Mirabela Completes Equity Capital Raising

/NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES/

ASX Code: MBN
TSX Code: MNB
Number of shares:491,561,237

PERTH, Australia, Oct. 27 /CNW/ - Further to its announcements on 8, 9 and 20 September 2010, Mirabela Nickel Limited ("Mirabela" or the "Company") is pleased to announce it has successfully completed an equity capital raising of US$165 million through the issue of 112,778,871 ordinary shares each at an issue price of A$1.60 (C$1.52 per share) (based on prevailing foreign exchange rates on 8 September 2010, the date the offering was launched) to institutional investors ("Global Offer").

The amount raised under the Global Offer equates to US$179 million when converted at the foreign exchange rates on 26 October 2010.

The Global Offer consisted of two components, an unconditional component that was not subject to shareholder approval and a conditional component that was subject to shareholder approval.  On 20 September 2010 the Company announced that it had completed the unconditional part of the Global Offer with the placement of 55,074,405 ordinary shares and 6,472,500 subscription receipts.

Following approval by the Company's shareholders of all resolutions at the Company's general meeting held on 19 October 2010, on 26 October 2010 the Company completed the conditional component of the Global Offer and issued a further 57,704,466 ordinary shares including 6,472,500 upon the conversion of the subscription receipts issued on 20 September 2010.

On 26 October 2010 and following shareholder approval, the Company also (1) completed a private placement of 3,895,997 ordinary shares to Lancaster Park SA and 888,561 shares to Mr. Craig Burton, both related parties of the Company, at the same issue price as the Global Offer raising an aggregate of US$7 million; and (2) issued 3,439,342 ordinary shares pursuant to a Share Purchase Plan to eligible shareholders and a further 3,395,741 ordinary shares (representing the shares not placed in the Share Purchase Plan) by private placement completed by Macquarie Capital Advisers Limited and UBS AG, in each case, at the same issue price as the Global Offer and raising an aggregate of US$10 million.

Macquarie Capital Advisers Limited (Macquarie Capital Markets Canada Ltd.) and UBS AG (UBS Securities Canada Inc.) acted as Joint Lead Managers and Joint Bookrunners, GMP Securities L.P. acted as Joint Book-runner and Argonaut Securities Pty Ltd and Haywood Securities Inc. acted as Co-Managers for the Global Offer.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

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