MBMI Announces Philippines Court Decision on FTAA

MBMI Resources, Inc. (TSX VENTURE:MBR) ("MBMI" or the "Company") announces that
the (Former) Fifth Division of the Court of Appeals in Manila, Republic of the
Philippines has recently issued a resolution dated July 27, 2012 (the
"Resolution") in response to the motion for reconsideration filed by Narra
Nickel Mining and Development Corporation, Tesoro Mining and Development, Inc.,
and McArthur Mining, Inc. (subsidiaries of MBMI), where they asked for a
reversal of the Court of Appeals' previous decision affirming the Office of the
President's Resolution, which ordered the cancellation and/or revocation of
their Financial or Technical Assistance Agreement ("FTAA") with the Republic of
the Philippines. The FTAA is necessary for MBMI and its subsidiaries to explore
and develop its primary property in Palawan, Philippines. 


The background of the case is as follows: On April 5, 2010, a Financial or
Technical Assistance Agreement ("FTAA") was issued in the name of Narra Nickel
Mining and Development Corporation, Tesoro Mining and Development, Inc., and
McArthur Mining, Inc. for the purpose of large scale exploration, development
and commercial exploration of possible mineral resources in an initial contract
area over the municipalities of Rizal, Bataraz, and Narra in Palawan,
Philippines. On May 7, 2010, Redmont Consolidated Mines Corporation filed a
petition for cancellation and revocation of the FTAA issued. The petition
resulted in the decision dated April 6, 2011 and resolution dated July 6, 2011,
rendered by the Office of the President of the Philippines which ordered the
cancellation and/or revocation of the FTAA. The Court of Appeals affirmed the
decision and resolution of the Office of the President in its Decision dated
February 23, 2012.


In their joint motion for reconsideration of the February 28, 2012 Decision of
the Court of Appeals, MBMI's subsidiaries argued that the Office of the
President's decision to terminate their FTAA was issued without jurisdiction and
in disregard of pending proceedings involving the same issues which are
currently before the Supreme Court of the Philippines. 


MBMI's subsidiaries also questioned the unilateral cancellation of the FTAA
despite the contract's provision expressly requiring resort to arbitration in
order to effect a valid rescission of the FTAA. They also pointed out that the
unilateral cancellation of the FTAA was issued pursuant to a petition filed by a
person (Redmont Consolidated Mines Corporation) who is not a real party in
interest. 


In its Resolution, the Court of Appeals denied the motion for reconsideration on
the reasoning that the mining companies purportedly failed to provide any cogent
reason to disturb its earlier ruling. Said the Court of Appeals: "(T)he grounds
raised (in the motion for reconsideration) have already been amply discussed and
passed upon in the Decision dated 23 February 2012."


MBMI believes that the Resolution is not consistent with prevailing law and
jurisprudence. MBMI will be filing a Petition for Review with the Supreme Court
of the Philippines to question and seek the reversal of the decision and
resolution issued by the Court of Appeals. 


For further information relating to the Company or this release, please refer to
the Company's website at www.mbmiresources.com. 


Cautionary Statement: 

The foregoing information may contain forward-looking statements relating to the
future performance of the Company. Forward-looking statements, specifically
those concerning future performance, are subject to certain risks and
uncertainties, and actual results may differ materially from the Company's plans
and expectations. These plans, expectations, risks and uncertainties are
detailed herein and from time to time in the filings made by the Company with
the TSX Venture Exchange and securities regulators. The Company does not assume
any obligation to update or revise its forward-looking statements, whether as a
result of new information, future events or otherwise.