Mantra Resources - Quarterly report to the Australian Securities Exchange for
the period ending 31 December 2009

PERTH, Western Australia, Jan. 25 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX: MRU, TSX: MRL) is pleased to present its quarterly report for the period ended 31 December 2009. The Company's primary focus during the period was advancing the exploration and appraisal of the Nyota Prospect ('Nyota' or 'the Prospect'), part of the Mkuju River Project ('MRP' or 'the Project') in southern Tanzania. The quarter's highlights include:

    
    -   Outstanding recent results (previously unreleased) from exploration
        drilling immediately to the west and north of the largest resource
        area at Nyota significantly extends this area:
        -  Select intercepts include 55m @ 1,101 ppm eU(3)O(8), 33m @
           755 ppm eU(3)O(8), 27m @ 830 ppm eU(3)O(8), 11m @ 1,986 ppm
           eU(3)O(8); 12m @ 1,774 ppm eU(3)O(8); 38m @ 512 ppm
           eU(3)O(8); 26m @ 694 ppm eU(3)O(8); and 31m @ 553 ppm
           eU(3)O(8).
        -  Highlighted significant new areas of mineralisation immediately
           adjacent to, and locally continuous with, the mineralisation
           within the current resource area; and
        -  Significant intersections have been recorded from surface to a
           maximum depth of 100m, with thicknesses up to 55m.

    -   Another new zone of mineralisation identified in exploration drilling
        at Nyota:
        -  New area of mineralisation lies ~2km north of the existing
           resource areas;
        -  Best results include 10m @ 480 ppm eU(3)O(8), 10m @ 341 ppm
           eU(3)O(8), 7m @ 430 ppm eU(3)O(8), 7m @ 310 ppm eU(3)O(8)
           and 4m @ 505 ppm eU(3)O(8); and
        -  Mineralisation remains open and will be the focus of further
           drilling in 2010.

    -   Revised Mineral Resource Estimate ('MRE'):
        -  MRE comprises 15.3 million tonnes averaging 504 ppm for 17.0
           million pounds of U(3)O(8) classified into the Indicated Resource
           category, plus Inferred Resources of 29.1 million tonnes averaging
           430 ppm for 27.6 million pounds of U(3)O(8);
        -  Represents a 24% increase from the previous statement (35.9 Mlbs);
        -  Average grade of the MRE has increased by 11%;
        -  17.0 Mlbs U(3)O(8) or 38% of the MRE now classified as an
           Indicated Resource;
        -  Majority of the MRE is within 60m of surface;
        -  Results from the exploration drilling program, including Nyota NE,
           have not been included in this MRE. These results will be
           incorporated in a further MRE update in the March quarter; and
        -  Potential exists to substantially increase the resource base with
           ongoing work.

    -   Infill drilling and trenching programs continue to deliver strong
        results:
        -  Infill drilling confirmed continuity of mineralised zones, both in
           terms of thickness and grade, within a resource area in the
           southern portion of Nyota;
        -  Thick, high grade mineralisation has been intersected at shallow
           depths with best results including 37m @ 1,358 ppm eU(3)O(8),
           29m @ 979 ppm eU(3)O(8), 36m @ 686 ppm eU(3)O(8), 38m @
           617 ppm eU(3)O(8) and 22m @ 1,049 ppm eU(3)O(8);
        -  Assay results from new trenches have highlighted additional zones
           of high grade surface mineralisation. Select intercepts include 4m
           @ 6,485 ppm, 8m @ 1,463 ppm, 5m @ 2,159 ppm, 7m @
           1,045 ppm, 5m @ 1,340 ppm and 7m @ 952 ppm; and
        -  These results were not available for inclusion in the December
           2009 MRE and will be included in the MRE update in the March
           quarter.

    -   Further outstanding results from exploration drilling at Nyota NE:
        -  New exploration drilling results expanded the area of
           mineralisation;
        -  Mineralisation has been intersected at shallow depths (from
           surface), including a peak intersection of 63m @ 559 ppm
           eU(3)O(8) from 9m depth; and
        -  Mineralisation now covers an area of ~2km(2) and remains open to
           the north and south.

    -   All new areas of mineralisation identified as a result of exploration
        drilling, including Nyota NE, have been drilled on a nominal 100m by
        100m spacing to facilitate their inclusion in the revised MRE to be
        completed in the March quarter.

    -   Excellent start to initial appraisal of MRP Satellite Targets:
        -  Selective rock chip grab samples up to 1.53% (15,380 ppm)
           U(3)O(8);
        -  Maximum auger intercepts of 7m @ 2,591 ppm U(3)O(8);
        -  Best trench intercept of 3.2m @ 4,119 ppm U(3)O(8); and
        -  Further indications of the emergence of a new uranium province.

    -   Positive results from Resin-In-Pulp ('RIP') metallurgical testwork:
        -  Simplification of operation with the removal of the counter
           current decantation ('CCD') circuit;
        -  A significant reduction in size or elimination of the solvent
           extraction ('SX') plant with the potential to go to direct
           precipitation;
        -  Reduction in overall reagent use;
        -  Smaller plant footprint; and
        -  Greater flexibility in the processing of mineralisation in varying
           host rock types.

    -   Continued good progress with the Pre Feasibility Study ('PFS') which
        is scheduled for completion in the March quarter.

    -   Mantra commenced trading on the Toronto Stock Exchange ('TSX') on 19
        November 2009.

    -   The Company successfully completed a share offering of 13,000,000
        ordinary shares at an issue price of C$4.00 per ordinary share for
        gross proceeds of C$52 million (the 'Offering'). In addition to the
        Offering, Mantra also announced it intends to complete a private
        placement of an additional 3,800,000 Ordinary Shares to Highland Park
        S.A. and AngloPacific Group Plc, at an issue price of C$4.00 per
        Ordinary Share for gross proceeds to the Company of C$15.2 million
        (the 'Private Placement').
    

Regulatory Disclosures:

For further information regarding the Mkuju River Project, including a description of Mantra's quality assurance program, quality control measures, the geology, samples collected and testing procedures in respect of the Mkuju River Project please refer to the technical reports prepared in accordance with NI 43-101 entitled "December, 2009 Resource Update - Mkuju River Project" dated 7 December 2009 and "Technical Report on the Mkuju River Project located in Tanzania, Africa" dated 18 September 2009, which are available under the Company's profile at sedar.com.

Competent Person / Qualified Person Statements

The information in this report that relates to Exploration Results in Tanzania is based on information compiled by Mr. Robert Behets, who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr. Behets is a full-time employee of the Company. Mr. Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this report, including sampling, analytical and test data underlying the information contained in this release. Details in relation to the verification of the data are included in the notes to Table 1. The QP was satisfied with the verification process and consents to the disclosure in this release. Mr Behets consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Exploration Results in Mozambique is based on information compiled by Mr. Matthew Yates, who is a Fellow Member of the Australian Institute of Geoscientists. Mr. Yates is a full-time employee of the Company. Mr. Yates has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained in this report. Details in relation to the verification of the data are included in the notes to Table 1. The QP was satisfied with the verification process and consents to the disclosure in this release. Mr Yates consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to in-situ Mineral Resources is based on information compiled by Mr Malcolm Titley of CSA Global Pty. Ltd. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this report, including sampling, analytical and test data underlying the information contained in this release. Mr Titley consents to the inclusion of such information in this Report in the form and context in which it appears.

The information in this report that relates to the Resin-In-Pulp metallurgical testwork results is based on information compiled by Mr Dave Dodd, who is a Chemical Engineer and a Fellow of the South African Institute of Mining and Metallurgy. Mr Dodd is a Technical Consultant of MDM Engineering Ltd, a consultant of Mantra Resources Limited. Mr Dodd has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. The Qualified Person has verified the data disclosed in this report, was satisfied with the verification process and consents to the disclosure in this release. Mr Dodd consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This report contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, uranium prices, demand for uranium, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as 'outlook', 'anticipate', 'project', 'target', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast' and similar expressions. Persons reading this report are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein, including but not limited to the risk factors set out in the Company's Annual Information Form.

This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

A full complete version of the Company's 'Quarterly Report to the Australian Securities Exchange for the Period Ending 31 December 2009' with details of the work completed, including supporting assay results and details of the Company's QA/QC procedures, is available on the Company's website (www.mantraresources.com.au), ASX (www.asx.com.au), and SEDAR (www.sedar.com).

SOURCE MANTRA RESOURCES LIMITED

For further information: For further information: Robert Behets, Joint Managing Director, Phone: +61 8 9322 6322; Matthew Yates, Joint Managing Director, Phone: +61 8 9322 6322

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MANTRA RESOURCES LIMITED

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