Infill drilling continues to confirm continuity of mineralisation at Nyota

    
    Highlights:

    -   Results from infill drilling at the Nyota Prospect continue to
        confirm continuity of mineralised zones, both in terms of thickness
        and grade;

    -   Multiple thick zones of mineralisation intersected at shallow depths,
        including a peak intercept of 26 metres @ 1,401 ppm eU(3)O(8);

    -   Steady flow of drilling results expected over coming months with five
        rigs operating at site; and

    -   Exploration drilling aimed at testing priority target areas adjacent
        to the existing resource areas will commence once the infill program
        is completed.
    

PERTH, Western Australia, June 2 /CNW/ - Mantra Resources Limited ('Mantra' or 'the Company') (ASX: MRU, TSX: MRL) is pleased to announce the first batch of results from the 2010 infill drilling program at the Nyota Prospect ('Nyota' or 'the Prospect'), part of the wholly owned Mkuju River Project ('MRP' or 'the Project') in southern Tanzania.

This infill drilling program is an integral part of the Company's Definitive Feasibility Study ('DFS') as it is focused on converting a significant portion of the current Mineral Resource Estimate ('MRE') into the Measured and Indicated categories, which will help to better define the proposed mine plan.

It is anticipated that this program will be completed in approximately four months and will facilitate the announcement of a revised MRE in the fourth quarter of 2010. The Company will publish the results of the drilling program as they become available over the coming months.

The current MRE is tabulated below:

    
    -------------------------------------------------------------------------
    Resource            Ore (million       Average        Contained U(3)O(8)
    Category               tonnes)       grade (ppm)         (million lbs)
    -------------------------------------------------------------------------
    Indicated               25.1             515                  28.5
    -------------------------------------------------------------------------
    Inferred                57.3             442                  55.8
    -------------------------------------------------------------------------
    

The results of an initial 203 aircore/open-holes (reported herein) have shown that there is good continuity of the mineralised zones, in both thickness and grade, between the previous broader spaced holes within the resource areas drilled to date. Multiple thick zones of mineralisation have been recorded at shallow depths, with better intercepts including:

    
    -------------------------------------------------------------------------
                                                                 From Depth
    Hole No.                  Down Hole Intercept                (Down Hole)
    -------------------------------------------------------------------------
    MNAA0342              26m @ 1,401 ppm eU(3)O(8)                    1m
    -------------------------------------------------------------------------
    MNAH0425              13m @ 1,722 ppm eU(3)O(8)                   17m
    -------------------------------------------------------------------------
    MNAH0338              18m @ 1,118 ppm eU(3)O(8)                   23m
    -------------------------------------------------------------------------
    MNAH0335              13m @ 1,218 ppm eU(3)O(8)                    7m
    -------------------------------------------------------------------------
    MNAH0423              30m @ 431 ppm eU(3)O(8)                 surface
    -------------------------------------------------------------------------
    MNSA0165              16m @ 760 ppm eU(3)O(8)                     12m
    -------------------------------------------------------------------------
    MNAH0330              13m @ 808 ppm eU(3)O(8)                 surface
    -------------------------------------------------------------------------
    MNAH0339              20m @ 508 ppm eU(3)O(8)                      3m
    -------------------------------------------------------------------------
    MNAH0340               7m @ 1,375 ppm eU(3)O(8)                   38m
    -------------------------------------------------------------------------
    MNAH0396              16m @ 568 ppm eU(3)O(8)                     28m
    -------------------------------------------------------------------------
    MNAA0295               5m @ 1,777 ppm eU(3)O(8)                   65m
    -------------------------------------------------------------------------
    

In total, the resource infill program will comprise approximately 2,000 metres of diamond core and 63,000 metres of aircore and open-hole drilling. This is more than the entire drilling program completed in 2009.

Three air drill rigs and one diamond drill rig are currently operating at Nyota. A fourth air rig is currently being mobilised to site and will be in operation in the coming weeks. To date, approximately 510 aircore/open-hole drill holes for 34,600 metres and three diamond holes for 160 metres have been completed.

Exploration drilling aimed at testing a number of priority target areas adjacent to the existing resource areas will commence immediately following the completion of the infill program.

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 www.sedar.com.

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 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 version of this press release is available on the company's website and at www.sedar.com.

For further information: Peter Breese, Chief Executive Officer, Tel: [phone]; Robert Behets, Executive Director, Tel: [phone]