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August 6, 2015Q2 Update

MBN.ASX

MIRABELA NICKEL – Q2 2015 Update F

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This presentation may contain "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable to Canadian and Australian securities legislation, concerning the business, operations and financial performance and condition of Mirabela Nickel Limited ("Company"). Forward-looking statements include, but are not limited to, statements with respect to the future price of nickel, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of exploration activities, permitting time lines, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. By its nature, forward-looking information is based on assumptions and involves known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements, or results, to be materially different from future results, performance or achievements expressed or implied by such forward-looking information.

Although the Company has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking information, there may be other factors that cause actual results, performances, achievements or events not to be anticipated, estimated or intended. Also, many of the factors are beyond the Company’s control. Accordingly, readers and participants should not place undue reliance on forward-looking information. All forward-looking information disclosed in this presentation is qualified by this cautionary statement.

FORWARD-LOOKING STATEMENTSF

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Operational Improvement

Financial Discipline

Partnership Development

Financial Performance

Sustaining Operational Changes, Focus on Financial Discipline & Partnerships

DELIVERING ON OUR COMMITMENTSF

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Sustainment of Operational Improvements

throughout the site means Mirabela is

performing within guidance

Rebuilt two Terex shovels plus one Pit Viper

returned to service in the pit

Performing Truck maintenance internally

starting on June 1

Improvements continue in Process recovery

Ahead of schedule with tailings dam raise

Safety remains paramount with one Lost

Time Incident reported during the quarter

Q2 OPERATIONAL UPDATEF

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Q2 OPERATIONAL PERFORMANCE

Parameter Q1 2015 Q2 2015 H1 2015

Material moved (mt) 6.0 6.6 12.6

Ore mined (mt) 1.7 1.6 3.3

Ore processed (mt) 1.6 1.6 3.3

Nickel produced (t) 3,855 4,356 8,211

C1 cash costs (US$/lb) 4.88 4.49 4.75

Nickel grade mined / processed (%) 0.42% / 0.44% 0.46% / 0.46% 0.44% / 0.45%

Nickel recovery (%) 54% 58% 56%

Cash on hand (US$m) 25 16 16

Q2 Performance Reflects Sustainable Improvements & Operational Delivery

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Mining & processing improvements

Steady throughput and an improvement in nickel production, demonstrating consistency in quarterover quarter results

An increase in both nickel grade and recoveries resulted production of 4,356 tonnes of containednickel in concentrate, a 13% improvement

PERFORMANCE – Q2 VS Q1

6.04

1.74 1.62

3.86

2.46x

6.57

1.58 1.64

4.36

3.17x

0

2

4

6

8

Material mined (mt) Ore mined (mt) Ore processed (mt) Ni production (kt) Strip ratio (x)

Q1 2015 Q2 2015

0.42%

0.10%

0.44%

0.10%

0.46%

0.10%

0.46%

0.10%

54%63%

58%

73%

0%

20%

40%

60%

80%

0.0%

0.2%

0.4%

0.6%

0.8%

Ni grade (mined) Cu grade (mined) Ni grade(processed)

Cu grade(processed)

Ni recovery Cu recovery

Reco

very

(%

)

Gra

de (

%)

Q1 2015 Q2 2015

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Mining improvements

QUARTERLY PERFORMANCE

Decreased (Waste) Material Mined and Consistency in Results

6.1

5.6

6.7

6.1 6.0

6.6

1.20.8 0.8

1.4 1.7 1.61.4 1.4

1.5 1.6 1.6 1.6

4.2x

5.7x

7.1x

3.3x

2.5x

3.2x

0x

2x

4x

6x

8x

0

2

4

6

8

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015

Stri

p r

atio

(x)

Mat

eri

al /

ore

min

ed

or

pro

cess

ed

(m

t)

Material mined Ore mined Ore processed Strip ratio

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6.40

7.73 7.50

4.72

4.01 3.76

0

2

4

6

8

10

12Q

1 2

01

4

Q2

20

14

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Mining Processing Administration

Production cost improvements (US$/lb)

QUARTERLY PERFORMANCE

Production Costs Reached New Lows in Q2 2015

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7.29

8.439.02

4.82

4.884.49

(2)

0

2

4

6

8

10

12Q

1 2

01

4

Q2

20

14

Q3

20

14

Q4

20

14

Q1

20

15

Q2

20

15

Mining Processing Administration Transport/shipping By-product credits Smelter charges

C1 cash cost improvements (US$/lb)

QUARTERLY PERFORMANCE

Material Operational Improvements have Resulted in a Significant Reduction in C1 Cash Costs Over the Last Three Quarters

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(6)

(4)

(2)

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2

4

6

8

10

12

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

C1

cas

h c

ost

(U

S$/l

b)

Cumulative production (Mlbs)

Second quartile Third quartile Fourth quartileFirst quartile

Source: Wood Mackenzie Q2 2015

2015 PRODUCTION PLAN – C1 CASH COST

Operational Improvements Shifted Santa Rita’s 2015 Forecast into Second Quartile of 2015 C1 Cost Curve

FY 2015EUS$4.50-5.00/lb

30-37% improvement

Q1 2015AUS$4.88/lb

32% improvement

FY 2014AUS$7.16/lb

Q3&4 2012A

Q2 2015AUS$4.49/lb

37% improvement

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NICKEL PRICE PERFORMANCE

Declining nickel price over the last 6 months has been partially offset by the depreciation of the Brazilian Real

Source: Factset, Wood Mackenzie

LTM historical performance (US$/lb; BRL/USD)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4

5

6

7

8

9

10

11

12

Jul-

14

Sep

-14

No

v-1

4

Jan

-15

Mar

-15

May

-15

Jul-

15

BR

L/U

SD

Nic

kel (

US$

/lb

)

Nickel BRL/USD

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Working with our partners, stakeholders and

customers to ensure we meet our commitments

Delivered on our contractual sales agreements

during the quarter

Consistently making on time shipments to our

customers

Mirabela accounts for approximately 25% of

volume at the port of Ilheus

Resolved the bulk handling shipping issue with

the Ministry of Labour

Q2 OFFTAKE / SALES UPDATEF

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2015 Q2 closing cash balance of US$16.2 M

Mirabela is forecast to maintain sufficient tight liquidity in 2015

in a very challenging Ni price environment through the following

measures:

Redefining Capex profile to match expenses with cash availability

Further operational level cost reductions and redefinition of short term mine activities including a slow down of pit development

Cost reduction in consumables

More effective inventory management to alleviate working capital needs

Current weak nickel prices partially offset by the depreciation of the Brazilian Real by 17% over the last 6 months which positively impacts MBN cost profile

Q2 2015 LIQUIDITYF

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In response to depressed nickel prices we have an

operational strategy that will reduce costs further:

Optionality gained through operational improvements

Ore stockpiles and broken ore are available allowing a

slow down in mine development for at least 30 days

Crushing and processing will continue during mine

slow down

Nickel in concentrate production remains within 2015

guidance range of 16,500-18,000 tonnes

AUGUST PLANNED PIT SLOWDOWNF

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Q2 2015 – CONCLUSIONS

Mirabela’s second quarter is within 2015 guidance:

Production of 4,356 tonnes of nickel in concentrate

Sales for the quarter of 3,402 tonnes of nickel in concentrate

C1 Unit cash costs of US$4.49/lb

Prudent management key in the current nickel price environment

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