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 December 11, 2006
MBMI Closes $2,538,000 Private Placements

 December 11, 2006. MBMI RESOURCES INC. (MBR:TSXV) ("MBMI") ("the Company") reports that further to its November 20 news release, it has closed a non-brokered Private Placement financing consisting of $1,850,000 in 10% 2 year Convertible Debenture Units (the "debentures"). The Debentures may be exchanged in part or in whole into Common Shares of the issuer during the 2 year term. Debentures can be convertible into Common Shares of the issuer in Year 1 at $0.85 per share; Year 2 at $1.10 per share. Should the Common Shares of the issuer trade at a price greater than or equal to a 75% premium to the conversion schedule above, for a period of 15 consecutive trading days, the Company shall have the option of forcing conversion of the then outstanding Principal Amount in to Common Shares of the Company (the "Forced Conversion") in whole or in part. In addition, any principal amount outstanding at maturity will be redeemed in common shares of the Company at the greater of $0.90 per share or the discounted market price. Each $1 Debenture contains a one half common share purchase warrant exercisable at $1.25 for a two year period expiring December 1, 2008. Finders fees of $129,500, and 130,588 broker warrants having the same terms as the placees have been paid to Meridian Capital International. Should any debentures be converted into common shares within four months, then in that case those shares would be subject to a hold period expiring April 1, 2007.

The Company has also closed a non-brokered Private Placement financing of 860,000 Common Share Units at $0.80 per Unit for gross proceeds of $688,000. Each Unit consists of one Common Share and one half (1/2) Common Share Purchase Warrant. Each full Warrant will entitle the holder to purchase one Common Share for a period of 2 years at a price of $1.10. Finders' fees of $43,120, and 46,200 broker warrants have been paid to Bolder Investment Partners, Ltd.; and $5,040 and 5,400 broker warrants paid to Meridian Capital International in connection with this financing. The broker's warrants have the same terms as the subscribers to this financing. The securities are subject to a four month hold period expiring March 28, 2007.

The net proceeds shall be used for exploration and development of the Company's Philippine nickel mineral properties, and for general corporate purposes.

MBMI jointly controls four nickel laterite projects in Palawan, Philippines and four nickel projects in Samar, Philippines covering an area of 22,000 hectares. The Company's objective is to become a major supplier of high-grade nickel products to the primary nickel consumers in Asia.

For further information:

David G. Tafel - VP Corporate Development

Tel: 604-683-1991; Fax: 604-683-8544; Toll free: 1-877-399-1991

Email: mbr@mbmiresources.com
Website: www.mbmiresources.com

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

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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