Dear all,
Please find below a summary of an announcement made today regarding ARMZs all cash offer for Mantra Resources valued at A$1.16 Billion.


Transaction Summary:
* Mantra and ARMZ have entered into a Scheme Implementation Agreement under which ARMZ will acquire all of the issued share capital in Mantra by way of a Scheme of Arrangement with minimal conditions * Under the Scheme, Mantra shareholders will receive cash consideration of A$8.00 per share.

This values the Company at approximately A$1.16 billion * The cash offer of A$8.00 per share represents: o A 15.5% premium to the 20 day VWAP of Mantra; and o A 21.2% premium to the 30 day VWAP * The offer equates to US$10.26 per pound of resource, which is significantly higher than other substantial uranium developers * The cash consideration provides an opportunity for Mantra shareholders to realise immediate value for their Mantra shares and reflects the size, strategic nature and near-term development potential of the Mkuju River Project * The Board, having taken advice from RBC Capital Markets as to the consideration being provided under the offer, has concluded that the transaction is in the best interests of Mantra shareholders * Subject to an Independent Expert determining that the Scheme is in the best interests of Mantra shareholders, the Directors of Mantra have agreed to unanimously recommend ARMZs offer and to vote in favour of the Scheme, in the absence of a superior proposal * Mantras major shareholder, Highland Park, which owns 13.5% of the outstanding, fully diluted share capital in Mantra, has represented that it will vote in favour of the Scheme, in the absence of a superior proposal. The full announcement can be viewed by clicking on the following link:
http://mantraresources.com.au/upload/documents/releases/asx/20101215_101 215-ARMZALL-CASHOFFERRELEASE_Final2.pdf
Please dont hesitate to contact Peter Breese, Robert Behets or Alex Buck if you have any questions.
Regards
Peter Breese Chief Executive Officer
A: Level 9, The BGC Centre, 28 The Esplanade, PERTH WA 6000 T: +618 9322 6322 F: 618 9322 6558 in Australia T: +27 (0)11 467 2172 F: +27 (0)86 658 3476 M: +27 (0)82 888 6852 in South Africa E: W: www.mantraresources.com.au
Robert Behets Executive Director
A: Level 9, The BGC Centre, 28 The Esplanade, PERTH WA 6000 T: 618 9322 6322 F: 618 9322 6558 E: W: www.mantraresources.com.au
Alex Buck Investor Relations
T: +44 7932 740 452 E:
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