COPY OF FINAL PROSPECTUS - Mirabela Nickel

Fazenda Palestina Intrusion
The Fazenda Palestina mafic-ultramafic intrusion is located 25 kilometres to the south-south-west of
Mirabela and 12 kilometres east of the town of Dário Meira, adjacent to highway BR030.
The intrusion measures approximately five kilometres east-west by three kilometres north-south and, in
common with the Fazenda Mirabela Intrusion, is intrusive into granulite facies country rocks comprising
migmatitic enderbitic gneisses, meta-norites, metamorphosed oxide-silicate facies banded iron formation,
marbles and calcsilicates. The two dominant lithologies within the intrusion are gabbronorites and
orthopyroxenites, the latter intercalated within the former. The gabbronorites are composed of cumulate
plagioclase, augite and bronzite, and are locally leucocratic, while the pyroxenites include adcumulate
bronzitites, plagioclase bronzitites and lesser websterites. These show medium to fine-grained, rhythmic
banding, but may also be pegmatic, with bronzite crystals noted up to 10 centimetres long. The pyroxenites
occupy 21% of the area of the intrusion, while the gabbronorites occupy the remaining 79%. Olivine-bearing
lithologies, similar to those hosting the majority of disseminated sulphide mineralization at Fazenda Mirabela,
have not yet been identified at Palestina.
Exploration to date comprised geological mapping, rock and soil sampling, and airborne and ground
geophysics, however no drilling has been completed. Geochemical results to date indicate that the pyroxenites
are anomalous in nickel, copper and PGE. Mirabela has now completed both IP and EM ground surveys and
stratigraphic drilling is planned to commence in the first quarter of 2007.
MIRABELA’S OTHER PROJECTS
Overview
The Company has an active project generation program. Having gained expertise in the previously
unrecognized viability of deposits such as the Santa Rita deposit, the Company has focused its exploration
activities in the São Francisco craton of north-eastern Brazil which hosts the Santa Rita resource.
As a result, the Company has a portfolio of other nickel and base metal projects in Brazil, consisting of the
Serra Azul, São Francisco, Ponto Novo and the Araguaçema projects. Particulars of each of these projects are
described below.
The Company’s Interests in Other Projects
Mirabela’s rights to explore, develop and mine the São Francisco, Ponto Novo and Araguaçema are derived
from exploration licences and applications for exploration licences that are 100% held and owned by Mirabela
Brazil. Mirabela’s interest in the Serra Azul Project is derived from an exploration licence No. 871.368/89
(the ‘‘Serra Azul Deposit Mineral Right’’) held by CBPM pursuant to the terms of the Mining Agreement, and
in respect of which a final exploration report has been submitted to, and approved by, the DNPM, entitling
Mirabela Brazil to apply for a mining concession in respect of the area covered by the Serra Azul Deposit
Mineral Right. See ‘‘General Business of the Company — The Company’s Interests in the Santa Rita Project’’.
As is the case with Santa Rita Deposit Mineral Right discussed above, the Company has the exclusive right
to apply for a mining concession in respect of the Serra Azul Mineral Right. If the Company does not apply for
such a mining concession within a one year period, the Serra Azul Mineral Right will lapse. This one year period
expires on December 4, 2007.
Serra Azul
Management believes that Serra Azul is currently the only saprolite deposit in Brazil suitable for export to
ferronickel smelters and one of the few available worldwide.
The Serra Azul project area is adjacent to the Santa Rita Project area. Until November 2004, when the
Company commenced drilling and nickel sulphides were first intersected at Santa Rita in the northern zone, it
was the Company’s plan to bring the Serra Azul project into production to finance the development of the Santa
Rita Project and the Company’s nickel and base metal exploration programs. Management since decided to
39