Mirabela Nickel - Southern Deeps & Peri Peri produce excellent drilling results



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES FOR
    DISSEMINATION IN THE UNITED STATES/

    PERTH, Western Australia, Aug. 15 /CNW/ - Mirabela Nickel Limited
("Company") (TSX - MNB, ASX - MBN). The Extended Deeps drilling program has
returned more outstanding thick, high grade composite intersections. Drill
holes MBS 396 and 398 returned 96m at 0.83% Ni and 99m at 0.78% Ni
respectively. These results rank amongst the best at Santa Rita to date. The
recent results are:

    
         Composite Results from the Extended Deeps Drilling Program

            ---------------------------------------------------
                                          Composite
             Hole ID        From (m)       downhole        Ni%
                                            width
            ---------------------------------------------------
             MBS 362           152            57          0.43
             MBS 396           280            96          0.83
             MBS 398           249            99          0.78
             MBS 402           114            46          0.45
            ---------------------------------------------------
              0.4% Ni cut off grade, 4m minimum mining width
    

    Drill holes MBS 396 and MBS 398 are respectively 45m and 75m north of
MBS 352, which returned 111m at 0.74% Ni, demonstrating the continuity of
thickness and grade along strike within this part of the resource.
    Santa Rita Deeps drilling programs have returned a weighted average
composite intersection of 62m at 0.71% Ni from 50 holes to date, of which 12
holes are subsequent to the 40% resource upgrade announced in June. The aim of
the Extended Deeps program is to convert 6.8Mt of Inferred Resource within
open pit limits to Indicated status and to extend the southern half of the
resource where drilling to date has been relatively shallower. The results
continue to demonstrate that the grade and width of mineralisation in the
southern half of the resource is improving with depth.
    Drilling of the previously announced Extended Deeps program of 22 holes
for 8,500m was recently completed with assays still outstanding on 18 holes.
Preliminary observations on these holes are promising, so drilling of an
additional 8 holes is underway further down dip. Assays from this drilling
will be received in September and a resource update is scheduled for October.
    It appears that the south end of the mineralised zone bends sharply to
the east rather than terminating as previously thought. A new South-East
Extension program of 11 holes is about to commence to test this
interpretation.
    An updated schematic long section showing the location of the latest
drilling results will be posted on the Company's website today. All assay
results were produced by ALS Chemex Laboratories.

    Peri Peri Exploration

    Drilling from the Peri Peri target has returned its best results to date.
Drill hole MBS 394 returned 55m at 0.69% Ni. The recent results are:

    
           Composite Results from the Peri Peri Drilling Program

            ---------------------------------------------------
                                          Composite
             Hole ID        From (m)       downhole        Ni%
                                            width
            ---------------------------------------------------
             MBS 380           135             5          0.78
             MBS 382           104            30          0.45
             MBS 384            93            10          0.40
             MBS 394           178            55          0.69
             MBS 397           125            17          0.73
             MBS 400           199            45          0.58
             MBS 401           272            40          0.77
            ---------------------------------------------------
              0.4% Ni cut off grade; 4m minimum mining width
    

    The recent deeper drilling at Peri Peri indicates a thickening of the
steeply dipping mineralized body along a strike length of 150m. Drilling at
both ends indicates a narrowing of the mineralized pyroxenite to between 10
and 15m thick, which translates to a relatively low level of prospectivity.
Further work is underway to identify other potential zones of pyroxenite
thickening around the Santa Rita intrusion.
    Interestingly, MBS 397 returned 1m at 4.03% Ni at 159m downhole. This
intersection represents matrix sulphides hosted by basement rocks (gneiss)
about 23m below the pyroxenite footwall.
    The current Peri Peri drilling program has now been completed. The final
assays will be received over the next month and an estimation of an Inferred
Resource is expected to be completed in late September. Planning is already
underway for infill drilling to enable calculation to Indicated resource at
Peri Peri.
    A resource at Peri Peri would be particularly valuable to the Santa Rita
project, as it would be a separate open-pit that would assist overall mine
scheduling.

    Measured Infill Drilling - Northern and Central zones

    Results from additional infill drilling to define a Measured resource
within open pit limits are tabled below. These measured infill drilling
results continue to be consistent with Indicated Resource estimates.

    
         Composite Results from the Measured Infill Drilling Program

            ---------------------------------------------------
                                          Composite
             Hole ID        From (m)       downhole        Ni%
                                            width
            ---------------------------------------------------
             MBS 366           127            36          0.66
             MBS 370            50            74          0.89
             MBS 372            59            33          0.67
             MBS 373           159            44          0.71
             MBS 374            34            71          0.83
             MBS 375           147            56          0.76
             MBS 377(*)          0            48          0.66
             MBS 379            73            63          0.66
             MBS 383            55            46          0.72
             MBS 385            58            53          0.80
             MBS 386            31            16          0.48
             MBS 388            94            88          0.79
             MBS 390            43            45          0.72
             MBS 392            77            38          0.64
             MBS 393            63            66          0.85
             MBS 395            67            43          0.83
            ---------------------------------------------------
              0.4% Ni cut off grade, 4m minimum mining width.
       MBS 377 partly oxidised intersection (base of oxidisation 21.3m)
    

    The 16,000m Measured infill drilling program, as previously announced, is
designed to convert resource within the starter pit from Indicated to Measured
status. With 9,000m drilled to date, the program has already defined a
Measured resource of 8.5mt at 0.65% Ni (potential mill feed). About 5.9mt at
0.67% Ni of this resource lies within the starter pit.
    The Measured infill drilling reduces the drill spacing from about 50m
down to 25m along 800m of strike length across the Northern and Central zones.
The upgrade to Measured Resource status provides a more accurate geological
interpretation and therefore increased resource confidence for financing and
mine scheduling. It is intended to convert approximately the first 3 years
production of open pit resource to Measured status.

    Palestina nickel sulphide exploration

    Environmental permits have now been obtained to drill the most
significant geochemical anomalies at Palestina. Work is underway to bring in
an appropriate light-weight drill rig, as the access is limited due to forest.
It is hoped that drilling can commence within the next few months.
    The Company is targeting another Santa Rita-type deposit within the
Palestina intrusion, as the geology appears similar to Santa Rita and nickel
sulphides have already been intersected by drilling. To date, it has only been
possible to drill around the edges of the Palestina geological complex, due to
permitting and access issues.

    Nick Poll
    Managing Director

    Technical information in this news release has been reviewed by Nick
Poll, the Company's Chief Executive Officer. Mr. Poll is a member of the
Australasian Institute of Mining and Metallurgy, and has sufficient
experience, which is relevant to the style of mineralization and type of
deposit under consideration, and to the activity 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 terms of Canadian National Instrument 43-101. Mr. Poll
consents to the inclusion of such information in this news release in the form
and context in which it appears.



    
    Attachment 1: New significant intersections - Extended Deeps Drilling
             (0.4% Ni cut off grade, 4m minimum mining width)
        -----------------------------------------------------------
                      From       To      Downhole
         Hole ID       (m)       (m)       width     Ni%       Cu%
        -----------------------------------------------------------

         MBS 362       152       190        38      0.44      0.14
         MBS 362       213       226        13      0.40      0.13
         MBS 362       331       337         6      0.46      0.06

         MBS 396       280       347        67      0.87      0.24
         MBS 396       359       370        11      0.49      0.14
         MBS 396       390       395         5      0.55      0.15
         MBS 396       400       413        13      1.03      0.34

         MBS 398       249       255         6      0.62      0.28
         MBS 398       290       302        12      0.96      0.29
         MBS 398       306       363        57      0.75      0.23
         MBS 398       376       383         7      0.86      0.25
         MBS 398       397       402         5      0.58      0.15
         MBS 398       409       421        12      0.85      0.24

         MBS 402       114       120         6      0.50      0.18
         MBS 402       190       194         4      0.40      0.11
         MBS 402       234       244        10      0.45      0.14
         MBS 402       250       257         7      0.51      0.13
         MBS 402       288       293         5      0.46      0.08
         MBS 402       298       307         9      0.43      0.06
         MBS 402       315       320         5      0.43      0.06
        -----------------------------------------------------------



    Attachment 2: New significant intersections - Measured Resource Drilling
             (0.4% Ni cut off grade, 4m minimum mining width)
        -----------------------------------------------------------
                      From       To      Downhole
         Hole ID       (m)       (m)       width     Ni%       Cu%
        -----------------------------------------------------------

         MBS 366       127       148        21      0.76      0.22
         MBS 366       161       169         8      0.42      0.09
         MBS 366       188       195         7      0.65      0.14

         MBS 370        50       124        74      0.89      0.28

         MBS 372        59        76        17      0.77      0.20
         MBS 372       109       113         4      0.62      0.13
         MBS 372       119       131        12      0.56      0.13

         MBS 373       159       199        40      0.74      0.22
         MBS 373       206       210         4      0.40      0.04

         MBS 374        34       105        71      0.83      0.23

         MBS 375       147       158        11      0.67      0.19
         MBS 375       172       196        24      0.78      0.22
         MBS 375       201       222        21      0.80      0.19

         MBS 377(1)      0        35        35      0.62      0.23
         MBS 377        62        75        13      0.76      0.24

         MBS 379        73       103        30      0.62      0.19
         MBS 379       137       144         7      0.62      0.14
         MBS 379       170       183        13      0.75      0.17
         MBS 379       196       209        13      0.68      0.15

         MBS 381(2)      0        10        10      0.67      0.18
         MBS 381        19        31        12      0.58      0.10
         MBS 381        36        43         7      0.47      0.08

         MBS 383        55        88        33      0.80      0.21
         MBS 383       122       135        13      0.52      0.09

         MBS 385        58        97        39      0.95      0.27
         MBS 385       113       123        10      0.40      0.05
         MBS 385       131       135         4      0.40      0.04

         MBS 386        31        35         4      0.51      0.09
         MBS 386        57        65         8      0.49      0.10
         MBS 386        70        74         4      0.45      0.06

         MBS 388        94       143        49      0.85      0.22
         MBS 388       155       159         4      0.48      0.11
         MBS 388       194       221        27      0.83      0.19
         MBS 388       226       234         8      0.50      0.08

         MBS 390        43        47         4      0.50      0.15
         MBS 390        79       116        37      0.77      0.18
         MBS 390       121       125         4      0.56      0.09

         MBS 392        77        88        11      0.70      0.16
         MBS 392       135       158        23      0.66      0.16
         MBS 392       162       166         4      0.43      0.05

         MBS 393        63       113        50      0.82      0.22
         MBS 393       119       135        16      0.94      0.22

         MBS 395        67        72         5      0.71      0.25
         MBS 395       101       131        30      0.89      0.21
         MBS 395       140       148         8      0.71      0.14
        -----------------------------------------------------------
        (1) MBS 377 Partly oxidised intersection (base of oxidisation 21.3m)
        (2) MBS 381 Partly oxidised intersection (base of oxidisation 20.4m)



           Attachment 3: New significant intersections - Peri Peri
                            Exploration Drilling
                           (0.4% Ni cut off grade)
        -----------------------------------------------------------
                      From       To      Downhole
         Hole ID       (m)       (m)       width     Ni%       Cu%
        -----------------------------------------------------------

         MBS 380       135       140         5      0.78      0.27

         MBS 382       104       134        30      0.45      0.15

         MBS 384        93       103        10      0.40      0.13

         MBS 394       178       233        55      0.69      0.23

         MBS 397       125       129         4      0.46      0.17
         MBS 397       142       150         8      0.53      0.12
         MBS 397       159       164         5      1.25      0.15

         MBS 400       199       244        45      0.58      0.21

         MBS 401       272       277         5      0.54      0.18
         MBS 401       282       317        35      0.80      0.20
        -----------------------------------------------------------



                 Attachment 4:  Drill hole collar locations
    -------------------------------------------------------------------------
                            Survey                             Hole      Azi-
    Hole ID     Hole type    type   Easting  Northing    RL   Depth  Dip muth
    -------------------------------------------------------------------------
    MBS 362  Southern Deeps  TS(1) 423007.5  8429990  131.5     401  -60  270
    MBS 366  Measured Infill   TS    422524  8431275  204.5     220  -60  270
    MBS 370  Measured Infill   TS    422465  8431275  228.5     142  -60  270
    MBS 372  Measured Infill   TS    422485  8431275  220.5     145  -60  270
    MBS 373  Measured Infill   TS    422541  8431250    200   250.3  -60  270
    MBS 374  Measured Infill   TS    422442  8431275    233     131  -60  270
    MBS 375  Measured Infill   TS    422518  8431250  208.5     225  -60  270
    MBS 377  Measured Infill   TS    422394  8431275    226      90  -60  270
    MBS 379  Measured Infill   TS    422495  8431250  217.5     232  -60  270
    MBS 380  Peri Peri         TS    424260  8432240  146.5     190  -60    0
    MBS 381  Measured Infill   TS    422366  8431275    217      51  -60  270
    MBS 382  Peri Peri         TS    424540  8432193    137  174.25  -60   45
    MBS 383  Measured Infill   TS    422431  8431225    233     142  -60  270
    MBS 384  Peri Peri         TS    424445  8432235    146     145  -60   45
    MBS 385  Measured Infill   TS    422456  8431250    230     123  -60  270
    MBS 386  Measured Infill   TS    422390  8431225    230      79  -60  270
    MBS 388  Measured Infill   TS    422486  8431200    223     241  -60  270
    MBS 390  Measured Infill   TS    422434  8431250    232     163  -60  270
    MBS 392  Measured Infill   TS    422466  8431200    229     170  -60  270
    MBS 393  Measured Infill   TS    422476  8431250  224.5   169.3  -60  270
    MBS 394  Peri Peri         TS    424495  8432145  138.5     270  -60   45
    MBS 395  Measured Infill   TS    422445  8431200    233     160  -60  270
    MBS 396  Southern Deeps    TS    422770  8430400    155   430.3  -60  270
    MBS 397  Peri Peri         TS    424475  8432195  143.5     193  -60   45
    MBS 398  Southern Deeps    TS    422770  8430430    155     451  -60  270
    MBS 402  Southern Deeps    TS    422835  8430150    142     320  -60  270
    MBS 400  Peri Peri         TS    424440  8432160    137  274.95  -60   45
    MBS 401  Peri Peri         TS    424452  8432102    135     350  -60   45
    -------------------------------------------------------------------------
                     (1) TS - Total Station Survey Tool
    





For further information:

For further information: www.mirabela.com.au, Telephone: +61 8 9324
1177, Email: info@mirabela.com.au

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