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MBR Mbmi Resources Inc.

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Share Name Share Symbol Market Type
Mbmi Resources Inc. TSXV:MBR TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

MBMI Intends to Vigorously Defend Palawan Alpha Lawsuit

01/11/2012 1:10am

Marketwired Canada


MBMI RESOURCES INC. ("MBMI") (TSX VENTURE:MBR) announces that it has received a
complaint filed against it and other parties by Palawan Alpha South Resource
Development Corporation ("Palawan Alpha") in a regional trial court in the
Philippines (the "Complaint"). 


In the Complaint, Palawan Alpha asks for the rescission of the following related
agreements: (a) the Call Option Agreement executed by and between Palawan Alpha
and MBMI on April 27, 2007; (b) the Royalty Agreement executed by and between
Palawan Alpha and Narra Nickel Mining and Development Corporation ("Narra
Nickel") on March 12, 2008; and (c) the Deed of Assignment with Assumption of
Liability executed by and between Palawan Alpha and Mr. Jose Leviste, Jr. on
March 8, 2012 (collectively, the "Agreements"). MBMI currently holds a 40%
direct interest in Narra Nickel and until recently also held an indirect
interest in that company. 


In the Complaint, Palawan Alpha alleges that, under the Royalty Agreement and
the Call Option Agreement, Narra Nickel and/or MBMI purportedly had the
obligation to pay royalties equivalent to 5.5% of net revenue returns on the
Narra Nickel mining operations. Palawan Alpha further alleges that no royalty
payments were made and that such non-payment constitutes a material breach for
which Palawan Alpha may to rescind the Agreements.


Production on the property in question has been frustrated by ongoing litigation
concerning permits necessary to operate the property. MBMI considers that the
possible payment due to Palawan Alpha under the Royalty Agreement is not a
material amount. Nevertheless, having consulted with local counsel in the
Philippines, MBMI intends to vigorously defend itself against the Complaint.


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


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
MBMI Resources Inc.
John Wong
President and CEO
905-886-3888
mbmi@mail.com
www.mbmiresources.com

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