Mantra Energy Alternatives Reports Major Technology Development Progress, Taking It One Step Closer to Pilot Plant

SEATTLE, WASHINGTON--(Marketwire - Oct. 25, 2012) - Mantra Venture Group Ltd. (OTCBB:MVTG)(FRANKFURT:5MV) today announced that its Mantra Energy Alternatives Ltd. subsidiary has achieved significant progress in key elements of its technology development contract with Powertech, with the primary near term goal of an ERC pilot facility.

Mantra's ERC process aims to capture CO2 from industrial activities, such as cement production, and convert it to marketable chemicals including formate salts or formic acid.

Some of the highlights of the technology development to date include:

• Powertech has completed the initial design of the CO2 enrichment process based on stack gas data from the pilot facility site. We have since built and tested a bench scale unit which proves the capability to concentrate CO2 from 20% (in the original stack gas) to 80%. When scaled up to size this achievement will allow for a feed concentration of 80% CO2 to the ERC pilot plant.
• In a re-design led by Powertech, the ERC cell anode's capabilities have been markedly improved which will allow heightened performance repeatability
• Mantra has successfully demonstrated performance comparable to ERC electrodes using an alternate GDE-type electrode design. Using this as a baseline, Mantra will now begin a comprehensive material screening process to continue the improvement of catalyst lifetimes and overall process performance and efficiency. This approach is a significant event for Mantra as it provides the Company with the flexibility to utilize more dilute CO2 streams such as those from biomass energy conversion projects. It will also allow for the flexibility of going straight to formic acid without the formate step.

"We are pleased with the tremendous progress we have made on our technology development in just a few short months," stated Neil Huff, COO of Mantra Energy. "The CO2 enrichment and cell improvements made by Powertech take us one step closer to the completion of our pilot facility. The parallel approach using the GDE design will give Mantra additional flexibility and help create further opportunities in the CCU space."

About Mantra Energy Alternatives:

Mantra Energy Alternatives Ltd. is a wholly owned subsidiary of Mantra Venture Group Ltd. Its mission is to become the world leader in production of high value, carbon negative chemicals and fuels. Mantra's ERC system will reduce the problem greenhouse gas CO2 and convert it into a series of valuable chemicals, a form of carbon capture and recycling (CCR). There are currently 27 billion metric tons of CO2 emitted annually from fossil fuel combustion, providing an inexhaustible supply of feedstock. The first product is formic acid (HCOOH), which commands a market of approximately USD $1 billion.

Mantra is a public company quoted on the OTC BB under the symbol MVTG and on the Frankfurt Stock Exchange under the symbol 5MV.

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About Powertech Labs:

Powertech Labs Inc. is a wholly owned subsidiary of BC Hydro, one of the largest electric utilities in Canada. Powertech is a multidisciplinary research and testing facility that specializes in clean energy consulting, independent testing and power system solutions. Since its inception in 1979, Powertech has served electrical power utilities, electrical and automotive equipment manufacturers, and oil and gas companies from around the world.

Forward-Looking Statements: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Mantra Venture Group's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.