PERTH, Australia, Oct. 10 /CNW/ - Mirabela Nickel Limited (TSX: MNB, ASX:
MBN) is pleased to announce the Southern Deeps drilling continues to exceed
expectations. Drill holes MBS 428 and MBS 429 have returned composite
intersections of 130m at 0.72% Ni and 121m at 0.79% Ni respectively. The
recent results are as follows:

<<
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Composite
From downhole
Hole ID (m) width(1) Ni%
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MBS 428 340 130 0.72
MBS 429 307 121 0.79
MBS 430 218 56 0.49
MBS 431 220 84 0.51
MBS 434 365 76 0.77
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0.4% Ni cut off grade, 4m minimum mining width
(1) The actual drilling intersections that are comprised in the
composite downhole widths are shown in Attachment 1.
>>

The thick high grade intersections of MBS 428 and 429 are on the next two
sections immediately south of drill hole MBS 427 which returned Santa Rita's
best composite intersection to date of 156m at 0.88% Ni. These holes
demonstrate the thickness and continuity of this bonanza zone. The recent
intersections of high grade material lie mostly just below the limits of the
current 69.2mt Potential Mill Feed pit.
This southern high grade zone appears to have good continuity below 200m
vertical depth and along 200m of strike with average true widths about 70m and
average grades about 0.8% Ni. With the open-pit extending to 400m vertical
depth in the Central and Northern zones, this zone is likely to make a
significant contribution to the next in-pit resource calculation.
Approximately 80% of the southern high grade zone mineralisation is
hosted by the pyroxenite unit which has less non-sulphide nickel and permits a
higher nickel recovery. The zone remains open at depth and appears to be
improving with depth. Preliminary scoping suggests these widths and grades
might be economic for bulk underground mining. Accordingly, any depth
extension of the southern high grade zone has the potential to add a
significant underground resource to the Santa Rita project, further increasing
the mine life. A drilling program to test this depth extension and establish a
potential Inferred status underground resource is currently being considered.
To date the southern Central and Southern Deeps drilling programs have
returned an outstanding weighted average composite intersection of 64m at
0.70% Ni from 75 drill holes, of which 37 holes are subsequent to the 40%
resource upgrade announced in June. All assays have been received and the next
resource update calculation is scheduled for completion late this month, with
a Santa Rita probable reserve calculation planned for November.
Drilling of the Southern Deeps is continuing with 3 holes already drilled
out of a new program of 12 holes for 5,000m. The new program is targeting the
continuation of the high grade material on sections south of drill hole MBS
429 as well as testing the shallower dipping mineralization in the southern
most sections.