Mantra Resources: quarterly report to the Australian Securities Exchange for
the period ending 30 June 2010

PERTH, Western Australia, July 30 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX: MRU, TSX: MRL) is pleased to present its quarterly report for the period ended 30 June 2010. The Company's primary focus during the period was the advancement of the Definitive Feasibility Study ('DFS'), including the integrated metallurgical pilot testwork program and resource infill drilling program at 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:

    
    -  The DFS is progressing according to schedule with work focusing on
       resource infill drilling, mining optimization, metallurgical
       processing, engineering (mechanical, electrical, instrumentation and
       control engineering), water and tailings storage facilities, and
       'early works'.

    -  The comprehensive integrated pilot metallurgical testwork program was
       concluded during the quarter. The program, conducted at ANSTO in
       Sydney, was designed to reduce process design risk. The results from
       the initial 28 continuous days operation in March indicated that the
       flowsheet could be considerably improved in various areas. These
       improvements were introduced during the pilot plant run and the plant
       consistently confirmed these initiatives. Notably:

         -  Acid consumption in the leach was maintained in the order of
            6-8 kg/tonne; well below the PFS parameter of 12 kg/tonne. The
            leach was operated at an ambient temperature leach with no
            addition of iron or oxidant. Average leach recoveries of 87% were
            consistent with the PFS, although a record recovery of 91% was
            achieved during testwork with high head grade feed;

         -  The resin absorption stage ran well with no resin fouling noted
            and a consistent 99.7% absorption rate was maintained throughout
            the campaign;

         -  The direct precipitation circuit produced a high quality
            yellowcake, thus confirming the elimination of the solvent
            extraction plant;

         -  The refining stage produced a final product yellowcake within
            chemical and physical specification of major uranium off-take
            converters; and

         -  During the neutralisation stage a locally sourced Tanzanian
            limestone was used successfully which may result in considerable
            cost savings over the originally envisaged, imported product.

       In light of these positive aspects, the Company ran a modified
       testwork campaign during the entire month of May focused on evaluating
       the potential to further reduce operating costs and improve overall
       uranium recoveries through a combination of decreasing the temperature
       in the elution process; increasing resin loadings; using a larger
       resin bead; optimization of the lime addition; and piloting the
       opportunity to leach the scatted material to recover uranium in the
       tailings stream. The results from this program are being compiled.

    -  In addition, as part of Mantra's strategy to optimise the flowsheet,
       reduce operating costs and improve recoveries, piloting has now
       commenced to firm up the flowsheet to leach uranium from the tailings
       scats stream and a 20 tonne sample of material is being run through
       the Kemix pilot rig at Mintek in South Africa.

    -  The Environmental Impact Statement and the Special Mining License
       application were submitted during the quarter.

    -  A draft Mine Development Agreement was submitted to the Ministry of
       Energy and Minerals during the quarter.

    -  The 2010 resource infill drilling program continued throughout the
       period. Five air drill rigs and two diamond drill rigs are currently
       operating at Nyota. To date, approximately 850 aircore/open-hole drill
       holes for 54,000 metres and 24 diamond holes for 1,500 metres have
       been completed this year. The results recorded from an initial
       519 aircore/open holes have:

         -  continued to confirm continuity of mineralised zones, both in
            terms of thickness and grade; and

         -  highlighted multiple thick zones of mineralisation at shallow
            depths, including peak intercepts of 25 metres @ 1,572 ppm
            eU3O8, 26 metres @ 1,401 ppm eU3O8 and 47m @ 680 ppm eU3O8.

    -  In June, Mantra appointed Mr William (Bill) Smart as an alternate
       director for Mr Colin Steyn. Mr Smart is a key investor in Highland
       Park S.A. ('Highland Park'), the Company's largest Shareholder and
       strategic investor. His proven management skills and development
       expertise, particularly in southern Africa, will be invaluable as the
       Company strives to fulfil its strategic objective of becoming a
       significant uranium producer in the near-term.

    -  Approximately A$7.2 million was raised during the quarter from the
       exercise of unlisted options which were due to expire on 30 June 2010.
       These funds reinforce the Company's strong cash position, as it
       completes the DFS and prepares to commence early site works at the
       MRP, with approximately A$78.6 million and no debt.
    

Regulatory Disclosures:

A full complete version of the Company's 'Quarterly Report to the Australian Securities Exchange for the Period Ending 30 June is available on the Company's website (www.mantraresources.com.au), ASX (www.asx.com.au), and SEDAR (www.sedar.com).

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 report 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 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.

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.

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