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Press release from CNW Group

Mandalay Resources Closes Second Tranche of $10 Million Secured Credit Facility

Wednesday, February 02, 2011

Mandalay Resources Closes Second Tranche of $10 Million Secured Credit Facility07:30 EST Wednesday, February 02, 2011TORONTO, Feb. 2 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) announced today that it has closed the second tranche of two year debt facility totaling $10 million senior secured credit facility with Sprott Resource Lending Partnership ("Sprott Lending") at an interest rate of 11% per annum.In the second tranche, Mandalay received an additional $5 million advance under the credit facility upon Sprott Lending receiving perfected security interests in Mandalay's Cerro Bayo mine in Chile.The credit facility is part of the $13.2 million in debt and equity financing that the Company announced on December 3, 2010. The first stage of that financing, a $3.2 million private placement of common shares to Sprott Asset Management L.P. for and on behalf of certain funds, was completed on December 14, 2010.  As part of the first tranche Mandalay received $5 million debt facility which was closed on December 24, 2010.About Mandalay Resources Corporation:Mandalay Resources is a Canadian-based natural resource company with producing 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.For further information: Bradford Mills Chief Executive OfficerGreg DiTomaso Investor Relations Contact: 647.260.1566 Email: g.ditomaso@mandalayresources.comCompany website: www.mandalayresources.com