Mandalay Resources Corporation
TSX VENTURE : MLR

Mandalay Resources Corporation

November 17, 2006 19:15 ET

Mandalay Commences Drilling at La Quebrada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2006) - Mandalay Resources Corp. (TSX VENTURE:MLR) (the "Company"), is pleased to announce that commencement of drilling on the Company's 100% owned La Quebrada project in northern Chile. One diamond drill rig and one reverse circulation drill rig have commenced drilling operations to test near surface copper/silver mineralization delineated in a trenching program at the Leoncita and Casa de Piedra areas carried out earlier this year.

The Company has prepared a total of 125 drill sites for this program, consisting of approximately 100 reverse circulation and 25 diamond drill holes. The drilling plan will be targeting disseminated primary chalcocite, covellite, bornite, and chalcopyrite mineralization found in the two favourable horizons, the K2 and K4, within the Cretaceous aged Arqueros Formation. The K2 and K4 are calcareous sedimentary units that lie on the western limb of the southward plunging Talcuna Anticline; dips of these units range from relatively flat-lying to a maximum of 25 degrees.

Complete results of the Company's trenching program are available on the Company's website, and include the following results released September 28, 2006:



Leoncita area:
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Copper Silver Est. True
Trench Zone Unit % (g/t) Thickness (m)
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ZL - 06 Leoncita West K4 1.082 13.5 47.5
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ZL - 10 Leoncita West K2 1.025 7 27
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ZL - 12 Leoncita Central K2 1.572 8.5 28
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Casa de Piedra area:
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Copper Silver Est. True
Trench Length (m) Unit % (g/t) Thickness (m)
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ZL - 69 90 K4 0.57 5 24
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ZL - 70 95 K4 0.56 8.2 35
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ZL - 71 55 K4 0.774 5.5 5
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ZL - 72 75 K4 1.28 16 18
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The Company continues its extensive mapping and trenching program in four other prospective areas of the 15,100 hectare La Quebrada project. The property is located in Region IV of northern Chile, approximately 25 kilometres from the deep water port of Coquimbo and seven kilometres from both rail and power. Results from the drilling and trenching programs will be released as they become available.

Information contained in this news release, has been reviewed, approved, and deemed relevant by Stephen Kenwood P. Geo., a qualified person as defined under National Instrument 43-101.

On behalf of the Board of Directors:

MANDALAY RESOURCES CORPORATION

Karl Antonius, President

Cautionary note: This report contains forward looking statements, particularly those regarding cash flow, capital expenditures and investment plans. Resource estimates, unless specifically noted, are considered speculative. The company has not filed a National Instrument 43-101 report on any property, but will do so as soon as the information is available. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.


The TSX Venture Exchange has not yet reviewed and does not take responsibility for the adequacy or accuracy of the content of this news release.

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