707
Indicated 1,685 3.28 323 519 178 17,525 28,132
Total M+ I 1,995 3.18 322 512 204 20,668 32,839
Inferred 585 2.26 218 353 43 4,112 6,647
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 150 g/t AgEq. The AgEq was calculated using the
formula AgEq = Ag + (Au x 59.69) where Ag and Au are in grams per tonne after transport, treatment and
refining costs are deducted.
3. Mineral Resources are estimated using a long-term gold price of US$1,400 per ounce and a long-term
silver price of US$24 per ounce.
4. A minimum mining width of 1.2 m was used.
5. Bulk density is 2.63 t/m3
.
6. Mineral Resources are inclusive of Mineral Reserves.
7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8. Numbers may not add due to rounding.
The Mineral Reserve estimate as of December 31, 2014, is summarized in Table 1-2 at a cut-
off grade of 184 g/t AuEq.
TABLE 1-2 SUMMARY OF MINERAL RESERVES – DECEMBER 31, 2014
Category
Tonnes
(000)
Au
Grade
(g/t)
Ag
Grade
(g/t)
AgEq
(g/t)
Au
Ounces
(000)
Ag
Ounces
(000)
AgEq
Ounces
(000)
Proven 375 1.74 209 316 21 2,513 3,805
Probable 2,035 2.21 222 358 144 14,549 23,450
Total Proven and
Probable
2,409 2.13 220 352 165 17,062 27,256
Notes:
1. CIM definitions were followed for Mineral Reserves.
2. Mineral Reserves are estimated at a cut-off grade of 184 g/t AgEq (silver equivalent). AgEq is calculated
using the formula AgEq= Ag + (Au x 61.66) where Ag and Au are in grams per tonne. Metal prices for
determining cut-off grades were US$1,200/oz Au and $20/oz Ag.
3. Veins are diluted to 2.4 m minimum mining width and a mining extraction factor of 95% was applied to
stope tonnages.
4. A bulk density of 2.63 t/m3
was used.
5. Dilution grades vary by vein.
6. Numbers may not add due to rounding.

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RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other factors that could materially affect the Mineral Resource and
Mineral Reserve estimates.
CONCLUSIONS
RPA offers the following conclusions regarding the Cerro Bayo property:
• The Project has met its 2014 exploration objectives in that significant new gold and
silver mineralization has been found and added to the Mineral Resources and Mineral
Reserves.
• The Project hosts a significant gold and silver mineralized system and there is good
potential to further increase the resource base in defined veins and adjacent targets,
especially under the Laguna Verde lake.
• Epithermal gold and silver mineralization is associated with quartz veining within a
moderately welded sequence of dacitic and rhyolitic tuffs.
• Drilling to date has intersected high-grade mineralized veins and vein systems
associated with alteration assemblages that suggest at least three stages of precious
metal deposition.
• The sampling, sample preparation, and sample analysis programs are appropriate for
the type of mineralization.
• The existing internal laboratory Quality Assurance/Quality Control (QA/QC) program is
appropriate, and Mandalay has implemented an additional “blind” QA/QC program for
enhanced validation of the accuracy and precision of the sample results, as previously
recommended by RPA.
• Mineral Resources and Mineral Reserves were estimated according to the Canadian
Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral
Resources and Mineral Reserves dated May 10, 2014 (CIM definitions).
• Mineral Resources are reported inside vein wireframe models based on US$1,400 per
ounce gold and US$24 per ounce silver, at a 150 g/t AgEq cut-off grade, accounting
for concentrate transportation, treatment, and refining costs.
• Mineral Reserves were estimated using prices of US$1,200 per ounce for gold and
US$20 per ounce for silver, at a 184 g/t AgEq cut-off grade accounting for concentrate
transportation, treatment, and refining costs.
• The Mineral Reserves were estimated using a minimum mining width of 2.4 m. RPA is
of the opinion, based on observations on site, that the stope dilution factors could be
significantly lower with continued careful planning and execution of drilling and loading
operations. Reduction of dilution in the development drives, however, is more difficult,
as a minimum drift width is required to accommodate equipment sizes and clearance
regulations for such equipment.

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• The LOM plan, based on Mineral Reserves, shows a mine life of approximately five
and half years.
• For the LOM plan, the expected capital investment totals approximately US$88 million,
including US$28 million for mine equipment and rebuilds, US$30 million in mine
development, US$18 million in closure costs, and a contingency of US$11.5 million.
RPA finds the capital costs to be reasonable.
• The LOM plan indicates that production rate increases realized in 2014 can be
maintained. Production will come from twelve veins during the LOM, accessed from
portals, which provide flexibility and sufficient working faces to meet the average
production rate of 1,250 tpd. Production will come from the Marcela and Raul veins
from 2017 to 2019. Production will consist of approximately 80% from stoping and 20%
from ore development during the LOM.
• The mine development rates can be achieved provided sufficient manpower and
equipment is maintained.
• There may be opportunities to reduce operating costs (US$93.86/t milled during 2014),
however, it is important that cost reductions do not come at the expense of reduced
productivity. The average LOM operating cost is estimated at US$91.72 per tonne
milled.
• Given the number of potential work areas that can be developed, the current
productivity level, and the quality of the technical staff and management, RPA is of the
opinion that the LOM plan can be achieved.
• RPA has verified the economic viability of the Mineral Reserves via cash flow
modelling, using the inputs discussed in this report.
• Mandalay maintains longitudinal sections that identify the areas being mined and
indicate those areas that are within and outside of the planned mining areas to facilitate
future reconciliation. RPA supports this initiative.
RECOMMENDATIONS
RPA makes the following recommendations:
• Carry out additional density measurements on samples specific to individual veins, in
order to identify local variations, as well as confirm and support future resource
estimates.
• Develop a standard operating procedure for in-house density determinations and
implement some outside checks on the density determinations to support and confirm
in-house results.
• Carry out channel sampling across the entire face for each round, to obtain additional
information on grade distribution, especially along indistinct contacts between
mineralized and non-mineralized zones, and to determine dilution grades immediately
adjacent to veins.

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• Document standardized checks of all core and channel sample data prior to entry into
the master database.
• Sample all core intervals immediately adjacent to mineralization, to eliminate
undersampling of mineralized “shoulders”, with an additional review after assays have
been returned.
• Monitor and document the blind QA/QC results on a regular basis.
• Purchase a high grade silver certified reference material (CRM).
• Use CRMs for the “blind” QA/QC program.
• Select field core duplicates with representative ranges of grades.
• Review the channel sampling and channel sampling duplicate procedures.
• Resurvey drill hole collars that have discrepancies with the topographic surface.
• Build a relational database incorporating the lithology and structural tables.
• Digitize underground mapping and incorporate into the model.
• Review vein wireframes prior to the next resource update, as some modelled
intersections were not tied to drill holes. Seam models are very sensitive to changes
in orientation; Mandalay personnel should ensure that the vein wireframes achieve the
resource minimum width criteria.
• Carry out a structural analysis to assist in construction of future domain models.
• Develop a wireframe modelling procedure which includes wireframe model validation
to optimize the resource and diluted vein solids.
• Generate a short term block model for each vein in production to perform reconciliation
more effectively.
• Complete reconciliation on a more regular basis. Reconciliation is recommended each
quarter to permit adjustments of the yearly budget plan. This should include reconciling
tonnages and grades from stope operations to the mill production, and resource block
model, as well as confirmation of dilution factors through use of a cavity monitoring
system (CMS).
• For future mining that will be carried out on veins located under the Laguna Verde lake,
RPA recommends developing a protocol for the approach which would include drilling
of test holes above existing workings as well as out in front of the development
headings as a precaution. A crown pillar of at least 50 m thick is planned to be left in
place. Also, a program of monitoring, such as the use of extensometers, should be
developed to provide information on a continual basis to ensure that any change in
conditions is noted and mitigation measures can be taken.

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• Complete the 2015 exploration plan, consisting of geochemical sampling and a 28,000
m drill program, budgeted for approximately US$3.0 million to continue to define and
infill the south extension of Yasna, Coyita, and Kasia veins under the lake and to
explore for new veins.
TECHNICAL SUMMARY
PROPERTY DESCRIPTION AND LOCATION
The Cerro Bayo property is located in the General Carrera Province, Aisén (XI) Region, Chile,
at approximately 72°W longitude and 46.5°S latitude. The Cerro Bayo property is situated
approximately 130 km south of Coyhaique, the capital of Region XI in southern Chile, and 12
km west of the town of Chile Chico, which is six kilometres west of the border with Argentina.
LAND TENURE
Mandalay’s mining rights comprise one contiguous block of exploitation concessions
(mensuras) that covers an area of 29,495 ha and one exploitation concession in process
(manifestación) that covers an area of 45 ha. The manifestación is a classification of
concessions that were previously exploration concessions (pedimentos), but are in the process
of transforming into exploitation concessions. Mandalay is in the process of upgrading all
exploration concessions to exploitation concessions.
Mandalay owns 2,513 ha of surface rights, with another 5,373.08 ha held through surface use
agreements. All surface rights are located within the Cerro Bayo mining concessions.
Negotiations are currently being carried out with the Government to purchase the land
occupied by the mill and tailings facility.
EXISTING INFRASTRUCTURE
Cerro Bayo is a producing operation that includes a 1,650 tpd capacity flotation mill, a seven
MVA diesel plant for the mill and surface facility power, plus a 2.8 MVA diesel plant for
underground power requirements. Infrastructure at the Laguna Verde site includes an
administration building containing offices plus a cafeteria, a service building equipped with a
10 tonne crane used for equipment servicing, and a separate building containing the assay
laboratory.
The site also has a tailings facility with a capacity of approximately 2.5 million tonnes and
sedimentation basins and polishing ponds for water treatment. Explosives magazines are

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located nearby on the property, which adhere to regulation distances for explosives and
detonator magazines.
HISTORY
Gold and silver mineralization was discovered in the Cerro Bayo District (termed Fachinal at
the time), during the summer of 1984 by Freeport Chilean Exploration Company (FCEC).
Coeur subsequently purchased 100% of FCEC, including the Cerro Bayo properties, in early
1990. Construction of standard flotation mill installations started in 1994 and production
started in May 1995. Full production commenced in January 1996.
In 1995, mining started in the Laguna Verde sector of the district. Mining was concentrated in
several breccia bodies, large veins and stockworks, where three open pits were developed.
This area was the main focus of operations until 2000. Due to declining metal prices and
depletion of open pit reserves, the mine operation was suspended in November 2000.
Prior to the mine suspension in 2000, a drilling program outlined a high grade vein system near
the Cerro Bayo dome, located 14 km west of Chile Chico and 12 km east of the mill at Laguna
Verde. Coeur spent most of 2001 conducting additional infill drilling, and engineering and
economic evaluations of this area. Underground drifting commenced in November 2001,
followed by mine development. The Laguna Verde processing plant was re-started in April
2002. Operations were suspended again in 2008 due to the economic situation and depletion
of developed reserves. Mandalay bought the property from Coeur in August 2010, and mine
development began in October 2010, with processing commencing in January 2011.
Historical production from the Project area pre-2002 was reported at 2.43 million tonnes with
production of 161,200 ounces of gold and 10.56 million ounces of silver, however, no detailed
reports are available. Based on detailed records, production over the period April 2002 to
August 2008 was 2.58 million tonnes grading 4.2 g/t Au and 346.7 g/t Ag, containing 317,000
ounces of gold and 27.7 million ounces of silver.
Production by Mandalay since 2010 totals 1.4 million tonnes with average grades of 1.8 g/t Au
and 268 g/t Ag.

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GEOLOGY AND MINERALIZATION
The rocks exposed in the Cerro Bayo District are part of a thick pile of silicic volcanic rocks
assigned to the Ibañez Formation, and are believed to represent a more or less continuous
series of Jurassic to Cretaceous volcanism. The Paleozoic basement that regionally underlies
the Mesozoic volcanic rocks is not exposed in the district, at least to a depth of 370 m from the
surface, although fragments of the metamorphic rocks are contained in the overlying volcanic
strata. The Mesozoic sequence is overlain by Tertiary basalts and minor volcaniclastic rocks.
Three main district-scale structural orientations have been identified in the Cerro Bayo and
Laguna Verde areas: north-south, northeast-southwest to east-west, and northwest to
southeast. A Landsat lineament study across the district illustrates district and regional-scale
structures with similar orientations and locations as the local structures. These structures
correspond to arc-parallel (north-south), arc-normal (approximately east-west), and conjugate
transfer structures (northeast-southwest and northwest-southeast) trends. Pre- and post-
mineralization displacement is documented in all three of the structural orientations.
The Cerro Bayo District hosts at least 90 major veins, stockworks and breccias containing gold
and silver mineralization, located in six principal areas in the district. The deposits show
multiple stages of mineralization and display open-space filling and banding, typical of low-
sulphidation style epithermal mineralization. Mineralogy is complex and is associated with
alteration assemblages that suggest at least three stages of precious metal deposition.
Gold mainly occurs as inclusions in pyrite, filling cavities and irregular surfaces in strongly
fractured porous grains. It has also been detected as inclusions along cleavages in galena
and iron-deficient sphalerite. Free gold occurs in quartz-bound grains, as irregular crusts and
flakes in micro cracks cutting the gangue, and within partially oxidized sulphide minerals.
Analyses with a Scanning Electron Microscope indicate that gold is argentian (electrum) with
a silver content that may reach 40%.
Silver is contained in a variety of minerals. Sulphosalts are the most common, including
freibergite, stephanite, proustite, pyrargyrite, and polybasite. Stromeyerite is also common, as
well as native silver. Argentite/acanthite, chlorargyrite, and boleite are supergene products of
surficial oxidation. In veins and veinlets, the silver minerals form irregular bands and patchy
aggregates, and are finely disseminated in the matrix of hydrothermal and tectonic breccias.
They are commonly included along fractures in pyrite grains and are also found on the margins

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of galena aggregates. Larger sulphide grains may include sphalerite and electrum. Silver
minerals are more widespread than gold in the district.
Base metal sulphides are common, though not abundant in the district. These include mostly
sphalerite, galena, and chalcopyrite, forming irregular aggregates, stringers, and massive
veinlets. Tetrahedrite occurs rarely, as well as bornite and famatinite. Supergene base metal
minerals are rare in the area, and include covellite, chalcocite (digenite, idaite), cerussite,
smithsonite, and hydrohetearolite.
In the Guanaco and Cascada sector of the Cerro Bayo District, gold and silver mineralization
occurs in veins, vein systems and veinlets hosted in a moderately welded sequence of dacitic
and rhyolitic tuffs. The volcanic sequence is intruded by the Cerro Bayo and other dacitic
domes, considered as post-mineral events.
At Laguna Verde, gold and silver mineralization occurs in veins, hydrothermal and tectonic
breccias, stockworks (sheeted veins), and veinlets hosted in a moderately to strongly welded
sequence of rhyolitic and dacitic tuffs. Flow-banded dacitic domes intrude the volcanic
sequence at Coigues Hill, and at Cerro Bayo. Field evidence suggests post-mineral intrusion.
EXPLORATION
In 2014, exploration mostly consisted of infill and extension drilling of the existing zones of
Inferred Mineral Resources on previously known veins in the Laguna Verde, especially Coyita
and Yasna veins. Kasia vein, a new vein under the Laguna Verde lake, was included in the
current Mineral Resources. Some drilling was carried out on new targets at Esperanza and
Cerro Amarillo veins.
MINERAL RESOURCES
RPA estimated Mineral Resources for the Yasna, Fabiola, Dalila, Coyita, Dagny, Delia NW,
Delia SE, Trinidad, Kasia, Marcela Sur, and Raul veins located on the Cerro Bayo property as
of December 2014 (Table 1-1). Mineral Resources are constrained by underground vein
models for reporting purposes. The cut-off grade was estimated at 150 g/t AgEq, taking into
account the transportation, treatment, and refining costs.

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Lines based on the exploration drill holes, channel samples, and surface and underground
mapping were used in Vulcan software to create 3D vein wireframes, with a minimum thickness
of 1.2 m. Block grades were estimated by inverse distance cubed (ID3) method.
The Mineral Resource estimate and classification are in accordance with CIM definitions as
incorporated in NI 43-101.
MINERAL RESERVES
The Mineral Reserves are reported in Table 1-2. The Mineral Reserves were estimated by
Mandalay and reviewed and adopted by RPA with very slight adjustments where deemed
necessary. The cut-off grade was estimated at 184 g/t AgEq, taking into account the
transportation, treatment, and refining costs.
The tonnages and grades were estimated using Vulcan software, with veins diluted to a
minimum mining width of 2.4 m. For veins over this width, an additional 0.4 m of dilution width
was added.
MINING METHOD
Mining is carried out using a longhole retreat stoping method. Good ground conditions allow
open stoping without backfill support. Development includes driving the drifts through the vein
at a minimum size of three metres by three metres, which is required for the standard
equipment sizes utilized.
The key to meeting the LOM production targets at Cerro Bayo is maintaining development
advance in order to provide sufficient working faces for production. Access to the veins via
three separate portals and production from an average of three to four veins throughout most
of the LOM should ensure meeting production requirements. On average, approximately 81%
of production will come from the stopes, with approximately 19% coming from active
development headings. During 2014, total development averaged 21 m per day, which is
slightly lower than the planned 22 m per day. LOM development requirements average 24 m
per day, with a high of 34 m per day required during 2016. The addition of working faces over
the LOM will enable sustaining the level of development.

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MINERAL PROCESSING
The processing plant has a daily capacity of 1,650 tonnes producing approximately 25 tonnes
of concentrate with grades of 70 g/t Au to 120 g/t Au and 10,000 g/t Ag to 13,000 g/t Ag. The
process consists of crushing, primary grinding in a semi-autogenous grinding (SAG) mill,
classification in hydrocyclones, secondary grinding in a ball mill, flotation, thickening, filtration,
and concentrate storage. The mill presently uses three stockpiles for high, medium, and low
grade ore and a loader feeds the mill hopper based on the grades to provide an average feed
grade to the mill. Average mill recoveries utilized in the LOM plan are 86.2% for gold and
90.2% for silver.
The concentrate is trucked to the Port of Chacabuco, approximately 250 km from the mine
site, where it is loaded for shipment to smelters.
PROJECT INFRASTRUCTURE
The mine is well established with administration offices, catering service for the employees,
diesel power plant for the mill and surface facilities, and a separate diesel plant for the
underground facilities. A separate building houses the sample preparation and assay
laboratory. The mill operation is well run and kept clean.
There is a tailings facility with a storage capacity of 2.5 million tonnes on site. The containment
dam wall was raised during 2013 to provide sufficient capacity for the current LOM plan.
MARKET STUDIES
Mandalay has concentrate sale agreements for 2015 concentrates with Dowa Metals and
Mining Co., Ltd. of Tokyo, Japan, LS Nikko Copper Inc. in Korea, Mitsubishi Materials
Corporation of Japan, and Pan Pacific Copper Co., Ltd., of Japan. The terms and conditions
of the commercial sale are not disclosed pursuant to confidentiality requirements. RPA has
reviewed the agreements and is of the opinion that the concentrate sales terms are within
industry norms.
ENVIRONMENTAL, PERMITTING, AND SOCIAL CONSIDERATIONS
Mandalay has presented all Environmental Impact Assessments (EIA) and Environmental
Impact Declarations (DIA) to the designated authority of the Aisén Region. CMCB and
Mandalay have been processing and updating the permits required for the operations as
mining exploration has progressed and new areas have been incorporated into the mining

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operation. Current applications are submitted and processed through the Sistema de
Evaluación de Impacto Ambiental (SEIA) in Chile.
CAPITAL AND OPERATING COST ESTIMATES
The capital costs over the LOM are presented in Table 1-3.
TABLE 1-3 LOM CAPITAL COSTS
Description Units 2015 2016 2017 2018 2019+ Total
Capital Development US$000 6,673 10,584 10,434 2,874 - 30,565
Capital Equipment US$000 6,484 8,000 8,000 6,000 - 28,484
Reclamation/Closure US$000 781 1,199 19 1,208 14,247 17,454
Contingency (15%) US$000 2,091 2,967 2,768 1,512 2,137 11,475
Total US$000 16,029 22,750 21,221 11,594 16,384 87,978
The operating costs for the LOM are presented in Table 1-4.
TABLE 1-4 OPERATING COSTS
Description
US$/yr Av.
(millions)
US$/t
Mining 24.36 50.97
Processing 12.80 26.82
G & A 6.60 13.93
Total 43.60 91.72

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2 INTRODUCTION
Roscoe Postle Associates Inc. (RPA) was retained by Mandalay Resources Corporation
(Mandalay) to prepare an updated Mineral Resource and Mineral Reserve estimate and an
independent Technical Report on the Cerro Bayo Project (the Project), near Chile Chico, Chile.
The purpose of this report is to update Mineral Reserves and Mineral Resources based on
2014 drilling and development results. This Technical Report conforms to NI 43-101
Standards of Disclosure for Mineral Projects.
The Project consists of underground mines exploiting silver and gold veins, four of which are
currently being mined from three individual portal accesses. A processing facility rated at
1,650 tpd is located on the site and is operational. In August 2010, Mandalay purchased 100%
of Compañia Minera Cerro Bayo Ltda. (CMCB), then a subsidiary of Coeur d’Alene Mines
Corporation (Coeur), which owns and operates the Cerro Bayo Mine. At the time, the mine
was under care and maintenance.
The Cerro Bayo deposit was discovered in 2000 and Coeur commenced mining operations in
late 2001 with processing starting in April 2002. Coeur suspended mining operations at Cerro
Bayo in November 2008, due to the downturn in the economy, but continued exploration work
on the property in 2009. Scott Wilson Roscoe Postle Associates Inc. (predecessor to RPA)
prepared a resource estimate for the Fabiola, Dagny, and Yasna veins in February 2009, which
has been updated by RPA annually since 2011.
Mandalay commenced underground mining at Laguna Verde in September 2010, and a total
of 1.4 million tonnes ore has been produced by Mandalay since the acquisition of the Project.
SOURCES OF INFORMATION
A site visit was undertaken by Normand Lecuyer, P. Eng., RPA Principal Mining Engineer, and
Rosmery Cardenas, MAusIMM CP (Geo), RPA Senior Geologist, from January 8 to 10, 2014.
During the site visit, RPA inspected all of the underground operations, the processing plant,
and all surface infrastructure including the assay laboratory.
The report was prepared by Mr. Lecuyer and Ms. Cardenas. Mr. Lecuyer is an independent
Qualified Person (QP) and is responsible for Sections 1 to 3, 5, 13, 15 to 22, 24 and parts of

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Sections 25, 26, and 27. Ms. Cardenas is an independent QP and is responsible for Sections
4, 6, 7 to 12, 14, 23, and parts of Sections 25, 26, and 27.
Discussions were held with the following personnel from Mandalay Resources:
• Mr. Dominic Duffy, P.Eng., Chief Operating Officer
• Mr. Ronald Luethe, P. Geo., Country Manager, Chile
• Mr. Kalenci Flores Mercandante, General Manager
• Mr. Marcelo Herrera, Superintendent of Milling Operations
• Mr. Marcos Cuevas Benavides, Chief Engineering Department
• Mr. Ariel Pablo Rolando, Superintendent of Geology
• Mr. Jose Javier Santabarbara, Modelling and Resource Geologist, Mandalay
• Mr. Roberto Casanga, Superintendent of Laboratory
The documentation reviewed, and other sources of information, are listed at the end of this
report in Section 27 References.

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LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the metric system. All currency in this
report is US dollars (US$) unless otherwise noted. The exchange rate used in this report is
US$1 = CLP 500.
a annum kWh kilowatt-hour
A ampere L litre
bbl barrels lb pound
btu British thermal units L/s litres per second
°C degree Celsius m metre
C$ Canadian dollars M mega (million); molar
cal calorie m2
square metre
cfm cubic feet per minute m3
cubic metre
cm centimetre µ micron
cm2
square centimetre MASL metres above sea level
d day µg microgram
dia diameter m3
/h cubic metres per hour
dmt dry metric tonne mi mile
dwt dead-weight ton min minute
°F degree Fahrenheit µm micrometre
ft foot mm millimetre
ft2
square foot mph miles per hour
ft3
cubic foot MVA megavolt-amperes
ft/s foot per second MW megawatt
g gram MWh megawatt-hour
G giga (billion) oz Troy ounce (31.1035g)
Gal Imperial gallon oz/st, opt ounce per short ton
g/L gram per litre ppb part per billion
Gpm Imperial gallons per minute ppm part per million
g/t gram per tonne psia pound per square inch absolute
gr/ft3
grain per cubic foot psig pound per square inch gauge
gr/m3
grain per cubic metre RL relative elevation
ha hectare s second
hp horsepower st short ton
hr hour stpa short ton per year
Hz hertz stpd short ton per day
in. inch t metric tonne
in2
square inch tpa metric tonne per year
J joule tpd metric tonne per day
k kilo (thousand) US$ United States dollar
kcal kilocalorie USg United States gallon
kg kilogram USgpm US gallon per minute
km kilometre V volt
km2
square kilometre W watt
km/h kilometre per hour wmt wet metric tonne
kPa kilopascal wt% weight percent
kVA kilovolt-amperes yd3
cubic yard
kW kilowatt yr year

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3 RELIANCE ON OTHER EXPERTS
This report has been prepared by Roscoe Postle Associates Inc. (RPA) for Mandalay
Resources Corporation (Mandalay). The information, conclusions, opinions, and estimates
contained herein are based on:
• Information available to RPA at the time of preparation of this report,
• Assumptions, conditions, and qualifications as set forth in this report, and
• Data, reports, and other information supplied by Mandalay and other third party
sources.
For the purpose of this report, RPA has relied on ownership information provided by Mandalay.
RPA has not researched property title or mineral rights for the Project and expresses no
opinion as to the ownership status of the property.
RPA has relied on Mandalay for guidance on applicable taxes, royalties, and other government
levies or interests, applicable to revenue or income from the Project.
Except for the purposes legislated under applicable securities laws, any use of this report by
any third party are at that party’s sole risk.

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4 PROPERTY DESCRIPTION AND LOCATION
The Cerro Bayo property is located in the General Carrera Province, Aisén (XI) Region, Chile,
at approximately 72°W longitude and 46.5°N latitude. The Cerro Bayo property is situated
approximately 130 km south of Coyhaique, the capital of Region XI in southern Chile, and 12
km west of the town of Chile Chico, which is six kilometres west of the border with Argentina
(Figure 4-1). The centre of the currently defined mineralization is located at the boundary of
UTM Zones 18S and 19S, at approximately 725,930 mE and 4,734,910 mN (UTM Zone 18S),
and 269,810 mE and 4,846,020 mN (UTM Zone 19S).
LAND TENURE
CMCB mining rights comprise one contiguous block of exploitation concessions (mensuras)
that covers an area of 29,495 ha and one exploitation concession in process (manifestación)
that covers an area of 45 ha. The manifestación is a classification of concessions that were
previously exploration concessions (pedimentos) but are in the process of transforming into
exploitation concessions. Mandalay is upgrading all exploration concessions into mensuras.
The property list is provided in Table 4-1 and the concession map is shown in Figure 4-2.
TABLE 4-1 PROPERTY LIST
National Roll
Number
Exploitation Concessions
Area
(ha)
11201-0149-4 ARROYO 1-25 240
11201-0150-8 ARROYO 31-40 96
11201-0141-9 BUITRERA 61-90 300
11201-0142-7 BUITRERA 91-120 300
11201-0136-2 GUANACA 101-106 56
11201-0137-0 GUANACA 131-158 276
11201-0138-9 GUANACA 161-190 300
11201-0139-7 GUANACA 191-220 300
11201-0140-0 GUANACA 221-243 215
11201-0082-K JARA 1-100 990
11201-0143-5 NIEVES 1-30 300
11201-0144-3 NIEVES 31-60 300
11201-0145-1 NIEVES 61-90 300
11201-0146-K NIEVES 91-120 300
11201-0147-8 NIEVES 121-150 300

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National Roll
Number
Area
(ha)
11201-0148-6 NIEVES 151-180 300
11201-0125-7 LAPIZ 1-7 70
11201-0126-5 LAPIZ 21-32 120
11201-0127-3 LAPIZ 41-52 120
11201-0128-1 LAPIZ 61-72 120
11201-0129-K LAPIZ 81-92 120
11201-0130-3 LAPIZ 101-109 84
11201-0131-1 PERRA 101-123 225
11201-0132-K PERRA 131-160 300
11201-0133-8 PERRA 161-190 300
11201-0134-6 PERRA 191-220 300
11201-0135-4 PERRA 221-244 231
11201-0155-9 CARRERA 1-37 370
11201-0085-4 MALLINES 1-100 990
11201-0091-9 HORQUETAS 1-75 750
11201-0087-0 BUITRERA 1-60 600
11201-0092-7 BRILLANTES 1-100 990
11201-0088-9 BAYO 1-70 700
11201-0089-7 MESETA 1-100 990
11201-0090-0 AGUILA 1-100 990
11201-0086-2 SINTER 1-100 990
11201-0099-4 BAHIA 1-100 990
11201-0097-8 VERDE 1-60 600
11201-0096-K PERRA 1-66 660
11201-0098-6 VICUNA 1-45 426
11201-0094-3 LARGA 1-84 840
11201-0093-5 CASCADA 1-100 990
11201-0095-1 ALPACA 4-15, 19-45 390
11201-0083-8 GUANACA 6-17, 23-34, 38-87 717
11201-0084-6 LAGUNA 10-20, 30-40, 45-60, 62-80, 82-100 760
11201-0103-6 RIBERA 6-12, 18-24, 30-36, 41-48, 50-60 400
11201-0100-1 ROCA 5-15, 20-30, 32-100 900
11201-0102-8 PUNTA 3-15, 18-30, 33-45, 47-60, 62-75, 78-81, 88- 90 740
11201-0101-K ORILLA 12-15, 27-30, 37-45, 47-60, 62-75 450
11201-0203-2 EDITH 3 1/60 300
11201-0204-0 EDITH 4 1/60 300
11201-0205-9 EDITH 5 1/60 300
11201-0206-7 EDITH 6 1/60 300
11201-0207-5 EDITH 7 1/28 140
11201-0208-3 EDITH 8 1/56 280
11201-0209-1 EDITH 9 1/56 280
11201-0210-5 EDITH 10 1/38 154

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National Roll
Number
Area
(ha)
11201-0211-3 EDITH 11 1/60 300
11201-0215-6 EDITH 12 1/40 200
11201-0216-4 EDITH 13 1/60 300
11201-0217-2 EDITH 14 1/60 300
11201-0218-0 EDITH 15 1/50 250
11201-0219-9 EDITH 16 1/50 250
11201-0220-2 EDITH 17 1/43 215
11201-0199-0 MIRASOL 1 1/56 560
11201-0200-8 MIRASOL 2 1/36 360
11201-0201-6 MIRASOL 3 1/36 360
11201-0212-1 MIRASOL 4 1/20 200
11201-0213-k MIRASOL 5 1/30 300
11201-0214-8 MIRASOL 6 1/45 450
11201-0221-0 JOE 1 1/20 100
11201-0222-9 EDITH 2 1/40 200
Total 29,495
National Roll Number Exploitation Concessions – In Process Area (ha)
Pending July 2015 MIRASOL 7 1/15 45
Total 45
A pedimento is valid for a maximum period of two years, at which time it may be either reduced
in size by 50% of the initial area and renewed for an additional two year period, or converted
to a manifestación. A manifestación is valid for 220 days and may be upgraded to a mensura
if a request is submitted within this time period.
The mensuras have been surveyed by a government licensed surveyor and subjected to field
inspection and verification prior to technical approval. Once constituted, an annual fee is
required to maintain the mensuras in good standing. Mandalay’s annual fee is CLP
133,907,951 (or approximately US$280,000 at an exchange rate of CLP 500 : US$1). There
is no expiration date for mensuras as long as the required fees have been submitted in a timely
fashion.
Mandalay has indicated to RPA that the subject concessions are currently in good standing
and that all required payments to the Chilean government have been made.

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SURFACE RIGHTS
CMCB owns 2,513 ha of surface rights, with another 5,373.08 ha held by surface use
agreements. All surface rights are located within the Cerro Bayo mining concessions. These
surface use agreements include renewable contracts with the following entities:
• María Helena Fica Burgos: 581 ha
• Héctor Crespo: 949,17 ha
• Yamil Hasen: 600 ha
• Hasen Burgos: 1.050 ha
• Raúl Lambert: 166,2 ha
• Waldemar: 650 ha
• Cerro Largo: 700 ha
• Suc Octavio Vásquez: 587 ha
• Arrendamiento al Fisco Sector Laguna Verde 89,71 ha
Negotiations are currently being carried out with the Government to purchase the land
occupied by the mill and tailings facility.
TAXES AND ROYALTIES
The taxes and royalties that apply to the Cerro Bayo Project were provided by Mandalay and
are listed below:
• There is a 2% net smelter return (NSR) royalty paid to Coeur on cumulative gold
production over 50,000 ounces and cumulative silver production over five million
ounces sold from the property. This NSR was applied to the cash flow calculations.
• The CMCB tax rate within Chile is 20% and this was applied to the cash flow. There is
also a Value Added Tax (VAT) in Chile, although it does not affect CMCB since, as an
exporter, 100% is recovered.
• There is a Mining Royalty applied by the Chilean government for all material sold
exceeding an equivalent of 12,000 t of refined copper sold. This royalty was applied to
the cash flow estimates using a copper price of US$3.50 per pound.
• All permits for the Project have been received and are in good standing.
RPA is not aware of any environmental liabilities on the property. Mandalay has all required
permits to conduct the proposed work on the property. RPA is not aware of any other
significant factors and risks that may affect access, title, or the right or ability to perform the
proposed work program on the property.

CHILE
ARGENTINA
Pacific
Ocean
Gulfo de
Penas
Gulfo
Sarmiento
de Gamboa
Atlantic
Ocean
Mar Chileno
Mar
Chileno
R
ioItata
Puerto Williams
FuerteBulnes
Puerto Hope
Porvenir
Puerto Curtze
Puerto Delgada
Puerto Progreso
Bahia Thetis
San Pablo
Rio Grande
San Sebastian
Monte Dinero
Cancha Carrera
El Calafate
Punta Arenas
Puerto Alegre
Puerto
Guadal
Chile Chico
Puerto Chacabuco
Bonito
Puerto Cisnes
Puerto Tictoc
Puerto Puyuguapi
Puerto Natales
Hill Station
Tres Lagos
Las Horquetas
Bajo Caracoles
Coihaique
Quellón Chaiten
Chonchi
Ayacara
Ancud
Los Muermos
Guayusca
Caunao
Osorno
Puerto Montt
Puerto Yartou
Panguipulli
Puerto Saavedra
Victoria
Canete
Llico
ParralCobquecura
Perito Moreno
Loncopue
Valdivia
Talcahuano Chillan
Los Angeles
Concepcion
Temuco
Tolten
Comodoro Rivadavia
AISEN
ARAUCANIA
BIO-BIO
LOS LAGOS
MAGALLANES
Península
de
Taitao
ArchipiélagoDesolación
Tierra del Fuego
Cabo de Hornos
Isla de
los Estados
40°
38°
68°
68° 66° 64°
48°
54°
56°
56°
54°
48°
46°
52
52
46°
44°
50°
50°
44°
42° 42°
72°
72°76° 74°
70°
70°
40°
38°
Regions of Chile
I
II
III
IV
V
RM
VI
VII
VIII
IX
X
XI
XII
XIV
XV
Tarapacá
Antofagasta
Atacama
Coquimbo
Valparaíso
Santiago Metropolitan Region
O’Higgins
Maule
Biobío
Araucanía
Los Lagos
Aisén
Magallanes
Los Ríos
Arica-Parinacota
CHILE
Area of
Interest
CERRO BAYO PROJECT
N
0
2000 100
100
300 kilometres
200 miles
March 2015
Source: Map No. 4395, UNITED NATIONS, 2010.
Legend:
National Capital
Administrative Region
apitalC
City, Town
Major Airport
National Boundary
Administrative Region
oundaryB
Main Road
Secondary Road
Railroad
Location Map
Cerro Bayo Project
Mandalay Resources Corporation
Region XI (Aisén), Chile
Figure 4-1
4-5
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EDITH 3 1/60
EDITH 6 1/60
EDITH 5 1/60
EDITH 4 1/60
EDITH 8 1/56
EDITH 9 1/56
EDITH111/60
EDITH 17 1/43
EDITH131/60
EDITH141/60
EDITH 10 1/38
EDITH151/50
EDITH161/50
EDITH
EDITH 7 1/28
MIRASOL 6 1/45
1/30
MIRASOL 5
1/20
MIRASOL 4
MIRASOL 1 1/56
MIRASOL31/36MIRASOL21/36
GUANACA
HORQUETAS1-75
BUITRERA1-60
ALPACA1-45
NIEVES1-30
NIEVES31-60
NIEVES61-90
NIEVES91-120
NIEVES121-150
NIEVES151-180
BUITRERA61-90
BUITRERA91-120
GUANACA 161-190
GUANACA 191-220
GUANACA
EDITH 2 1/40
JO
E
1
JARA 1-100
BAHIA 1-100
ROCAS
AGUILA1-100SINTER1-100
LARGA 1:84
MESETA1-100
LAGUNA
BAYO 1-70
ORILLA
12-15, 27-30,
6-12, 18-24,
3-15, 18-30, 33-45,
5-15, 20-30, 32-100
CASCADA1-100
MALLINES1-100
PERRA1-66
BRILLANTES1-100
VERDE1-60
RIBERA
PERRA161-190
PERRA191-220
PERRA221-244
PERRA131-160
GUANACA 221-243
LAPIZ
LAPIZ
LAPIZ
LAPIZ
LAPIZ
LAPIZ
ARROYO 31-40
256000
256000
260000
260000
264000
264000
268000
268000
272000
272000
276000
276000
280000
280000
284000
284000
288000
288000
4832000
4832000
4836000
4836000
4840000
4840000
4844000
4844000
4848000
4848000
4852000
4852000
PUNTA
VICUNA1-45
ARROYO 1-25
CARRERA 1-37
10-20,30-40,45-60,
62-80,82-100
6-17,23-24,38-87
GUANACA 101-106
81-92
41-52
21-32
61-72
101-109
1-7
PERRA101-123
131-158
12 1/40
62-75
50-60
88-90
37-45, 47-60,
30-36, 41-48
47-60, 62-75,78-81,
MIRASOL 7 1/15
Exploitation Concession
Legend:
Exploitation Concession in Process
0 1000
Metres
2000 3000 4000
Local Coordinates
N
March 2015 Source 5: Mandalay Resources Corp., 201 .
Cerro Bayo Project
Property Map
Figure 4-2
4-6
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5 ACCESSIBILITY, CLIMATE, LOCAL
RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
ACCESSIBILITY
The site is approximately 30 km from the town of Chile Chico and accessible via Route 265, a
paved highway. This connects to Route 7, which ties to the city of Coyhaique (population
approximately 50,000 people) and to the port of Puerto Chacabuco approximately 250 km by
road from the mine. There is also ferry service across Lake General Carrera from Chile Chico
to Ibañez, which also allows access to Puerto Chacabuco. The concentrate is trucked from
the mine, usually once per week, to Puerto Chacabuco where it is loaded on ships for delivery
to smelting customers overseas.
CLIMATE
The climate in the area is sub-Mediterranean, with the winter months of June to August at
temperatures of -10ºC to 0ºC, with light snowfall and rain. Summers are warm and dry with
temperatures in the high teens to low 20ºC. Average annual precipitation is approximately 300
mm, most of which is rain. The humidity is generally around the 50% mark given the proximity
of Lake General Carrera. The area is located on the east side of the Andes Mountains and on
the edge of the Patagonia area, which is commonly windy. The climate permits year round
operation.
LOCAL RESOURCES
Most of the required labour for the mine is sourced locally, with some of the staff coming from
neighbouring countries such as Argentina. Supplies can be sourced from Chile Chico and
other supply centres in Chile, such as Coyhaique and Santiago.
INFRASTRUCTURE
At the time of acquisition by Mandalay, the surface and underground infrastructure at the Cerro
Bayo included the following:
• A 1,650 tpd mill.

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• A tailings pond with a capacity of approximately 2.5 million tonnes (measuring
approximately 240 m by 600 m), and a process water pond (measuring
approximately 210 m by 385 m) from which water is recycled.
• A processing plant building measuring 22 m by 82 m.
• A 1,500 tonne coarse ore bin and conveyor.
• A 7 MVA power plant building for the processing plant, measuring 16 m by 30 m.
• An administration building 20 m by 59 m and a lab building measuring 17 m².
• A 27 m by 32 m service building with a 10 t crane.
• A pumping station.
• Three declines, each with and a series of ramp-connected levels, and associated
power, ventilation and dewatering infrastructure.
The power supply for the site is provided via the 7 MVA plant for the processing plant and
surface facilities and a 2.8 MVA plant at the Dagny site for the underground mining operations.
The plants deliver both 3.3 kV and 400 V power.
PHYSIOGRAPHY
The Project lies on the eastern side of the Andes Mountains at elevations that range from
approximately 200 MASL to 1,400 MASL. The topography varies from steep mountain valleys
to rolling farmland; the latter was largely agricultural prior to the eruption of the Hudson volcano
in 1991, which covered the area in ash. Subsequent recovery of vegetation in the area is
limited to grasses and trees. The landforms in the area consist of glacially eroded valleys and
glacial till soils deposits.
WATER SUPPLY
The process water is currently obtained from Lake General Carrera, surface streams, and
tailings recirculation. The water rights retained are currently sufficient for the plant. These
rights include a total of 680 L/s from Lake General Carrera and several additional smaller rights
of approximately 135 L/s. The list of water permits is provided in Table 5-1.

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TABLE 5-1 WATER PERMITS
Location Date Resolution No. Qty. (L/s)
Lago General Carrera Feb. 1993 43 200
Lago General Carrera Feb. 1994 30 200
Lago General Carrera Jan. 1994 45 80
Lago General Carrera Apr. 1993 104 200
Estero El Rodeo Oct. 1993 452 100
Estero La Tina Oct. 1993 441 35
Total 815
There are sufficient surface rights for mining operations and related infrastructure.

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6 HISTORY
This section has been largely referenced from Sims (2010).
REGIONAL HISTORY
Gold and silver mineralization was discovered in the Cerro Bayo District (termed Fachinal at
the time), during the summer of 1984 by Freeport Chilean Exploration Company (FCEC).
Drilling of veins and potential bulk-minable stockworks commenced in 1986, and continued
until mid-1989. Exploration activities were discontinued in August 1989 due to Freeport’s
decision to terminate its Chilean investments.
Coeur subsequently purchased 100% of FCEC, including the Cerro Bayo property, in early
1990. CDE Chilean Mining Corporation, a wholly owned subsidiary of Coeur, resumed
evaluation of the area in the second quarter of 1990. Evaluation of the Project was continued
by Coeur South America (CSA) and subsequently, CMCB, both subsidiaries of Coeur. Infill
and step-out drilling and tunneling carried out from 1990 to 1993 resulted in an open pit and
underground reserve, followed by a feasibility study and production decision in mid-1994.
Construction of standard flotation mill installations started in 1994 and production started in
May 1995. Full production commenced in January 1996.
Mining was concentrated on several breccia bodies, large veins, and stockworks in the Laguna
Verde area, where three pits were developed. This area was the main focus of operations
until 2000. Due to declining metal prices and depletion of open pit reserves, the mine operation
was suspended in November 2000.
Prior to the mine suspension in 2000, a drilling program outlined a high grade vein system near
the Cerro Bayo dome, located 14 km west of Chile Chico and 12 km east of the mill at Laguna
Verde. Coeur spent most of 2001 conducting additional infill drilling, and engineering and
economic evaluations of this area. Underground drifting commenced in November 2001,
followed by underground mine development. The Laguna Verde processing plant was re-
started in April 2002.

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Production continued in 2003, from underground, as well as the Furioso (a subsidiary deposit
located 130 km SW of Chile Chico) and Tranque open pits, as well as from mineral purchased
from Coeur’s Mina Martha mine located in Argentina. Exploration and development drilling
also continued through 2003. A pre-feasibility study was completed in 2004 for the expansion
of CMCB’s operations to include heap leaching, however, CMCB decided not to proceed with
heap leaching.
Production continued from both open pit and underground sources in 2005. From 2006 to
2008, production was limited to only underground mining. Mining and processing operations
were suspended in late 2008 due to diminishing reserves and the global financial crisis.
A full geological review of Laguna Verde commenced in early 2007 to identify potential
exploration targets. Detailed surface mapping and channel sampling resulted in the surface
delineation of three main structures (Dagny, Fabiola and Coyita) characterized by exposures
of altered fractures, scattered zones of narrow veinlets, and some isolated outcrops of narrow
veins. Subsequent drilling and additional surface mapping identified up to six mineralized
veins, including the Delia and Yasna veins. Exploration continued during 2009 resulting in
reporting of Mineral Resources and Mineral Reserves.
Test geochemical studies were undertaken in 2009 in the Laguna Verde veins to assess the
possibility of using trace elements to determine the depth of mineralized shoots within the
veins. A series of vertical profiles were sampled in the Dagny and Delia veins, using surface
and core samples. Results were indeterminate and indicated that precious metal and trace
element anomalies (As, Ba, Cu, Pb, Zn, Mn, Sr) are restricted to the elevation in which shoots
develop (between 100 MASL and 220 MASL), decreasing upwards, to surface.
In August 2010, Mandalay purchased 100% of CMCB, then a subsidiary of Coeur, which owns
and operates the Cerro Bayo Mine in Chile. The mine was on care and maintenance from
October 2008 to September 2010 when Mandalay restarted mining. Processing commenced
in January 2011, with the first shipment of concentrate in February 2011.
HISTORIC RESOURCE ESTIMATES
CMCB reported mineral resources and mineral reserves from 2003 to 2008. Historical mineral
resources are presented in Table 6-1 and historical mineral reserves are presented in Table
6-2. The mineral resources are exclusive of the mineral reserves.

TABLE 6-1 HISTORIC MINERAL RESOURCES
Measured Resources Indicated Resources Inferred Resources
Year-
End
US$/oz
Au
Us$/oz
Ag
Cut-off
Grade
(AuEq g/t)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000)
Ag
(g/t)
Ag
Ounces
(000)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000)
Ag
(g/t)
Ag
Ounces
(000)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000)
Ag
(g/t)
Ag
Ounces
(000s)
2003 375 5.25 3.03 to 5.81 418.9 5.5 74.1 315 4,243 2,605.2 3.12 261 151 12,456.8 713.6 3.95 90.6 238 5,461
2004 390 6.00 3.03 to 5.81 583 3.45 64.6 197 3,691 1,450 2.38 110.9 113 5,271 1,441 2.88 133.4 161 7,462
2005 410 6.50 3.03 to 5.81 599 4.41 85 220 4,237 1,413 2.69 122.2 128 5,797 1,719 3.84 212 279 15,414
2006 475 8.00 4.0 to 5.0 413 5.67 75.3 321 4,267 659 4.7 99.6 209 4,436 1,204 5.37 207.7 309 11,944
2007 600 11.00 5.0 478.9 5.09 78.4 374 5,764.4 669.2 4.72 101.5 209 4,490.3 1,451 4.66 217.4 350 16,321.6
2008 750 13.25 5.0 287 5.28 49 326. 2 3,005 537 4.27 74 336. 9 5,816 1,217 4.02 157 368.9 14,436
From Sims, 2010
TABLE 6-2 HISTORIC MINERAL RESERVES
Proven Reserves Probable Reserves Total Proven and Probable Reserves
Year-
End
US$/o
z Au
US$/oz
Ag
Cut-off
Grade
(AuEq g/t)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000)
Ag
(g/t)
Ag
Ounces
(000)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000s)
Ag
(g/t)
Ag
Ounces
(000)
Tonnes
(000)
Au
(g/t)
Au
Ounces
(000)
Ag
(g/t)
Ag
Ounces
(000s)
2003 375 5.25 4.7 to 5.3 265.5 5.25 44.8 278 2,375.7 319.6 4.77 49 292 3,001.3 585.1 4.98 93.8 286 5,377
2004 390 6.00 4.7 to 5.3 305 4.41 43.2 258 2,533 477 4.74 72.7 233 3,576 782 4.61 115.9 243 6,109
2005 410 6.50 4.7 to 5.7 398 5.31 67.9 294 3,764 450 4.4 63.7 257 3,712 848 4.83 131.6 274 7,476
2006 475 8.00 5.0 to 5.83 340 6.86 75 357 3,902 235 6.22 47 297 2,242 575 6.6 122 332 6,144
2007 600 11.00 6.0 399.1 5.23 67.1 334 4,280.2 309.7 4.47 44.5 297 2,954.2 708.8 4.9 111.6 317 7,234.3
2008 750 13.25 5.8 - - - - - 496 2.39 38.1 349 5,563.8 496 2.39 38.1 349 5,563.8
From Sims, 2010
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Page6-3
MandalayResourcesCorporation–CerroBayoProject,Project#2366
TechnicalReportNI43-101–March13,2015

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RPA did not review historic resource and reserve data, and therefore cannot comment on the
validity or reliability of these historic mineral resources and reserves, as it is unknown how they
were determined. These are relevant as these indicate the potential mineralization on the
project. These have been superseded by the current resource and reserve estimates in this
report and should not be relied upon. A Qualified Person has not done sufficient work to
classify the historical estimates as current Mineral Resources or Mineral Reserves and
Mandalay is not treating the historical estimates as current Mineral Resources or Mineral
Reserves
HISTORIC PRODUCTION
The first mining in the district was focused on surface mining in the Laguna Verde zone
(formerly termed the Fachinal area) from 1995 to 2000. From May 2002 to 2008, underground
mining was carried out primarily to the east, in the Cerro Bayo and Cascada areas, and from
the Furioso and Tranque open pits. In 2008, mining commenced at the Coigues Este area of
Laguna Verde, involving pre-production development to establish access to the Dagny and
Fabiola veins. Operations terminated before production from the Dagny and Fabiola veins.
Production from the Project area pre-2002 was reported at 2.43 million tonnes with production
of 161,200 ounces of gold and 10.56 million ounces of silver but detailed reports are not
available. Between 2002 and 2008, a total of 2.6 Mt ore was processed by the Cerro Bayo
plant, including during 2003 to 2007, ore from Coeur’s Martha mine in Argentina. The Cerro
Bayo Project was under care and maintenance from late 2008 through August 2010, with no
production. Operations at Cerro Bayo were suspended to conserve existing Mineral Reserves
and focus on exploration and development of new discoveries in the Laguna Verde area and
existing veins.
Production since 2010 is summarized in Table 6-3.
TABLE 6-3 PRODUCTION HISTORY
Item Units 2010 2011 2012 2013 2014 Total
Tonnes dry t 12,048 207,783 358,944 385,221 452,429 1,416,425
Grade Au g/t 0.87 1.06 1.71 2.02 2.19 1.8
Grade Ag g/t 282 222 285 288 259 268

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7 GEOLOGICAL SETTING AND
MINERALIZATION
REGIONAL GEOLOGY
The Cerro Bayo District is situated within a 250 km long north-south Mesozoic volcanic belt
that lies near the boundary between an eastern craton (Patagonian Plateau) and a western
magmatic arc (Patagonian Cordillera). Vast amounts of silicic to intermediate, calc-alkaline
volcanic rocks were erupted during Jurassic to Middle Cretaceous times in a sub-aerial, intra-
arc to back-arc environment, and deposited over a Late Paleozoic accretionary basement
prism. The volcanic pile contains large volumes of rhyolitic to dacitic ash flow tuffs and
pyroclastic rocks interpreted to be associated with large volcanic structures. Marine
sedimentary horizons deposited during restricted transgressions that occurred in the
Cretaceous and Tertiary Periods are interbedded with the volcanic rocks. The belt is
unconformably overlain by plateau basalts that range in age from Early to Late Tertiary.
Intrusive rocks are mainly exposed west from Cerro Bayo. They form the Patagonian Batholith,
core of the Andes in the region, and intrude Late Paleozoic fore-arc assemblages. The
Batholith is composed of a variety of granitoids that range in age from Jurassic to Miocene,
though most were emplaced in the Early to Middle Cretaceous. Small intrusive bodies have
been identified east of the Patagonian Batholith and are represented by coeval fine-grained
porphyries, Cretaceous rhyolitic and dacitic domes (such as the Cerro Bayo and Mallines
domes), and Tertiary dioritic-gabbroic porphyries and plugs. The distribution of plutons in the
region suggests the magmatic arc had oscillatory east-west behaviour since the Jurassic, a
feature that contrasts with the typical eastward migration of the central and northern Chile
magmatic arc.
Crustal shortening and deformation was less in the Aysén area of southern Chile than in other
Andean regions. It occurred mainly in the Middle Cretaceous resulting in gentle folds and
steep northeast normal faults. Major east-west to northeast fracture zones are also important
in the region with the topography being exaggerated by Pleistocene glacial erosion that

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modified the present topographic features such as the Lake General Carrera. The largest
regional structure is the Liquiñe-Ofqui fault, a large transform zone that controlled the
emplacement of Cenozoic eruptive centres, that locally overlap the Batholith, and along which
the coastal area appears to have been northerly displaced.
Figure 7-1 shows the regional geology.

Quaternary
Tertiary
Cretaceous
Jurassic-Cretaceous
Jurassic
Triassic
Carboniferous-Permian
Igneous and Metamorphic Rocks
Paleozoic
Precambrian-Paleozoic
Quaternary Volcanics
Cretaceous-Tertiary Volcanics
Mesozoic Volcanics
Mesozoic-Cenozoic Intrusives
Paleo-Mesozoic Intrusives
Sedimentary Rocks
Other Units
Water
Glacial Ice
Unmapped Area
ARGENTINA
CHILE
PACIFIC
OCEAN
ICE
ICE
ICE
U
ICE
ICE
ICE
ICE
U
U
U
U
U
U
36°
40°
44°
44°
48°
48°
48°
48°
52°
52°
32°
28°
24°
20°
20°
78°
78°
66°72°
72°
72°
66°
South
America
CHILE
Interest
Area of
CERRO BAYO PROJECT
CERRO BAYO
PROJECT
N
N
0 200 800
Kilometres
400 600
0 200
Kilometres
400
March 2015
Source: www.geology.about.com, 2012.
Figure 7-1
Regional Geology
Cerro Bayo Project
7-3
www.rpacan.com

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LOCAL AND PROPERTY GEOLOGY
The rocks exposed in the Cerro Bayo District are part of a thick pile of silicic volcanic rocks
assigned to the Ibañez Formation, and are believed to represent a more or less continuous
record of Jurassic to Cretaceous volcanism. The Paleozoic basement that regionally underlies
the Mesozoic volcanic rocks is not exposed in the district, at least to a depth of 370 m from the
surface, although fragments of the metamorphic rocks are contained in the overlying volcanic
rocks. The Mesozoic units are overlain by Tertiary basalts and minor volcaniclastic rocks.
The volcanic sequence that hosts the precious metal mineralization is interpreted to be related
to a system of large volcanic centers and rhyolitic domes, the most prominent being the Cerro-
Bayo-Mallines dome complex, which is hosted in a regional north-south trending fracture zone.
The volcanic sequence consists of alternating units of pyroclastic rocks of rhyolitic to dacitic
composition, including basal surge deposits, interbedded with ash fall tuffs, lavas, and
sediments. The older units are exposed at Laguna Verde, while the youngest are exposed at
Brillantes. The thickness of individual flows varies from tens to over a hundred meters,
however, an estimate of the total thickness of the sequence is difficult to determine due to
block faulting of the units. Several volcanic cooling units displaying varying degrees of welding
are recognized in the area. Radiometric dates ranging from 130 Ma to 159 Ma have been
produced in volcanic and intrusive rocks from the Ibañez Formation south of the Cerro Bayo
District using K/Ar and Ar/Ar methods.
Extensive basaltic flows (Meseta Lago Buenos Aires Formation) top the sequence to the south
of the district, representing the westernmost outcrops of a large basaltic province. A 300 m
thick sequence of olivine tholeiites to alkaline basalts is exposed, consisting of five metre to
25 m thick flows, locally separated by interflow detrital or tuffaceous horizons. Radiometric
dating indicates two main cycles of effusion, during the Eocene and Miocene to Pliocene
respectively.
Intrusive rocks are sparsely exposed at Cerro Bayo, and are restricted to Mesozoic and
Tertiary subvolcanic domes, plugs, and dyke swarms of varying compositions. Mesozoic
intrusions are generally sub-circular, flow-banded rhyolitic and dacitic domes characterized by
columnar jointing and sharp walls that rise 100 m to 250 m above the surface. The most
prominent of these is the Cerro Bayo Dome. Their emplacement is controlled by deep regional
north-south fractures and/or intersections of major faults. The domes and a set of dacitic flow-

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banded dikes are estimated to be cogenetic with the felsic tuffs, predating and postdating the
main mineralization events. Andesitic dike swarms controlled by east-northeast fractures are
common across the district, postdating mineralization. Tertiary necks and plugs of massive
basalts and dioritic-gabbro porphyries are exposed in the southern highlands of the district,
generating local argillization of the host rocks. These bodies are cogenetic with the Tertiary
basaltic volcanism.
STRUCTURAL GEOLOGY
Three main district-scale structural orientations have been identified in the Cerro Bayo and
Laguna Verde areas, north-south, northeast-southwest to east-west, and northwest to
southeast. A Landsat lineament study across the district illustrates district and regional-scale
structures with similar orientations and locations as the local structures. These structures
correspond to arc-parallel (north-south), arc-normal (approximately east-west), and conjugate
transfer structure (northeast-southwest and northwest-southeast) trends. Pre- and post-
mineralization displacement is documented in all three of the structural orientations.
ARC-PARALLEL STRUCTURES
Arc-parallel structures are part of a north-south oriented, deep-seated regional fault system
that controls the emplacement of the Cerro Bayo and other domes in the area, as well as some
veins. At Laguna Verde, a north-south to north-northeast arcuate fault system assumed to be
related to the arc-parallel structures contains brecciated veins and breccias with silver-gold-
molybdenum-lead-zinc mineralization. The entire district, particularly the Cerro Bayo area, is
contained within the arc-parallel structural corridors.
ARC-NORMAL STRUCTURES
Arc-normal structures are orientated east-west and are the least frequent in number. They
consist of faults with very large displacements, and control the southern boundary of the
Brillantes zone and the boundary between the southern Cerro Bayo area and the Raul Block.
Indications of dip-slip movements in excess of 400 m are suggested based on displacement
of volcanic units.
CONJUGATE TRANSFER STRUCTURES
Two main sets of structures are grouped within the conjugate transfer structures. The most
important is the northwest-southeast fracture system that controls the majority of the main

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stage precious metal epithermal veins, such as Lucero and Javiera at Cerro Bayo, the
Guanaco vein system at the Guanaco Block, and Delia, Dagny and Tranque veins at Laguna
Verde. A second structural system is a late stage, post-mineralization, right lateral east-
northeast fault system responsible for the block faulting that formed the present day
topography. The combined effects of the arc-normal and the northeast-southwest transfer
structures generally displace stratigraphy down dip to the north on a district scale.
Figure 7-2 shows the property geology and a geology legend is provided in Figure 7-3.

March 2015 Source 5: Mandalay Resources Corp., 201 .
NOTE:
Refer to Figure 7-2A
for Property Property
Legend.
Cerro Bayo Project
Property Geology
Figure 7-2
7-7
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Mb.Coigues (Dacitic Lithic tuff)
Mb.Temer (Rhyolitic tuff)
Mb.Guadal (Dacitic tuff)
Los Juncos (Rhyolitic tuff)
Los Juncos (Rhyolitic tuff)
Cerro Tehuelche (Andesitic ignimbrites)
Ambar Subvolcanic
Rhyolitic Dome
(149.3+/-0.7 Ma)
Extrusive
Cerro Tehuelche (Andesitic ignimbrites)
Cerro Amarillo Extrusivo Dome
The Puesto Fm (Ignimbrites & tuffs)
Diamantes Fm
Cerro Tcolorado (SVC)
Rodados Colorados (SVC)
Cerro Torta (Pyroclastic flows)
Basaltic necks and dikes
(151+/-1.3 Ma)
Cerro Bayo Rhyolitic
Subvolcanic Dome
(146.5+/-0.2 Ma)
Brillantes Fm
(Andesitic tuffs and flows)
Cerro Torta (pyroclastic flows)
Cerro Amarillo
Subvolcanic
Rhyolitic Dome
Laguna Verde Rhyolite
Dome (147.5+/-0.2 Ma)
Andesitic Intrusive
Coigues Dacitic Dome
(82.6+/-0.2 Ma)
Esperanza Rhyolitic
Dome
ChileChico Upper (Basalts)
ChileChico Lower (Basalts)
ChileChico Upper (Basalts)
ChileChico Lower (Basalts)
Toqui Fm (Fluvial sediments)
Catedral Ignimbrite
(Rhyolithic Ignimbrite)
Basic Necks
undifferentiated
Quartz Veins
Fault
Symbols
Principal Road
Lake
Brillantes / Guanaco Legend Cerro Bayo / Mallines LegendLaguna Verde LegendHorquetas Legend
Extrusive Extrusive Extrusive IntrusiveIntrusiveIntrusive
TERTIARYEARLYCRETACEUSLATEJURASSICLATE
CRETACEUS
March 2015 Source: Mandalay Resources Corp., 2015.
Property Geology Legend
Cerro Bayo Project
Figure 37-
7-8
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MINERALIZATION
The Cerro Bayo District hosts at least 90 major veins, as well as stockworks and breccias
containing gold and silver mineralization, located in six principal areas in the district (Figure 7-
2). The deposits show multiple stages of mineralization and display open-space filling and
banding, typical of low-sulphidation style epithermal mineralization. Mineralogy is complex
and is associated with alteration assemblages that suggest at least three stages of precious
metal depositional environments.
• An early, mesothermal event with silver-gold and base metals (Mo, Zn, and Pb) hosted
in arcuate north-south to north-northeast veins and tectonic breccias. This style of
mineralization is interpreted as resulting from igneous intrusions, doming, and
subsequent collapse.
• An epithermal gold-silver mineralization event hosted mainly in north-northwest and
north-south to north-northeast structural trends with local high grades, such as the
Cerro Bayo, Cascada, and Coigues Este veins.
• A late mineralizing event is interpreted to coincide with the emplacement of a porphyritic
stock and related apophyses at Rodados Colorados, which is characterized by a
porphyry style alteration pattern. This includes moderately extensive propylitic
alteration with chlorite, epidote, disseminated cubic pyrite, and specular hematite.
Structures contain a gangue dominated by calcite with locally abundant oxides and
relict pyrite. Mineralization is characterized by gold-silver associated with minor
copper-lead-zinc. This type of mineral assemblage as well as the porphyry style
alteration also occurs at the Horquetas zone in the western portion of the district, which
is interpreted to belong to the same late stage event.
K/Ar and Ar/Ar dating carried out in veins from different areas in the district indicate an age of
alteration and/or mineralization ranging from Upper Jurassic (156 Ma) to Lower Cretaceous
(114 Ma). The oldest mineralization recorded is that of the Mallines and Guanaco veins, which
range in age between 156 Ma and 137 Ma. The veins in the Cerro Bayo area were dated at
128 Ma, indicating that mineralization pre-dates the Cerro Bayo dome, which is consistent with
the geological field evidence. Restricted data from the western part of the district suggests
that mineralization at Laguna Verde is younger than the rest (114 Ma).
Over 90 veins have been identified across the property, occurring in isolation or in clusters (as
in the Cerro Bayo and Laguna Verde areas). Veins pinch and swell following pre-mineral faults
and fractures. Exposed strike lengths vary from 300 m to 2,200 m with varying widths between
0.5 m to five metres, and local pods up to seven metres wide.

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Veins are typically banded and brecciated, showing a variety of textures (crustiform, colloform,
comb, and carbonate replacement) that indicate several pulses of silica deposition and
brecciation. Hydrothermal breccias are matrix-supported, tabular to lens shaped bodies,
formed by round to angular fragments of silica flooded tuffs in a matrix of dark saccharoidal to
chalcedonic quartz and sulphides, mainly pyrite and subordinate silver sulphosalts.
Mineralization is mainly structurally controlled. Mineral fluids were channeled along pre-
mineral faults or fracture zones that were in-filled during successive hydrothermal pulses. The
brittleness and plasticity of the host rock units also control the vein widths, the degree of
development of sheeted zones, and the variations in the dip of veins due to refraction.
MINERALOGY
Gold mainly occurs as inclusions in pyrite, filling cavities and irregular surfaces in strongly
fractured porous grains. It has also been detected as inclusions along cleavages in galena
and iron-deficient sphalerite. Free gold occurs in quartz-bound grains, as irregular crusts and
flakes in micro cracks cutting the gangue, and within partially oxidized sulphide minerals.
Analyses with a Scanning Electron Microscope indicate that gold is argentian (electrum) with
a silver content that may reach 40%.
Silver is contained in a variety of minerals. Sulphosalts are the most common, including
freibergite, stephanite, proustite, pyrargyrite, and polybasite. Stromeyerite is also common, as
well as native silver. Argentite/acanthite, chlorargyrite, and boleite are supergene products of
surficial oxidation. In veins and veinlets, the sulphide minerals form irregular bands and patchy
aggregates, and are finely disseminated in the matrix of hydrothermal and tectonic breccias.
They are commonly included along fractures in pyrite grains and are also found on the margins
of galena aggregates. Larger sulphide grains may include sphalerite and electrum. Silver
minerals are more widespread than gold in the district.
Base metal sulphides are common, though not abundant in the district. These include mostly
sphalerite, galena, and chalcopyrite, forming irregular aggregates, stringers, and massive
veinlets. Tetrahedrite occurs rarely, as well as bornite and famatinite. Supergene base metal
minerals are rare in the area, and include covellite, chalcocite (digenite, idaite), cerussite,
smithsonite, and hydrohetearolite.

Cerro_Bayo_ Fabiola Vein NI-43-101_Final_Mar-2015

Cerro_Bayo_ Fabiola Vein NI-43-101_Final_Mar-2015

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Cerro_Bayo_ Fabiola Vein NI-43-101_Final_Mar-2015