Mandalay Resources Corporation
TSX VENTURE : MLR

Mandalay Resources Corporation

August 17, 2006 09:30 ET

Mandalay Resources Corporation: Trenching Results-La Quebrada Project, Northern Chile

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) - Mandalay Resources Corporation (the "Company") (TSX VENTURE:MLR) is pleased to announce that, further to the Company's news release dated July 5, 2006, results from an additional 15 trenches have been received. The results are from the Company's La Quebrada Project, a 15,000 hectare property located 25 kilometers northeast of La Serena, Chile. The Company continues to focus mapping and trenching efforts on the newly acquired Leoncita property, a 3,900 hectare group of mineral concessions that fill the gap in the previously constituted La Quebrada concessions.

Highlights from this round of trenching include:

- 0.721% copper over 26 meters

- 0.919% copper over 30 meters

- 1.360% copper over 15 meters

The ongoing trenching and geological mapping program is designed to target two favourable horizons, the K2 and K4, within the Cretaceous aged Arqueros Formation. The K2 and K4 are calcareous sedimentary units that host disseminated primary chalcocite, covellite, bornite, and chalcopyrite. The gently folded sedimentary units on the property 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. The K2 and K4 units are separated by only 30 - 50 meters in some places and continuous strata can be traced on surface for several kilometres. A complete list of the most recent trench results is as follows:



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Trench # Unit Thickness (m.) Cu (%)
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ZL-30 K2 4 0.168
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ZL-31 K2 8 0.246
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ZL-32 K2 4 0.473
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ZL-33 K2 4 0.61
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ZL-34 K2 no significant results
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ZL-35 K2 4 0.755
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ZL-36 K4 32 0.545
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ZL-37 K4 24 0.412
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ZL-38 K2 26 0.721
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ZL-39 K2 24 0.367
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ZL-40 K2 45 0.671
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including 30 0.919
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ZL-41 K2 18 0.527
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ZL-42 K2 15 0.453
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ZL-43 K2 15 1.360
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ZL-44 K2 15 0.758
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The Company is utilizing ALS Chemex Laboratory (Chemex) in Coquimbo, Chile. Chemex is a well-respected analytical laboratory with worldwide facilities and is recognized as a certified laboratory by the TSX Venture Exchange for reporting purposes.

The 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:

Mandalay Resources Corporation

Karl Antonius, President

This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

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

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