Mirabela Nickel - Cash and currency conversion update


    PERTH, Western Australia, Aug. 28 /CNW/ - Mirabela Nickel Limited
("Company") (TSX - MNB, ASX - MBN). The Company currently holds cash of
US$179.2 million. All cash is held simply as cash on deposit with Banks, the
majority of the cash (US$161 million) is held with HSBC.

    The cash is held in the following currencies (USD million equivalents):

                 US Dollar               143.6

                 Canadian Dollar          17.2

                 Australian Dollar        13.4

                 Brazilian Real            5.0

                 TOTAL US$ million       179.2

    The Company has taken advantage of spikes in the USD:BRL (Brazilian Real)
exchange rate to enter into forward exchange contracts to convert
US$140 million to Real at an average exchange rate of 2.034. Under these
contracts, the Company is committed to convert US$10 million per month to Real
for each of the 14 months commencing November 2007. The current exchange rate
is 1.94 so the forward rates locked in are favourable. Pending conversion, the
USD cash continues to earn USD interest.
    The BFS for Santa Rita used a USD:BRL exchange rate of 2.05 for capital
items; so the forward conversion rate locked in is less than 1% different
which is not considered material.
    With most of the Company's cash earmarked for development of the Santa
Rita project, the Company has not, nor does it intend to, invest any cash in
any higher risk, higher yield investment products.

    Nick Poll
    Managing Director

For further information:

For further information: Telephone: +61 8 9324 1177, Email:

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Mirabela Nickel Ltd.

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