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SEATTLE, Feb. 4 /PRNewswire-FirstCall/ – Mantra Venture Group Ltd. (‘Mantra’, OTCBB: MVTG, FSE: 5MV) is pleased to announce the results of a Grant Research Report completed by Steven Roka of Mantra Grant Relations. Taking into consideration the nature of Mantra’s research efforts, operating schedule, and the geographical area in which it operates, it was determined that as many as 43 funding programs fit strategically with the company’s current R&D efforts.

To help subsidize the fiscal requirements relating to the R&D of its Electro-reduction of Carbon Dioxide (ERC) technology, Mantra will be applying for those local, national and international grants as recommended in the report. If successful, Mantra could recover anywhere from 70% to 100% of future development costs through a combination of public and private sources.

Dennis Petke, Mantra’s Chief Financial Officer, comments: ‘We are very pleased with the extensive range of grant programs available to environmentally-focused companies such as ours. The financial assistance offered through these programs will be quite beneficial to the company, not to mention the international exposure gained from our participation. Mantra will be actively pursuing several grant opportunities in the coming months, and the company will post monthly updates to inform investors and other stakeholders of the progress made in this department.’

Larry Kristof, President and CEO of Mantra, adds: ‘Grant programs represent the most ideal source of funding for both the company and its shareholders, as the company will benefit from the additional capital without diluting current shareholder value.’

In order to facilitate the application for specific Canadian grants for which Mantra will be applying, the company has also entered into a supplementary proposal agreement with Kemetco Research Inc. Starting on April 1, 2009 Kemetco, which has already been doing R&D on Mantra’s ERC technology, will adopt a structured, accelerated program focused on fully developing ERC’s commercial applicability. Full details on this agreement are available in Mantra’s Form 8-K filed with the SEC on February 4, 2009.

About ERC

The ERC process, defined as the Electrochemical Reduction of Carbon dioxide, combines captured carbon dioxide with water to produce high value materials, such as formic acid and formate salts, which are conventionally obtained from the thermochemical processing of Fossil Fuels. However, ERC has an advantage over the established thermochemical methods for converting carbon dioxide to liquid fuels.

MVTG also expects that the complementary nature of ERC and the electro-oxidation process that drives fuel cells may make it possible to use ERC in a regenerative fuel cell cycle, where CO(2) is converted into a fuel that is consumed in the fuel cell. The company is also exploring ERC applications for the production of steel and fuel additives.

Forward-Looking Statements:

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Mantra Venture Group’s filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

Disclaimer:

Investor Relations
Terry Johnston
604-267-3022
tjohnston@mantraenergy.com
www.mantraenergy.com

SOURCE Mantra Venture Group Ltd.