DECEMBER QUARTER 2015 HIGHLIGHTS‌‌‌‌‌‌‌

• The increase in global nuclear power, led by China, is the key driver for uranium demand and an improved price

  
  

• Nuclear energy is a reliable source of uninterrupted clean energy on a large scale that is now cheaper per KWh than fossil fuels‌‌‌

  
  

• Nuclear power capacity is predicted to grow by 13% in the next 3 years and by 45% over next 20 years (World Nuclear Association)‌‌‌

  
  

• Uranium supplies are in the spot light in the wake of the Paris COP21 climate meeting where four leading climate scientists called for a major expansion of nuclear power to limit the global warming effects of climate change over the next century‌‌

  
  

• Uranium prices are predicted to recover as Japan restarts its 43 reactors, China with 30 operating nuclear power plants and 24 units under construction continues to accelerate its clean energy capacity and India set to nearly double its nuclear capacity to 10Gw in next four years

  
  

• USA, Russia, India, Japan, South Korea and UEA forge ahead with a total of 30 nuclear plants under construction‌‌

  
  

• UK's policy to close all coal fired power plants by 2025 will leave UK facing a 40 to 55% electricity supply gap. This shortfall can only be met by reduced demand, renewables, energy storage and an expanded nuclear fleet. UK has four 1,670Mw reactors at the advanced planning stage

  
  

• Current uranium prices need to double to around $75lb to attract and generate new investment in exploration and mines to meet supply by 2020

  
  

• Australian uranium production expected to grow by 25% by 2020 (Minerals Council of Australia)‌

  
  

• Manhattan's 100% owned Ponton project in WA has reported 17.2Mlb uranium oxide Inferred Resourcewith additional drilled Exploration Targets reported of 33 to 67Mlbs U3O8

  
  

• Manhattan's Ponton project potential lower quartile cost ISR uranium producer‌

  
  

• SPOT MARKET URANIUM OXIDE NOW US$34.75 POUND

  REVIEW OF OPERATIONS

  
  

  INTRODUCTION

  
  

  Manhattan Corporation Limited's ("Manhattan") flagship Ponton uranium project is located approximately 200km northeast of Kalgoorlie on the edge of the Great Victoria Desert in WA. The Company has 100% control of around 1,250km2 of exploration tenements underlain by Tertiary palaeochannels within the Gunbarrel Basin. These palaeochannels are known to host a number of uranium deposits and drilled uranium prospects (Figures 1 & 2).

  
  

  The Company is drill testing and developing palaeochannel sand hosted uranium mineralisation amenable to in-situ metal recovery ("ISR").

  
  

  FIGURE 1: MANHATTAN'S PONTON URANIUM PROJECT

  
  

  
  

  In March 2011 Manhattan reported an Inferred Resource for the Double 8 uranium deposit at Ponton in WA of 17.2 million pounds ("Mlb") of uranium oxide ("U3 O8") at a 200ppm cutoff. This information was prepared and first disclosed under 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.

  
  

  Exploration Results at Ponton, reported on 7 February 2014, have also identified four wide spaced drilled Exploration Targets with tonnage ranges of 4 to 45 million tonnes ("Mt"), grade ranges of 250 to 450ppm U3O8 totalling 33 to 67Mlb U3O8 at the 200ppm U3O8 cutoff. In accordance with clause 17 of the JORC Code 2012, the potential quantity and grade reported as Exploration Targets in this report must be considered conceptual in nature as there has been insufficient exploration and drilling to define a Mineral Resource and it is uncertain if further exploration and drilling will result in the determination of a Mineral Resource.

  
  

  The four Exploration Targets reported for the Ponton project are:

  
  

• Double 8 of between 2.5 and 5.5Mlb U3 O8;

• Stallion South of between 8 and 16Mlb U3O8 ;

• Highway South of between 8 and 16Mlb U3O8; and

• Ponton of between 15 and 30Mlb U3O8

The Double 8 Resource Estimate and the Double 8, Stallion South, Highway South and Ponton Exploration Targets reported here were prepared by the Company's independent resource consultants Hellman & Schofield.

The Double 8 uranium deposit and the four Exploration Targets at Double 8, Stallion South, Highway South and Ponton are all located on granted exploration licence, E28/1898, located mostly within the Queen Victoria Spring Nature Reserve ("QVSNR") (Figures 2 & 3).

FIGURE 2: MANHATTAN'S PONTON TENEMENTS

The four Exploration Targets reported are based on actual exploration results including Manhattan's aircore and sonic drilling of over 760 holes and 52,700 metres of drilling along the palaeochannels immediately to the north of QVSNR, over 50km of conductive palaeochannels defined by the Company's airborne EM and magnetic surveys within QVSNR (Figure

3) and uranium mineralised sands discovered in previous drilling of 114 holes and 6,900 metres of drilling and down hole gamma logging by PNC Exploration ("PNC") and Uranerz Limited ("Uranerz") in the area.

Manhattan is now seeking exploration access approval to exploration licence E28/1898 located mostly within the QVSNR. The licence was granted in August 2011. On gaining exploration access to E28/1898 Manhattan will recommence drill testing and evaluation of the Double 8 uranium deposit and the four Exploration Targets identified at Double 8, Stallion South, Highway South and Ponton prospects where resource definition drilling will underpin the future development of the project.

REVIEW OF PROJECTS

1. PONTON PROJECT (WA) Interest: Manhattan 100%

Operator: Manhattan Corporation Limited

The Ponton project area is underlain by Tertiary palaeochannels within the Gunbarrel Basin. Carbonaceous sand hosted uranium mineralisation, below 40 to 70 metres of cover, has now been defined by drilling along 55 kilometres of the palaeochannels at Stallion, Stallion South, Double 8, Ponton, Highway and Highway South prospects (Figure 3). At a depth of 40 to 70 metres the uranium mineralisation is in shallow reduced sand hosted tabular uranium deposits in a confined palaeochannel that is potentially amenable to ISR metal recovery, the lowest cost method of producing yellowcake with the least environmental impact.

Within E28/1898 approximately 6,900 metres of drilling, in 114 drill holes, was drilled and down hole gamma logged by PNC and Uranerz in 1983 to 1986. This drilling discovered the palaeochannel sand hosted uranium mineralisation at Double 8, Stallion South, Highway South and Ponton (Figure 3). Manhattan has obtained and compiled all the PNC and Uranerz exploration results including the geological drill logs, assay results, down hole gamma logs, logging tool calibrations and estimated disequilibrium factors. These drill logs and gamma logs have been digitised and verified by Manhattan's independent consultants 3D Exploration Pty Ltd.

Forty four (44) of these drill holes were drilled into the Double 8 deposit. Double 8 was found to host roll-front or tabular type uranium mineralisation in the lower parts of the palaeochannel (40 to 70 metres depth) in reduced sands. The uranium mineralisation was drill intersected in an area along approximately nine kilometres of the palaeochannel, at widths of approximately 500m on average and down hole thicknesses of 3 to 25 metres.

From December 2009 to December 2010 Manhattan drilled over 52,700 metres of aircore and sonic drilling in 767 holes along the palaeochannels at Ponton to the north of the QVSNR. Manhattan's exploration and drilling results and the historic PNC and Uranerz data have been reviewed and the Inferred Resource estimated for Double 8 and Exploration Targets reported for Double 8, Stallion South, Highway South and Ponton prospects.

FIGURE 3: DOUBLE 8 RESOURCE, STALLION SOUTH, HIGHWAY SOUTH & PONTON EXPLORATION TARGETS