Manas Resources Limited

ACN 128 042 606

Level 1, Suite 5

The Business Centre

55 Salvado Road

Subiaco WA 6008

Telephone: +61 8 9380 6062

Facsimile: +61 8 9380 6766

W www.manasresources.com

E [email protected]

3 0 J A N U A R Y 2 0 1 4

D E C E M B E R 2 0 1 3 Q U A R T E R L Y O P E R A T I O N S R E P O R T

Manas Resources Limited (ASX-MSR) is pleased to report its activities for the December 2013 Quarter on the
Company's 100%-owned gold projects in the Kyrgyz Republic, Central Asia.

SUMMARY

Shambesai Gold Project, Kyrgyz Republic, Central Asia

 Kyrgyz Republic Energy and Minerals Parliamentary Committee recommends the immediate development of the Shambesai project

 Official decree issued to allow Shambesai development to continue with full Government and

Parliamentary support

 OVOS (Kyrgyz Republic equivalent of Environmental and Social Impact Assessment) being finalised and expected to be submitted shortly

 Advanced discussions continuing regarding project financing for the Shambesai gold project

Exploration

 Planning is underway for the commencement of exploration drilling in March 2014

Corporate

 Rights Issue completed in December raising $5.5 million

 Funds from the Rights Issue to progress the Shambesai project and provide working capital

 $5.6M cash position at 31 December 2013

Manas Resources Limited - December 2013 Quarterly Report Page 1 of 6

30 January 2014

Shambesai Gold Project, Kyrgyz Republic (MSR 100%)

Manas Resources Limited

ACN 128 042 606

A Kyrgyz Republic Energy and Minerals Parliamentary Committee hearing on 10 December 2013 recommended the immediate development of the Shambesai Gold Project and instructed national and local authorities, via official decree, to allow development to continue unhindered and according to current schedules, subject to Manas meeting government and local community laws and guidelines.
The Committee hearing reviewed all licence and permit submissions made by Manas including environmental and social surveys, considered support and concerns from the local community and reviewed the socio‐ economic contribution the Shambesai Gold Project will make to the Kyrgyz Republic and, in particular, the Maidan community nearest the deposit.
Manas expects it will receive a structured support regime that unites both government and community backing as one and is a further important step towards the commencement of development of the Shambesai Gold Project in 2014 as a result of the Committee's recommendation.

Project Permitting

Manas's 100%-owned Kyrgyz subsidiary CJSC Z-Explorer was issued the "Shambesai Infrastructure Land Transformation and Land Allotment" or "Land Permit" in September 2013, and since then the Company has been working on key submissions to advance towards the commencement of construction. Of particular importance is the completion and submission of the OVOS, the Kyrgyz Republic equivalent of an Environmental and Social Impact Assessment.
Throughout the December 2013 Quarter, Manas has been working in conjunction with the Maidan local community, and the relevant Kyrgyz State Agencies and Ministries for the timely submission of the OVOS. Manas expects to submit the OVOS during the March 2014 Quarter. Upon this submission and commencement of the approval process, Manas plans to initiate the completion of detailed project design.

Project Financing

Discussions regarding financing of capital requirements for the Shambesai project are advancing with banks and institutions in North America and Asia.
Manas will be updating the Shambesai Bankable Feasibility Study (BFS) schedule to reflect the current project timeline in regards to obtaining environment and construction permits and timing for the drawdown of project finance opportunities.

Exploration

Upon completion of the regional 2013 programs at Obdilla and Ulugtau, Manas has commenced planning for the 2014 programs. Exploration is expected to commence at the Shambesai Project at the end of the winter season towards the end of the March 2014 Quarter.

Manas Resources Limited - December 2013 Quarterly Report Page 2 of 6

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Manas Resources Limited

ACN 128 042 606

Manas is also undertaking a review of the entire exploration portfolio with a view of rationalising the extensive areas held under license to the core exploration targets.

Corporate

During the quarter, Manas completed the issue of 137,771,080 shares at 4 cents each to raise $5.5 million. The shares were issued under the terms of a pro-rata non renounceable entitlement issue. The Company also issued one attaching option (exercisable at 8 cents each on or before 31 March 2015) for every share issued.
The offer was completed on 23 December 2013. Following the rights issue, the Company has a total of
413,313,240 ordinary shares on issue and 137,771,080 listed options (MSRO).
The funds raised will be used for the Shambesai Gold Project pre-development and development costs including -
- Completion of the OVOS (the Kyrgyz Republic equivalent of the Environmental and Social Impact
Assessment)
- Detailed plant design and engineering studies
- Completion of permitting
- Land acquisition, government and community relations expenses
- Commencement of site works
- Project finance costs
- Working capital.

Cash position

At the end of the December 2013 Quarter, Manas held cash reserves of approximately $5.6M.

Manas Resources Limited - December 2013 Quarterly Report Page 3 of 6

30 January 2014

For further information -

Manas Resources Limited

ACN 128 042 606

Stephen Ross Simon Hinsley Managing Director Investor Relations Manas Resources Limited NWR Communications Telephone +618 9380 6062 +61401 809 653 www.manasresources.com

Manas Resources Limited - South Kyrgyz Gold Project

Company Overview

Manas Resources Limited is an Australian-based company focused on exploring and developing its 100% owned gold projects on the Tien Shan gold belt in the Kyrgyz Republic. The Company has a Mineral Resource base of
1,184,000 ounces of gold at the Shambesai and Obdilla prospects, which are only seven kilometres apart. A Bankable Feasibility Study has been completed, and a mining and development licence has been issued for the
flagship technically low-risk and high-margin Shambesai Gold Project.

Note: The Mineral Resource was estimated within constraining wireframe solids based on a nominal lower cut-off grade of 0.2 g/t Au. The Mineral Resource is quoted from all blocks above a cut-off grade of 0.3 g/t Au for Oxide Resources and 0.75 g/t Au for Sulphide Resources. Low grade refers to blocks above cut-off and below 2.0 g/t Au, while High Grade refers to blocks above 2.0 g/t Au. Differences may occur due to rounding.

The information reported above was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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COMPETENT PERSONS' STATEMENT

Manas Resources Limited

ACN 128 042 606

The information in this report that relates to Ore Reserves, and the Technical and Financial Information for the Shambesai Project is based on, and fairly represents, information and supporting documentation compiled by Mr Philip Reese. Mr Reese is the Chief Operations Officer of Manas Resources Limited. Mr Reese is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004

Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Reese consents to the form and context in which the estimates of Ore Reserves and the supporting information are presented in

this report.

The information in this report that relates to Mineral Resources and Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr Stephen Ross. Mr Ross is the Managing Director of Manas Resources Limited. Mr Ross is a Member of The Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Ross consents to the form and context in which the Exploration Results and estimates of Mineral Resources and the supporting information are presented in this report.

Statements regarding Manas Resources' plans with respect to its mineral properties are forward-looking statements. There can be no assurance that Manas Resources' plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that Manas Resources' will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of Manas Resources' mineral properties.

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Mineral Interests of the Manas Group at 31 December 2013

Manas Resources Limited

ACN 128 042 606

Location - All mineral interests are held in the Kyrgyz Republic, Central Asia, primarily in the south of the country. The registered holders are all wholly owned subsidiaries of Manas Resources Limited.

There were no changes to the Group's mineral interests during the quarter ended 31 December 2013. None of the

mineral interests listed above are the subject of any farm-in / farm-out or joint venture arrangements.

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