MBMI Resources Inc.

MBMI Resources Inc.

January 11, 2005 16:59 ET

MBMI Resources Inc.: Corporate Update-Philippine Nickel Projects


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MBMI RESOURCES INC.

TSX VENTURE SYMBOL: MBR

JANUARY 11, 2005 - 16:59 ET

MBMI Resources Inc.: Corporate Update-Philippine
Nickel Projects

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - MBMI
RESOURCES INC. (TSX VENTURE:MBR) "MBMI" with its Philippine partner
Olympic Mines & Development Corporation ("Olympic") has completed the
incorporation of a Philippine joint venture company, and finalized the
transfer of the 3 Olympic nickel properties into it. The initial focus
of the Joint Venture is on a Direct Shipping Ore (DSO) Program that
exploits the nickel minerals from these properties.

A review of reports from previous exploration and drilling activities
conducted on the first property (the Bethlehem property), has revealed
significant (greater than 2% Ni) nickel mineralization on several
identified areas. MBMI is negotiating a drilling contract for the first
phase program on this property, which will comprise approx. 2500 meters
of follow-up confirmatory core drilling, with a view to commence this
program within the first quarter of the year. The program's objective
will be to determine the commercial viability of a DSO program from the
Bethlehem property.

The other two properties (the Rio Tuba properties) are contiguous to the
"Coral Bay" project, in southern Palawan which is operated by a
consortium of Japanese nickel producers including Sumitomo Metal Mining
Co., Pacific Metals Co., and Mitsui Ltd.& Co. This group has been
operating a successful Direct Shipping Ore facility for approximately 25
years. MBMI believes the location of the Rio Tuba properties presents an
excellent opportunity for a cooperative resource development with the
Coral Bay mining consortium and MBMI is discussing the possibility with
the participating parties.

Pacific Metals Co. (Pamco) has expressed an interest in purchasing the
saprolite ore from MBMI's nickel properties under a long term contract,
subject to the ore conforming to their requirements, with respect to
quantity, grade and metallurgy. Purchasing terms and conditions would be
determined by London Metal Exchange nickel quotations. Pamco,
headquartered in Japan, is the owner of one of the foremost ferronickel
smelting plants in the world.

Additional Property Acquisitions

MBMI has identified additional properties with high grade nickel
potential, and has entered into negotiations with the claim owners which
may lead to the acquisition of these projects.

MBMI also holds the rights to three Canadian projects; the McMillan gold
mine property in Espanola, Ontario, the Copper Prince Cu-Ni-Au/PGM
property in Sudbury, Ontario, and the Squall Lake, Manitoba gold project.

The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual
events or results could differ materially from the Company's
expectations and projections.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    MBMI Resources Inc.
    David G. Tafel
    VP Corporate Development
    (604) 683-1991 or Toll Free: 1-877-399-1991
    (604) 683-8544 (FAX)
    Email: mbr@mbmiresources.com
    Website: www.mbmiresources.com
    The TSX Venture Exchange has neither approved nor disapproved the
    contents of this press release.