Mantis thinks Pinetree adds credibility to company

2007-11-16 20:50 ET - Shareholders Letter

Mr. Robin Ross reports

OPEN LETTER TO MANTIS MINERAL CORP. SHAREHOLDERS

Dear fellow shareholders:

As a follow-up to his June 28, 2007, letter to shareholders, Mantis Mineral Corp.'s Robin Ross, chairman and chief executive officer, thought it fitting to provide some insight into the tremendous strides taken by the company in the last six months, and to outline its upcoming plans.

Further to my goal of building a premier Canadian exploration company, we have managed to acquire prospective projects exposing Mantis to three exciting area plays, two of which have already demonstrated mineralization. Our market capitalization appears to be undervalued relative to the valuations achieved by other companies in similar area plays, but given the newness of Mantis as an exploration company, I believe it is only a matter of time before we catch up, particularly as our broker/investor relations information dissemination program rolls out across the country.

Nevertheless, your company has set all-time trading records for the Canadian Trading and Quotation System for the month of October, as well as hitting the top 10 in investor newswire hits for CNW Group on Oct. 30, 2007. So clearly your company is getting on a few radar screens, not the least of which include Pinetree Capital Ltd., which recently acquired a total of 15.8 per cent of Mantis. It is critically important to have credibility in this business and Pinetree brings this, and a great deal more to the table. We understand that Pinetree is extremely excited about our company and we believe that it can bring both institutional orders and institutional credibility to this story.

All of this success has come very quickly as it usually does in the mining business. This is one of the reasons we are in this game. That said, we have been extremely fortunate in being able to retain a top-notch team of senior geologists headed by Walter Hanych, who is experienced in all facets of mineral exploration and development. The team includes diamond drilling companies, geophysical crews and consulting firms. With our recent financing we plan on moving ahead aggressively, with a view to significantly increasingly shareholder value through development work across our entire suite of projects.

I continue to believe ardently in the old adage "look for gold where gold has been found." As a result, Mantis plans on sparing no effort to locate and acquire previously worked properties, which for one reason or another have been passed over. Our plan is to use the latest mining methods and technologies available to uncover, outline and develop what others have missed or left behind as a result of the less sophisticated exploration tools available in previous cycles.

Our Rottenstone property in Saskatchewan is a fabulous example of this. It was mined by Inco in the mid-1960s to late 1960s, producing approximately 40,000 tons of high-grade ore grading 3.28 per cent nickel, 1.83 per cent copper and 9.63 grams per tonne platinum group elements. The extremely high Ni-Cu-PGE grades in association with high contained sulphides (40 per cent to 60 per cent) hosted in a small ultramafic body strongly indicate that the Rottenstone deposit is an extension of a much larger ultramafic intrusive body hosting a much larger high-grade Ni-Cu-PGE deposit in the area or at depth. It is anticipated the today's deep-penetrating, high-resolution, VTEM, B-field electromagnetic, plus magnetic, airborne geophysical survey equipment should help identify this potentially massive feeder source to the high-grade material mined by Inco ($1,800 rock value per ton at current metal prices).

It is important to remember that mining is a risky business, but the rewards associated with discovery are far greater than any other business we know of. We cannot guarantee success but we as management continue to believe in the quality of our projects and the expectation that we will add meaningful value for our shareholders.