Mirabela Nickel Limited has announced its unaudited first quarter results for the period ended March 31st 2011. Highlights are as follows:

1. Production of 2,825 tonnes of nickel in concentrate for the quarter

2. Sales of 2,084 tonnes of nickel in concentrate for the quarter

3. Accelerated mining pre strip of the central pit on track for completion by the end of Q2 2011

4. Non recurring SAG mill motor failures in January 2011 reduced production for the quarter

5. Unit cash costs at USD 6.97 per pound for the quarter due to reduced production

6. Processing plant expansion to 7.2 million tonnes per annum currently within budget and on track for completion by the end of 2011

7. Successful debt re financing in April with the issue of USD 395 million of 8.75% senior unsecured notes due 2018

Ramp up of the Santa Rita operation continued during the first quarter of 2011. The focus for 2011 is the completion of the open pit pre strip and the expansion of the processing plant to 7.2 million tonnes per annum.

Mirabela recently published an updated NI 43-101 Independent Expert Technical Report, which is available on the company's website and on SEDAR. For 2011, Mirabela is targeting production of 16,800 tonnes of contained nickel in concentrate at an unit cash cost of USD 5.69 per pound and for 2012, a production target of 23,800 tonnes at an unit cash cost of USD 4.99 per pound.

Since commencing operations, Santa Rita's strong commitment to safety has continued with an excellent first quarter performance of no lost time injuries.

The 12 month moving average Lost Time Injury Frequency Rate decreased to 0.64 at the end of the first quarter. The implementation of safety training and safety improvement programs is continuing.