SOURCE: Mantra Venture Group, Ltd.

August 17, 2010 09:15 ET

Mantra Signs Technology Development Cooperation Agreement for the Production of Green Chemicals in Korea Using Proprietary Carbon Capture and Recycling (CCR) Technology

SEATTLE, WA--(Marketwire - August 17, 2010) -  Mantra Venture Group Ltd. ('Mantra') (OTCBB: MVTG) (FRANKFURT: 5MV) is pleased to announce that it has formally executed an agreement with KOSPO and KC Cottrell to deploy Mantra's CCR technology in a pilot project at KOSPO's coal fired power plant in Hadong.

The objective of the project is to demonstrate the effectiveness of Mantra's CCR technology in converting waste CO2 into valuable formic acid alongside KC Cottrell's unique CO2 capture facility at KOSPO's largest coal fired power plant in Korea.

The project is expected to advance Mantra's CCR technology in large scale applications and to secure further applications of CCR in the Republic of Korea. Upon successful completion of the project, Mantra expects the large scale implementation of its technology in Korea for disposing of waste CO2. It all began to come together at the Olympics under the Metro Vancouver Commerce program supported by, amongst others, Mayor Dianne Watts, City of Surrey, Mayor Richard Walton, District of North Vancouver, Mayor Malcolm Brodie, City of Richmond, and Mayor Gregor Robertson, City of Vancouver.

Mr. Larry Kristof, CEO of Mantra Venture Group stated:

"This agreement represents a giant leap forward for the reduction of CO2 from industry sources using Mantra's technology. This project will serve as an important next step toward commercialization and recognition of CO2 as a valuble feedstock for green chemicals and fuels. Both KOSPO and KC Cottrell bring important elements to the comercialization process complementing Mantra's expertise."

Mr. Nam Ho Ki, CEO of Korea Southern Power Corporation, added:

"The agreement we are signing today on the ERC technology to produce formic acid represents a groundbreaking technology to solve the problem with the global warming caused by CO2 emissions. Once the collaboration of our three companies in commercializing the formic acid production technology become a success, it will not only provide a new meaning for CO2 as a means to boost the industries and economy, but also a new perspective on the problem with GHG (Green house Gases) from using fossil fuels."

Mr. Lee Tae Young, CEO of KC Cottrell noted the following about the agreement with Mantra:

"On top of making useful material, production of formic acid from CO2 using electro chemical reduction principle signifies a revolutionary change in the production of green chemical products. This agreement will serve as a catalyst for a strong collaboration with Mantra's proprietary technology, and with KOSPO who has been a driving force in developing innovative technologies together with Korea's green growth initiative. KC Cottrell will do our best to fast track the commercialization of ERC technology."

About Korean Southern Power Co., Ltd.

KOSPO is Korea's major electricity provider and has several facilities across the country. KOSPO embraces the notion of sustainable development by balancing environmental conservation with economic growth. The company sets strict self-management targets to minimize pollutant emissions in adherence with local regulations for each of its power plant facilities. For more information on KOSPO, please visit their website: http://www.kospo.co.kr/ENGLISH/index.htm.

About KC Cottrell Co., Ltd.

KC Cottrell has been a world leader in environmental technology for over 35 years and has operations in Asia, America and Europe. KC Cottrell trades on the SEO stock exchange under the ticker symbol 009440. The companies' annual sales for the fiscal year ending January 2010 were $140 million USD.

Mantra's ERC technology

The ERC process, the "Electrochemical Reduction of Carbon Dioxide," combines captured carbon dioxide with water to produce high value materials, such as formic acid and formate salts, which are conventionally obtained from the thermochemical processing of Fossil Fuels. ERC operates at near ambient conditions and is driven by electric energy that can be taken from an electric power grid supplied by hydro, wind, solar or nuclear energy (forms of clean or renewable energy).

About Mantra Venture Group Ltd.

Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable and environmentally responsible investment for its shareholders.

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