Mantra Mining Inc.
TSX VENTURE : MAN

Mantra Mining Inc.

March 10, 2009 09:00 ET

Mantra Closes Agreement to Acquire Alaska Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2009) - Mantra Mining Inc. (TSX VENTURE:MAN) ("Mantra" or the "Company") announces that it has closed an agreement with NovaGold Resources Inc. ("NovaGold") and an affiliate of NovaGold to acquire 100% of NovaGold's interests in five properties in Alaska totaling approximately 397,680 acres of Alaska State mining claims, subject to filing of Mining Quitclaim Deeds in Alaska. These include the Colorado Creek and Tintina gold exploration properties and the Kugruk, Baird and Omilak polymetallic base metal properties (to view location map - Figure 1 please click on the following link: http://media3.marketwire.com/docs/0310man.pdf). In consideration for the acquisition of the five properties, the Company paid to NovaGold an aggregate of 3,125,000 shares of Mantra common stock, representing approximately 7% of the issued and outstanding common shares.

Raj Chowdhry, President of Mantra Mining said: "We are very pleased to have closed this transaction with NovaGold. We feel that there is excellent potential to advance the properties and add value for our shareholders. We are especially excited about the Tintina properties in the potential of the Kuskokwim gold belt and the Colorado Creek gold project in particular - this will no doubt be the focus of our exploration efforts this summer. Meanwhile we will evaluate strategic alternatives for the base metal assets."

The Colorado Creek property lies in the Tintina Gold Belt in southwest interior Alaska and consists of 21,560 acres of 100% owned Alaska state claims and 5,320 acres of Alaska state claims under purchase option to acquire 100% interest subject to 4% NSR. The property, geology and option agreement are described in more detail in a recently completed National Instrument 43-101 report (see website or SEDAR for link to full report).

Colorado Creek, Cripple Creek, and the tributaries which drain the property, have produced at least 265,000 ounces of placer gold (historical, unaudited). Soil and rock sampling have returned anomalous gold mineralization in structures cross-cutting quartz-feldspar porphyry dikes and sills hosted by Kuskokwim Group shale, siltstone, and andesitic volcanic rocks. A 3 kilometer wide zone of mineralized occurrences, covered by overburden at both ends, extends northeast for over 4.5 kilometers along the northwest flank of the Cripple Mountains stock. Historic exploration has identified gold mineralization with locally abundant disseminated pyrite, arsenopyrite, and some stibnite associated with silicified and sericite altered quartz porphyry sills.

Colorado Creek shows important geologic similarities with the world class Donlin Creek gold deposit which lies 200 km to the southwest, where 70 Ma feldspar-quartz dike and sill complexes intrude Cretaceous Kuskokwim group shales and siltstones.

The Tintina group of properties consist of five claim blocks totaling approximately 93,280 acres of 100% owned State of Alaska mining claims situated 135 to 165 kilometers south-southwest of the Donlin Creek gold deposit in southwest Alaska. These claim blocks have received limited reconnaissance mapping and sampling; however, anomalous gold mineralization has been identified and is associated with silicified and altered quartz-feldspar porphyry intrusive bodies intruding Kuskokwim Group sediments. These early stage exploration targets show similar general characteristics to Donlin Creek-type mineralization.

The Kugruk property is located on the Seward Peninsula and consists of 176,640 acres of 100% owned Alaska state claims and 640 acres of leased Alaska state claims. Exploration work to date has identified copper-iron, lead-zinc-silver, and gold mineralization in and around the eastern margin of the Kugruk pluton, a large +/- 94Ma felsic granodiorite intrusive complex intruding Paleozoic metasediments. Limited drilling in the 1970's encountered a massive magnetite-chalcopyrite calc-silicate assemblage along the east margin of the pluton known as the Billiken prospect. Separately and along the Kugruk River, the Independence Mine underground workings access high grade lead-zinc-silver replacement zones in marbleized Paleozoic limestone and dolomite along a northeast trending carbonate-schist contact. Historic mining at this location dates back to at least 1913. A series of prospects with similar style lead-zinc-silver replacement mineralization (North and South Mina, Jawbone, Anugi) persist for approximately 35 kilometers along a northeast trend. East of this belt of lead-zinc-silver prospects, numerous placer gold prospects, including the Candle placer district, are sourced in partially loess-covered schist and carbonate terrane.

The Baird property is located in northwest Alaska and consists of 80,560 acres of 100% owned Alaska state claims and the 9,600 acre Omar claim block where Mantra is earning a 60% joint venture interest from Teck American Incorporated (formerly AUR Resources Inc.). The Baird property covers a large area of copper-zinc-barite occurrences hosted by Paleozoic carbonates. The property lies 100 kilometers southeast of Red Dog, the world's largest zinc producing mine. An historic drill program conducted by Bear Creek Mining Co. in the 1960's recovered 6.1 meters of 9.6% copper in one hole, and 36.6 meters grading 3.2% copper in another (historical and unaudited). In 2006, NovaGold joint ventured the Omar copper showing from Aur Resources, staked state claims on the other mineralized areas in the district, and covered the area with an airborne magnetic and EM survey. In 2007, NovaGold completed an extensive surface sampling (3,826 soil, rock, talus fine, and stream silt samples) and mapping (270 square km) program over about 50% of the claim block, which provides early stage definition of four large copper-zinc mineralized areas ranging from 3 to 10 kilometers in length. These zones contain multi-percent-level copper and zinc mineralization with some anomalous concentrations of cobalt. At the Deadfall prospect, an outcropping mineralized horizon channel sample returned 36 meters grading 6% zinc and 21.7 grams silver per tonne (historical and unaudited). Recent age dating of mineralization at Omar shows an approximate 360Ma age and suggests the mineralization occurred as part of the same mid-Paleozoic regional metallization event that formed the giant synsedimentary Red Dog zinc deposit at approximately 338Ma.

The Omilak property is located in the eastern Seward Peninsula and consists of 19,680 acres of 100% owned Alaska state claims. The Omalik property covers an area surrounding the historic Omilak lead-zinc-silver mine which was active during the late 19th century and produced high grade direct shipping silver ore. The combination of high silver grades and widespread mineralized gossan occurrences, combined with an apparent lack of significant contemporary exploration work attracted NovaGold to stake claims over the area. NovaGold did not complete any work on the prospect to date.

The information of a scientific or technical nature contained in this news release has been reviewed and approved by Robert McLeod, P.Geo., a Director of the Company. Mr. McLeod is a qualified person for the purposes of National Instrument 43-101.

Granting of Stock Options

The Company wishes to announce that it has granted to employees, officers, directors, and consultants an aggregate of 2,300,000 stock options under the Company's Stock Option Plan that was approved at the Company's February 24, 2009 annual general meeting. The options will be exercisable for a period of two years, at a price of $0.50 per share.

ON BEHALF OF THE BOARD OF DIRECTORS

Raj Chowdhry, C.A., President & CEO

Cautionary Notice: This release contains forward-looking statements regarding the Company's business or financial condition, including the possible advancement of properties, potential mineralization, potential exploration and possible strategic alternatives. Actual results could differ materially from those described in this news release as a result of factors, including, but not limited to the following: the timing of and ability to obtain required financing, the ability to and success in advancing properties and completing exploration, the ability to complete transactions and other factors described in the Company's management's discussion and analysis and elsewhere. The Company cautions that these and similar statements involve risk and uncertainties and are qualified by important factors, including competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business and exploration programs, which could cause actual results to differ materially from those in the forward looking statement. Forward-looking statements are made in the context of information available as of the date stated. The Company undertakes no obligations to update or revise such statements to reflect new circumstances or unanticipated events as they occur, unless required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information