A PROFITABLE FOURTH QUARTER CONSOLIDATES
LAMANCHA 2008 YEAR-END FINANCIAL RESULTS

2008 HIGHLIGHTS
� Revenues of $53.6 million
� Cash flow from operating activities of $3.3 million
� Net loss of $5.4 million
� Frog�s Leg becomes La Mancha�s third mine in production
� First profitable quarter for La Mancha in Q4
� Total production increases 33% to 71,550 ounces at US$512 per ounce
� Frog�s Leg achieves commercial production status as of January 1, 2009
� Positive feasibility study for a fourth mine at White Foil (Australia)
� Cash and short term investments of $12.2 million

Montreal, March 27, 2009 - La Mancha Resources Inc. (TSX: LMA, hereinafter �La Mancha� or the �Company�) produced 71,550 ounces of gold at an average cash cost of US$512 per ounce in 2008. This compares to production of 53,900 ounces at an average cash cost of US$485 the previous year. The increase in production is due to the start-up of La Mancha�s third mine, Frog�s Leg, in the summer of 2008 and to the improved performance of the Ity mine, which together compensated for a decline in performance at the Hassa� mine. Revenues totalled $53.6 million compared to $48.5 million in 2007 as a result of this increased production and stronger gold prices.

La Mancha recorded a mine operating loss of $43,000 in 2008, compared to a mine operating loss of $8.2 million for 2007. As shown in Table 1, this improved performance is the result of a declining cash cost per ounce, which translated in mine operating earnings for the second half of the year.

Table 1.
 

Michel Cuilh�, President and CEO of La Mancha, commented: �We are pleased to say that significant progress was made in 2008. With a third mine successfully put to production, the positive conclusions of a feasibility study supporting the development of a fourth mine in Australia, and the significant increase of our gold production and resources, La Mancha is definitely well engaged on the growth path. Although we have improved on several fronts since our transformation in 2006, we have yet to achieve one key milestone: consistent profitability. The profitability achieved in our most recent quarter, reduced exploration expenses for 2009 and the steady ramp-up of our new Frog�s Leg mine in Australia are all pointing in the right direction for us to achieve this goal. The operating, exploration and managerial skills of our 1,200 employees will all be geared towards that objective in 2009.�

La Mancha recorded a net loss of $5.4 million in 2008, compared to a net loss of $10.8 million for 2007. The Company�s 2008 performance was negatively affected by two �non-cash� items: a $3.1 million write-down of asset-backed commercial paper (ABCP) investments and a $1.1 million loss associated with a gold-denominated loan contracted on a non-recourse basis by its Argentinean subsidiary, Minera Patagonia. This Argentinean subsidiary was declared bankrupt in November 2008 by a local court. Consequently, the subsidiary including its gold-denominated loan was deconsolidated from La Mancha�s balance sheet as of December 31, 2008.
 
As of December 31, 2008, La Mancha�s cash and short term investments stood at $12.2 million and long-term investments in various securities amounted to an additional $8.2 million. In June 2008, La Mancha signed a medium-term debt financing agreement with Areva, its main shareholder, for an AU $15 million revolving facilit y that was later increased to AU $22 million in December 2008. The facility was mainly used to support La Mancha�s share of the Frog�s Leg development, and expires on December 31, 2011. AU $15.5 million were drawn as of December 31, 2008.

RESERVE AND RESOURCE UPDATE
La Mancha�s Measured and Indicated resources (�M&I resources�) total almost 1.77 million ounces of gold, up 34% from the 2007 year-end resources of 1.32 million ounces. Proven and Probable reserves (�P&P reserves�) stood at 710,507 ounces of gold at the end of 2008 compared to 688,860 ounces a year earlier. The large increase in M&I resources in the past year is the direct consequence of the intense effort that the Company devoted to exploration on its four main properties over the course of 2008. Infill drilling and the completion of detailed extensional drilling at the Frog�s Leg mine added 136,170 ounces to La Mancha�s M&I resources, while tailings qualification at the Hassa? mine added 114,000 ounces, Ity mine resource development drilling added 112,459 ounces and infill drilling at the White Foil project added 131,040 ounces.

OPERATIONS
Since its inauguration in May 2008, the Frog�s Leg mine has generated 15,375 ounces of gold for La Mancha. La Mancha is the mine operator and has entered into a toll-milling agreement with the nearby Greenfield plant to secure milling availability for scheduled periods throughout the year.

As shown in Table 2, the Frog�s Leg mine is gaining pace, with a steady increase in underground tonnage mined per month and steadily-improving ore grade. It should be noted that the combined increase in underground tonnage mined and associated grade peaked in December, representing a gold content mined of 7,025 ounces for the month, is in line with the forecast mine run rate in the 2007 feasibility study. Consequently, the mine reached �commercial production� status as of January 1, 2009. Proceeds from the sale of Frog�s Log gold will therefore be added to La Mancha�s revenues from that date.

Table 2

* Data provided for 100% of the mine

As of December 31, 2008, total development cost for the Frog�s Leg underground mine totaled $59.6 million ($30.0 million attributable to La Mancha), approximately on budget with respect to the 2007 feasibility study.

The underground mine is expected to generate between 37,000 and 42,000 ounces of gold for La Mancha in 2009, at a cash cost of US$450 per ounce. Frog�s Leg is expected to operate at full production capacity throughout 2009 on the strength of the momentum gained towards the end of 2008 in terms of increased underground tonnage mined per month and improved ore grade. The new mining plan scheduled for completion at the end of the second quarter of 2009 is expected to lead to an increase in the Frog�s Leg production rate.

The Hassa� mine produced a total of 73,175 ounces of gold in 2008 (29,270 ounces attributable to La Mancha) at an average cash cost of US$603 per ounce, compared to 86,900 ounces (34,760 ounces attributable to La Mancha) the previous year at an average cash cost of US$481 per ounce.

The decrease in gold output from 2007 to 2008 was essentially due to lower gold recovery rates resulting from poor leaching kinetics due to water limitations imposed by drought in 2008, and to delays in completing the commissioning of the new quartz line. The increase in cash costs per ounce in 2008 can be mainly attributed to lower gold recovery rates and unfavourable fluctuations in currency exchange rates, responsible for approximately 44 and 32% of the increase in cash costs per ounce respectively.

Management trusts that two new recently-installed wells will cause recovery rates to improve in the upcoming months.  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 of more 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.

THIS PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS. PLEASE CLICK HERE TO VIEW.

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 and profitability, 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 anticipated 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.

For additional information, please contact:
La Mancha Resources Inc.
Martin Amyot,
Vice President Corporate Development
Tel: (514) 987-5115
E-mail: info@lamancha.ca

Renmark Financial Communications Inc.
John Boidman : jboidman@renmarkfinancial.com
Maurice Dagenais : mdagenais@renmarkfinancial.com
Montreal - Tel.: 514 939-3989 / Fax: 514 939-3717
Toronto - Tel.: 416 644-2020 / Fax: 416 644-2021
www.renmarkfinancial.com