COPY OF FINAL PROSPECTUS - Mirabela Nickel

Cash flows from operating activities was an outflow of A$770,271 for the six months ended December 31,
2006 as compared to A$1,279,511 for the fiscal year ended June 30, 2006 and A$380,122 for the six months
ended December 31, 2005.
Net cash outflows for investing activities was A$12,052,863 for the six month ended December 31, 2006 as
compared to A$7,822,843 for the fiscal year ended June 30, 2006 and A$2,745,793 for the six month ended
December 31, 2005. Of the amount in the six months ended December 31, 2006, A$11,331,105 was for
exploration and evaluation expenses and A$721,758 was for the acquisition of property, plant and equipment.
This increase in cash outflow is attributable to the increased level of exploration and drilling activity and the cost
of engineering design, environmental, geotechnical and transport studies conducted as part of the BFS.
Liquidity and Capital Resources
In the six month period ended December 31, 2006, Mirabela completed two private placements. The first
private placement was completed in August 2006 and resulted in the issuance of nine million ordinary shares at a
price of A$1.25 per share, raising aggregate proceeds of A$11,250,000. In December 2006, Mirabela completed a
second private placement of 11,300,000 shares at A$2.10 per share raising gross proceeds of A$23,730,000. In
addition, 1,000,000 options were exercised during this period (A$200,000 received). These proceeds will be used
to finance preliminary development costs of the Santa Rita Project, including payments under the Land
Purchase Agreements, the ordering of long lead time items and additional expenses to be incurred to complete
the BFS.
The Company’s working capital amounted to approximately A$27,895,751 as at December 31, 2006,
compared to approximately A$675,768 as at December 31, 2005 and A$6,708,244 as at June 30, 2006. This
increase was primarily attributable to the private placements completed in August and December 2006.
Twelve Months Ended June 30, 2006 Compared to Sixteen Months Ended June 30, 2005
Financial Position and Results of Operations
Mirabela commenced trading on the ASX in July 2004 after an initial public offering pursuant to which it
raised gross proceeds of A$3,000,000. Exploration efforts during the fiscal period ended June 30, 2005 focused
on the saprolite deposit at Serra Azul, until the discovery of the Santa Rita nickel sulphide deposit in
November 2004.
After announcing a positive scoping study in September 2005 the BFS was commenced with a budget of
approximately A$10,000,000.
Activities during the twelve months ending June 30, 2006 planned and carried out as components of the
BFS included an environmental impact assessment study; bulk metallurgical testwork; a detailed geotechnical
study; drilling for an indicated mineral resource (total of 42,000 metres drilled with drill hole spacings of
40 metres); and the appointment of GRD Minproc to undertake a process design engineering study for the
sulphide flotation plant. Field components of the BFS included the review of plant and tailings dam sites,
examination of power and port handling options, progressing the environmental impact study and negotiation
with landowners for surface rights. Office based activities included mine planning, development of the process
flow sheet and plant design and the calculation of capital and operating costs.
Activities during the fiscal year ended June 30, 2006 also included detailed work on mine economics,
on-going mineralogy and float test work to determine optimal grind size for ore types and the testing of physical
rock characteristics and comprehensive geotechnical test work with modelling and pit design.
The Company’s principal source of income during the fiscal year ended June 30, 2006 was from interest on
bank deposits which amounted to A$161,918 compared to A$86,490 for the sixteen months ended June 30, 2005.
The increased level of income during that period reflects the higher level of average cash balances held during
the year and an increase in the deposit rate obtainable on invested cash.
The net loss for the fiscal year ended June 30, 2006 amounted to A$925,760 (A$0.02 per share) compared
to A$620,741 (A$0.02 per share) for the sixteen months ended June 30, 2005. The consolidated net loss included
general and administrative expenses and exploration expenses. The increase of $305,019 is primarily the result of
an increase in general and administrative expenses from A$693,906 to A$1,080,627.
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