MANTRA RESOURCES: QUARTERLY REPORT TO THE AUSTRALIAN SECURITIES EXCHANGE FOR
THE PERIOD ENDING 30 SEPTEMBER 2010

PERTH, Western Australia, Oct. 29 /CNW/ - Mantra Resources Limited ('Mantra' or 'Company') (ASX: MRU, TSX: MRL) is pleased to present its quarterly report for the period ended 30 September 2010. The Company's primary focus during the period continued to be the advancement of the Phase 1 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:

• Completion of the final, optimised process flowsheet for the MRP DFS. The final outcome is a highly simplified, single stream metallurgical flowsheet that maximises uranium recovery. This modified flowsheet has increased overall uranium recovery to 82% from the Phase 1 Pre-Feasibility Study ('PFS') figure of 79%, whilst significantly reducing acid consumption from the PFS figure of 12 kilograms per tonne to 6 to 10 kilograms per tonne of plant feed.
• The commencement of a PFS on heap leaching lower grade mined ore at the MRP for the Project's second phase of growth. The proposed Phase 2 would commence after the Phase1 Resin-in-Pulp ('RIP') circuit has reached steady state operations and provide the Project with an incremental increase in production over and above the annual production rate of approximately 3.7 million pounds of uranium targeted for Phase 1.
• Extensive discussions between the Ministry of Energy and Minerals and Mantra regarding the Mine Development Agreement ('MDA') are nearing finalisation. All necessary processes required by Tanzanian legislation with respect to the Special Mining Licence ('SML') and the Environmental Impact Assessment ('EIA') certificate are also well advanced.
• Completion of the 2010 resource infill drilling program. In total the program comprised approximately 1,650 aircore/open-hole drill holes for 98,000m and 67 diamond drill holes for 4,400m. Recently returned results have continued to confirm continuity of the mineralisation within the resource areas drilled. Thick zones of mineralisation were intersected at shallow depths, including peak intercepts of 21 metres @ 3,430 ppm eU₃O₈, 33 metres @ 1,084 ppm eU₃O₈ and 53m @ 677 ppm eU₃O₈.
• Commencement of the 2010 exploration drilling program in September. The expanded program will continue the evaluation of a number of priority target areas proximal to the known areas of mineralisation at Nyota and will comprise approximately 50,000 metres of aircore/open-hole drilling and 1,000 metres of diamond drilling.
• Appointment of Mr Ted Mayers as an independent non-executive director. Based in Canada, Mr Mayers is a Chartered Accountant and has extensive experience as a finance executive in the resources sector, most recently as Chief Financial Officer of Lundin Mining Corporation. The Board believes the appointment of Mr Mayers is an important and timely step for the Company as it strives to evolve from explorer to a significant near-term uranium producer.

Regulatory Disclosures:
A full complete version of the Company's 'Quarterly Report to the Australian Securities Exchange for the Period Ending 30 September 2010' 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 SEDAR..

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.

The information in this report that relates to the Resin-In-Pulp and Heap Leach metallurgical testwork results is based on information compiled by Mr Stuart Lawrence, who is a Metallurgist and a Fellow of the South African Institute of Mining and Metallurgy. Mr Lawrence is a Director of DRA's parent company, the EPCM contractor for the Mkuju River Project. Mr Lawrence 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, was satisfied with the verification process and consents to the disclosure in this release. Mr Lawrence consents to the inclusion in this report 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.

For further information:

Enquiries:	Peter Breese		Robert Behets
	Chief Executive Officer		Executive Director
	Phone: [phone]		Phone: [phone]