Dear all, Please find below an announcement made today regarding the commencement of a PFS on Heap Leaching for Phase 2 Growth at the Companys wholly owned Mkuju River Project in southern Tanzania. Mantra Resources Limited (Mantra or Company) (ASX:MRU, TSX:MRL) is pleased to announce that it has commenced a Pre-Feasibility Study (PFS) on heap leaching lower grade mined ore at the Companys Mkuju River Project (MRP or the Project) for the Projects second phase of growth. Phase 1 of the Project, which is currently the subject of the Companys Definitive Feasibility Study (DFS), is targeting approximately 3.7 million pounds of uranium a year using the Resin-in-Pulp (RIP) metallurgical process.

It is envisaged that Phase 2, the heap leaching of lower grade mined ore, would commence after the RIP circuit has reached steady state operations and provide the Project with an incremental increase in production over and above the targeted annual production rate of Phase 1. The commencement of the Heap Leach PFS follows positive results from initial heap leach testwork campaigns conducted at the ANSTO and SGS facilities in Australia.

The initial testwork clearly demonstrated that the low grade ore is particularly amenable to heap leaching.

The results of column testwork, which simulates a heap leaching process, were very encouraging, indicating a uranium recovery rate of approximating 80% in eight days with a low acid consumption of approximately 8 kilograms per tonne.

No other reagents were required to achieve final recoveries. Mantra believes there is the opportunity for a low cost, incremental increase in production through the recovery of additional uranium from the lower grade (less than the current resource cut-off grade of 200 ppm U3O8) material which is currently being mined and treated as waste in the pit optimisation process for Phase 1.

The capital expenditure for this Phase 2 growth is anticipated to be modest. Peter Breese, CEO, commented "We are very excited about the opportunity that heap leaching lower grade, mined material offers to further maximise the value of our business through incremental production growth at low capital and operating cost.

We have decided to proceed with the PFS for Phase 2 growth now in order to ensure key aspects of the heap leach can be incorporated during the construction of Phase 1." The Heap Leach PFS is due to be completed during the first quarter of 2011 and will include further resource modelling and detailed leaching testwork to allow grade/recovery relationships to be investigated, the minimum cut-off grade for economic treatment of the Nyota orebody to be determined and additional data for engineering, design and costing to be generated.

Upon successful completion of the Heap Leach PFS, it is planned to progress to a DFS, which will include extensive integrated metallurgical testwork and an updated Environmental Impact Statement. Please dont hesitate to contact Peter Breese, Robert Behets or Alex Buck if you have any questions. Regards Peter Breese Chief Executive Officer <> A: Level 9, The BGC Centre, 28 The Esplanade, PERTH WA 6000 T: +618 9322 6322 F: 618 9322 6558 in Australia T: +27 (0)11 467 2172 F: +27 (0)86 658 3476 M: +27 (0)82 888 6852 in South Africa E: W: www.mantraresources.com.au Robert Behets Executive Director <> A: Level 9, The BGC Centre, 28 The Esplanade, PERTH WA 6000 T: 618 9322 6322 F: 618 9322 6558 E: W: www.mantraresources.com.au Alex Buck Investor Relations <> T: +44 7932 740 452 E:
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