La Mancha's 2008 Year End Production Increases 33% to 71,550 Ounces

MONTREAL, QUEBEC -- Jan. 22, 2009 - La Mancha Resources Inc. (TSX:LMA)

HIGHLIGHTS

• Record gold production of 71,550 ounces in 2008
• Highest-ever quarterly production in Q4
• Frog's Leg underground operations continue to gain momentum
• Record gold production at its Ity mine in Q4
• Record quartz-line production at its Hassai mine in Q4

La Mancha Resources Inc. (TSX:LMA) hereinafter "La Mancha" or the "Company") is pleased to report that, as a result of a strong fourth-quarter production, total gold production for 2008 reached 71,550 ounces, in line with its revised production target issued in November 2008. Gold production for 2008 increased by 17,650 ounces compared to last year due to the start of production at the Australian Frog's Leg mine and improved performance at the Ity mine in Cote d'Ivoire, compensating for lower production at the Hassai mine.

The breakdown of La Mancha's attributable production is as follows:

Table 1

Michel Cuilhe, President and CEO of La Mancha, noted: "In 2007 we set ourselves ambitious production and resource growth objectives. In 2008, our efforts bore fruit, with gold production increasing 33% over last year (2007) and key indicators suggesting that production growth will continue in 2009. We are especially thrilled with the way we ended the year, as fourth quarter production increased 36% over the third quarter as a result of strong performances at all our three mines."

In the fourth quarter of 2008, La Mancha posted its highest ever quarterly production, producing 20,985 ounces of gold, an increase of 36% over the previous (third) quarter (15,390 ounces) and 46% over the corresponding quarter of 2007 (14,400 ounces). The main factors behind this increase are: the newly-producing Frog's Leg mine in Australia, improved performance at the Ity mine in Cote d'Ivoire, and the recently-enhanced efficiency of the quartz circuit at the Hassai mine in Northeast Sudan.

OPERATIONS

Since its inauguration in May 2008, the Frog's Leg mine has generated 15,375 ounces of gold for La Mancha, almost 10% more than budgeted. More importantly, fourth-quarter operating results suggest that the mine is gaining in pace according to plan, with a steady increase in underground tonnage mined per month and steadily-improving ore grade.

Table 2 shows the increase in underground ore mined per month and apparent grade observed between June and December 2008. It should be noted that the combined increase in underground tonnage mined and associated grade culminated in December, representing a gold content mined of 7,025 ounces for the month, in line with the forecast mine run rate published in the 2007 feasibility study.

Table 2

(i) Data provided for 100% of the mine

"We are very pleased by the accomplishments of our team in Australia. Thanks to their professionalism and hard work, Frog's Leg is developing into a solid underground mine that is delivering results in accordance with the milestones set in the feasibility study," added Mr. Cuilhe.

According to the 2007 feasibility study, the Frog's Leg mine is forecast to produce an average of 79,000 oz of gold per year over seven and a half years, based on reserves of 3.65 million tonnes at 5.29 g/t Au. As previously stated, the mining plan is currently being reviewed to integrate the 37% increase in resources achieved since the publication of the feasibility study.

The Hassai mine produced a total of 73,175 ounces of gold in 2008 (29,270 ounces attributable to La Mancha), while 86,900 ounces (34,760 ounces attributable to La Mancha) were produced the previous year. The decrease in gold output from 2007 to 2008 was essentially due to delays in completing the commissioning of the new quartz line and a decrease in gold recovery rates resulting from poor leaching kinetics due to water limitations imposed by drought in 2008. Management trusts that the two new recently-installed wells will provide the needed relief.

Hassai's fourth-quarter performance was very impressive, with 17,475 ounces of gold produced (6,990 ounces attributable to La Mancha), representing a 26% increase over the production of 13,900 ounces (5,560 ounces attributable to La Mancha) in the previous (third) quarter of 2008. Hassai production was 24,500 ounces in the fourth quarter of 2007 (9,800 ounces attributable to La Mancha).

Measures taken to enhance quartz line efficiency are continuing to pay dividends, as the quartz mill throughput for the fourth quarter increased by 58% over the previous quarter, resulting in record quarterly quartz-line production. For the first time, a quartz throughput greater than 30,000 tonnes per month was achieved for four consecutive months, with 44,540 tonnes milled in December. Management will build on this improved performance to gradually increase the rate of the quartz line to its design capacity of 2,000 tonnes per day.

The following table shows the quartz ore tonnage milled through the quartz line over the past twelve months.

"The quartz ore represents a huge potential for cash generation at the Hassai mine as, by year end, approximately 756,340 tonnes at an average grade of 4.02 g Au/t (for 97,660 contained ounces) remained stockpiled in proximity to the mill. Having this high grade ore already stockpiled near the mill entails incurring limited costs to production, thus implying that a significant cash flow generator exists" added Mr. Cuilhe.

The Ity mine produced a total of 54,460 ounces of gold in 2008 (24,995 ounces attributable to La Mancha), compared to 39,960 ounces of gold in 2007 (19,135 ounces attributable to La Mancha). This significant 36% increase in total gold production is mainly due to improved gold grade of the ore mined in the second half of the year, once the bulk of mining operations moved from the now-depleted Flotouo-Zia pit to the new, higher-grade Mount Ity pit, inaugurated in mid-2008.

Grades improved from 3.9 g Au/t during the first two quarters of the year to reach 4.8 g Au/t and 5.5 g Au/t in the third and fourth quarters respectively. This significant improvement in grade rapidly translated into increased gold production during the second half of the year. The Ity mine fourth quarter gold production increased a staggering 84% to reach 18,590 ounces of gold in 2008 (8,525 ounces attributable to La Mancha), compared to 10,065 ounces of gold (4,620 attributable to La Mancha) in the corresponding quarter of 2007.

CORPORATE EVENTS

Investor Relations Calendar

La Mancha will be exhibiting at the Cambridge House, Vancouver Gold Show, at the Vancouver Convention Centre on January 25 and 26, 2009.

ABOUT LA MANCHA RESOURCES INC.:

La Mancha Resources Inc. is an international gold producer based in Canada with operations, development projects and exploration activities in Africa, Australia and Argentina. La Mancha's shares trade on the Toronto (TSX) under the symbol "LMA". For more information on the Company, visit its website at http://www.lamancha.ca/.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain "forward-looking statements", including, but not limited to, the statements regarding the Company's strategic plans, future commercial production, development and construction of mine and production targets and timetables; statements regarding the progression of Frog's Leg and its capacity to eventually reach the objectives set in its feasibility study; statement regarding the future production level of its quartz line in Sudan and its future potential to generate important cash flows for the mine. Forward-looking statements express, as at the date of this press release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anti cipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of precious metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in La Mancha's 2007 Annual Information Form filed with the Securities Commissions, as well as the Toronto Stock Exchange.

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CONTACT INFORMATION:

La Mancha Resources Inc.
Martin Amyot
Vice President Corporate Development
514-987-5115
info@lamancha.ca

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