Mirabela Announces More Excellent Deep Drilling Results

    Ordinary shares outstanding: 129,784,100

    PERTH, Australia, Sept. 8 /CNW/ - Mirabela Nickel Limited (TSX: MNB,
ASX: MBN) is pleased to announce the results of recent drilling for the Santa
Rita underground project in the Extended Deeps area. The Company has now
announced 7 of the 12 holes in the Extended Deeps area and the average
composite result is 98m grading 0.85% Ni and 0.25% Cu.
    "These are outstanding results - consistent, wide and relatively high
grade - which demonstrate excellent potential for bulk underground mining at
Santa Rita," said Managing Director Nick Poll. "Our objective is to establish
an underground reserve and develop underground access early in the project's
life to achieve a total Santa Rita production rate of 40,000tpa of nickel for
at least 25 years," he said.

    The results are as follows:

              Composite results from the Extended Deeps program

    Hole ID                From (m)      downhole          Ni%           Cu%
                                         width (m)
    MBS-595                  767            59            0.72          0.20
    MBS-597                  892            89            0.79          0.21
    MBS-598                  899           146            0.83          0.25
    MBS-599                  681            88            0.79          0.28
               0.5% Ni cut off grade, 4m minimum mining width

    The core Extended Deeps program comprises 12 holes on approximate
120m x 105m spacing, see the schematic long section lodged on the Company's
website at http://www.mirabela.com.au/projects_galleries.asp. There are 4
holes on each of sections 8430400N, 505N and 610N, collectively drilling up
600m of down-dip extension and 300m of strike. The true widths of these
results are about 90% of down-hole widths.
    Hole MBS-595, to the south of and slightly outside the main testing area,
also has very encouraging results, so the resource is open in both directions
along strike and at depth. Additional holes to extend the strike length of
mineralization are planned, particularly to the north under the Central and
Northern zones.
    Another four Extended Deeps holes are awaiting assays and the last hole
in the primary target area is currently being drilled. The underground
resource estimation will commence upon receipt of these assays and is expected
to be completed in November.
    In conjunction with the Extended Deeps drilling program, the Company has
commenced a scoping study into potential underground mining at Santa Rita,
including further expansion of the plant to accommodate additional underground
throughput. The aim is to develop an underground project that augments
production from the open-cut mine within the next few years using early cash
flows from open-pit production.
    Due to the recent increase in the open-pit depth we reclassified five
previous Extended Deeps holes as Pit Extension holes, three of which are
reported below.

    Results from Pit Extension drilling

    Results of the latest Pit Extension holes are as follows:

                   Composite results from the Southern zone

    Hole ID                From (m)      Composite         Ni%           Cu%
                                         width (m)
    MBS-592                  511             98           0.63          0.21
    MBS-596                  526            112           0.83          0.27
    MBS-600                  471             82           0.76          0.20
               0.4% Ni cut off grade, 4m minimum mining width

    The holes are located at the base of the open-pit in the Southern deeps
high grade zone, with MBS-600 just to the north of that zone. MBS-600 is
substantially better than holes higher up on this section, confirming a trend
of improved widths and grades at depth to the north of the Southern high grade
zone. The true widths of these results are about 90% of down-hole widths.
    These are strong results that are expected to convert Inferred open-pit
resource to Indicated status and possibly contribute to deepening the open-pit
beneath the Central zone. The pit is now 640m deep in the Southern deeps high
grade zone, this in turn improves the potential for the pit to drive deeper
across the Central deeps zone. MBS 600 demonstrates a possible trend of
improved widths and grades at depth moving into this area.
    More details of all the above results are set out in Attachments 1, 2 and

    Ongoing Drilling Programs

    The drilling program now has four objectives that are prioritised as

    1.  Establish a maiden resource in the Extended Deeps area (drilling
        almost completed)
    2.  Convert 20mt of Inferred open-pit resource to Indicated status, most
        of which lies at the base of the Central zone
    3.  Deepen the open-pit beneath the Central and Northern zones
    4.  Explore further along strike for additional mineralisation with
        underground potential

    The schematic long section lodged on the Company's website shows the
above recent results and the Pit Extension drilling target beneath the Central
zone. In addition, Extended Deeps drilling will continue with a focus on
strike extension to the north.
    A total of 5 drilling rigs remain committed to these ongoing drilling

    Nick Poll                                        Craig Burton
    Managing Director                                Corporate Director


    Mirabela Nickel Ltd owns 100% of the world class Santa Rita nickel
sulphide project and is listed on the Australian and Toronto stock exchanges.
With a JORC Indicated open-cut resource of 130mt grading 0.60% Ni for 780,000t
of contained Ni, Santa Rita is the largest nickel sulphide discovery
world-wide in the last 12 years.
    Construction of a 6.4 mtpa nickel sulphide concentrator commenced in
November 2007 and is currently 60% complete. The plant will produce 18,500 tpa
of nickel in a sulphide concentrate from one open-cut mine starting from mid
2009 increasing to 27,000 tpa by mid 2010. At this rate of production the
project will have a mine life of at least 20 years.
    Photos of the construction progress are available on the Company website
at: http://www.mirabela.com.au/projects_galleries.asp.

    Qualified Person Statement: The information in this report that relates
to Mineral Resources and Exploration Results is based on information compiled
by Lauritz Barnes who is a Member of The Australian Institute of
Geoscientists. Lauritz Barnes is a consultant to Mirabela Nickel Limited.
Lauritz Barnes has sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the
2004 Edition of the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserve' and a Qualified Person in accordance with
NI 43-101. Lauritz Barnes consents to the inclusion in the report of the
matters based on their information in the form and context in which it

    Caution Regarding Forward Looking Statements: There can be no assurance
that an expanded mineral resource or reserve will be established at the Santa
Rita Project. The forward-looking statements made in this news release are
based on assumptions and judgments of management regarding future events and
results. Such forward-looking statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements.


          Attachment 1: New intersections - Extended Deeps drilling
                           (0.5% Ni cut off grade)
    Hole ID              From        To (m)      Downhole       Ni%      Cu%
                          (m)                     width
    MBS-595               767          821          54         0.71     0.21
    MBS-595               878          883           5         0.74     0.16

    MBS-597               892          966          74         0.77     0.22
    MBS-597               990         1005          15         0.90     0.17

    MBS-598               899         1034         135         0.82     0.25
    MBS-598              1063         1074          11         0.95     0.26

    MBS-599               681          752          71         0.78     0.28
    MBS-599               761          778          17         0.81     0.30
    All chemical analyses were completed by ALS Chemex, Vancouver, Canada

           Attachment 2: New intersections - Pit Extension drilling
                           (0.4% Ni cut off grade)
    Hole ID              From        To (m)      Downhole       Ni%      Cu%
                          (m)                     width
    MBS-592               511         537           26         0.52     0.21
    MBS-592               575         595           20         0.64     0.17
    MBS-592               602         654           52         0.68     0.23

    MBS-596               526         533            7         0.64     0.50
    MBS-596               552         627           75         0.90     0.29
    MBS-596               647         662           15         0.59     0.13
    MBS-596               672         687           15         0.78     0.20

    MBS-600               471         479            8         0.44     0.24
    MBS-600               488         493            5         0.44     0.20
    MBS-600               538         547            9         0.60     0.16
    MBS-600               554         559            5         0.75     0.23
    MBS-600               597         622           25         0.94     0.26
    MBS-600               636         666           30         0.79     0.16
    All chemical analyses were completed by ALS Chemex, Vancouver, Canada

                 Attachment 3:  Drill hole collar locations

    Hole ID    Hole   Survey  Easting   Northing    RL    Hole  Dip  Azimuth
               type    type                              Depth
    MBS-592  Southern   TS   423057.0  8430505.0  140.6    805  -60      270
    MBS-595  Extended   TS   423399.5  8430310.0  141.4    941  -60      270
    MBS-596  Southern   TS   423125.3  8430400.0  144.1    800  -60      270
    MBS-597  Extended   TS   423405.0  8430400.0  138.1   1109  -75      270
    MBS-598  Extended   TS   423330.6  8430610.1  134.8   1105  -60      270
    MBS-599  Extended   TS   423199.8  8430505.2  148.0    920  -60      270
    MBS-600  Southern   TS   422919.2  8430610.0  149.9    740  -60      270
    1   TS - Total Station Survey Tool.

For further information:

For further information: Australia contact: Nick Poll or Craig Burton,
Telephone: +61 8 9324 1177, nickp@mirabela.com.au, craigb@mirabela.com.au;
Australia contact (media): Caroline de Mori, Purple Communications, Telephone:
+61 8 9485 1254, cdemori@purplecom.com.au; Toronto contact (media): Eric Tang,
Porter Novelli, Telephone: (416) 422-7200, eric.tang@porternovelli.com

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