COPY OF FINAL PROSPECTUS - Mirabela Nickel

Finance Activities, Liquidity and Capital Resources
In December 2006 and February 2007, Mirabela raised approximately A$26,250,000 through private
placements of 12,500,000 ordinary shares issued at a price of A$2.10 per share.
Mirabela has an obligation to pay an aggregate of C$5.7 million under the Land Purchase Agreements (if it
exercises the options to purchase thereunder). Mirabela’s corporate and administration costs are estimated to be
approximately C$2 million per annum.
Management estimates that the completion of the BFS, expected in May 2007, will require an estimated
expenditure of an additional C$4.8 million.
Based on the estimated cost of completing the BFS and the Company’s budgeted expenditure for
exploration and expected corporate and administration costs, the Company’s current working capital of
approximately C$18.7 million are sufficient for the Company to complete the BFS while maintaining its existing
exploration and drilling program and meeting all other corporate and administrative costs for 18 months. The
expenditures for exploration and drilling will depend on a number of factors including the success of the drilling
or exploration program, as the case may be. It is likely therefore, that prior to the Santa Rita Project becoming
cash flow positive, further financing will be required to fund these aspects of the business. At this time, the
quantum and timing of these potential financings cannot be reliably estimated.
The capital cost requirement for the Santa Rita Project is estimated to be approximately US$223 million.
The proceeds of the Offering will be insufficient to finance all of the capital development costs of the Santa Rita
Project. Results of the BFS are expected in May 2007 following which, assuming a positive outcome, the
Company intends to raise additional funds to finance mine development and infrastructure construction for
anticipated production start-up of the Santa Rita Project in early 2009. Based on the economics of the Santa
Rita Project and management’s current projections for nickel prices, the Company believes that it will be able to
raise such funds. However, there is no assurance that additional funding will be available, as and when required,
or if available, that it will be on terms acceptable to the Company.
Off Balance Sheet Transactions
The Company has had no off balance sheet transactions since incorporation.
Related Party Transactions
The Company completed a transaction with Moonlight Express Holdings Ltd. (‘‘Moonlight’’), an entity
associated with one of Mirabela’s directors, Mr. Bill Clough, on April 20, 2004. Under the terms of the
transaction the Company acquired all of the shares of Mirabela Brazil held by Moonlight and all of the mineral
knowledge of Moonlight for the sum of A$351,126. The purchase price was allocated, as to A$174,349 for
purchase of mineral knowledge and as to A$176,777 for the shares of Mirabela Brazil.
Mirabela was incorporated for the purpose of acquiring the Santa Rita and Serra Azul nickel projects and a
number of other grassroots exploration projects in Bahia State, Brazil. In the opinion of the directors of
Mirabela, the purchase price paid to Moonlight represented reimbursement of the monies expended by
Moonlight to the date of the agreement on the projects acquired, indirectly, from Moonlight. This transaction
was completed during the fiscal year ended June 30, 2005.
Significant Accounting Policies and Estimates
The Financial Statements have been prepared in accordance with IFRS. A description of the Company’s
significant accounting policies is provided in Note 1 to the Financial Statements. Management is required to
make various estimates and judgments in determining the reported amounts of assets, liabilities, revenues and
expenses for each period presented and in the disclosure of commitments and contingencies. Management
considers the following to be the critical accounting policies which reflect its more significant estimates and
judgments used in the preparation of the financial statements. The Company has not, and is not required to
provide a reconciliation of its financial statements to Canadian generally accepted accounting principles.
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