Manas Resources

Published : October 31st, 2013

September Quarterly Activities Report

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Keywords :   Gold | Gold Production | Lead | Recovery | Silica |

September Quarterly Activities Report

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 3

S E P T 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 September 2013 Quarter on the
Company's 100%-owned gold projects in the Kyrgyz Republic, Central Asia.
SUMMARY
Shambesai Gold Project, Kyrgyz Republic, Central Asia

·Key"ShambesaiInfrastructureLandTransformationandLandAllotment"or"LandPermit"awardedinSeptember,whichrezonedtheprojectareafromagriculturaltoindustrialuseandcoverstheinfrastructure,miningandprocessingfacilitiesatShambesai.

·GrantingoftheLandPermitenabledManastocommenceplanningfordevelopmentofaconstructionofficeatShambesaiandstartroadupgradeworksonthesite.Thiswillallowearlymobilisationoftheconstructionteamonceconstructionpermitsareissued.

·Projectfinancingdiscussionsprogressingwithanumberofinterestedparties.

Exploration

·TrenchinganddrillingprogramcompletedattheUlugtauProspectonManas's100%-ownedDjilginsaiLicence.

·Mappingwillbeundertakentoplanholesforfollow-updrillingatDjilginsaigiventhedifferentstyleofmineralisationcomparedtothatatShambesai-Obdilla.

·DrillingcommencedatObdillawithresultsexpectedbeforeyearend.

Corporate

·Partiallyunderwrittennon-renounceableentitlementissuetoraiseupto$5.5Mannouncedon31October

2013.

Manas Resources Limited - September 2013 Quarterly Report Page 1 of 7

31 October 2013


Shambesai Gold Project, Kyrgyz Republic (MSR 100%)

Manas Resources Limited

ACN 128 042 606

In May 2013, Manas reported results of a Bankable Feasibility Study for the Shambesai Gold Project, Kyrgyz
Republic.
The Shambesai gold operation is projected to process 2.54Mt of ore at 3.4g/t gold containing 277,000 ounces of gold, and recover 227,000 ounces of gold over a 4 ½ year mine life at operating cash costs of US$387 per ounce of gold (C1 costs excluding revenue based royalties and taxes). See Table 1 below.
Table 1 ‐ Summary of Key Parameters for the Shambesai Gold Project (US$1,400 life‐of‐mine gold price)

After-tax NPV at 8% discount rate1

Internal Rate of Return

US$105.4M

67%

Life-of-mine cash flow after tax and royalties

US$147.7M (undiscounted and net of life of mine capital costs)

Proved Reserve

Probable Reserve

Total Proved and Probable Reserves

0.90Mt at 3.0g/t for 87,000 ounces of gold

1.64Mt at 3.6g/t for 190,000 ounces of gold

2.54Mt at 3.4g/t for 277,000 ounces of gold

Mining Rate - Life of Mine Average

+550,000 tonnes of ore per annum

Average annual gold production

50,000 ounces per annum over life of mine

Project life

4 ½ years

Average Processing Recovery Life of Mine

Total Amount of Gold Recovered

84.8%

227,000 ounces

Average Operating Cash Cost (C1 cost)2

Average Total Cost including Total Capital (C3 cost)

US$387 per ounce Life of Mine

US$676 per ounce Life of Mine

Capital Cost to First Gold

US$41.3M

Payback Period

11 months

Strip Ratio (ore to waste t:t)

7.57 to 1

1. NPV after Kyrgyz 3% revenue tax, 3% royalty, 2% sales tax and 2% community payments on gross revenue taking into account the revised fiscal regime in the country with effect from January 2013.

2. Average operating cost per ounce C1 is calculated according to the Brooke‐Hunt methodology. However, it excludes royalty and revenue‐based tax payments which form the corporate tax in the Kyrgyz Republic.

Project Permitting

Manas Resources Limited's 100%-owned Kyrgyz subsidiary CJSC Z-Explorer was issued the "Shambesai
Infrastructure Land Transformation and Land Allotment" or "Land Permit", as announced by the Company on 16
September. This key permit, issued via government decree through the supervising regional agency the Kadamjai

Manas Resources Limited - September 2013 Quarterly Report Page 2 of 7

31 October 2013

Manas Resources Limited

ACN 128 042 606

Administration Office, rezones the project area from agricultural to industrial-use covering the infrastructure, mining and processing facilities for the construction and operation of the Shambesai Gold Project.
The award of the permit allows Manas to commence initial development works at the Shambesai site area, including road upgrades, minor earthworks and plan construction of a site office. Award of the permit provides a trigger for Manas to commence the application for final project design and construction permits, including completion and submission of the OVOS, the Kyrgyz equivalent of an Environmental and Social Impact Assessment.
Manas acknowledges the ongoing support of the Government of the Kyrgyz Republic, especially the Kadamjai
Regional Administration (KRA) and Maidan Village Authority (MVA), in granting the permit.

Project Financing

Discussions regarding financing the US$41.3M capital cost for the Shambesai Gold Project have advanced with a number of parties. Manas remains confident it will receive project financing to coincide with the granting of remaining project permits in the first half of 2014.
The Company is currently updating the Shambesai BFS schedule and capital cost expenditure timetable to reflect the current expectations for award of the final environment and construction permits, and timing for the drawdown of project finance.

Exploration

Ulugtau Prospect
A preliminary drilling and trenching program was completed at the Ulugtau prospect on the Djilginsai project area,
30km from Shambesai.
Results from this program were reported on 14 October and included 7m at 5.27g/t gold, including 3m at 10g/t gold, and 6m at 10.35g/t gold, including 3m at 18.7g/t gold. These results came from trenches designed to interpret the mineralisation identified in previous drill results, which included 10.8m at 13.23g/t gold from 29.2m. Significant grade has now been found on surface in strongly altered silica within siltstones and sandstones between the two trenches and the 2009 drill hole, all within 40m of each other. See Table 2 below for results from the Ulugtau
Trenching.

Manas Resources Limited - September 2013 Quarterly Report Page 3 of 7

31 October 2013


Table 2 ‐ Ulugtau Trenching Results

Manas Resources Limited

ACN 128 042 606

TRENCH EAST NORTH RL LENGTH AZIM INCL FROM TO INTER. GOLD

m m m ˚ ˚ m m m g/t

JUT008 276558 4473511 1409 17.7 195 20 No significant intersect

JUT009 276495 4473605 1404 13.0 220 5 No significant intersect

JUT010 276293 4473691 1439 39.0 40 -10 6 13 7 5.27

And 20 26 6 10.53

incl. 21 24 3 18.67

JUP001 274882 4473411 1342 20.0 270 -10 No significant intersect

A small program of follow-up drilling at Ulugtau has shown the Ulugtau mineralisation to be at a perpendicular orientation and in a different setting to the Shambesai-Obdilla model. Follow-up mapping will be undertaken to plan further drill holes at a different orientation early in 2014.

Location of Ulugtau Gold Prospect, Djilginsai Licence
Obdilla
Drilling is currently underway at the 485,000 ounce Obdilla project, which is located 7km from Shambesai. Results are anticipated during the current quarter. Once the program is completed, the drill rig will move to Shambesai for exploration, geotechnical and infill drilling.

Manas Resources Limited - September 2013 Quarterly Report Page 4 of 7

31 October 2013


Community Update

Manas Resources Limited

ACN 128 042 606

During October 2013 media outlets reported a disturbance at the Shambesai project after an incident on 18
October. As a result of this incident Manas has received and still receives significant open support from all levels of government following the incident. The Company was encouraged by support for its operations from the Kyrgyz government, and, the Batken Oblast and Kadamjai regional administrations expressed through media reports.
The Company is continuing to work with the local community to address any legitimate concerns regarding development of the Shambesai mine.
Corporate
On 31 October 2013 the Company announced it was undertaking a partially underwritten, pro-rata non- renounceable entitlement issue to shareholders on the basis of one share for every two shares held at the record date at an issue price of 4 cents per share to raise approximately $5.5M together with one free attaching option (exercisable at 8 cents each on or before 31 March 2015) for every share issued (Rights Issue).
The funds raised will be used for the Shambesai Gold Project pre-development and development costs, including plant design, engineering, environmental impact studies and approvals, land acquisition, government and community relations, site works, and project finance due diligence costs, ongoing exploration and working capital.
Halcyon Corporate and Patersons Securities were appointed Joint Lead Managers to the Rights Issue. At the end of the September 2013 Quarter, Manas held cash reserves of approximately $3.0M.
For further information -
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 - September 2013 Quarterly Report Page 5 of 7

31 October 2013


Manas Resources Limited ‐ South Kyrgyz Gold Project
Company Overview

Manas Resources Limited

ACN 128 042 606

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 Obdilla and Shambesai prospects, which are only seven kilometres apart.
The main focus for Manas is exploring for Carlin-style gold deposits seven projects collectively called the South Kyrgyz Gold Project, with Manas technical staff working on defining resources and developing these gold projects. Definitive and bankable feasibility studies have been completed for Shambesai, and a mining and development
licence has been issued for the Shambesai Gold Project.

Summary of Mineral Resource and Reserve Estimates

Reported according to JORC Category and Deposit

Category

Shambesai*

Obdilla

Total

Category

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Tonnes

Grade

Ounces

Measured

1.2

3.0

111,000

1.2

3.0

111,000

Indicated

6.4

2.7

556,000

6.3

1.8

353,000

12.7

2.3

909,000

Inferred

0.5

1.9

29,000

2.9

1.4

132,000

3.4

1.5

161,000

Total

8.1

2.7

697,000

9.2

1.7

487,000

17.3

2.2

1,184,000

Proven

0.9

3.0

87,000

Probable

1.6

3.6

189,000

Total

2.5

3.4

277,000

2.5

3.4

277,000

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.

Manas Resources Limited - September 2013 Quarterly Report Page 6 of 7

31 October 2013


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 information 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 inclusion in the report of the matters based on information in the form and context in which it appears.

The information in this report that relates to Mineral Resources and Exploration Results is based on information 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 inclusion in the report of the matters based on information in the form and context in which it appears.

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.


Manas Resources Limited - September 2013 Quarterly Report Page 7 of 7

31 October 2013

Read the rest of the article at www.noodls.com

Manas Resources

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Manas Resources is a gold exploration company based in Australia.

Its main exploration properties are MALY NARYN, DJINGILSAI - ARAVAN, AKBURA, KARABULAK - KARAVSHIN, CARLIN STYLE DEPOSITS, SHAMBESAI, SAVOYARDY and OBDILLA in Kyrgyzstan.

Manas Resources is listed in Australia. Its market capitalisation is AU$ 329.1 millions as of today (US$ 240.6 millions, € 208.3 millions).

Its stock quote reached its highest recent level on January 21, 2011 at AU$ 0.27, and its lowest recent point on April 09, 2020 at AU$ 0.00.

Manas Resources has 2 632 659 968 shares outstanding.

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Corporate news of Manas Resources
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7/10/201510 July - Appendix 3B
7/7/20157 July - Board Changes
3/31/201531 March - Full Year Statutory Accounts
3/23/201524 March - Manas Research Note by Vicarage Capital
2/24/201525 February - Update to Economic Parameters and JORC 2012 Or...
11/2/2014Quarterly Activities Report
11/2/2014Quarterly Cashflow Report
1/29/2014December 2013 Quarterly Activities Report
12/23/2013Completion of non-renounceable rights offer with $5.5 millio...
12/16/2013BRR Webcast - Official Parliamentary Support - Shambesai
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10/31/2013September Quarterly Activities Report
10/30/2013Rights Issue to raise up to $5.5M
1/31/2010December 2009 Quarterly Operations Report
8/25/2009Prospectus
6/5/2009Placement Offer
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