Manhattan Resources Limited Proposes Joint Venture

Manhattan Resources Limited announced that it has entered into a joint venture agreement with Kaiyi Investment Pte Ltd (KYI), Ningbo Da Li Shipping Co Ltd (NDT) and Mr Xu Yi You in relation to the establishment of a joint venture corporation to be named Manhattan Resources (Ningbo) Realty Co Ltd (the JVC). The JVC is being established principally to make a bid for a piece of commercial land situated at South Commercial Park at Yinzhou District in Ningbo City, Zhejiang Province, measuring 18,630 square metres. The plan is to build approximately 110,000 square metres of office space with associated commercial facilities. The site is subject to a public bid scheduled to be held in February 2011. If the JVC is successful in its bid, the total project cost is expected to amount to approximately RMB1.1 billion. The JVC will be registered as a Sino Foreign Joint Venture Company (limited liability) with registered capital of USD68,500,000 where the parties to the Joint Venture Agreement will share the profit or loss of the JVC in proportion to their contribution into the registered capital of the JVC. The respective capital contributions of the Parties are as follows: The Company will contribute USD34,935,000, representing 51%. interest in the JVC; KYI will contribute USD15,070,000, representing 22% interest in the JVC; NDT will contribute USD11,645,000, representing 17% interest in the JVC and Mr Xu Yi You will contribute USD6,850,000, representing 10% interest in the JVC.