COPY OF FINAL PROSPECTUS - Mirabela Nickel

MIRABELA NICKEL LIMITED
NOTES TO FINANCIAL STATEMENTS (Continued)
For the six months ended 31 December 2006
7. CAPITAL AND RESERVES
The consolidated entity recorded the following amounts within shareholder’s equity as a result of the issuance of ordinary shares:
For the six months ended 31 December 2006
Ordinary shares Number of shares Issue price AUD
1-Jul-2006 Opening balance .............................. 65,950,000 20,687,000
18-Aug-2006 Issue of ordinary shares fully paid .................... 6,000,000 $1.250 7,500,000
23-Aug-2006 Issue of ordinary shares fully paid .................... 3,000,000 $1.250 3,750,000
31-Oct-2006 Options converted ............................. 500,000 $0.200 100,000
6-Nov-2006 Options converted ............................. 500,000 $0.200 100,000
29-Dec-2006 Issue of ordinary shares fully paid .................... 11,300,000 $2.100 23,730,000
Closing balance ............................... 87,250,000 55,867,000
Less share issue costs:
Opening balance ..................................................... (624,486)
Current year costs .................................................... (255,676)
Share issue costs at the end of the year ....................................... (880,162)
54,986,838
For the six months ended 31 December 2005
Ordinary shares Number of shares Issue price AUD
1-Jul-2005 Opening balance ............................... 37,150,000 6,436,097
1-Oct-2005 Share issue ................................... 2,200,000 $0.600 1,320,000
16-Dec-2005 Share issue ................................... 1,000,000 $0.800 800,000
31-Dec-2005 Closing balance ................................ 40,350,000 8,556,097
Convertible performance shares
1-Jul-2005 Opening balance ............................... 11,000 11,000
31-Dec-2005 Closing balance ................................ 11,000 11,000
Less:
Share issue costs ...................................................... (8,578)
8,558,519
No dividends were paid by the consolidated entity.
8. SHARE-BASED PAYMENTS
During the six months ended 31 December 2006 no options were issued under the Company’s share option plan.
For the six months ended 31 December 2006, the consolidated entity recognised an expense of $86,149 (six months ended
31 December 2005: $126,336), which reflects the vesting of previously issued share options.
The basis for measuring fair value is consistent with that disclosed in the consolidated financial report as at and for the year ended
30 June 2006.
9. RELATED PARTIES
Arrangements with related parties continue to be in place. For details on these arrangements, refer to the 30 June 2006 annual financial
report.
10. SUBSEQUENT EVENTS
On 31 January 2007 shareholders approved the issue of 1,200,000 shares, being tranche 2 of the December 2006 private placement.
Proceeds of $2,520,000 were received by the Company and the shares allotted on 1 February 2007.
FF-7