Mantra Resources Limited - Significant increase in Nyota Resource

    
    Highlights:

      -  Mineral Resource Estimate ('MRE') has increased by 24% from the
         previous statement (35.9 Mlbs);
      -  Average grade of the MRE has increased by 11%;
      -  17.0 Mlbs U3O8 or 38% of the MRE now classified as an Indicated
         Resource;
      -  Majority of the MRE is within 60 metres of surface;
      -  Results from the exploration drilling program, including Nyota NE,
         have not been included in this MRE;
      -  The current phase of exploration drilling will be concluded in early
         December and followed by a further MRE update in the March quarter
         of 2010; and
      -  Potential exists to substantially increase the resource base with
         ongoing work.

       -------------------------------------------------------------------
                     Mkuju River Project - Nyota Prospect
               Mineral Resource Estimate as at 2 December 2009
       -------------------------------------------------------------------
                              Tonnage         Grade    Contained U(3)O(8)
                          (million tonnes)  (U3O8 ppm)  (million pounds)
       -------------------------------------------------------------------
       Indicated Resource       15.3           504            17.0
       -------------------------------------------------------------------
       Inferred Resource        29.1           430            27.6
       -------------------------------------------------------------------
       Notes:  The resource is estimated at a lower cut-off grade of
               200 ppm U(3)O(8)

               All figures are rounded to reflect appropriate levels of
               confidence
    

PERTH, Western Australia, Dec. 3 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX: MRU, TSX: MRL) is pleased to announce an updated Mineral Resource Estimate for the Company's Nyota Prospect ('Nyota' or 'the Prospect'), part of the wholly owned Mkuju River Project ('MRP' or 'the Project') in southern Tanzania.

This MRE comprises 15.3 million tonnes averaging 504 ppm for 17.0 million pounds of U(3)O8 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)O8 at a lower cut-off grade of 200 ppm U(3)O8.

The updated MRE has been prepared by independent consultants CSA Global Pty Ltd ('CSA') and is reported in accordance with the Canadian National Instrument 43-101.

The updated MRE includes the available results of infill and extension drilling conducted during 2009 and is based on new data from a total of approximately 26,000 metres of drilling completed by the Company to early November 2009.

It should be noted that the results from the exploration drilling program, including the significant area of mineralisation identified at Nyota NE, have not been included in the December 2009 update of the MRE.

The current phase of exploration drilling will be concluded in December and followed by a further revision of the MRE in the March quarter of 2010. The revised MRE will include the exploration drilling data and the remainder of the infill drilling and trenching results that are still pending.

Mantra's Joint Managing Director Robert Behets said "This updated Mineral Resource Estimate and the recent exploration success at Nyota NE clearly demonstrates the significant potential of Nyota and the broader MRP. As a result of the Company's fast-track approach to the exploration and appraisal of the Project, the resource base has grown rapidly. Given the extensive target areas still to be tested, we are confident that ongoing work has the potential to continue to deliver exploration success and resource growth into the future."

The Board has taken great encouragement in these results and has elected to defer the completion of the Pre-Feasibility Study ('PFS' or 'the Study') until the MRE updates from December 2009 and Q1 2010 are fully integrated into the Study. It is anticipated that the PFS will now be concluded in the March quarter of 2010.

A full version of this release, complete with further details of this MRE, including supporting graphics and tables, is available on the Company's website (www.mantraresources.com.au) and SEDAR (www.sedar.com).

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 report prepared in accordance with NI 43-101 entitled "Technical Report on the Mkuju River Project located in Tanzania, Africa" dated 18 September 2009, which is available under the Company's profile at sedar.com.

Competent Person / Qualified Person Statements

The information in this release 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 release, including sampling, analytical and test data underlying the information contained in this release.

Mr Titley consents to the inclusion of such information in this release in the form and context in which it appears.

The information in this release that relates to Exploration Results 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 QP was satisfied with the verification process and consents to the disclosure in this release.

Mr Behets consents to the inclusion in this release 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.

SOURCE MANTRA RESOURCES LIMITED

For further information: For further information: Enquiries: 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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