COPY OF FINAL PROSPECTUS - Mirabela Nickel

Detailed prospecting comprised geological mapping at 1:5,000 scale; soil geochemistry; geophysical
surveying, including gravity, magnetics and IP; and the drilling of five diamond core holes (580 metres) to test
both IP anomalies and copper soil anomalies. This work confirmed the differentiated character of the intrusion
and its magnetic sulphide mineralization.
At the time, however, the primary focus of the Caraíba Metais SA exploration was for copper-dominant
deposits, which, combined with the low metal grades encountered and the existing economic conditions, led
them to terminate exploration activities in the area, ceding their exploration rights to CBPM in 1989.
Companhia Bahiana de Pesquisa Mineral (1989 — 2002)
In July 1989, CBPM, a government controlled entity focused on stimulating mineral exploration in the
Bahia State, Brazil, claimed the tenements covering the Fazenda Mirabela intrusion and the tenements covering
the Fazenda Palestina intrusion.
CBPM exploration initially comprised a re-evaluation of the previous exploration work by Mineração
Nhambu and Caraíba Metais SA; geological mapping, with analysis of Cu, Ni, Co, As, Ti, V, Cr, Pt and Pd in
39 rock samples and petrographic description for 135 rock samples; detailed profiles of ground geophysics
(magnetics and VLF-electromagnetics) along five lines, and the compilation of density and magnetic
susceptibility measurements for the five diamond drillholes completed by Caraíba Metais SA.
This work concluded that the Fazenda Mirabela intrusion was tholeiitic magmatic affiliation and possessed
potential to host economic mineralization of Ni-Cu, PGE and Au, or of Pt-Pd with Au, Ni and Cu associated, or
even economic chromite concentrations.
The second phase of exploration by CBPM commenced in 2000 and comprised diamond drilling of the
primary mineralization and auger and diamond drilling of the secondary (laterite) mineralization.
In 2003, fulfilling its role of stimulating mineral exploration, the CBPM offered private enterprise the
opportunity to develop the nickel resources of the ‘Mirabela Laterite and Sulphide Ni-Cu-PGE Target’ via
public tender number 005/2003.
Mirabela Brazil was selected on the basis of the discovery bonus and royalty offered to CBPM. Diamond
drilling of the lateritic resource began in March, 2004, and diamond drilling to investigate the area of sulphide
mineralization known as Santa Rita began in September 2004.
Moonlight Express
On April 20, 2004, Mirabela acquired beneficial ownership of all of the shares of Mirabela Brazil from
Moonlight, a corporation associated with Mr. William Clough, a director of Mirabela and a resident of Perth
Australia. Under that Agreement Mirabela paid Moonlight A$176,777 for all of the shares of Mirabela Brazil
and A$174,349 for the mineral knowledge of Moonlight. See ‘‘Interest of Management and Others in Material
Transactions’’.
Geological Setting
Geological, geochronological and isotopic studies allow the identification of four important crustal
segments in the basement of the São Francisco Craton in Bahia. The oldest portion is the Gavião block in the
west-south-west comprised of granitic, granodioritic and migmatitic continental crust including remnants of
3.4 Ga TTGs and associated Archaean greenstone belts. In the south-south-west, the Archaean Jequié block
comprises granulitic migmatites with inclusions of supracrustal rocks, intruded by many charnockite plutons. To
the north-east, the Archaean Serrinha block is composed of orthogneisses and migmatites, which form the
basement for Paleoproterozoic greenstone belts. The youngest segment exposed is the Archaean-
Paleoproterozoic Itabuna-Salvador-Curaça belt, which extends from south-east Bahia along the Atlantic coast to
Salvador, then northwards into north-east Bahia, separating the Gavião and Jequié blocks from the Serrinha
block. This segment is mainly composed of a low-K calc-alkaline plutonic suite, but also contains belts of
intercalated metasediments and ocean floor/back-arc basin gabbro and basalt.
The Fazenda Mirabela Intrusion is a Paleoproterozoic differentiated mafic-ultramafic body emplaced near
the western margin of the Itabuna-Salvador-Curaça belt. The Fazenda Mirabela Intrusion represents one of at
least two mafic-ultamafic layered bodies intruding along a major structural lineament that extends for over
100 kilometres adjacent to the western margin of the Itabuna-Salvador-Curaça belt.
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