Mandalay Resources Corporation

Mandalay Resources Corporation

March 22, 2006 16:50 ET

Mandalay Resources Corporation: Update on La Quebrada Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 22, 2006) - Mandalay Resources Corp. (TSX VENTURE:MLR.U) announces that the Company is mobilizing an exploration crew to commence Phase II exploration on the La Quebrada Project. The Company owns a 100% of the La Quebrada Project, a 15,150 hectares copper-silver prospect located 15 kilometers northeast of the major port of La Serena-Coquimbo, in northern Chile. A National Instrument 43-101 report was completed in August, 2005 on the property.

Based upon previous exploration programs, geologists working on this project have determined the copper occurrence is related to the reduced-facies subtype of Sediment-hosted Copper Deposits (SCD). Field relationships and petrographic analyses strongly suggest a syngenetic origin for the Cu-Au mineralization observed throughout the project area. These initial studies indicate that the Leoncita-La Quebrada area may represent a Chilean analog to the world-class Kupferschiefer sediment-hosted copper deposit in the world.

The 3,900 hectare Leoncita property, together with the 100% owned La Quebrada copper-silver property, cover 11,130 hectares affords the Company more than 20 kilometers of continuous north-south strike that exhibits remarkable grade continuity within the mineralized Arqueros Formation.

Previous rock chip, channel, and stratigraphic profile sampling throughout the Leoncita concessions returned 1.69% CU over 36 meters, 1.69% CU over 30 meters, 1.52% Cu over 29.5 meters and 0.47% over 100 meters. These values are comparable to previous sampling programs throughout the adjacent La Quebrada property by a United Nations-ENAMI joint venture from 1967-1970, Placer Dome in 1981, Noranda from 1995-1996 and Teck Resources from 1999-2000.

Reconaissance mapping in Leoncita area has resulted in identifying the thickest stratigraphic sections of mineralized units to date. One area, Farellones de La Ventana, the principal mineralized units outcrop on the surface and cover an area of 1,600 by 800 meters and is more than 150 meters thick. Preliminary mapping in a second area, 1,200 meters to the west of the Farellones de La Ventana, exhibits similar characteristics. The Company will begin an extensive trenching program in the Farellones de La Ventana area. Continued detailed mapping and sampling over the entire Project area will result in better understanding the potential resource of the La Quebrada Project.

With approximately US $1 million in the treasury, and no debt, the Company is fully committed to Phase I exploration on the La Quebrada Project.

The information contained in this press release has been reviewed, approved and deemed relevant by Michael Sandidge, P.Geo., the qualified person based on National Instrument #43-101.

This press release has been prepared by management.

This press release may contain forward looking statements including, but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery progress, etc. 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 the content of this press release.

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