COPY OF FINAL PROSPECTUS - Mirabela Nickel

MIRABELA NICKEL LIMITED
NOTES TO FINANCIAL STATEMENTS (Continued)
For the year ended 30 June 2006
19. CAPITAL AND OTHER COMMITMENTS
Employee remuneration commitments
Consolidated The Company
2006 2005 2006 2005
AUD AUD AUD AUD
Commitments under the Executive Services contracts (Managing Director) not provided for
in the financial statements and payable:
Within one year .............................................. 190,000 150,000 190,000 150,000
190,000 150,000 190,000 150,000
Operating lease commitments
Commitments under lease agreements not provided for in the financial statements and
payable:
Within one year .............................................. 104,000 65,000 104,000 95,000
104,000 65,000 104,000 95,000
Exploration expenditure commitments
Commitments for rental fees under exploration licence agreements:
Within one year .............................................. 79,550 30,000 — —
79,550 30,000 — —
20. CONTINGENT LIABILITIES
The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice
of economic benefits will be required or the amount is not capable of reliable measurement.
Consolidated Parent Entity
2006 2005 2006 2005
AUD AUD AUD AUD
Contingent liabilities considered remote:
(i) Compensation payable to CBPM* if the Company’s acts or omissions result in the
loss of mineral rights ......................................... 310,035 278,567 — —
(ii) Transfer premium payable to CBPM* and/or Rio Salitre upon entering into a
mining lease in favour of the Company. If not paid the Company’s rights to the
respective tenement will be relinquished. ............................ 316,236 284,138 — —
(iii) Penalty payable upon termination of the mining lease. ................... 310,035 278,567 — —
936,306 841,272 — —
* CBPM (Companhia Bahiana de Pesquisa Mineral) is one of the parties to the Exploration and Mining Lease Agreement for
Mirabela Project in Brazil.
21. CONSOLIDATED ENTITIES
Country of Class of
Ownership
interest
Name of entity incorporation shares 2006 2004
% %
Parent entity
Mirabela Nickel Ltd ......................................... Australia Ordinary
Preference
Subsidiary
Mirabela Mineracao Brasil Ltda .................................. Brazil Ordinary 100 100
F-24