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 November 01, 2005
MBMI Reports on Annual General Meeting

 MBMI RESOURCES INC. (MBR-TSXV) "MBMI" reports that the company has received shareholder approval for all management resolutions proposed in its information circular at its Annual General Meeting (AGM) held on October 31, 2005. The six Directors proposed and elected include: Michael Mason, Ken Cawkell, David Tafel, Chris Serin, Robert McCurdy, and John Cook.


I thank all shareholders for your support of management through several difficult years. I am confident that your support will soon be rewarded as management fully implements a business plan that will establish a solid foundation for enhancement of shareholder value. Two years ago, management converted its business plan, related to a single nickel property, into an aggressive model involving several nickel properties having the flexibility to transform the company into a progressive production firm. With respect to our nickel property activity, the company to date has only been involved with exploration, but will soon transform into an exploration, development, and production company.

During this same period, management implemented a business plan involving the evaluation and exploration of its Canadian Gold Properties held within subsidiary Tri-Energy Inc. MBMI's interest in its Philippine Nickel projects is not a strategic fit with its Canadian gold properties held in its Tri-Energy subsidiary. As a consequence, management has recommended the Tri-Energy Gold Properties be spun out into a separate public company, resulting in MBMI's interest in Tri- Energy being transferred to MBMI shareholders such that upon completion of the transaction, MBMI shareholders would hold freely trading shares in a separate public company. This transaction will enable management to concentrate its efforts toward the effective development of the Philippine nickel properties, (the "Nickel Project").

Shareholders will also note that Joe Church and David Constable have chosen to not stand for re-election as directors of the firm. I regret their decision and I wish to convey our appreciation for their contributions; and, to wish both the greatest success and good health. Both have demonstrated professional excellence in their roles as directors and I personally have a great appreciation for their opinions and participation. Joe and David will continue their involvement with the new Tri-Energy entity.

MBMI's nickel project strategy has involved a shift of focus from development of a large High Pressure Acid Leach (HPAL) facility, requiring a huge capital cost for one property, to development of several Direct Shipping Ore (DSO) properties having minimal capital costs but having the potential of generating very high rates of return while retaining the long-term potential for additional development. This transformation seems simple, but the critical elements required the selection of serious professional partners who were willing to consider selling or venturing properties containing the mineral qualities and characteristics desired by management and the market.

Management probed the possible candidates and after early failures identified and commenced negotiations with parties matching our objectives. Approximately one and half years ago, the first step of the acquisition process was completed with Olympic Mines and Development Corporation involving the Bethlehem, and two Rio Tuba properties on the island of Palawan. While the acquisition was being completed, management successfully initiated and eventually completed the acquisition of the "Alpha" Property (located near the Bethlehem Property), from Palawan Alpha South Resource Corporation. Thereafter, management commenced and is now finalizing the acquisition of four properties in the Samar region from Falcon Ridge Resources Corporation. All properties are located within the known nickel geological trends in the Philippines containing and/or currently producing nickel raw materials. Further, each property has historic exploration activity confirming the desired presence and quality of the mineralization.

While the property package is large, the acquisition agreements allow for your firm to evaluate, explore, and develop the properties through a series of steps where management may elect to drop property(ies) should the property(ies) fail to achieve our objectives. Property payments are linked to each step within the evaluation, exploration, and development process but more heavily weighted on the final step.

We are frequently asked why is MBMI unique and why should one invest in our firm? The response contains six basic elements:
  1. Strong Nickel and Nickel Raw Materials Prices:

    Management is convinced that nickel prices will remain robust for several years driven by the exceptional expansion of stainless steel capacity in Asia stimulated by strong growth from China and India. Nickel is produced from sulfide and oxide deposits in a variety of forms. Our business model is initially directed at the development of oxide deposits known as laterites through production of Direct Shipping Ore materials (DSO) into a basic product known as Ferro-Nickel. This product is highly desired by stainless steel facilities due the ease and low-cost for introduction of nickel units into their processes.

  2. Greater long-term Demand Than Supply OF DSO For Ferro-Nickel Producers:

    1. Supply:
      The supply of DSO for the Ferro-Nickel producers has and will continue to decline while existing mines are exhausted; and, more specifically when New Caledonia terminates the export of DSO at the end of 2006. New Caledonia has been the dominant origin of DSO and recently announced termination of DSO export licenses at the end of 2006 to encourage construction of value added facilities. The Sumitomo mine at Rio Tuba in Palawan, Philippines has exhausted its reserves of DSO after more than 25 years of production and is now consuming the stockpiled low-grade ore through a newly commissioned HPAL facility known as Coral Bay at their mine site.

    2. Demand:
      Established Ferro-Nickel producers are now competing to secure long-term stable sources of DSO with new Chinese FeNi producers whom have entered the market encouraged by the stainless steel producers. Management has successfully secured Letters Of Intent from several FeNi producers and executed a Memorandum of Agreement with a major Chinese FeNi producer for consumption of multiple grades of DSO that we intend to produce from our properties.

  3. Your Firm's Large Potential Source Of DSO:

    Our property package presently contains sufficient potential resources to initiate and sustain the operation of one operating module for more than fifteen years; and, our current exploration activity is rapidly expanding this potential. Based upon the examination of our properties and review of historic data, we are most optimistic that our exploration results should eventually support greater than eight operating modules for more than thirty years. Each module will produce approximately 5,000 metric tons of nickel per year.

  4. Logistics, Infrastructure, Sustainability, Simplicity Of Our Properties:

    Our property selection stipulated deposits being located near tidewater; having minimal overburden; having attractive ratio of high-grade mineral; having available skilled craft; having ample water; having minimal contact with population; having support of local, regional, and federal government and agencies; being environmentally acceptable; having serious partners, and, having the ability to generate products attractive for consumers. Each of our properties achieves the above requirement and allows for simplicity to install a basic mine-segregate-upgrade-ship operating module.

  5. Project Generating An Attractive Financial Model:

    The financial model for each module has an exceptionally high IRR based upon very conservative nickel prices, grade of DSO, quantity of production, and conservative capital and operating costs.

  6. Blue Sky Beyond DSO Production Modules:

    After the Project has achieved full commissioned status, several alternatives are being considered to maximize the potential value of each property within the Project in addition to optimizing the DSO operations.

The status of our exploration activities and expected property development is:

We are actively exploring two properties (Alpha and Bethlehem) and will expand the program to include three additional properties during the next nine months. Our objective includes active exploration programs on all eight properties within the next fifteen months.

Applications have been submitted for Small Scale Mining Operating permits (SSMO) for both Alpha and Bethlehem Properties, and we are hopeful that production will be achieved during December, 2005, and First Quarter, 2006, respectively. SSMO permits are issued by provincial governments to encourage exploration and development of mineral properties. Parallel with the SSMO permitting process, the application format is being completed and processed to achieve issuance of a full scale exploration, development, and operation permit for both properties where the estimated time to receive the permit is approximately two years. We expect to achieve module design capacity within twelve months for both Alpha and Bethlehem; then, convert to full-scale operation once permitted. A similar pattern of permitting and development is anticipated for the remaining properties over a period of three to four years.

Projected revenue from the first producing module will be applied toward future development of other modules and for retirement of any outstanding debt. Negotiations are well advanced with several major international strategic partners having interest to secure long-term stable sources of raw material supply. Management has executed a Memorandum of Agreement with Zhejiang Huaguang Smelting Group Co., Ltd. of China (see news release October 3, 2005) which operates three large blast furnaces in the Shanghai region and anticipates completing Transactional Documentation that will integrate this consumer into our Alpha and Bethlehem Properties. This consumer is able to receive a wide quality spectrum of DSO to be converted into Ferro-Nickel and will inject exploration and development funding into our properties.

Your management intends to enhance shareholder value by fully implementing our business plan; and, create an exciting well-balanced natural resource firm that will address the market demands for our commodities while respecting the environment and human interests.

Sincerely yours,

Michael T. Mason

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.

You can view the Next News Releases item: Thu Nov 17, 2005, Drilling Continues At Alpha And Bethlehem Properties

You can view the Previous News Releases item: Wed Oct 19, 2005, Alpha Property Exploration Program Commences

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