COPY OF FINAL PROSPECTUS - Mirabela Nickel

Operating Costs
GRD Minproc estimated an operating cost for the processing plant at a throughput of four million tonnes
per annum of US$6.77 per tonne of ore. A summary of the operating cost estimate is set out below:
Area
Operating Cost Estimate
US$ per tonne
Labour $0.60
Power $2.24
Reagents & Consumables $1.87
Maintenance $1.58
Administration $0.17
Miscellaneous $0.31
Total $6.77
Although the overall estimate is considered achievable, there are individual areas within the estimate that
may be underestimated or overestimated, however this does not affect the reasonableness of the overall
operating cost estimate.
Concentrate Transport Costs
There are a myriad of options in terms of concentrate transport however, the likely scenarios are the use of
road transport to a domestic smelter or road transport to the port of Ilheus and sea freight to an international
smelter.
The road transport costs equate to approximately US$0.095 per tonne per kilometre of concentrate based
on quotations, whilst the ship loading costs are estimated at approximately US$7 per tonne of concentrate. The
sea freight costs vary depending on the destination port.
The capital cost of US$7.95 million for storage and ship loading facilities at the Ilheus has been included in
the overall capital cost engineering estimate described above. It should be noted that if the nickel concentrate
was smelted domestically, this component of the capital cost would not be required.
Total Cost
Road Ship Sea Total Cost per per Tonne of
Capital Transport Loading Freight Tonne of Plant Ore
Smelter Transport Cost Cost Cost Cost Concentrate Feed***
Location Option (US$ M) (US $/t) (US $/t) (US $/t) (US $/t) (US $/t)
Brazil Road $0M* $58/t — — $58/t $2.03/t
Canada Road/Sea $7.9M $13/t $7/t $40/t $60/t $2.10/t
Finland Road/Sea $7.9M $13/t $7/t $64/t $84/t $2.94/t
China Road/Sea $7.9M $13/t $7/t $92/t $112/t $3.92/t
* The road transport costs rely on the ability to backload concentrate on flat bed trucks, which may require minor capital to facilitate
unloading.
** Assumes 140k Tpa of concentrate and 4Mtpa of plant ore feed.
Mining Costs
Independent consultant NCL Brazil Ltda. prepared an operating cost estimate based on typical open pit
mining conditions in Brazil. The estimate of total mining costs including a capital expenditure on mining fleet of
US$64 million (consisting of an initial capital investment pf $20 million and subsequent sustaining capital of
US$44 million) is calculated to be US$1.10/tonne of material mined.
Pit Optimization
A scoping level pit optimisation study was completed for the Santa Rita resource by independent
consultant, Roselt Croeser Pty Ltd.
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