Manhattan Corporation Limited (ASX:MHC) Exploration and Development Progress During the September Quarter 2011

Perth, Nov 18, 2011 AEST (ABN Newswire) - During the September quarter 2011, Manhattan Corporation Limited (ASX:MHC) has continued with the exploration and development of its flagship uranium project at Ponton in WA by completing a major drill program, reporting a substantial increase in its resource base, identifying the potential for a world class uranium development project and commissioning an independent desktop scoping study that confirms the project's ability to deliver a positive outcome for investors.

In March 2011 Manhattan reported a revised Inferred Resource for Double 8 of 17.2Mlb of uranium oxide with an additional reported Mineralisation Potential at Double 8 and Stallion South, Highway South and Ponton prospects in the order of 33 to 67Mlbs.

The sand hosted uranium mineralisation is located in shallow contiguous palaeochannels within Manhattan's project area at Ponton and demonstrates the potential of the project to host a world class ISL sand hosted uranium resource.

Manhattan's four Exploration Licences that encroach on, or are within, the QVSNR have now been granted.

Exploration and drilling activities within the QVSNR require Ministerial consent of the Minister for Mines and Petroleum with the approval of the Minister for Environment. Ministerial consent is being sought for the key tenement, E28/1898, and the executive team are working on gaining Departmental approvals to clear the way for the Company to proceed with its exploration and development activities on the Ponton ISL project.

In August 2011 international engineering consultants, Tetra Tech, completed an independent prefeasibility desktop study of Manhattan's Ponton ISL Uranium Project. Their report is positive, recommends further development work and indicates the Ponton uranium ISL project has good potential to become an economic ISL uranium producer with comparatively low operational costs per pound of uranium oxide that would require a relatively modest capital investment.

Tetra Tech have recommended further geological, hydrological, metallurgical and engineering work be undertaken by Manhattan to confirm the project's technical and economic viability.

Manhattan maintains its view that the medium to long term outlook for the uranium industry and nuclear power remains positive and unchanged. The fundamentals of the industry are sound. Uranium and nuclear power remains a competitive, safe and clean source of base load power now utilised on a large scale around the world with a further 65 new power reactors currently under construction.

The major nuclear power users, USA, China, Russia, India and France have all restated their commitment to the industry and intention to continue with their expansion plans post the Japanese earthquake, tsunami and the Fukushima incident.

Based on the positive fundamentals of the industry, its safety record and management of all its waste a number of prominent environmentalists have looked at the world's options to supply the increasing demand for energy and have concluded that nuclear power is an essential component of future supply.

In the early 2000's Patrick Moore (the founder of Greenpeace), Sir James Lovelock (eminent scientist and climatologist) and the late Bishop Huge Montefiore (environmentalist, theologian and Friends of the Earth) all switched their support to nuclear and more recently Baroness Worthington (Friends of the Earth), Stephen Tindale (director of Greenpeace) and George Monbiot (environmentalist, author and blogger) have come out in support of the nuclear option.

World primary mine production is currently around 120Mlb per annum and world consumption by the existing installed capacity 220Mlb per annum and growing. BHP Billiton predicted in their Olympic Dam Environmental Statement in May 2011 there will be a shortfall in supply of 154Mlb in twenty years. The massive expansion proposed for giant Olympic Dam mine in South Australia would produce an additional 42Mlb per year.

Manhattan remains extremely well positioned to take advantage of the break out in the uranium demand and price in the next few years as it drills up and develops its resource inventories at Ponton in WA.

Highlights during the September Quarter include:

- 65% increase in reported inferred uranium oxide resource and independent scoping study confirms Ponton project's ability to deliver positive outcome for investors

- 17.2Mlb uranium oxide Inferred Resource with an additional 33 to 67Mlbs U3O8 Mineralisation Potential reported for Double 8, Stallion South, Highway South and Ponton demonstrates the potential of the project to host a world class ISL sand hosted uranium resource

- Double 8 deposit ranks as number 20 in Australia and 7th largest reported resource in Western Australia

- International engineers Tetra Tech complete positive desktop scoping study on Manhattan's Ponton ISL uranium project

- All four key exploration tenements in the QVSNR now granted

- Ministerial consent and exploration access to commence drilling within QVSNR, covering the Double 8 deposit and the Stallion South, Highway South and Ponton prospects, is being sought

- Company retains cash and investments in ASX listed uranium companies of $1.87 million

- 2011 reversal in sentiment and investor confidence in the uranium sector and collapse of the world's equities markets continues to impact on Manhattan's performance

- Manhattan maintains the medium to long term outlook for the uranium industry and nuclear power remains positive and unchanged

- Fundamentals of the nuclear industry are sound as prominent environmentalists switch support to nuclear

- Uranium supply shortfall continues as mines struggle to perform and new
developments deferred

- SPOT MARKET URANIUM OXIDE AT US$52.50 POUND

To view the complete Manhattan Corporation Limited Quarterly Report September 2011, please follow the link:
http://media.abnnewswire.net/media/en/docs/70615-ASX-MHC-561522.pdf

Contact

Alan J Eggers Executive Chairman Telephone: +61-8-9322-6677 Email: info@manhattancorp.com.au