Pursuant to the query from Bursa Malaysia Securities Berhad to MBM Resources Berhad (“MBMR” or “the Company”) on 3 October 2012 in relation to the Company's announcement dated 28 September 2012, the Board of Directors of MBMR wishes to inform as follows :

(1)         The issue price of the joint venture company (“JVC”), the basis and justification

The initial capital of the JVC of RM78,700,000 is based on agreed capital contribution by the joint venture parties of up to 60% of the initial cost of development of the Hino manufacturing plant. This would allow for the balance of the development costs (and future working capital once the manufacturing operations started) to be funded via external borrowings and/or internally generated funds.

The subscription to the equity of the JVC by MBMR and Hino Motors, Ltd. Japan is based on the agreed shareholding ratio as stated in the Joint Venture Agreement (“JVA”).

(2)         Approval from other relevant authorities, name of the authorities and timing of submission

The establishment of the JVC and the issue and allotment of shares to MBM Resources Bhd. and Hino Motors, Ltd. Japan do not require governmental or regulatory approvals.

With regards to the land identified for development of the manufacturing plant in Sendayan TechValley, the proposed acquisition by and the proposed manufacturing operations of the JVC will require the approval of Ministry of International Trade and Industry and/or Economic Planning Unit (under the Prime Minister’s Department Malaysia) and the consent to transfer land from the Negri Sembilan State Government. The sale and purchase of the Sendayan land is conditional upon these approvals which are expected to be received within three months from the date of the sale and purchase agreement (which has yet to be entered into as of to-date).

(3)         The inspection period

A copy of the JVA available for inspection at the Registered Office of MBMR at Suite C-5-4, Wisma Goshen, Plaza Pantai, JalanPantai Baharu, 59200 Kuala Lumpur during normal office hours from Monday to Friday (except public holidays) is for a period of three (3) months (and not fourteen (14) days, as mentioned in the earlier announcement dated 28 September 2012) from the date of the announcement.

This announcement is dated 3 October 2012.