SPOT MARKET URANIUM OXIDE FIRMS TO US$49.25 POUND

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1 QUARTERLY REPORT PERIOD ENDED 30 SEPTEMBER 2010 SEPTEMBER 2010 QUARTER HIGHLIGHTS Over 18 kilometres of uranium mineralised palaeochannel drilled at Stallion, Highway and Highway North 32,000 metres of drilling in 453 aircore and sonic drill holes at Stallion, Highway and Highway North defines over 18 kilometres of uranium mineralised palaeochannels Multiple zones of carbonaceous sand hosted uranium mineralisation encountered under 40 to 60 metres of cover High grade sonic drill results include 2 metres 366ppmU 3 O 8, 6 metres 372ppmU 3 O 8, 6 metres 435ppmU 3 O 8 and 3 metres 394ppmU 3 O 8 with chemical assays up to 1,156ppmU 3 O 8 over a metre Over 450 sonic and aircore down hole gamma logs at Stallion, Highway and Highway North are now being converted to grade eu 3 O 8 for resource estimate calculations Maiden resource estimate underway for Stallion and anticipated for release in December Quarter 2010 A further 37 kilometres of palaeochannels, containing known drilled sand hosted uranium mineralisation, at Stallion South, Double 8, Highway South and Ponton Creek remain to be drill tested Manhattan continues to work closely with WA government to gain exploration access to Double 8 Northern Uranium commences a $1 million plus, 4,500 metre, RC drilling program on Manhattan s Gardner Range project Company is well funded with over $5.3 million in cash and investments in ASX listed uranium companies SPOT MARKET URANIUM OXIDE FIRMS TO US$49.25 POUND

2 2 QUARTERLY REPORT FOR THE PERIOD ENDING 30 SEPTEMBER 2010 SUMMARY Manhattan Corporation Limited ( Manhattan ) has now completed 600 aircore and sonic drill holes, totalling 40,850 metres of drilling, testing the potential for palaeochannel sand hosted uranium mineralisation at Ponton in Western Australia. 453 of these drill holes, totalling 31,989 metres of drilling have been drilled into the Stallion, Highway and Highway North uranium prospects. Sonic drilling duplicated and twinned approximately 1 in 3 of the mineralised aircore holes at Stallion (and 3 holes at Highway) and collected competent core samples of the unconsolidated uranium mineralised sands for chemical analysis. Multiple zones of uranium mineralisation were encountered in all 19 sonic holes with uranium oxide ( U 3 O 8 ) analyses reported for 14 holes at 100ppmU 3 O 8 cutoff. Stallion sonic drill intersections include 2 metres of 221ppmU 3 O 8 in STSC1222, 2 metres of 366ppmU 3 O 8 in STSC1224 including 1 metre of 424ppmU 3 O 8, 6 metres at 200ppmU 3 O 8 in STSC1227 including 1 metre of 353ppmU 3 O 8, 6 metres at 372ppmU 3 O 8 in STSC1228 including 1 metre of 1,156ppmU 3 O 8, 4 metres of 196ppmU 3 O 8 in STSC1231 including 1 metre of 308ppmU 3 O 8, 1 metre of 544ppmU 3 O 8 in STSC1233, 6 metres of 435ppmU 3 O 8 in STSC1235 including 1 metre of 934ppmU 3 O 8 and 3 metres of 394ppmU 3 O 8 in STSC1237 including 1 metre of 970ppmU 3 O 8. Highway sonic drill intersections include 2 metres of 200ppmU 3 O 8 in HWSC1215 and 1 metre of 180ppmU 3 O 8 and 2 metres of 161ppmU 3 O 8 in HWSC1216. Drilling is now underway at the Shelf, along the palaeochannel to the north of Shelf and at the East Arm targets to the north of the QVSNR. Manhattan also retains an interest the Western Australian uranium project at Gardner Range where Northern Uranium Limited, and its strategic partner Areva, are operators and earning an interest and the Siccus Project in the Frome Basin of South Australia. Figure 1: Manhattan s Australian Projects The Company has reported a significant uranium oxide resource of 10.9Mlb and a further drilled potential of 6.6Mlb to 15.4Mlb for the Double 8 deposit located in the northwest corner of the QVSNR. Manhattan's strategy for growth is to drill and develop a number of palaeochannel hosted uranium oxide resources, including the Double 8 uranium deposit, to in-situ leach ( ISL ) mine development stage at Ponton. The Company s 2,140km 2 granted licences and applications at Ponton in WA now cover the majority of the known palaeochannels prospective for aquifer sand hosted uranium mineralisation potentially amenable to ISL uranium recovery techniques in the Ponton Mulga Rock uranium province of Western Australia (Figure 1). Manhattan currently has, on 25 October 2010, $1.17 million in cash plus liquid investments in three ASX listed uranium companies valued at $4.21 million.

3 3 1. PONTON PROJECT (WA) SEPTEMBER QUARTER 2010 REVIEW OF OPERATIONS Manhattan s Ponton project is located approximately 200km northeast of Kalgoorlie on the edge of the Great Victoria Desert in WA. The Company has 100% control of around 2,140km 2 of applications and granted exploration tenements underlain by Tertiary palaeochannels within the Gunbarrel Basin. These palaeochannels are known to host a number of uranium deposits and drilled uranium anomalies (Figure 1). The Ponton Project includes the 11Mlb Double 8 uranium deposit that is known to contain a further drilled Mineralised Potential of 6.6 to 15Mlb of uranium oxide. The deposit is located in the Queen Victoria Spring Nature Reserve ( QVSNR ). Carbonaceous sand hosted uranium mineralisation, below 40 to 60 metres of cover, has now been defined in drill holes along 55 kilometres of Tertiary palaeochannels at Stallion, Stallion South, Double 8, Ponton Creek, Highway South, Highway and Highway North. Manhattan s Ponton Project Resources, Drilling & Prospective Palaeochannels These palaeochannels connect with Energy and Minerals Australia s lignite hosted Mulga Rock uranium deposits with a combined reported inferred resource estimate of 27,100 tonnes (60Mlb) U 3 O 8 (Figure 1). Manhattan s 2010 aircore drilling program is targeted at sand hosted uranium mineralisation in the 100km of conductive palaeochannels defined by the Company s airborne EM surveys and uranium mineralised sands discovered by previous drilling by Manhattan, PNC and Uranerz in the area. 2. DOUBLE 8 URANIUM DEPOSIT (WA) The Double 8 uranium deposit is located in tenement application E28/1898 in the southwest of the project area within the QVSNR (Figure 1). Manhattan s priority is now to regain exploration access to the QVSNR and recommence resource definition drilling of the uranium deposit.

4 4 Manhattan has reported a maiden Inferred Resource Estimate for the Double 8 uranium deposit at Ponton of 16Mt at 310ppm uranium oxide (U 3 O 8 ) containing 10.9Mlb U 3 O 8 at a 200ppm cutoff. In addition, the Exploration Results reported identified further Mineralisation Potential at Double 8 of between 6.6 and 15.4Mlb of U 3 O 8 at the 200ppm cutoff. The mineralisation is currently drilled over 9km of strike, at widths of approximately 500m on average with down hole thicknesses of 3 to 25 meters. At a depth of 30 to 70 metres, the deposit is a shallow, sand hosted tabular deposit and should be amenable to ISL metal recovery, the lowest cost method of producing yellowcake with the least environmental impact. Manhattan s reported Inferred Resource and Mineralisation Potential estimates, based on PNC s drilling in the 1980 s, are summarised in the tables below: DOUBLE 8 INFERRED RESOURCE ESTIMATES CUTOFF GRADE eu3o8(ppm) TONNES (MILLION) GRADE eu3o8(ppm) TONNES U3O8(t) POUNDS (MILLION) U3O8(Mlb) , , , , , , , DOUBLE 8 ADDITIONAL MINERALISED POTENTIAL CUTOFF GRADE eu3o8(ppm) TONNAGE RANGE (MILLION) GRADE RANGE eu3o8(ppm) TONNAGE RANGE U3O8(t) POUNDS RANGE (MILLION) U3O8(Mlb) ,000-16, ,000-10, ,000-7, ,750-4, ,200-2, , , As stated in Manhattan s maiden Resource Estimate for Double 8 announced on 5 May 2009, and in accordance with clause 18 of the JORC Code 2004, tonnage and grade ranges reported as Mineralisation Potential in this report must be considered conceptual in nature as there has been insufficient exploration and drilling to define a mineral resource and it is uncertain if further exploration and drilling will result in the determination of a reportable resource. The fact that the uranium mineralisation at Double 8 remains open and is yet to be closed off by drilling, indicates that there is considerable exploration upside for the Double 8 deposit. Manhattan considers further exploration, drilling and sampling at Double 8 (and along the Ponton palaeochannel) will expand the resource and upgrade the confidence levels of the reported estimates to higher categories under the JORC Code STALLION (WA) The Stallion uranium prospect is located in E28/1523 and centred 14 kilometres northwest of the Double 8 uranium deposit at Ponton (Figure 1). Manhattan has now completed 221 vertical aircore drill holes at Stallion totalling 16,914m of drilling. Drilling has been completed on 200m and 400m spaced lines with holes drilled at 100m centres along each grid line across the palaeochannel. Each aircore hole has been gamma logged. Based on the aircore down hole gamma logs multiple zones of uranium mineralisation 200m to 1,000m wide between 2m and 25m thick have been encountered in 70 aircore holes along 8 kilometres of the Tertiary palaeochannel at Stallion at 60m to 90m deep (Figure 2). 1,177 metres of sonic drilling, in 16 holes, has been drilled along 5 kilometres the mineralised zone at Stallion. These sonic holes have duplicated and twinned approximately 1 in 3 of the mineralised holes and provided competent samples of the unconsolidated mineralised sands for chemical analysis. Sonic drilling returned a number of high grade intersections in the carbonaceous sands. Chemical analyses for sonic drill intersections for 15 holes at Stallion are presented in Table 1. Examples of Stallion sonic drill cores, with uranium oxide grades, are presented below:

5 5 Examples of Stallion Sonic Drill Cores with Uranium Oxide Grades Sonic drilling over 5 kilometres of strike at Stallion (see Figure 2) confirmed the presence and grade of uranium mineralisation identified in the gamma logs from the 221 aircore drill holes. The uranium mineralisation is hosted within reduced carbonaceous sands and weathered granitic sands in an aquifer capped by 2m to 8m clay horizon and 40m to 60m of unmineralised sandstone and claystone and underlain by weathered and crystalline granite basement. The 237 sonic and aircore down hole gamma logs at Stallion are now being converted to grade eu 3 O 8 for resource estimate calculations.

6 6 Table 1: Stallion Sonic Drill Assays STALLION SONIC DRILL HOLE ASSAY RESULTS HOLE NORTHING EASTING RL FROM TO METRES GRADE ppmu 3 O 8 STSC1222 6,656, , and including STSC1224 6,656, , including STSC1225 6,656, , STSC1226 6,657, , including STSC1227 6,657, , including STSC1228 6,657, , including ,156 STSC1231 6,658, , including STSC1232 6,659, , STSC1233 6,659, , STSC1235 6,659, , including STSC1236 6,659, , STSC1237 6,660, , including Notes: All drill holes vertical Analyses by ALS Laboratory Group by multi acid digest, ICPAES and ICPMS finish (ALS code ME-MS61U) Analyses reported on 100ppmU 3 O 8 cutoff with maximum 1 metre internal <100ppmU 3 O 8 4. HIGHWAY AND HIGHWAY NORTH (WA) The Highway and Highway North uranium prospects are located in E28/1523 and E39/1143 centred 15 kilometres northeast of the Double 8 uranium deposit at Ponton (Figure 1). In August 2010 Manhattan completed aircore drilling at Highway and Highway North. 213 aircore holes totalling 13,754 metres of drilling has been completed on 400m x 100m and 800m x 100m grids. Holes are drilled on 100m and 200m centres along each grid line across the palaeochannel. Anomalous uranium mineralisation, indicated by the down hole gamma logs, has been encountered in 129 aircore holes along 10 kilometres of the Tertiary palaeochannel at Highway and Highway North at 40m to 80m deep (Figure 3). 144 metres of sonic drilling, in 3 holes, has been drilled along 3 kilometres the mineralised zone at Highway. Chemical analyses for sonic drill intersections for the 3Highway holes are presented in Table 2. Table 2: Highway Sonic Drill Assays HIGHWAY SONIC DRILL HOLE ASSAY RESULTS HOLE NORTHING EASTING RL FROM TO METRES GRADE ppmu 3 O 8 HWSC1215 6,658, , HWSC1216 6,658, , and and Notes: All drill holes vertical Analyses by ALS Laboratory Group by multi acid digest, ICPAES and ICPMS finish (ALS code ME-MS61U) Analyses reported on 100ppmU 3 O 8 cutoff with maximum 1 metre internal <100ppmU 3 O 8

7 7 Apart from some shallow lignite hosted anomalous uranium encountered along the southern part of the palaeochannel at Highway North, the geological controls and style of the channel sand hosted uranium mineralisation at Highway and Highway North are similar to the mineralisation encountered at Stallion. A number of aircore holes failed to reach target due to the presence of a shallow hard silcrete layer (It s planned to redrill these holes in November 2010). Sonic drilling over 3 kilometres of strike at Highway (Figure 3) again confirmed the presence and grade of uranium mineralisation identified in the gamma logs from the 213 aircore drill holes. The 216 sonic and aircore down hole gamma logs at Stallion are now being converted to grade eu 3 O 8 for resource estimate calculations. 5. STALLION SOUTH, PONTON CREEK, HIGHWAY SOUTH, SHELF & EAST ARM (WA) Stallion South is located immediately to the south of Stallion and northwest of Double 8 along the Ponton palaeochannel, Ponton Creek is located along the channel to the southeast of Double 8 and Highway South 5km to northeast of Double 8. These three prospects are within licence application E28/1898 within the QVSNR (Figure 1). The Shelf is located along the channel approximately 10km northeast of Highway North (in granted E39/1143) and East Arm 21km east of the Highway prospects (in granted E39/1144). Both the Shelf and East Arm prospects are located to the north of QVSNR (Figure 1). At each of these targets wide spaced reconnaissance drilling (generally on 4km centres) by PNC and Uranerz in the early 1980 s intersected anomalous uranium mineralisation, with similar grades to those reported by Manhattan at Double 8. The drilled uranium mineralisation at these prospects is also hosted in palaeochannels within reduced carbonaceous sands and weathered granitic sands in an aquifer overlying crystalline granite and Patterson Group shale basement. The exception is the Shelf uranium mineralisation where closer spaced drilling (on 200m x 100m centres) has identified shallower lignite hosted uranium mineralisation within the upper sandstone and claystone. Manhattan s 2010 aircore drill program has now commenced testing the palaeochannels in the Shelf, along the palaeochannel to the north and in the East Arm areas to further define the potential for sand hosted uranium deposits. As well approximately 8 aircore holes will be targeted at further evaluating the lignite hosted uranium resource at the Shelf. On regaining exploration access to the QVSNR the Stallion South, Ponton Creek and Highway South targets will be drill tested along with the resource definition drilling at Double GARDNER RANGE PROJECT (WA) Operator: Afmeco Mining and Exploration Pty Ltd The Gardner Range project is located in the Tanami region of WA approximately 150km southeast of Halls Creek. Manhattan holds four granted exploration licences covering 550km 2 bordering the Northern Territory. The target is Athabasca Basin style unconformity related uranium mineralisation similar to the Ranger uranium mine in NT. Historic drilling at the Don uranium prospect, within the project area, intersected 0.44m of 1.5% U 3 O 8 and 1.7g/t gold at a depth of 40m. Manhattan s Gardner Range project is subject to a Farm In and Joint Venture Agreement with Northern Uranium Limited where Northern can initially earn a 60% interest in Manhattan s project by expenditure of $1.05 million. French nuclear group, Areva NC, via Areva s wholly owned Australian subsidiary Afmeco Mining and Exploration Pty Ltd in a strategic alliance with Northern, is the operator of project. In October 2010 Northern announced all approvals in place and the commencement of a 3,000 metre RC drilling program on Manhattan s Gardner Range Project. Drilling will be targeted at the Don and the Soma prospects on E80/3275. The program will comprise a first phase of twelve holes to depths of 100 to 250 metres and a further ten follow up holes. Recently completed geological mapping at the Don prospect identified outcropping secondary uranium mineralisation (autinite) adjacent to the historical discovery hole.

8 8 Four RC holes are initially planned for the Soma EM conductor target with three follow up holes. In addition, detailed geological mapping will be completed on the Deva target (within Manhattan s tenements) in order to define potential new drill targets for testing in SICCUS PROJECT (SA) Interest: Manhattan 90% The Siccus project covers part of the Tertiary palaeochannel system in the Frome Basin of SA. Manhattan s exploration licence E4527 covers an area of 672km 2 of this highly prospective uranium province. The target at Siccus is sandstone hosted uranium mineralisation, similar to the nearby deposits at Beverley, Four Mile and Honeymoon. Manhattan now plans to divest its interest in the Siccus and is currently finalising a joint venture farm out agreement with a listed uranium company for them to earn an interest in the Project. SUMMARY AND ACQUISITIONS Manhattan is currently undertaking an aggressive 50,000 metre aircore drill program to systematically test the Stallion, Highway, Highway North, Shelf and East Arm uranium mineralised targets, to the north of the QVNR, at Ponton in WA. This drill program will be completed in ,898 metres of aircore and sonic drilling over 8 kilometres of strike at Stallion (see Figure 2) and 10 kilometres at Highway (Figure 3) confirmed the extensive presence of carbonaceous sand hosted uranium mineralisation oin buried palaeochannels under 40 to 60 metres of cover. Sonic core sample chemical assays have returned a number of high grade intersections including 1,156ppmU 3 O 8 over a metre. All Manhattan s drill holes have been down hole gamma logged. The 453 down hole gamma logs from the Stallion, Highway and Highway North drilling are now being converted to grade eu 3 O 8 for resource estimate calculations. A maiden resource estimate for stallion is anticipated to be released in the December 2010 quarter. In addition, the Company has 100% control of the 11Mlb Double 8 uranium resource and three additional mineralised targets (Stallion South, Ponton Creek and Highway South) within the QSVNR. These targets will be drill tested on regaining exploration access to the area. Drilling at Double 8, and targets both within and to the north and east of the Reserve, have the potential to add substantially to the Company s uranium resource inventory. Manhattan is now focussed on defining new sand hosted uranium deposits at Ponton in Western Australia suitable for ISL uranium metal recovery. Opportunities to acquire quality advanced uranium deposits or advanced resources, which are likely to result in near term mine development opportunities within Australia and overseas, continue to be evaluated. ALAN J EGGERS Executive Chairman 25 October 2010 COMPETENT PERSON S STATEMENT The information in this report that relates to reported Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Alan J Eggers who is a Corporate Member of the Australasian Institute of Mining and Metallurgy ( AusIMM ). Alan Eggers is a professional geologist and an executive director of Manhattan Corporation Limited. Mr Eggers has sufficient experience that is relevant to the style of mineralisation and type of mineral deposits being reported on in this report and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ( JORC Code 2004 ). Mr Eggers consents to the inclusion in this report of the information on the Exploration Results, Mineral Resources or Ore Reserves based on his information in the form and context in which it appears.

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