Mantra Mining Inc.

Mantra Mining Inc.

June 22, 2009 09:00 ET

Mantra Mining Proposes Spinout of Gnome Property and Name Change

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2009) -


Mantra Mining Inc. ("Mantra" or the "Company") (TSX VENTURE:MAN) is pleased to announce that it intends to complete a spin-out of its Gnome mineral exploration property located in British Columbia, Canada, to a new company under a statutory plan of arrangement (the "Arrangement").

Under the proposed terms of the Arrangement, the shareholders of Mantra will retain their common shares in Mantra and will be entitled to receive one common share of the new company for every share of Mantra held on the record date for the Arrangement. The completion of the Arrangement will be subject, among other things, to TSX Venture Exchange, court and shareholder approval.

Further details regarding the Arrangement will be set out in an Information Circular that will be sent to shareholders in advance of the extraordinary shareholders meeting that will be held in September 2009 to seek approval for the following matters:

1. the proposed Arrangement;

2. the change of name of Mantra Mining Inc. to "TintinaGold Resources Inc."; and

3. the removal of the restrictions on the warrants held by Electrum Strategic Metals LLC that restrict it from exercising the warrants if, on exercise, its ownership of common shares of Mantra would exceed more than 19.99% of the issued and outstanding common shares of Mantra. Electrum acquired ownership of 7,714,286 units of Mantra in May 2009, with each unit consisting of one common share and one common share purchase warrant. Mantra agreed to seek shareholder approval to remove the warrant exercise restrictions. In the event shareholder approval is not obtained on or before September 30, 2009, the term of the warrants will be extended from three years to five years and the warrants will become transferable, subject to applicable laws.


Raj Chowdhry, C.A., President & CEO

Cautionary Notice: This release may contain forward-looking statements regarding the Company's business or financial condition, including the proposed completion of a spin-out and name change and TSX Venture Exchange, court and shareholder approval. 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 success in completing the proposed spin-out and name change and obtaining TSX Venture Exchange, court and shareholder approvals, and other factors. 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, 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.

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