Industry: Environmental Services/ Technology

Mantra Venture Group Ltd. (OTCBB: MVTG) operates in the U.S. and Canada with offices in Seattle, Washington and Vancouver, British Columbia. Through its group of sustainable energy, carbon reduction and consumer product subsidiaries, Mantra is firmly positioned in the green technology marketplace with a highly innovative, multi-faceted approach focused on profitability through sustainability.

Mantra is also listed on the Frankfurt Stock Exchange (FSE: EDV 5MV).

The Company has six (6) wholly-owned subsidiaries, which include; Mantra Energy Alternatives Ltd., Carbon Commodity Corporation, Climate ESCO Ltd., Mantra Media Corp., Mantra Wind Inc., and NextGen Power, Inc.

Additionally, the Company owns 51% of Mantra China Ltd., a Hong Kong based subsidiary established as a joint venture with Green China Developments Limited and Gateview Group Limited. With corporate objectives to build a strong international presence, particularly in Europe and the Peoples Republic of China, the Company has been active in sourcing new technologies, partners and markets in China and has made its website available in Chinese in order to facilitate growth in Hong Kong and Mainland China.

Mantra Venture Group has quickly established a portfolio of companies within the Environmental Sustainability sector. All acquisitions and business developments are focused on technologies, products or services that mitigate negative environmental or health issues that arise from the production of energy or consumption of resources.

The Company is now positioned for strategic corporate growth through the following wholly-owned subsidiaries:

Mantra Energy Alternatives Ltd., actively seeks to acquire, develop and market technologies related to alternative energy production, greenhouse gas emissions reduction and resource consumption reduction. In November 2007, Mantra Energy Alternatives entered into a technology agreement to acquire 100% ownership of an invention for the electro-reduction of carbon dioxide.

 

Carbon Commodity Corp., licensing carbon footprint assessment software for developing an online carbon reduction marketplace where the public and users are educated about sustainability options. Most importantly, this is where homeowners and businesses can initiate projects, to be bid on by product/service vendors and where homeowners and businesses directly benefit from savings in CO2.

 

Climate ESCO Ltd., a climate energy services company to provide consulting services to industry and business for major project implementation of alternative energy technologies and energy saving solutions. This will primarily be accomplished by obtaining the distribution or licensing rights to existing technologies, which are then matched to residential and industrial consumers seeking sustainability solutions.

 

Mantra Media Corp., provides public relations and marketing services to companies in the sustainability sector or those seeking to adopt sustainable practices. These services will assist in the effective presentation of the often complex field of sustainability and new green technology, which will also help companies gain recognition for their conservation practices.

 

Mantra Wind Inc., incorporated to initially establish wind farms in British Columbia, Canada before targeting key areas throughout North America and Europe for small to medium scale wind farms. The company is also actively engaged in testing and demonstrating new technologies related to sustainable wind energy production.

 

Through their wholly-owned subsidiaries, Mantra Venture Group is working to develop and commercialize alternative energy technologies and solutions to enable environmentally sustainable consumption, production and management of resources on residential, commercial and industrial scales.

Since the Company’s inception in January 2007, they have established an organizational foundation built for extraordinary growth. Mantra Venture Group has brought an impressive management team together, incorporated six subsidiaries, identified promising technologies and aligned strategic partners, established both a corporate advisory board and scientific advisory board, raised expansion capital and employed experts in graphic design, programming, systems development, market development, law and accounting.

The Company’s business strategy includes acquiring licenses for third party technologies that require further development before they can be brought to market, in addition to developing such technologies in-house. To complete the commercialization of some technologies, the Company will enter into joint ventures, partnerships or other strategic relationships that offer vital expertise.

Mantra Venture Group also intends to enter into formal relationships with consultants, contractors, retailers and manufacturers from the environmental sustainability industry to further the Company’s online retail strategy.

The Company’s current business developments and future business plans will continue to address alternative energy sources, sustainable resource production and consumption, reduction of greenhouse gas emissions and environmentally sustainable practices in the global energy and resources market.

Specific development of targeted technologies and services, include: electrical power system monitoring technology, wind farm electricity generation, online retail of environmental sustainability solutions through a carbon marketplace and media solutions to promote worldwide awareness of corporate actions that support the environment.

Indeed, Mantra Venture Group provides people and businesses with the means to achieve a significant reduction in their energy consumption and associated environmental impact. Mantra's role is often financial, as they invite private investors to discover significant opportunities in sustainability. In addition to providing the subsidiary companies with corporate oversight and guidance, the Company also engages the environmental marketplace and individual community through education.

The Company’s current efforts are focused on a number of revolutionary technologies which promise to minimize the impact of human activity on our climate, environment and health. Examples of these technologies and projects that Mantra is developing and investigating are:

Carbon Reduction Marketplace

Through their wholly-owned subsidiary Carbon Commodity Corporation, the Company is developing an online carbon reduction marketplace where domestic and small business consumers can determine their levels of resource consumption and greenhouse gas production or “Carbon Footprint.” This Internet-based tool investigates the potential energy savings and carbon reduction which would result from the installation of certified energy saving equipment and technologies. Which in turn, will provide prudent users with credits, gifts and other incentives by meeting certain conservation goals through the purchase of products or participation in programs through the Company’s online marketplace.

In December 2007, Mantra Venture Group completed development of the initial interface for their first phase, web-based carbon footprint assessment calculation software, or carbon calculator.

The carbon calculator is powered by AMEE, a data-set and software platform provided by D::Gen Network. The AMEE platform is being utilized to provide a common standard for carbon footprint profiling and measurement, which the Company is using on a trial basis.

On December 14, 2007 Mantra Venture Group launched the carbon calculator at www.mantraenergy.com.

Three Phase Power Signal Processor

In October 2007, through their subsidiary Mantra Energy Alternatives, the Company entered into an agreement with the University of Toronto to acquire the exclusive right (for a period of 12 months) to negotiate and obtain an exclusive, worldwide license to exploit an invention known as “A Novel System for Detection and Extraction of Useful Signals in Three-Phase Power Systems” (the “TPS Processor”).

During the term of the agreement, the University of Toronto may not enter into any discussions with any other interested party to license or acquire the technology. The inventors of the TPS Processor (who are represented by the University of Toronto) filed patent applications for the TPS Processor in the United State and Canada in 2005.

Initial research of the TPS Processor has been conducted regarding its application to wind farms, however the prospective use and functionality of the technology extends well beyond its application to wind farms. If Mantra is successful in acquiring the TPS Processor, they intend to develop it first for use in wind farms. Thereafter, the Company will evaluate the technology for applications in other common three-phase power systems.

Trials of the TPS Processor have been ongoing in Europe for the past 9 months with satisfactory results. Wind farms in North America are in their infancy, compared to other parts of the world, and many of the installations being proposed are small compared to installations in Europe.

Through the Company’s wholly-owned subsidiary Mantra Wind, Inc., they have approached a developer of small wind farms and initiated negotiations regarding equipping a small wind farm with TPS Processors. Mantra expects to finalize these negotiations shortly after securing a license of the TPS Processor.

Each turbine will require at least one TPS Processor unit. If they succeed in installing and operating the TPS Processor under various load conditions, Mantra will have sufficient technical data to use the wind farm as a TSP Processor showcase for the North American market. Meanwhile the European data will be used to approach operators for retrofitting some of the older installations with the significantly improved performance that the TPS Processor promises to offer.

Electro Reduction of Carbon Dioxide (“ERC”)

On November 2, 2007, through their wholly-owned subsidiary, Mantra Energy Alternatives Ltd., the Company entered into a technology assignment agreement, whereby they acquired all right and title in the invention for the electro-reduction of carbon dioxide as described in a patent cooperation treaty application.

The technology is being developed to convert carbon dioxide by electrical reaction into a Formic acid that has several practical uses; including use as a preservative or antibacterial agent in livestock feed and other perishable goods, as an agent to process organic latex (sap) into raw rubber, as a chemical for tanning leather and as an ingredient in household lime remover and other consumer products.

Formic acid also has applications as an energy storage and generation medium as a fuel for direct formic acid (DFA) fuel cells and as a source of hydrogen for hydrogen fuel cells. Mantra also intend to retain the creators of the technology, from whom they acquired the rights, to maximize development of the carbon dioxide reduction process to achieve optimal results.

Energy System Design and Development

Through their wholly-owned subsidiary Climate ESCO Ltd., Mantra Venture Group offers energy service consulting. The management believes that fundamental changes are occurring in energy markets because of escalating natural gas prices, fuel price volatility, increasing demand for alternative energy, electricity market restructuring and concern for climate change. These factors and more are creating strong incentives for fuel switching, on-site energy production and refinement of existing energy supply systems.

Through Climate ESCO, the Company intends to develop innovations that will reduce energy costs for customers and stabilize supply, both at the production and consumer levels.

The Company will work closely with customers to identify opportunities to optimize production processes, reduce energy consumption, reduce operating costs, and to improve internal controls and overall management of energy consumption.

There are many entities engaged in energy system design and consultation services, most of who are focused on servicing large scale industrial entities. Mantra intends to distinguish Climate ESCO’s services from their competitors by addressing the particular needs of small to medium sized businesses seeking to maintain strict environmental conservation standards and who wish to put forward a reputation for environmental stewardship.

Through their subsidiaries, the Company is actively working to acquire or develop a portfolio of environmental sustainability technologies, solutions and services. In an industry poised for growth, Mantra will acquire technologies, arrange investments in emission reduction projects and pursue opportunities related to environmental sustainability.

Mantra Venture Group’s marketing strategy is designed to increase awareness of their various technologies and services through an integrated cross-media strategy, whereby each of their products and services will be positioned and presented to draw attention to the Company’s other products and services.

The Company is establishing contacts within the environmental conservation community, academic community and other groups by negotiating arrangements for their websites to have links with numerous affiliated websites.

Mantra is well-positioned to communicate the reduced costs and practical benefits of alternative energy sources, energy production technologies and their consulting or marketing services through direct marketing, membership in regional sustainable energy associations, participation in targeted trade show events and through the vast network of their Scientific and Corporate Advisory Boards.

The Company expects to be an early leader in the discovery and implementation of some of the most sustainable green technologies available worldwide.

EXECUTIVES

Larry Kristof
President & Chief Executive Officer
Prior to founding Mantra Venture Group, Mr. Kristof served as President and Chief Executive Officer of Lexington Energy Services Inc., a Calgary, Alberta company he co-founded.  Under his direction, Lexington designed and commercialized innovative mobile drilling rigs and nitrogen generation technologies. He successfully raised capital for the company in the public markets. Before establishing Lexington, he founded Westec Venture Group Inc., a company which provided business development and venture capital services.

Dennis Petke
Chief Financial Officer
Mr. Petke is qualified as a Chartered Accountant in Canada, and is a member of the Institute of Chartered Accountants of British Columbia (1995). Currently serving as a director and/or chief financial officer for a number of private and public companies, his responsibilities include strategic and overall financial management for these companies. Mr. Petke has accumulated extensive experience in the area of corporate finance, including negotiating and implementing private and public company mergers, as well as facilitating private placement, preference share, convertible debenture, special warrant and debt financings.

John Russell
Vice President
Mr. Russell has a lifetime of experience in sourcing new technologies and working with companies to bring these technologies to the marketplace. He has authored several scientific publications and attended many scientific conferences where he has presented technological innovations.

Over the years, he has worked with a number of well-renowned companies in an advisory capacity, including: Ford Motor Company; EDP Associates; Environment Canada; Peat Marwick and Partners; Sherritt Gordon; Department of Industry Trade and Commerce Canada; European Sonochemistry Society; and University of Coventry (England).

Corporate Advisory Board

Peter Walton
Director (formerly)
HSBC

Dan Funaro
Chief Executive Officer,
Euro-Pacific Development Group

Grant V.Sawiak
Senior Partner,
Fogler Rubinoff LLP

Kevin Wainwright, Ph.D
Professor,
SFU and BCIT

Scientific Advisory Board

The Scientific Advisory Board is a growing list of individuals comprised of leading University and corporate-sector scientists to provide Mantra management with invaluable insights into a broad array of environmental technologies and their numerous industry applications.

Colin Oloman
Professor Emeritus,
University of British Columbia

Dr. Edward J Anthony
Senior Researcher,
Clean Fossil Fuels and Power Generation CETC – Ottawa

John Russell
Vice-President,
Mantra Venture Group

Heritage First Capital & Equity Research Group (HFC), based upon information supplied by sources believed to be reliable, herein prepared all material. The information contained herein is not guaranteed by HFC to be accurate, and should not be considered to be all-inclusive. The company that is discussed in this opinion may not have approved some or any of the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. A company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. HFC is not a licensed broker, broker dealer, market marker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on www.microcapmoney.com. HFC has been paid an initial fee of five thousand dollars for a limited coverage period on MicrocapMoney.com, TripleCrownStocks.com, including opt-in subscriber emailings to each respective website’s members by Mantra Venture Group, Ltd. HFC's affiliates, managers, directors and employees may have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value. HFC will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on their judgment of the market.