COPY OF FINAL PROSPECTUS - Mirabela Nickel

MIRABELA NICKEL LIMITED
NOTES TO FINANCIAL STATEMENTS (Continued)
For the year ended 30 June 2006
14. EMPLOYEE BENEFITS (Continued)
Share-based payments
a) Option Plans
At 28 April 2005, the consolidated entity established share option programmes that entitle key management personnel and
consultants to purchase shares in the entity. At 24 April 2006, a further grant on similar terms has been offered to the consultants.
In accordance with these programmes options are exercisable at the market price of the shares at the date of grant.
The terms and conditions of the grants are as follows, whereby all options are settled by physical delivery of shares:
Contractual
Number of
life of
Grant Date Employee Entitled instruments Vesting conditions options
25 May 2005 Consultants Options .... 800,000 Pro-rata over 2 years ................ 4 years
25 May 2005 Consultants Options .... 400,000 Pro-rata over 3 years ................ 4 years
16 June 2005 Directors’ Options ...... 100,000 The first commercial shipment of saprolite ore
Nick Poll by the company .................... 4 years
16 June 2005 Directors’ Options ...... 100,000 Completion of a bankable feasibility study on
Nick Poll the Santa Rita nickel project ............ 4 years
16 June 2005 Directors’ Options ...... 200,000 Completion of financing for the development
Nick Poll of Santa Rita project ................ 4 years
24 April 2006 Consultants Options .... 200,000 Probable reserve and mine design ........ 4 years
24 April 2006 Consultants Options .... 250,000 Project financing (debt and equity) ........ 4 years
24 April 2006 Consultants Options .... 200,000 Completion of EPCM contract .......... 4 years
24 April 2006 Consultants Options .... 50,000 Flow sheet design .................. 4 years
24 April 2006 Consultants Options .... 150,000 Six months remaining on the project ....... 4 years
24 April 2006 Consultants Options .... 150,000 Twelve months remaining on the project .... 4 years
Total share options ..... 2,600,000
Set out below are the summaries of options granted under the plan:
Consolidated and parent entity — 2006
Vested and
Balance at Granted Exercised Forfeited Balance exercisable
Exercise start of the during the during the during the at end of at end of
Grant date Expiry date price year year year year the year the year
Number Number Number Number Number Number
25/05/2005 ........ 30/06/2009 $0.60 1,200,000 — — — 1,200,000 1,106,250
16/06/2005 ........ 30/06/2009 $0.60 400,000 — — — 400,000 —
24/04/2006 ........ 30/04/2010 $0.95 — 1,000,000 — — 1,000,000 —
1,600,000 1,000,000 — — 2,600,000 1,106,250
Weighted average exercise price .......... $ 0.60 $ 0.95 $ 0.73 $ 0.60
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