MANDALAY RESOURCES CORPORATION TECHNICAL …

1 March 29, 2018 RPAT55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I+ 1 (416) 947 RESOURCES CORPORATIONTECHNICAL REPORT ON THEBJ RKDAL GOLD MINE, SWEDENNI 43-101 ReportQualified Persons:Reno Pressacco, Lunnon, CGeolDavid JF Smith, CEngDavid Robson, MBA, Weir, Ann Altman, , Report Control Form Document Title TECHNICAL Report on the Bj rkdal Mine, Sweden Client Name & Address MANDALAY RESOURCES CORPORATION 76 Richmond Street East, Suite 330 Toronto, Ontario M5C 1P1 Document Reference Project # 2835 Status & Issue No. FINAL Version Issue Date March 29, 2018 Lead Author Reno Pressacco Jack Lunnon David Robson Ian Weir David JF Smith Kathleen Ann Altman (Signed) (Signed) (Signed) (Signed) (Signed) (Signed) Peer Reviewer Deborah A. McCombe Luke Evans (Signed) (Signed) Project Manager Approval Ian Blakley (Signed) Project Director Approval David JF Smith (Signed) Report Distribution Name No.

2 Of Copies MANDALAY RESOURCES CORPORATION 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 MANDALAY RESOURCES CORPORATION Bj rkdal Mine, Project #2835 TECHNICAL Report NI 43-101 March 29, 2018 Page i TABLE OF CONTENTS PAGE 1 SUMMARY .. 1-1 Executive Summary .. 1-1 Economic Analysis .. 1-10 TECHNICAL Summary .. 1-10 2 INTRODUCTION .. 2-1 Sources of Information .. 2-2 List of Abbreviations .. 2-3 3 RELIANCE ON OTHER EXPERTS .. 3-1 4 PROPERTY DESCRIPTION AND LOCATION .. 4-1 Swedish Mining Laws and Regulations .. 4-1 Property Ownership and Land Tenure .. 4-3 Surface Usage/Land 4-6 Environmental Liabilities and 4-7 Royalties, Back-in Rights, Payments or Other Encumbrances .. 4-7 Discussion .. 4-7 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES , INFRASTRUCTURE AND PHYSIOGRAPHY .. 5-1 Accessibility.

3 5-1 Climate .. 5-1 Local RESOURCES .. 5-2 Infrastructure .. 5-2 Physiography .. 5-3 6 HISTORY .. 6-1 Prior Ownership .. 6-1 Previous Resource Estimates .. 6-2 Past Production .. 6-12 7 GEOLOGICAL SETTING AND MINERALIZATION .. 7-1 Regional Geology .. 7-1 Project Geology .. 7-3 Mineralization .. 7-10 8 DEPOSIT TYPES .. 8-1 Bj 8-1 Norrberget .. 8-6 9 EXPLORATION .. 9-1 Bj 9-1 Norrberget .. 9-2 Regional Exploration .. 9-2 MANDALAY RESOURCES CORPORATION Bj rkdal Mine, Project #2835 TECHNICAL Report NI 43-101 March 29, 2018 Page ii Exploration Potential .. 9-4 10 DRILLING .. 10-1 Bj 10-1 Norrberget .. 10-8 11 SAMPLE PREPARATION, ANALYSES AND SECURITY .. 11-1 Diamond Drill Core Sampling .. 11-1 Diamond Drill Core Sample Preparation and Analysis .. 11-3 Reverse Circulation Sampling and Preparation .. 11-9 Chip and Sludge Sample Preparation Procedures .. 11-11 Quality Assurance and Quality Control .. 11-12 11-14 Discussion and Recommendations.

4 11-14 12 DATA VERIFICATION .. 12-1 Bj 12-1 Norrberget .. 12-1 13 MINERAL PROCESSING AND METALLURGICAL TESTING .. 13-1 Bj 13-1 Norrberget Metalurgical Test Program .. 13-9 14 MINERAL RESOURCE ESTIMATE .. 14-1 Summary .. 14-1 Bj 14-2 Norrberget .. 14-52 15 MINERAL RESERVE ESTIMATE .. 15-1 Summary .. 15-1 Bj 15-2 Norrberget .. 15-6 16 MINING METHODS .. 16-1 Bj 16-1 Norrberget .. 16-18 Consolidated Life of Mine Plan .. 16-21 17 RECOVERY METHODS .. 17-1 Introduction .. 17-1 Process Description .. 17-1 18 PROJECT INFRASTRUCTURE .. 18-1 Bj 18-1 Norrberget .. 18-4 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 .. 20-1 MANDALAY RESOURCES CORPORATION Bj rkdal Mine, Project #2835 TECHNICAL Report NI 43-101 March 29, 2018 Page iii Permitting .. 20-2 Social or Community Requirements .. 20-3 Health and Safety Management Plan.

5 20-3 Mine Closure Requirements .. 20-5 21 CAPITAL AND OPERATING COSTS .. 21-1 Capital Costs .. 21-1 Operating Costs .. 21-2 22 ECONOMIC 22-1 23 ADJACENT PROPERTIES .. 23-1 24 OTHER RELEVANT DATA AND INFORMATION .. 24-1 25 INTERPRETATION AND CONCLUSIONS .. 25-1 26 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 Mineral RESOURCES at the Bj rkdal Mine as at December 31, 2017 .. 1-2 Table 1-2 Mineral Reserves at the Bj rkdal Mine as at December 31, 2017 .. 1-3 Table 1-3 Capital Cost Summary .. 1-20 Table 1-4 LOM Operating Costs .. 1-20 Table 4-1 Exploitation Concessions .. 4-3 Table 4-2 Exploration Permits .. 4-4 Table 6-1 Gold-Ore Historic Mineral RESOURCES (March 2009) .. 6-3 Table 6-2 Gold-Ore Historic Mineral Reserves (March 2009) .. 6-4 Table 6-3 Gold-Ore Historic Mineral RESOURCES (December 2011) .. 6-5 Table 6-4 Gold-Ore Historic Mineral Reserves (December 2011).

6 6-6 Table 6-5 Elgin Historic Mineral RESOURCES (March 2013) .. 6-7 Table 6-6 Elgin Historic Mineral Reserves (March 2013) .. 6-8 Table 6-7 Mineral RESOURCES December 31, 2014 .. 6-9 Table 6-8 Mineral Reserves December 31, 2014 .. 6-9 Table 6-9 Mineral RESOURCES at the Bj rkdal Mine as at September 30, 2016 .. 6-10 Table 6-10 Mineral Reserves September 30, 2016 .. 6-11 Table 6-11 Bj rkdal Annual Gold Production (1988-2017) .. 6-12 Table 10-1 Historical Drill Hole Type Summary .. 10-1 Table 10-2 Summary of Drilling from 2006 to 2014 .. 10-2 Table 10-3 Summary of Drilling Completed from 2014 to 2017 .. 10-3 Table 10-4 Summary of Historical Drilling Completed from 1994 to 1996 Norrberget Deposit .. 10-8 Table 10-5 Summary of Historical Drilling Completed from 2009 to 2014 Norrberget Deposit .. 10-9 MANDALAY RESOURCES CORPORATION Bj rkdal Mine, Project #2835 TECHNICAL Report NI 43-101 March 29, 2018 Page iv Table 10-6 Summary of MANDALAY Drilling Completed from 2016 to 2017 Norrberget Deposit.

7 10-9 Table 11-1 Summary of QA/QC Sampling .. 11-13 Table 13-1 Gravity Concentrate Production Data .. 13-2 Table 13-2 Middling Concentrate Production Data .. 13-2 Table 13-3 Knelson Concentrate Production Data .. 13-3 Table 13-4 Flotation Concentrate Production Data .. 13-3 Table 13-5 Plant Production Data .. 13-4 Table 13-6 ALS Composite Sample Assays .. 13-11 Table 13-7 ALS Master Composite Head Grade Comparisons .. 13-11 Table 13-8 Master Composite Head Grade Analysis using LeachWELL .. 13-12 Table 13-9 ALS Master Composite Gravity Gold Recovery Data .. 13-12 Table 13-10 ALS Flotation Test Data .. 13-13 Table 13-11 Test Data Used to Estimate Recovery .. 13-14 Table 13-12 ALS Mineral Composition of Bulk Concentrate .. 13-16 Table 13-13 ALS Sulphur Deportment of Bulk Concentrate .. 13-17 Table 14-1 Mineral RESOURCES at the Bj rkdal Mine and Norrberget Deposit as at December 31, 2017 .. 14-1 Table 14-2 Summary of the Bj rkdal Drill Hole Database as at September 30, 2017.

8 14-6 Table 14-3 Summary Statistics of the Composited, Capped Samples, Underground Mine .. 14-20 Table 14-4 Summary Statistics of the Composited, Capped Samples, Open Pit Mine .. 14-21 Table 14-5 Summary Statistics of the Composited, Capped Samples, Dilution Model, Open Pit Mine .. 14-24 Table 14-6 Summary Statistics for Specific 14-25 Table 14-7 Summary of the Block Model Origins and Block Sizes .. 14-32 Table 14-8 Summary of the Block Model Attributes .. 14-32 Table 14-9 Summary of Search Strategies .. 14-34 Table 14-10 Comparison of Block Model Estimated Grades to Composite 14-36 Table 14-11 Comparison of Block Model Volumes to Wireframes .. 14-36 Table 14-12 Summary of 2017 Plant Production Statistics .. 14-41 Table 14-13 Comparison of Planning Model to Process Plant, May 2016 to November 2017, Open Pit .. 14-46 Table 14-14 Comparison of 2017 Model to 2017 Process Plant Production .. 14-48 Table 14-15 Summary of Bj rkdal Mineral RESOURCES As of December 31, 2017.

9 14-51 Table 14-16 Summary of Norrberget Mineral Resource Database .. 14-53 Table 14-17 Summary of Norrberget Sample Statistics .. 14-57 Table 14-18 Summary of Gold Capping .. 14-59 Table 14-19 Mean Bulk Density by Lithology .. 14-60 Table 14-20 Block Model Dimensions .. 14-61 Table 14-21 Block Model Attributes .. 14-61 Table 14-22 Block Model Interpolation 14-62 Table 14-23 Wireframe Volumes vs. Block Model Volumes .. 14-63 Table 14-24 Norrberget Block Model Statistics .. 14-63 Table 14-25 Comparison of Au Statistics .. 14-63 Table 14-26 Norrberget Mineral Resource Estimate as of September 30, 2017 .. 14-70 Table 15-1 Summary of Mineral Reserves at the Bj rkdal Mine and Norrberget Deposit as at December 31, 2017 .. 15-1 Table 15-2 Whittle Reserve Pit Parameters .. 15-2 Table 15-3 Underground Cut-off Grade Calculation .. 15-5 Table 15-4 Whittle Reserve Pit Parameters .. 15-6 Table 16-1 Pit Design Parameters.

10 16-3 MANDALAY RESOURCES CORPORATION Bj rkdal Mine, Project #2835 TECHNICAL Report NI 43-101 March 29, 2018 Page v Table 16-2 Underground Stope Design Parameters .. 16-3 Table 16-3 Open Pit Mining Equipment .. 16-16 Table 16-4 Underground Mining Equipment .. 16-17 Table 16-5 Pit Design Parameters .. 16-18 Table 16-6 Open Pit Mining Equipment .. 16-21 Table 16-7 Life of Mine Production Plan .. 16-22 Table 17-1 Plant Modifications .. 17-1 Table 19-1 Summary of Sales Agreements .. 19-1 Table 20-1 Permits .. 20-2 Table 20-2 Incident Classification .. 20-4 Table 20-3 Statistics for AIFR, TRIFR, and LTIFR .. 20-4 Table 20-4 2017 Health and Safety Statistics .. 20-4 Table 21-1 Capital Cost Summary .. 21-1 Table 21-2 Unit Cost Inputs .. 21-2 Table 21-3 LOM Operating Costs .. 21-3 Table 25-1 Mineral RESOURCES at the Bj rkdal Mine and Norrberget Deposit as at December 31, 2017 .. 25-3 Table 25-2 Mineral Reserves at the Bj r kdal Mine as at December 31, 2017.