Mandalay Resources Corporation
TSX VENTURE : MLR

Mandalay Resources Corporation

June 22, 2005 15:50 ET

Mandalay Expands Land Position in Chile and Introduces Qualified Person

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 22, 2005) - Mandalay Resources Corp. (TSX VENTURE:MLR.U) is pleased to report that the company has entered an option agreement to purchase a 100% interest in the 3,900-hectare Leoncita property located contiguous to its La Quebrada copper-silver property in north central Chile approximately 15 kilometers from the port city of La Serena.

The acquisition together with the 100% owned La Quebrada property now covers approximately 15,000 hectares of prospective ground controlled by the company.

The agreement with INVERSIONES Y MINERIA ANDALE LTDA, (the Vendor) is subject to regulatory approval and the following terms.

(a) pay US $125,000 as reimbursement of expenses upon signing;

(b) issue 250,000 common shares within five (5) business days following the Effective Date;

(c) issue an additional 250,000 common shares and paying an additional US $50,000 on that date which is six months from the Effective Date;

(d) issue an additional 250,000 common shares and paying an additional US $50,000 on that date which is one year from the Effective Date;

(e) issue an additional 250,000 common shares and paying an additional US $50,000 on that date which is one year and six months years from the Effective Date;

(f) issue an additional 250,000 common shares and paying an additional US $100,000 on that date which is two years from the Effective Date; and

(g) paying an aggregate of US $1,000,000, in full and final payment on that date which is three years from the Effective Date.

The Vendor retains a (2%) two percent net smelter royalty (NSR) and grants to the Company the sole and exclusive right and option to purchase the Royalty for US $1,000,000, such option to be exercised until 5:00 pm (local time in Vancouver, BC) on or before three years and six months of the Effective Date.

Michael H. Sandidge, P.Geo has been retained as the independent Qualified Person on the La Quebrada project. He is a professional geologist registered in the State of Washington with 20 years of experience in the United States, Canada, Russia, and Mexico and over the last 10 years in South America. Graduating from the University of Washington with a B.Sc. in Geological Sciences Mr. Sandidge went on to earn a master's degree in Geological Sciences from the University of Texas at El Paso. His work history has a client roster that spans from the University of Washington (Department of Geological Sciences) and Canadian Geological Survey to Esperanza Mining Company, Bema Gold Corp., Phelps Dodge Corp., and several other exploration companies. He has extensive knowledge of Chilean geology and mineral property opportunities.

A qualifying property report co-authored by Michael Sandidge and Dr. Cox (see March 29, 2005 NR) is being prepared in order to comply with the Standards of Disclosure for Mineral Projects as set out in the Canadian Securities Administrators' (CSA) National Instrument 43-101 and its Companion Policy 43-101CP. The report will be submitted for filing within the next 10 days.

MANDALAY RESOURCES CORPORATION

Dr. Juraj Adamec, President

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

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