Manhattan Corporation Limited (ASX:MHC) Announces High Grade Uranium Drill Results In Western Australia

Perth, Oct 18, 2010 AEST (ABN Newswire) - Manhattan Corporation Limited (ASX:MHC) has now completed 600 aircore and sonic drill holes, totalling 40,850 metres of drilling, testing the potential for palaeochannel sand hosted uranium mineralisation at Ponton in Western Australia. 453 of these drill holes, totalling 31,989 metres of drilling including a 19 hole, 1,321 metre sonic core drilling program, have been drilled into the Stallion, Highway and Highway North uranium prospects.

Sonic drilling duplicated and twinned approximately 1 in 3 of the mineralised aircore holes at Stallion (and 3 holes at Highway) and collected competent core samples of the unconsolidated uranium mineralised sands for chemical analysis. Representative intervals selected for sonic core sampling were based on gamma logs of the adjacent aircore holes. Multiple zones of uranium mineralisation were encountered in all 19 sonic holes with uranium oxide ("U3O8") analyses reported for 14 holes at 100ppmU3O8 cutoff.

Stallion sonic drill intersections include 2 metres of 221ppmU3O8 in STSC1222, 2 metres of 366ppmU3O8 in STSC1224 including 1 metre of 424ppmU3O8, 6 metres at 200ppmU3O8 in STSC1227 including 1 metre of 353ppmU3O8, 6 metres at 372ppmU3O8 in STSC1228 including 1 metre of 1,156ppmU3O8, 4 metres of 196ppmU3O8 in STSC1231 including 1 metre of 308ppmU3O8, 1 metre of 544ppmU3O8 in STSC1233, 6 metres of 435ppmU3O8 in STSC1235 including 1 metre of 934ppmU3O8 and 3 metres of 394ppmU3O8 in STSC1237 including 1 metre of 970ppmU3O8.

Highway sonic drill intersections include 2 metres of 200ppmU3O8 in HWSC1215 and 1 metre of 180ppmU3O8 and 2 metres of 161ppmU3O8 in HWSC1216.

The Ponton Project includes the 11Mlb Double 8 uranium deposit that is known to contain a further drilled Mineralised Potential of 6.6 to 15Mlb of uranium oxide. The deposit is located in the Queen Victoria Spring Nature Reserve ("QVSNR"). Sand hosted uranium mineralisation, below 40 to 60 metres of cover, has now been drilled along 55 kilometres of the Tertiary palaeochannels in Manhattan's project area.

SONIC DRILLING, SAMPLING AND ASSAY TECHNIQUE

Boart Longyear Drilling undertook the sonic drilling using a 600T sonic core rig. Continuous representative cores were retrieved using a 100mm internal diameter 3 metre core barrel with complete undisturbed intervals recovered from the mineralised sections. All drill holes were down hole gamma logged by Geoscience Associates Australia Pty Ltd utilising 38mm natural gamma probes (calibrated probes SSG01 and SSG02) within 50mm diameter PVC casing in a 170mm diameter drill hole. Samples were checked on site using a hand held RS125 Super Spectrometer and core samples submitted for assay. 398 sonic 1 metre and duplicate 0.5 metre core samples, including Manhattan standards and field duplicates, were submitted to ALS Laboratory Group for a range of multi element analyses, including uranium. Assay results reported are based on the 1 metre and duplicate 0.5 metre continuous sampled 100mm cores.

The sonic drill sample uranium analyses from Stallion and Highway will provide the required assay data to enable conversion of the sonic and aircore down hole gamma logs to grade eU3O8 and establish disequilibrium factors for resource estimate calculations.

STALLION TARGET

The Stallion uranium prospect is located in E28/1523 and centred 14 kilometres northwest of the Double 8 uranium deposit at Ponton.

Manhattan has now completed 221 vertical aircore drill holes at Stallion totalling 16,914m of drilling. Drilling has been completed on 200m and 400m spaced lines with holes drilled at 100m centres along each grid line across the palaeochannel. Each aircore hole has been gamma logged.

Based on the aircore down hole gamma logs multiple zones of uranium mineralisation 200m to 1,000m wide between 2m and 25m thick have been encountered in 70 aircore holes along 8 kilometres of the Tertiary palaeochannel at Stallion at 60m to 90m deep.

1,177 metres of sonic drilling, in 16 holes, has been drilled along 5 kilometres the mineralised zone at Stallion. These sonic holes have duplicated and twinned approximately 1 in 3 of the mineralised holes and provided competent samples of the unconsolidated mineralised sands for chemical analysis.

Sonic drilling over 5 kilometres of strike at Stallion confirmed the presence and grade of uranium mineralisation identified in the gamma logs from the 221 aircore drill holes.

The uranium mineralisation is hosted within reduced carbonaceous sands and weathered granitic sands in an aquifer capped by 2m to 8m clay horizon and 40m to 60m of unmineralised sandstone and claystone and underlain by weathered and crystalline granite basement.

HIGHWAY & HIGHWAY NORTH TARGETS

The Highway and Highway North uranium prospects are located in E28/1523 and E39/1143 centred 15 kilometres northeast of the Double 8 uranium deposit at Ponton.

In August 2010 Manhattan completed aircore drilling at Highway and Highway North. 213 aircore holes totalling 13,754 metres of drilling has been completed on 400m x 100m and 800m x 100m grids. Holes are drilled on 100m and 200m centres along each grid line across the palaeochannel.

Anomalous uranium mineralisation, indicated by the down hole gamma logs, has been encountered in 129 aircore holes along 10 kilometres of the Tertiary palaeochannel at Highway and Highway North at 40m to 80m deep.

Apart from some shallow lignite hosted anomalous uranium encountered along the southern part of the palaeochannel at Highway North, the geological controls and style of the channel sand hosted uranium mineralisation at Highway and Highway North are similar to the mineralisation encountered at Stallion. A number of aircore holes failed to reach target due to the presence of a shallow hard silcrete layer (It's planned to redrill these holes in November 2010).

In late August 144 metres of sonic drilling, in 3 holes, has been drilled along 3 kilometres the mineralised zone at Highway.

Sonic drilling over 3 kilometres of strike at Highway again confirmed the presence and grade of uranium mineralisation identified in the gamma logs from the 213 aircore drill holes.

SUMMARY
Manhattan has completed 31,989 metres of aircore and sonic drilling, in 453 holes, at Stallion, Highway and Highway North. All drill holes have been gamma logged.

The sonic drill results will now provide assay data required to establish the disequilibrium factors and enable conversion of the down hole gamma logs to grade eU3O8. Grades and *grade thickness values will then be used to calculate resource estimates for the Stallion, Highway and Highway North mineralisation. [*Grade thickness is metres intersected multiplied by average gamma converted grade based on sonic sample chemical assays ppmU3O8 correlated with the measured gamma response]

Manhattan is now systematically aircore drilling the palaeochannels at the Shelf, to the north of the Shelf and at the East Arm prospects to the north of the QVSNR.

The sonic samples have also been submitted for mineralogical and metallurgical analysis, host sediment chemistry and particle size analysis as input into scoping studies to determine if the mineralisation is amenable to ISL extraction of the contained uranium oxide.

Gaining exploration access to the QVSNR is a priority for the Company where a further 37 kilometres of drill identified palaeochannel sand hosted uranium mineralisation, including the Double 8 deposit, is known to be present. On regaining exploration access to the QVSNR, Manhattan will immediately commence a $5 million, 60,000 metre resource definition drilling program at Double 8, Stallion South and Highway South. This 1,400 hole program is designed to establish resource estimates for these prospects and expand the reported Inferred Resource and convert the reported Mineralised Potential at Double 8 to Inferred Resource status.

For the complete Manhattan Corporation announcement including figures and tables, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63968-ASX-MHC-509986.pdf

Contact

Alan J Eggers Executive Chairman Tel: +61-8-9322-6677 Fax: +61-8-9322-1961 Email: info@manhattancorp.com.au http://www.manhattancorp.com.au