Mantra completes C$52 million share offering


PERTH, Western Australia, Dec. 23 /CNW/ - Mantra Resources Limited ("Mantra" or "Company") (ASX:MRU, TSX:MRL) is pleased to announce that it has successfully completed its previously announced 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").

The Offering was marketed by a syndicate of agents led by Haywood Securities Inc. and GMP Securities L.P., and including Dundee Securities Corp.

In addition to the Offering, the previously announced 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") is expected to be completed in February 2010. The Private Placement is to be completed on a deferred settlement basis, pending regulatory and shareholder approval.

The net proceeds of the Offering will be used to complete feasibility studies on the Company's Mkuju River Project ("MRP") in southern Tanzania and for the ongoing appraisal and development of the MRP to enable the Company to become a significant uranium producer in the near term.

This news release is not an offer of securities for sale in the United States. The securities described above have not been and will not be registered under the U.S. Securities Act of 1933, and may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, or an applicable exemption from the registration requirements thereof.


Mantra is a dynamic and emerging uranium company with a portfolio of quality projects in southern Tanzania. The Company is dual listed on the Australian Securities Exchange ("ASX") under the code 'MRU' and the Toronto Stock Exchange ("TSX") under the code 'MRL'. Mantra was recently added to the S&P/ASX 300 index. Mantra is focused on aggressively pursuing the potential development and ongoing exploration of the MRP in Tanzania in order to fulfil its strategic objective of becoming a significant uranium producer in the near-term.

This news release 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 proposed financings, the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. 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 news release 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.

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

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

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