mbn in the media in brazil ...

Transcribed from Original in Portuguese published by mining website http://www.noticiasdemineracao.com

Editor: Alexildo Vaz, Tuesday 25/2/14

"Mirabela Nickel announced today a complex restructure plan that involves the engagement of an administrator (Kordamentha). The company is proposing to dilute its capital, taking away from its existing shareholders 99.9% of their holdings, with only 0.01% left in the kitty. The company explores the Santa Rita Mine in Itagibá, Bahia.

The administrators hired by MBN management are Martin Madden, Cliff Rocke and David Winterbottom, partners at Kordamentha, a consulting firm specialized in company restructures.

The article goes on discussing the 3 key-points in the company announcement where they talk about the free willy distribution of company shares to unsecured note holders plus all the money with interest freely given away to the new share holders in the company. They also talk in detail how existing shareholders have been hardly done by, being left with only 0.01% of shares in the “new” Mirabela Nickel. The 3rd. Point talks about the new money US$ 115 million guaranteed by, again, the issue of new shares in the new company.

All these changes are subject to extra-judicial restructure plan that MBN will submit to Brazilian Authorities hoping for approval.

Mirabela expects to resume trading in the ASX once their plan has been approved by the authorities in Brazil and Australia.

Existing MBN Shareholders in Australia are joining forces to try fight Mirabela’s plan via the ASX, ASIC and in the Courts if necessary. One of their shareholders, Mr. Ricardo Hora, has joined the group and will fight to have his rights and of his co-shares holders reinstated and respected by MBN. Hora has engaged many Brazilian Government departments, as well as Bahia State Government, and Itagibá Council, alerting them of the announced plans, as well as has written to the Brazilian president and Brazilian Congress informing Bahia State MPs of MBN’s plans for the company and its existing shareholders. The specialized media in Brazil has also been engaged.

In December ’13 and January ‘14, Mirabela dismissed 500 workers at its Santa Rita Mine, in Itagibá – Bahia. The company has not paid its creditors, specially Banks and Equipment Suppliers in Brazil, instead negotiating agreements to postpone payment of interest and capital."