CERRO BAYO MINE

CERRO BAYO MINE (CURRENTLY ON CARE AND MAINTENANCE)

On October 8, 2019, Mandalay entered into a binding exploration option agreement with Equus Mining whereby Equus has the option acquire the Cerro Bayo mine for a 19% stake in Equus and a 2.25% NSR (once 50 Koz AuEq. have been produced). Equus would also cover 50% of the previously mentioned reclamation liability on acquisition of the property. There is a $13 million reclamation bond requirement over the next five years, of which Mandalay has committed $2.5 million.