Mr. Mike Johnston reports

UPDATE REGARDING ARBITRATION WITH INDEPENDENT STATE OF PAPUA NEW GUINEA

A hearing in respect of the issues that are the subject of the notice of arbitration, issued by the Independent State of Papua New Guinea against Nautilus Minerals Inc., has been completed. The parties now await the decision of the arbitrator, Murray Gleeson, AC, QC.

"It is still Nautilus's preference to resolve the dispute with the state by agreement and with that aim Nautilus continues to engage with the state in an effort to resolve matters amicably," said Nautilus's interim chief executive officer, Mike Johnston.

The company will issue a further news release upon receipt of the decision of the arbitrator or upon resolution of the dispute by agreement.