Mantra Successfully Completes Carbon Recycling Development Program and Is Now Ready for First-Ever On-Site Demonstration Project.

SEATTLE, WA -- (Marketwire) -- 06/28/10 -- Mantra Venture Group Ltd. ('Mantra') (OTCBB: MVTG) (FRANKFURT: 5MV) is pleased to announce that it has successfully completed the year-long development program for its Electroreduction of Carbon Dioxide (ERC) technology and the company is now preparing for its first-ever on-site demonstration project. As a final component to this research and development phase, Mantra recently set out to upgrade the concentration of formate produced by ERC to a level suitable for commercial use. To achieve this goal, Mantra and Kemetco (its research laboratory) designed and tested two innovative concepts.

The test phase is now complete, and Mantra is pleased to announce that one of the concepts successfully upgrades the formate solution to the desired concentration of 3 molar. Further details on the successful concept will be released after completion of all necessary intellectual property work.

John Russell, Vice President of Technology Evaluation at Mantra, explained: "This is a great achievement. Industrial processes generally use highly concentrated feedstock chemicals, and this latest development will enable us to offer just that. Mantra is now closer than ever to completing its profitable solution to CO2. The next step is a field demonstration project -- a stage that I have been looking forward to for quite some time."

"This is a big step forward for the company," added Larry Kristof, President and CEO of Mantra. "ERC's ability to convert CO2 into a saleable, commercial grade product will give it an advantage over other CO2 mitigating techniques."

This technical advancement comes on the back of several achievements made throughout the 12-month program, including: regeneration of the cathode catalyst, improved cathode structure, improvements to the long-term stability of the catalyst, improved current efficiency (to 90%), and a vastly reduced power requirement.

With this latest stage of research and development now complete, the company is making the necessary arrangements to commence its first ever on-site ERC demonstration project.

Earlier this month, Mantra's ERC technology was featured in Steel Times International. To view the article, go to: http://steeltimesint.com/features/view/an-alternative-to-carbon-sequestration-electroreduction-of-co2/

Stay up to date with Mantra on Twitter: www.twitter.com/mantraenergy

About ERC: The ERC process, 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 green chemicals, new chemicals beyond formic acid, building products and liquid fuels.

While thermochemical reactions must be driven at relatively high temperatures that are normally obtained by burning fossil fuels, ERC operates at near ambient conditions and is driven by electric energy that can be taken from an electric power grid supplied by hydro, wind, solar or nuclear energy (forms of clean or renewable energy).

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 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.

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.

Investor Relations

Kol Henrikson
1-877-609-2898
khenrikson@mantraenergy.
www.mantraenergy.com