Mandalay Resources Corporation Announces Normal Course Issuer Bid

TORONTO, Oct. 13, 2011 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND, MND.WT) announced today that the Toronto Stock Exchange (the "TSX") has approved its notice of intention to make a normal course issuer bid for a portion of its common shares ("Common Shares") and its $0.33 2012 share purchase warrants ("Warrants").  The normal course issuer bid will be made in accordance with the requirements of the TSX.  Mandalay may begin to purchase Common Shares and Warrants on or about October 17, 2011, subject to Company blackout periods.

As of October 11, 2011, 270,021,575 Common Shares and 39,419,312 Warrants were outstanding.  Pursuant to the normal course issuer bid, Mandalay is permitted to acquire up to 13,501,078 Common Shares and 1,970,965 Warrants in the 12-month period commencing October 17, 2011 and ending on October 16, 2012, which figures represent 5% of the issued and outstanding Common Shares and Warrants respectively, as of October 11, 2011.  Purchases under the normal course issuer bid will be made by Mandalay through the facilities of the TSX and in accordance with applicable regulatory requirements. The price that Mandalay will pay for any Common Shares or Warrants will be the market price of such Common Shares or Warrants at the time of acquisition. Pursuant to the TSX rules, the maximum number of Common Shares that may be repurchased during the same trading day is 53,433 Common Shares and the maximum number of Warrants that may be repurchased during the same trading day is 6,084 Warrants, in each case subject to Mandalay's ability to make one block purchase of each of the Common Shares and Warrants per calendar week that exceed such limits. Any Common Shares and Warrants that are purchased under the normal course issuer bid will be cancelled upon their purchase by Mandalay. Mandalay will fund the purchases through available cash.

Mandalay believes that the repurchase by Mandalay of a portion of outstanding Common Shares and Warrants is an appropriate use of available cash and is in the best interests of Mandalay and its securityholders.

About Mandalay Resources Corporation:

Mandalay is a Canadian-based natural resource company with production and exploration assets in Australia and Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of applicable securities laws. Readers are cautioned not to place undue reliance on forward-looking statements, since actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices, general market and economic conditions, and success of future drilling. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. A description of additional risks that could result in actual results and developments differing from those contemplated by forward-looking statements in this news release can be found under the heading ?"Risk Factors" in Mandalay's annual information form dated March 31, 2011, a copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. Although Mandalay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.