MBMI Announces Philippine Court Decision

RICHMOND HILL, ONTARIO--(Marketwired - March 27, 2015) - Further to its press release dated June 16, 2014, MBMI Resources, Inc. ("MBMI" or the "Company") (TSX VENTURE:MBR.H) announces that a resolution has been issued by the Special Third Division of the Philippine Supreme Court denying the motion for reconsideration filed by Narra Nickel Mining and Development Corporation, McArthur Mining, Inc. and Tesoro Mining and Development Corporation ("Operating Companies") in G.R. No. 195580. The Operating Companies have filed a second motion for reconsideration, which also reiterated their earlier motion to have the case resolved by the Supreme Court en banc. G.R. No. 195580 is among several cases involving Redmont Consolidated Mines Corporation ("Redmont") and the Company's subsidiaries and affiliates in the Philippines.

On January 2, 2007, Redmont filed with the Panel of Arbitrators ("POA") of the Department of Environment and Natural Resources ("DENR") petitions against the applications for mineral production sharing agreements ("MPSA") and exploration permit of the Operating Companies. Redmont claimed that the Operating Companies are supposedly not qualified to enter into an MPSA with the Philippine Government because they were then 100%-owned by MBMI which is a Canadian corporation; an MPSA contractor must be at least 60% Philippine-owned. During this time, Redmont was also an applicant for an exploration permit in the same area covered by the Operating Companies' MPSA applications.

Prior to the issuance of the POA's decision, the Operating Companies converted their MPSA applications into an application for a Financial or Technical Assistance Agreement ("FTAA") with the Philippine Government; an FTAA permits 100% foreign ownership. The Operating Companies were granted an FTAA in 2010.

On December 14, 2007, the POA ruled to disqualify the Operating Companies for being foreign corporations and declared null and void the MPSA granted to them. (No MPSA had been granted, however, precisely because of the conversion to an FTAA.) The POA gave due course to Redmont's exploration permit application. The Operating Companies' motion for reconsideration of the POA's ruling was denied.