COPY OF FINAL PROSPECTUS - Mirabela Nickel

MIRABELA NICKEL LIMITED
NOTES TO FINANCIAL STATEMENTS (Continued)
For the year ended 30 June 2006
16. CONTRIBUTED EQUITY (Continued)
Movement in options
Exercisable Number of Exercise Value
on or before Reconciliation of issued options — 2006 options price AUD
Opening balance ......................................... 5,200,000 $0.200 720
10 May 2006 Conversion to ordinary shares ................................. (450,000) —
20 June 2006 Conversion to ordinary shares ................................. (150,000) —
Closing balance at 30 June 2006 ............................... 4,600,000 720
Exercisable Number of Exercise Value
on or before Reconciliation of issued options — 2005 options price AUD
Balance at incorporation .................................... — —
31 May 2008 Issue of unlisted options .................................... 3,600,000 $0.200 720
30 June 2009 Issue of unlisted options .................................... 1,600,000 $0.200 —
Closing balance at 30 June 2005 ............................... 5,200,000 720
17. RESERVES
Consolidated The Company
2006 2005 2006 2005
AUD AUD AUD AUD
Share-based payments reserve
Balance at the beginning of the period ................................ — — — —
Equity settled share-based payment transactions .......................... 242,339 — 242,339 —
Balance at 30 June ............................................ 242,339 — 242,339 —
Foreign currency translation reserve
Balance at the beginning of the period ................................ 468,904 — — —
Effect of translation of foreign currency operations to group presentation currency .... 1,261,357 468,904 — —
Balance at 30 June ............................................ 1,730,261 468,904 — —
Option premium reserve
Balance at the beginning of the period ................................ 720 — 720 —
Option issues — 3,600,000 options exercisable at 20c on or before 31 May 2008 ...... — 720 — 720
Balance at 30 June ............................................ 720 720 720 720
1,973,320 469,624 243,059 720
Share based payments reserve
The reserve represents the value of options issued under the compensation arrangement that the consolidated entity is required to
include in the consolidated financial statements. This reserve will be reversed against share capital when the underlying options vest and
are exercised by the employee or consultant. No gain or loss is recognised in the profit or loss on the purchase, sale, issue or cancellation
of the consolidated entity’s own equity instruments.
Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations where their functional currency is different to the presentation currency of the reporting entity, as well as from the
translation of liabilities that hedge the Company’s net investment in a foreign subsidiary.
18. FINANCIAL INSTRUMENTS
Exposure to credit, interest rate and currency risks arise in the normal course of the consolidated entity’s business.
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