COPY OF FINAL PROSPECTUS - Mirabela Nickel

The carrying value of mineral property and deferred exploration costs were A$4,555,681 for the sixteen
month period ended June 30, 2005 and A$13,494,371 for the fiscal year ended June 30, 2006. This increase of
A$8,938,690 is primarily due to the ongoing cost of the BFS.
General and administrative expenses were A$1,080,627 for the fiscal year ended June 30, 2006, as compared
to A$693,906 for the sixteen months ended June 30, 2005. The majority of the increase relates to the recognition
of A$242,339 in non-cash expenses on account of the vesting of options issued to executives.
In fiscal 2006, the Company incurred expenses of A$8,938,690 on exploration and evaluation activities. This
compares to A$4,555,681 for the sixteen months ended June 30, 2005. The Company’s exploration efforts in the
twelve month period ended June 30, 2006 and since November, 2004 were focused on the Santa Rita Project
(including, commencing in September 2005, the BFS). Of the other areas of interest, exploration activities did
not reach a state that would permit management to make a reasonable assessment as to the existence or
otherwise of economically recoverable reserves. Accordingly, the expenditures incurred were capitalized, and
there were no write-offs recorded.
All of the expenditures on the Santa Rita Project and other exploration expenses incurred during the
financial year ended June 30, 2006 were deferred in accordance with the Company’s accounting policies for
mineral exploration and evaluation costs. In the sixteen months ended June 30, 2005 exploration costs of
A$13,325 were written off.
A provision for income tax expenses of A$7,051 was recognized for the fiscal year ended June 30, 2006.
Although the Company did not generate a profit in that period, a taxable income may arise if certain expenses
are treated as non-deductible against the Company’s income for that period.
Cash Flow
Total cash and cash equivalents on hand at June 30, 2006 were A$6,427,797 compared to A$1,762,998 as at
June 30, 2005, on account of proceeds received from equity financings completed during the fiscal year ended
June 30, 2006.
Cash flow from operating activities was an outflow of A$1,279,511 for the fiscal year ended June 30, 2006
compared to an outflow of A$486,546 for the sixteen months ended June 30, 2005, as a result of the loss for the
period and a net decrease of A$469,534 in non-cash working capital items.
Net cash outflow for investing activities was A$7,822,843 in 2006, as compared to A$4,284,043 for the
sixteen months ended June 30, 2005. Of the cash outflow in 2006, A$7,631,768 was for exploration and
evaluation expenditures, mostly incurred in connection with the Santa Rita Project and the balance of A$191,075
was for the acquisition of property, plant and equipment. The increase in investing cash outflows reflects the
increased expenditures and activity associated with the BFS which commenced in September 2005.
Liquidity and Capital Resources
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. In the sixteen month period ended June 30, 2005, Mirabela raised a total
of A$6,797,000 before issue expenses through private placements. Fund raising costs during the sixteen month
period ended June 30, 2005 were A$349,903. The net funds raised during the sixteen months ended June 30,
2005 were applied to the extended drilling program and scoping study on the Santa Rita Project.
In fiscal 2006, Mirabela raised a total of A$13,770,000 before issue expenses through private placements
(including the issue of seven million ordinary shares to Inco pursuant to the Subscription Agreement). Mirabela
also raised A$120,000 through the exercise of 600,000 options. Fund raising costs during the 2006 fiscal year
were A$274,583. The net proceeds raised were used to finance the BFS, following completion of a positive
scoping study in September 2005.
The Company’s working capital amounted to A$6,708,244 as of June 30, 2006 compared to A$1,621,636 as
at June 30, 2005. This increase is attributable to private placements completed in the fiscal year ended
June 30, 2006.
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