| | | May 26, 2011
MBMI Provides Operations And Corporate Update
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| | Vancouver, B.C., May 26, 2011 - MBMI RESOURCES INC. ("MBMI" or the "Company") (TSX-V: MBR) reports that further to the news release of April 19, 2011 in which the company announced the decision (the "Decision") by the Office of the President of the Philippines cancelling the Financial and Technical Assistance Agreements ("FTAAs"), the Company wishes to provide an update on corporate and operational activities.
The Company has the right to exhaust all legal efforts to reverse the Executive Secretary's Order (the "Order") and has officially filed a Motion for Reconsideration (the "Motion") with the Office of the President. Should the Motion be denied, the company may then appeal the Order in the Court of Appeals. If all efforts are exhausted within the Court of Appeals, the Company may then appeal in the Supreme Court of the Philippines.
The FTAA, a contract between the Philippine Government and MBMI's affiliates, has a defined procedure for resolving disputes in the international venue which is currently being evaluated by the Company's legal counsel. During the appeal process the Company is entitled to operate on a business as usual basis. However, in light of the Decision, the Company immediately put the following action plan in place:- Suspended exploration programs related to the Alpha property and has curtailed and/or terminated all unnecessary expenditures;
- Retained major legal firms in both Canada and the Philippines;
- Commenced legal action in the Philippines in accordance with Philippine legal procedures where a Motion For Reconsideration was filed;
- Commenced discussions with various stakeholders and interest groups to assist with the legal process;
The Company on advice of its legal counsel believes that the Decision is not in accordance with legal procedures of the Philippines and violates due process and the contractual agreement between the Philippine Government and the Company within the FTAA. MBMI will vigorously fight this Decision and is of the opinion that the likelihood of a successful result is high.
The FTAAs were signed by the authority of the President of the Philippines pursuant to Philippine law on April 12, 2010 and were registered with the Department of Environment and Natural Resources on May 31, 2010 and formally issued on June 2, 2010 to affiliates of MBMI, Narra Nickel Mining & Development Corp., Tesoro Mining and Development Inc., and McArthur Nickel Mining.
ON BEHALF OF THE BOARD OF DIRECTORS
"Michael T. Mason"
President and CEO
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 604-683-1991 or 1-877-399-1991 or mbr@mbmiresources.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or 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. The Company has not yet established commercial viability, via a feasibility study, on any estimated mineralized resources that would support a commercial mining operation or demonstrate the economic viability of any of its properties. There is no guarantee that future exploration will result in the discovery of mineral resources or that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. 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. |
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