Update on Successful Completion of Strategic Placement and Institutional Entitlement Offer

Not for distribution to United States Newswire Services or for dissemination in the United States

PERTH, Australia, May 16, 2012 /CNW/ - Mirabela Nickel Ltd (TSX: MNB, ASX: MBN) ("Mirabela" or the "Company") refers to the announcement released on May 15, 2012 in relation to the successful completion of the recently announced strategic placement of A$20m to Resource Capital Fund V L.P. ("RCF-V") ("Strategic Placement") at 40 cents per share together with the institutional component ("Institutional Offer") of the 8 for 13 accelerated pro-rata non-renounceable A$100m entitlement offer at 30 cents per share ("Entitlement Offer").

The reconciliation of shareholder entitlements has now been completed.  A total of approximately A$100m has been raised from the Strategic Placement to RCF-V and from participating, eligible institutional investors under the institutional component of the Entitlement Offer. Up to a maximum of A$20m will be raised through the retail component of the Entitlement Offer.

Important information and disclaimer
This announcement has been prepared by Mirabela Nickel Limited (ABN 23 108 161 593) (Mirabela). No party other than Mirabela has authorised or caused the issue, lodgement, submission, despatch or provision of this announcement, or takes responsibility for, or makes or purports to make any statements, representations or undertakings in this announcement.

NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or in any other jurisdiction in which such an offer would be illegal. The New Shares have not been, and will not be, registered under the Securities Act or under the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold to persons in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

IMPORTANT NOTICE TO NOMINEES: Because of legal restrictions, you must not send copies of this announcement or any material relating to the Entitlement Offer to any of your clients (or any other person) in the United States, and on whose behalf you are the registered owner of shares. Failure to comply with these restrictions may result in violations of applicable securities laws.

SOURCE Mirabela Nickel Ltd.