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Press release from CNW Group

Mandalay Resources Corporation Provides Update on Status of Force Majeure Condition of Dowa Metals and Mining Co. on Shipment of Concentrates from Cerro Bayo

Wednesday, April 06, 2011

Mandalay Resources Corporation Provides Update on Status of Force Majeure Condition of Dowa Metals and Mining Co. on Shipment of Concentrates from Cerro Bayo16:00 EDT Wednesday, April 06, 2011TORONTO, April 6 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND, MND.WT) has been informed by Dowa Metals and Mining Co. ("Dowa") that it has confirmed the sound conditions of equipment and facilities at its Kosaka smelter and operations resumed yesterday.  Dowa anticipates completing a smooth ramp-up of the smelter and, shortly thereafter, lifting the force majeure on concentrate shipments that it declared on March 15, 2011, following the Japanese earthquake (see Mandalay's March 16, 2011 news release).For its part, Mandalay has continued normal mining operations at its Cerro Bayo silver-gold mine in Patagonia, Chile. The Company has continued normal milling operation as well, stockpiling gold and silver concentrate at the port of Chacabuco in anticipation of the force majeure being lifted. As of April 6, 799 dry metric tonnes of concentrate containing 7,138 grams per tonne silver (183,392 ounces silver) and 30.8 grams per tonne gold (791 ounces gold) sits at the port, with approximately 300 tonnes of concentrate containing approximately 8,000 grams per tonne silver (77,000 ounces silver) and 36 grams per tonne gold (347 ounces gold) remaining at the plant site in Cerro Bayo.Brad Mills, CEO of Mandalay, commented "I am very pleased to hear that the Kosaka smelter, and the whole region, is making progress in recovering from the disaster.  This has been a difficult time for our friends at Dowa and indeed for all of Japan and we will continue to support them and wish them a rapid recovery".About Mandalay Resources Corporation: Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and producing and exploration projects in 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. Actual results and developments may differ materially from those contemplated by these statements depending on, among other things, changes in commodity prices and general market and economic conditions. The factors identified above are not intended to represent a complete list of the factors that could affect Mandalay. 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.For further information: Bradford Mills Chief Executive Officer Greg DiTomaso Investor Relations Contact: 647.260.1566