La Mancha Achieves Record Gold Production  

MONTREAL, QC - La Mancha Resources Inc. reported that, in line with its production guidance, its consolidated gold production for 2010 reached a record 122,571 ounces, compared to 94,570 ounces of gold for 2009. This 30% increase is due to the steady production ramp-up at the Frog's Leg mine in Australia, along with the successful start-up of the Company's fourth mine, White Foil, which more than compensated for slightly lower African production. In 2010, 64% of La Mancha's total gold production came from its Australian operations.

La Mancha expects to increase consolidated production by up to 10% in 2011. Total production is expected to be in the range of 115,000 to 135,000 attributable ounces at an estimated average cash cost of US $671/oz. Dominique Delorme, President and CEO of La Mancha, stated: "Thanks to the successful start of our fourth mine, strong year-over-year production growth and promising exploration results, 2010 marked the successful completion of the aggressive value creation strategies formulated when La Mancha was formed in 2006. In 2011, we will continue to deliver sustained production growth, as we embark on La Mancha's second expansionary phase with our VMS project at Hassaò in Africa. Having quickly surpassed the 120,000-ounce-per-year mark, we now expect our rapidly-developing flagship VMS project in Sudan and fast-growing resource base in Australia to continue to boost production over the 200,000-ounce mark by the end of 2013." La Mancha produced 30,744 attributable ounces of gold in the fourth quarter ended December 31, 2010, a 30% increase over the 23,683 attributable ounces of gold produced in the corresponding period of 2009. In line with the upgraded mine plan and increased milling capacity, the Frog's Leg mine continued to rapidly ramp-up production, generating 66,444 ounces of gold net to La Mancha in 2010 compared to 46,120 ounces in 2009. Underground mining activities continued to improve in 2010, with tonnage and gold grades increasing by 11% and 17% respectively year over year. It should be noted that underground gold grades mined during the fourth quarter of 2010 averaged a record 6.35 g/t Au. La Mancha expects to increase its current 500,000-tonne toll capacity to 650,000-tonnes for 2011. Such agreement is in the final stages of negotiation with the nearby Greenfields treatment plant owners. This upgraded toll milling agreement will be used in priority for high-grade Frog's Leg ore with White Foil making up the remainder. With 33,000 tonnes of high-grade ore stockpiled at 2010 year end, at 6.37 g/t Au (containing 6,800 ounces) to be processed in January 2011, La Mancha expects its share of Frog's Leg mine production to be in the range of 65,000 to 70,000 ounces of gold at an estimated cash cost of US $617 per ounce. In the fourth quarter of 2010, the Frog's Leg mine generated 18,079 ounces of gold net to La Mancha, compared to 11,611 ounces in the same quarter of 2009. Fourth-quarter 2010 production was negatively impacted by a high-grade ore handling restriction at the Greenfields plant, which obliged La Mancha to feed lower-grade stockpiled ore rather than high-grade material mined during the period. The 100%-owned White Foil mine, inaugurated in April 2010, became La Mancha's fourth producing asset and second mine to be put to production in less than two years. For its first year of operation, the mine produced 11,713 ounces of gold from ore at a grade that was slightly below expectations. In accordance with the toll-mining plan, 282,104 tonnes were mined between March and August 2010, thereby successfully concluding the first bench mining operation. At year-end, the White Foil stockpile stood at 108,998 tonnes grading 1.94 g/t Au. Production at the White Foil mine is expected to be in the range of 14,000 to 17,000 ounces of gold in 2011 at an estimated cash cost of US $1,082 per ounce. La Mancha expects in Q2 to tender a mining contract for the second bench of the pit, representing approximately 310,000 tonnes of ore at an average grade of 2.0 g/t Au. As in 2010, excess mill capacity at the nearby Greenfield plant is expected to be filled with White Foil ore. In the fourth quarter of 2010, production for the White Foil mine was 2,525 ounces of gold, as the above-mentioned high-grade ore handling restriction at the Greenfields plant allowed 46,600 tonnes of White Foil ore to be processed. For more information contact: 450-973-6600, fax: 450-973-6690, email: [email protected].