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 1 O C T O B E R 2 0 1 4

S E P T E M B E R 2 0 1 4 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) reports its activities for the September 2014 Quarter on the Company's
100%-owned gold projects in the Kyrgyz Republic, Central Asia.

SUMMARY

Shambesai Gold Project, Kyrgyz Republic, Central Asia

 Sanitary Protection Zone (SPZ) approved for project; representing completion of major permitting

 Shambesai has entered final stage of design and permitting before commencement of construction, including -

1. completion of environmental audit of Process Plant Basic Engineering; and
2. completion of Basic Engineering Design for mine infrastructure and open pits.

 Manas to submit Final Design Documentation for approval in the December 2014 Quarter

 Cost cutting initiatives successfully implemented including the deferral of non-essential technical expenditure

CORPORATE

 Advanced financing discussions continuing with three parties

 Justin Lewis appointed as a Non-Executive Director

 Private placement to raise $850,000 for Shambesai Project and ongoing working capital completed

 Cash position $1.5M plus listed securities of approximately $300,000 at 30 September 2014

Shambesai Gold Project, Kyrgyz Republic (MSR 100%) Sanitary Protection Zone approved

During the September Quarter, the Company announced that the Sanitary Protection Zone (SPZ) for the Shambesai Gold Project had been approved by the State Ministry of Health and the State Agency for Environmental Protection and Forestry. The SPZ is the final part of the Kyrgyz Republic Environmental and Social Impact Assessment process and allows the completion of final design permitting and community
consultation for Shambesai.

Manas Resources Limited - September 2014 Quarterly Report Page 1 of 6

31 October 2014

Manas Resources Limited

ACN 128 042 606

The SPZ is a buffer zone established around industrial and mining facilities under Kyrgyz environmental legislation where activities are controlled to ensure any potential possible environmental impacts are limited. For the Shambesai project the SPZ, which is established through independent environmental modelling, doesn't extend over any of the local village areas and confirms the project is likely to have minimal to no impact on any current agricultural and residential use, thus reducing the level of compensation required.
The issuance of these further permits is another major milestone that assists in progressing the financing of
Shambesai.
Manas continues to work towards obtaining approval of the final design and infrastructure permits required to commence construction. The first step, the environmental audit of the Process Plant Basic Engineering, was successfully completed, and the technical and safety review is currently underway. Manas has recently received the Basic Engineering design for the mine infrastructure and the open pits from its Kyrgyz Republic consultant Asia Rudd Project and will submit the final design documentation for approval during the December
2014 Quarter.
During the December Quarter the Company will continue to focus on progressing technical permitting and community relations while maintaining the cost-cutting initiatives that have been implemented throughout the year. These initiatives include the reduction of non-essential staff, the completion of technical requirements according to licensing condition and the maintenance of community and government relationships. Given these cost reduction strategies, it is estimated that total administration and project expenditure will drop to
$650,000 for the December Quarter. The Company is also assessing the potential for divestment of some non- core assets which could not only provide some revenue but also reduce holding costs.

Project Financing

Discussions regarding financing the full capital requirements for the Shambesai Gold Project continue with three institutions from Asia and Europe. These mining finance institutions and investors have shown interest in providing single-package financing solutions for the proposed development of the Shambesai gold mine.
Each of the financiers have completed or are near to completing their due diligence assessment of the project and have shown strong interest in participating in the development, either through debt and/or equity. Final discussions are planned with each of the financiers in coming weeks. Proposals under discussion include
equity/debt finance packages and cornerstone investment into the project company.

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31 October 2014

CORPORATE

Board Appointment

Manas Resources Limited

ACN 128 042 606

Justin Lewis was appointed as a Non-Executive Director to the Manas Board during the quarter. Mr Lewis is a director of Halcyon Corporate Pty Ltd, a Melbourne based corporate advisory house focused on working with growing companies, providing a range of financial services, in both the public and private markets.

Capital Raising

Manas completed a private share placement to raise $850,000 through the issue of 28,333,333 shares at an issue price of 3 cents per share. The Lead Manager to the placement was Halcyon Corporate and the raising was well-supported by current shareholders as well as a number of new investors.
The funds raised will be used for additional working capital while financing discussions are progressed, as well as being applied to the ongoing pre-development cost of the Shambesai Gold Project.

Cash and Liquid Assets

At the end of the September 2014 Quarter, Manas held cash reserves of approximately $1.5M as well as listed securities of approximately $300,000.
For further information -
Stephen Ross Simon Hinsley Managing Director Investor Relations Manas Resources Limited NWR Communications Telephone +61 8 9380 6062 +61 401 809 653 www.manasresources.com

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Manas Resources Limited - Company Overview

Manas Resources Limited

ACN 128 042 606

Manas Resources Limited is an Australian-based company with a Mineral Resource base of 1,184,000 ounces of gold at its 100% owned projects on the Tien Shan gold belt in the south west of the Kyrgyz Republic. The Company has completed a Bankable Feasibility Study, 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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31 October 2014

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 30 September 2014

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.
None of the mineral interests listed above are the subject of any farm-in / farm-out or joint venture arrangements. There have been no changes to mineral interests during the September 2014 quarter.

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31 October 2014