MBMI Resources Inc.MBMI Resources Inc.
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 September 30, 2005
MBMI Reports Second Quarter Financial Results

 MBMI RESOURCES INC. (TSXV:MBR) "MBMI" reports interim financial results for the second quarter ended July 31, 2005. Full results and additional information related to the Company may be found on SEDAR at www.sedar.com.

The Company recorded a net loss for the period ended July 31, 2005 of $179,009 ($0.01 per share), compared with $244,291 ($0.01 per share) for the same period in 2004. Overall costs have increased as a result of increased activity associated with the Company's property acquisitions in the Philippines.

Resource Properties

During the period MBMI initiated an exploration program on its Bethlehem, Philippines nickel laterite property located near the town of Narra, on Palawan Island. This first phase program is incorporating test pitting and core drilling approximately 200 holes set on a 100X100 meter grid with an aggregate depth of approximately 3400 meters. The Bethlehem property is 3402 hectares in size, and located adjacent to the Platinum Group's Toronto property which has recently commenced a Direct Shipping Ore operation. Evaluation of historical drill results has enabled MBMI to identify primary drilling targets on the property. Previous exploration and drilling activities conducted on the property, has revealed significant (>2% Ni) nickel mineralization on several identified areas. The program's objective will be to determine the commercial viability of a Direct Shipping Ore (DSO) program from the Bethlehem property.

On May 24, 2005, the Company and Palawan Alpha South Resource Development Corporation ("Alpha") entered into a series of agreements including a Property Purchase and Development Agreement (the Transaction Documents) with respect to a nickel laterite property in Palawan, Philippines. The Transaction Documents effectively establish a "joint venture" between the Company and Alpha for purposes of developing the Alpha property. The Company will be entitled to hold directly and indirectly an initial 60% interest in the Alpha Nickel property. Upon achieving certain milestones, the Company may earn up to 100% interest, subject to a 2.5% net revenue return. The Company can earn its interest by making a total of US$220,000 in property payments (of which US$30,000 was paid) and financing exploration costs through to production. The Alpha property is adjacent to the Company's Bethlehem property.

MBMI and Falcon Ridge Resources Management Corporation entered into a Memorandum of Agreement and a Terms of Reference ("MOA") dated April 9, 2005, and subsequently revised on June 14, 2005, and July 20, 2005. Pursuant to the MOA, MBMI will initially hold directly, and indirectly a 64% interest and will have an exclusive option for a period of 10 years to earn up to a 92% interest in the joint venture to develop four nickel laterite properties in South-Eastern Samar, Philippines covering in excess of 10,000 hectares. The MOA contemplates that the parties would enter into a series of agreements (the Transaction documents) which are subject to Board of Director, and regulatory approval. The Company has made an initial US$120,000 "due diligence" payment, and a further US$18,000 property payment. Upon receipt of regulatory approval, MBMI is also obligated to issue 876,691 common shares (at a deemed price of $0.37) and 438,345 share purchase warrants (exercisable at $0.65 for a period of 2 years). The Company can earn up to a 92% interest in the joint venture by making a total of US$178,000 in property payments per property on a phased basis and by financing exploration costs through to production.

MBMI has now secured an interest in eight Philippine nickel properties covering a total area in excess of 22,000 hectares. The most recent acquisitions significantly advance the Company's objective of becoming a supplier of high-grade nickel material to the primary nickel consumers in Asia.

Analysis of data from a Down Hole IP geophysical survey completed during the quarter covering a portion of the McMillan Gold Mine property in Espanola, Ontario was very successful and a new, wide, and highly conductive geophysical target, related to recently drilled gold mineralization, has been defined at least 300 metres below surface. This target occurs east of the historic underground mine workings and at least 50 metres deeper than the deepest workings. Spectral IP surveys were completed in eight of the boreholes from diamond drilling completed by Young-Shannon in 2005 and MBMI in 2004. The 3D modelling of the data shows that the zones of silica (quartz) flooding that host the new high grade gold zone, recently defined by the diamond drilling campaigns from this past winter and spring, are concentrated in distinct zones within a broad envelope which may be related to this newly-recognized conductive zone. This new geophysical target will be a high priority focus for diamond drill testing follow-up expected to commence later this year.

Investment in Mineral Exploration and Development

Net expenditures on mineral properties increased during the period ended July 31, 2005 to $491,949 from $266,087 for the same period in 2004. Net expenditures consists of $40,188 in acquisition costs and option payments to Olympic Mines & Development Corporation, $179,528 in acquisition costs and option payments made on behalf of the Samar Properties, $92,317 in acquisition costs and option payments made for the Alpha Property, $7,489 of exploration costs on the Tri-Energy properties, $13,634 of exploration costs on the Samar properties, $4,655 of exploration costs on the Alpha property, and $154,138 of expenditures on the Olympic properties.


As at July 31, 2005, the Company had a working capital surplus of $178,183 (including cash of $163,124), whereas in the year ended January 31, 2005 the Company's working capital deficiency was $95,854. During the quarter, the Company issued 505,748 common shares to settle outstanding long-term debts of $187,127. These shares are subject to a hold period of four months from the date of issuance. The Company received proceeds of $312,260 and issued 2,126,089 shares pertaining to the exercise of warrants, and received $30,000 related to the exercise of 200,000 options at $0.15 during the period.

Subsequent Events

2,874,932 warrants ($0.12, $0.15, $0.25) were exercised, and 100,000 options exercised ($0.15) resulting in proceeds of $394,086 to the Company.

On August 12, 2005, the Company completed a non-brokered Private Placement financing of 2,500,000 units at $0.20 per unit for gross proceeds of $500,000. Each unit consists of one common share and one half common share purchase warrant. Each whole warrant entitles the holder to purchase one common share for a period of 2 years at a price of $0.30 during the first year and $0.50 in the second year. The securities issued are subject to a hold period of four months. Finders' fees of $37,730 and 81,750 broker warrants have been paid.

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.

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