August 13, 2008 MBMI Executes MOA for Nickel Material Processing Technology
Vancouver, B.C., August 13, 2008 - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX-V: MBR) is pleased to report it has executed a Memorandum of Agreement (MOA) with Nichromet Extraction Inc. ("Nichromet") of Canada to process nickel laterite material using Nichromet's proprietary leaching technology. Nichromet has developed an expertise in the leaching of nickel laterite material (the 'Nichromet Technology') and has established a pilot plant facility in Quebec, Canada.
In order to assess the economic viability of using the Nichromet Technology to process Philippine nickel laterite material MBMI arranged for a shipment of a 20 tonne bulk sample of high-grade nickel laterite material to the pilot plant facility. The processing of the bulk sample has met with success and MBMI has been provided with a report setting out the economics of the process.
The MOA contemplates two separate transactions; a 'Joint Venture Agreement' pursuant to which MBMI will supply nickel material to Nichromet's commercial processing facility proposed to be located in Canada and a 'Licence Agreement' pursuant to which MBMI will be granted an exclusive licence to use the Nichromet Technology in the Philippines.
Licence Agreement:
MBMI and its Philippine partners' intend to use the exclusive license as the basis for developing down stream processing facilities in the Philippines. It is anticipated that these facilities would be capable of producing intermediate through finished nickel-cobalt-chrome-iron products to supply the primary metal consumers in Asia and North America. The formal agreement will contain provisions for royalty and milestone payments.
Joint Venture Agreement: Nichromet intends to develop a full scale production facility in Canada which will require a stable supply of high-grade nickel raw material. It is the intention of the parties that MBMI will enter into a long term supply agreement in return for a share of the profits on the sale of the finished products.
Completion of all formal agreements incorporating the terms of the MOA will be subject to Board of Directors and regulatory approvals as required.
Corporate Profile
The Company's Philippine partners were granted Small Scale Mining Operating permits for the Alpha nickel property in Narra, Philippines which have enabled the evaluation, extraction, testing, and sales of nickel raw materials to Asian industrial consumers. Financial and Technical Assistance Agreement (FTAA) applications related to the Alpha property and three other Palawan nickel projects are advancing through an approval process within the Philippine Department of Environment and Natural Resources (DENR) and once granted would allow for full-scale commercial production.
MBMI Resources Inc. is a Canadian-based mining company focused on the exploration and development of nickel mineral properties in the Philippines. MBMI and its partners control eight nickel laterite projects in the Philippines, covering an area greater than 22,000 hectares. MBMI's objective is to become a major supplier of high-grade nickel material to primary industrial consumers in Asia.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and Director
Further Information
For further information relating to the Company or this release, please refer to the Company's website at www.mbmiresources.com or contact Investor Relations at 1-877-399-1991 or .
The TSX Venture Exchange has not reviewed and does not take responsibility for the accuracy of this release.
This news release may contain forward-looking information including but not limited to comments regarding the timing and content of upcoming financings, work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking information includes disclosure regarding possible future events, or conditions or results of operations that is based on assumptions about future economic conditions and courses of action, and therefore, involves inherent risks and uncertainties. Although management has a reasonable basis for the conclusions drawn, actual results may differ materially from those currently anticipated in such statements. At this time the Company has not yet established NI 43-101 compliant mineral resources or mineral reserves that would support a commercial mining operation.
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