Seattle, WA, July 14, 2008: Mantra Venture Group Ltd. (“Mantra” – OTCBB: MVTG – FSE: 5MV) is pleased to announce that it has established Mantra NextGen Power Inc. (“NextGen”), a Nevada company. NextGen has been incorporated in order to develop two key technologies in power generation: Renewable Fuels and the solar electricity for specialty applications.

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Mantra is currently conducting due diligence on selected patented processes for the production of Ethanol from non-food cellulosic feed stocks. Ethanol produced from corn has acquired a bad reputation in the US. Corn as a feedstock for ethanol initially proved very attractive to politicians and farmers in the US because it was seen as an opportunity to help reduce the import of high-cost oil and also as an opportunity to rejuvenate the domestic farming industry. However, using corn as a feedstock for ethanol production is now seen by the public as having an impact on the price of an important food staple. The public also sees this as taking food from its mouths and putting it into gas tanks. NextGen is currently in negotiations with a company that has developed a breakthrough technology – the production of ethanol from wood or agricultural wastes, a feedstock that is low in cost and also is readily available. This new ethanol production method is a clean and close-loop process; it will convert agricultural and forestry waste into a clean-burning ethanol fuel.

NextGen is also conducting due diligence on several solar photovoltaic (electrical) applications aimed at achieving the more efficient production of power for smaller, specialized applications. These products are available for a variety of uses, such shipping channel markers, parking lot and bus shelter lighting. A number of these products will be available to NextGen from our Chinese contacts.

Larry Kristof, Mantra’s C.E.O., comments, “Ethanol from corn has had a modest impact on the volume of oil imported into the U.S. and has marginally stabilized the price of gasoline. But a less expensive form of ethanol can significantly impact the marketplace and reduce tailpipe emissions.” Mr. Kristof went on to say, “Our best opportunity to enter the solar market is with products aimed at a specialty market. Solar Energy is now developing so fast that it has become difficult for a small company to gain a foothold without a specific advantage in a niche market. As we combine Mantra’s financial strength and vision, and the technical expertise to be built into NextGen we can quickly bring our products to consumers.”

About Mantra:
Mantra, through its group of sustainable energy, carbon reduction and consumer product subsidiaries, is active in the green technology marketplace with an innovative, multi-faceted approach focused on profitability through sustainability. By aggressively seeking out new technologies and innovating solutions for a cleaner earth for everyone, Mantra intends to provide a highly profitable, socially and environmentally responsible investment for its shareholders.

Mantra is a public company quoted on the OTC BB under the symbol MVTG and on the Frankfurt Stock Exchange under the symbol 5MV. For more information please visit us at www.mantraenergy.com.

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.

Contact: Terry Johnston
Investor Relations
Phone: 604 267 3022
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Website: http://www.mantraenergy.com