There's a few tricks if you're limited in budget. Sounds like you have a cordless drill - good start. You'll need a couple of drill bits, and a tap of the correct size. Put the manifold back on firmly with all the other bolts - not tight. Pick the drill size which fits snug or
just binds through the lug missing a bolt. For the sake of $2, make sure this bit is brand new.
You're going to use it to peck the surface. Drill slowly making sure it doesn't grab the edge of the manifold hole, and stop when the "wall" of the hole (in the head itself) is about 3/32". Take off the manifold again.
Get your 1/8" bit. This is the riskiest moment. Using the centred indent the larger drill created, slowly drill into the bolt. Use high drilling speed,
almost no pressure, and make sure you are as square to the exhaust flange as possible. When the 1/8" hole is about 5/16" deep, it's enough. Go up to 3/16" and repeat the procedure. Excess pressure on the drill can cause either the drill bit to bend and break, or to bind on the edge of the smaller hole, breaking it.
Now you're up to 1/4". There's a good chance the hole you're drilling is off-centre to the original. That's life. The 1/4" drill is pretty stout, so you aim to drill through the bolt, not just a little in. Situation now, is that the heat from drilling and the reduced stress from the hollowed bolt, will usually loosen the thing. If you haven't hit the threads yet, go up a 64th at a time in drill size until you do. An ezy-out will now work OK, if reversing the drill or a screwdriver tip won't do it alone. Clean the threads with a plug tap of the correct UNC size.
Good luck.
