EXPLORATION DRILLING COMMENCES AS INFILL DRILLING NEARS COMPLETION AT NYOTA

PERTH, Western Australia, Sept. 30 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX:MRU, TSX:MRL) is pleased to announce the commencement of the 2010 exploration drilling program at its Nyota Prospect within the Mkuju River Project in southern Tanzania. The resource infill drilling program is nearing completion and two air rigs have been moved onto exploration drilling. A further five rigs will be allocated to exploration drilling once the infill drilling program is completed in early October 2010.

The original plan envisaged 100,000 metres of infill, exploration and other drilling during 2010. As a consequence of increasing the drilling fleet and implementing production philosophies, Mantra has already surpassed the original plan and now expects to drill in excess of 140,000 metres by the end of the year, which will comprise:

• Exploration drilling of approximately 51,000 metres (+/-70% increase over original plan);
• Infill drilling of approximately 85,000 metres (+/-30% increase over original plan); and
• Other Definitive Feasibility Study ('DFS') drilling of approximately 5,000 metres.

2010 Exploration Drilling Scope

The exploration drilling will continue the evaluation of a number of priority target areas proximal to the known areas of mineralisation at Nyota and will comprise approximately 1,000 metres of diamond core and 50,000 metres of combined aircore and open-hole drilling on a nominal 100m by 100m spacing. This program will continue until mid-December 2010. The target areas are highlighted in Figure 1.

The exploration program is being undertaken to:

• Substantially increase the overall resource base at Nyota;
• Provide continuity between current resource areas; and
• Facilitate refinement of the existing geological model and generation of additional targets.

Resource Infill Drilling Campaign

The infill drilling program, which will be completed in early October 2010, is aimed at resource category conversion from Inferred and Indicated into the Indicated and Measured categories. Results to date have continued to confirm the continuity of the mineralised zones in terms of geometry and grade.

Mantra is aiming to publish an updated Mineral Resource Estimate ('MRE') during the fourth quarter of 2010 incorporating the infill drilling program results. These updated resources will be included in the DFS, which is expected to be completed by the end of 2010.  In addition, a further revised MRE is expected to be completed in the first quarter of 2011 which will incorporate the current exploration drilling program results.

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 "January, 2010 Resource Update - Mkuju River Project, located in Tanzania, Africa" dated 10 March 2010, "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.

Competent Person / Qualified Person Statements

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 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 release of the matters based on his information in the form and context in which it appears.

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.

Forward Looking Statements

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 pre-feasibility and definitive feasibility studies, the Company's business strategy, plans, development, 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', 'evolve' 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:

Peter Breese                             Chief Executive Officer         Telephone: [phone]

Robert Behets     Executive Director Telephone: [phone]