Mantra Venture Group Subsidiary Advances Cellulosic Ethanol Joint Venture

OTCBB: MVTG FRANKFURT: 5MV

Venture sets goal to produce ethanol below $1 per gallon

SEATTLE, Aug. 5 /PRNewswire-FirstCall/ - Mantra Venture Group Ltd. ("Mantra" -
OTCBB: MVTG - FSE: 5MV) is pleased to announce that it has entered into an
agreement in principle for a joint venture agreement with Northwind Ethanol
Ltd. ("Northwind") to produce fuel ethanol using their proprietary starch and
cellulose technology. The final agreement is undergoing final review by Mantra
and Northwind's legal counsel. The joint venture will be carried out through
Mantra's wholly-owned subsidiary, Mantra NextGen Power Inc. ("NextGen").
According to the terms of the joint venture agreement, Mantra will own 51% of
NextGen and Northwind will own 49%.
NextGen has also acquired the exclusive North American license from Northwind
to produce cellulosic ethanol, ethanol derived from wood and agricultural
wastes, using an exclusive proprietary technology. This technology promises to
be much more economic, practical and clean, than ethanol from conventional
corn processing. NextGen also has the right to purchase additional worldwide
licenses at an additional cost. This high efficiency, low energy demand
process will reduce ethanol production costs by more than 1/3.
NextGen's management team and Board of Directors has also been implemented,
with Larry Kristof of Mantra to act as President, Fred Enga of Northwind will
act as C.E.O., Dennis Petke of Mantra will act as Secretary and Brian Currie
of Northwind to act as Treasurer and C.F.O. These four gentlemen will also
serve on NextGen's Board of Directors, with a fifth director to be chosen by
mutual consent of Mantra and Northwind. Now that the management of NextGen is
in place, they will focus their attention on raising capital in order to
finance NextGen's first plant.
Fred Enga, Northwind's President and C.E.O., commented, "Our two companies
have finalized the deal that will see cellulosic ethanol come to
commercialization. This will allow NextGen to bring this new, exciting, clean
technology to the marketplace."
Larry Kristof, Mantra's President and C.E.O. added, "This joint venture is an
important step for both NextGen and Mantra. Ethanol produced from a source
other than corn, an important food staple, is in high demand. NextGen is
poised to meet that high demand and enter this burgeoning market very quickly
- we hope to break ground on our first 20 million gallon per year plant by the
end of this year."

About Mantra:

Mantra, through its group of sustainable energy, carbon reduction and consumer
product subsidiaries, is active in the green technology marketplace with an
innovative, multi-faceted approach focused on profitability through
sustainability. By aggressively seeking out new technologies and innovating
solutions for a cleaner earth for everyone, Mantra intends to provide a highly
profitable, socially and environmentally responsible investment for its
shareholders.
Mantra is a public company quoted on the OTC BB under the symbol MVTG and on
the Frankfurt Stock Exchange under the symbol 5MV. For more information please
visit us at www.mantraenergy.com.
Mantra is encouraging and enabling investors to make environmental consumer
choices with a free environmental bag. Sign up here:
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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.

SOURCE Mantra Venture Group Ltd.

Terry Johnston, Investor Relations, Phone: (604) 267-3022, Email:
tjohnston@mantraenergy.com, Website: http://www.mantraenergy.com