MBMI Resources Inc.

MBMI Resources Inc.

May 24, 2005 14:44 ET

MBMI Resources Inc.: High Grade Gold Zone Extended on McMillan Gold Mine Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 24, 2005) - MBMI RESOURCES INC. (TSX VENTURE:MBR) "MBMI" reports that Young-Shannon Gold Mines, Limited (TSX VENTURE:GYS) has received assay results from continued diamond drilling completed on MBMI's McMillan Gold Mine ("McMillan") optioned claims located near the town of Espanola, Ontario, Canada. Five diamond drill holes, totalling 1,038 metres (3,401 ft.) were completed during this recent campaign.

Assay results showed that the gold zone continues westward along strike from diamond drill holes MM-2-04 and MM-3-04 completed by MBMI during the summer of 2004 and diamond drill holes MM-05-03 and MM-05-04 completed by Young-Shannon in January and February of 2005 (News release March 8, 2005). Diamond drill hole MM-05-6 from the current campaign, collared 15 metres (50 ft.) west of diamond drill holes MM-05-03 and MM-05-04, intersected a zone averaging 7.30 g/t gold over 7.25 metres, including one section of 38.81 g/t over 1.00 metres, and a second section of 9.12 g/t over 1.00 metres.

Diamond drill holes MM-05-03 and MM-05-04 from the January-February, 2005 campaign were collared 15 metres (50 ft.) west of MBMI's original high grade gold discovery in holes MM-2-04 and MM-3-04.

Drill hole MM-05-10, collared to test a 40 metre (131 ft.) down dip extension of high grade gold in drill hole MM-05-04, intersected 6 zones of quartz-carbonate veining with thicknesses ranging between 0.30 and 0.75 metres in width carrying gold grades from 1.19 to 5.59 g/t. This zone of veining comprises a down hole width of about 48 metres (157 ft.). It is this zone of shearing and silica (quartz) flooding that is host to the high grade gold mineralization.

The juxtaposition of the high grade gold intersections in drill core from both Young-Shannon's drilling as well as MBMI's drilling would infer, at this time, a steep plunge to the gold zone. Therefore a strike length of at least 30 metres (100 ft.) and a down dip / plunge extent of at least 30 metres (100 ft.) of high grade gold mineralization has been identified from drilling, and remains open.

Drill hole MM-05-07 was selected to test a down dip and rake extension to the old McMillan Mine underground workings from 1930's. The hole was terminated at 117 metres (384 ft.) when it unfortunately broke through into an old drift. However, the final 0.5 metres of core intersected quartz veined sheared argillites which assayed 13.78 g/t gold.

The two remaining holes from this recent drilling campaign, MM-05-08, and MM-05-09 were selected to test the down dip extension of gold mineralized surface exposures elsewhere on the property comprising quartz veining in sheared argillites, i.e. lithologies similar to both the high grade gold mineralization at the old McMillan Mine and the new high grade gold zone defined by diamond drill holes MM-02-04, MM-03-04, MM-05-01, -02, -03, 04, -06, and -10.

Drill hole MM-05-08 was collared approximately 50 metres (164 ft.) west along strike from the surface exposure of the old McMillan Mine sub-economic 'A-Zone'. Assay results showed gold mineralization at the expected down dip projection, however the best results were limited to 2.53 g/t over 0.30 metres and 1.73 g/t over 0.60 metres.

Drill hole MM-05-09 was collared approximately 335 metres (1,100 ft.) west of the old McMillan Mine shaft, along the approximate strike (overburden precluded tracing lithologies precisely). Drilling was to test down dip an 11 metres (36 ft.) zone of intense quartz veining on surface. The drilling azimuth was to the south, since all known geology on the property dips steeply to the north. However, as the hole progressed, the dip of the host rock ultimately began to parallel the drilling. The hole was therefore terminated at 117 metres (384 ft.) since it became clear that the zone of interest could not be tested unless the drilling azimuth was reversed.

Highlights of this recent phase of drilling are summarized in the table below:

Interval Intersection
Hole No. (metres) (metres) Au (g/tonne)
188.10-195.35 7.25 7.30
including 188.10-189.10 1.00 9.12
193.15-194-15 1.00 38.81
116.50-117.00 0.50 13.78
226.10-226.40 0.30 4.73
240.00-240.35 0.35 5.59
256.50-257.25 0.75 2.60
264.50-265.00 0.50 1.19
268.15-268.55 0.40 1.90
273.90-274.50 0.60 2.55
Assays by Swastika Laboratories Ltd., Swastika, Ontario

A distinct geologic feature evident in all drill core from the high grade gold zone currently being defined on the property is the presence of disseminated pyrite and arsenopyrite. Content of these two sulphides within the gold mineralized zone is commonly 10 - 15%, and locally approaches 25%. Therefore, this zone should be easily mapped by geophysical methodology, specifically, down hole induced polarization (IP). This would provide a vectoring targeting tool for planning Young-Shannon's next round of drilling on the property. Therefore, it is anticipated that Young-Shannon will commence a program of down hole IP later this year to further define drill targets on the property.

The McMillan claims comprise 34 unpatented mining claim units in Mongowin and McKinnon townships, located approximately 14 kilometres south of the town of Espanola, Ontario on the north shore of House Lake.

The option agreement with MBMI was entered into in November, 2004 and enables Young-Shannon the option to earn a 50% interest in the McMillan property over a three year period for staged payments of $75,000 in cash and 650,000 common shares plus a three year work commitment of $900,000. Young-Shannon has the option to increase its interest to 60% by issuing an additional 250,000 common shares and spending $400,000 more on the property.

Greg Lipton, P. Geo. is the qualified person for the Company as required under National Instrument 43-101. He is a member of the Association of Professional Geoscientists of Ontario (APGO).

MBMI maintains a major interest in seven nickel properties totaling 22,000 hectares in the Philippines, and also holds the rights to three Canadian gold projects.

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.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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