An anonymous director reports

NAUTILUS MINERALS AWARDED FAVOURABLE ARBITRATION DECISION

The arbitrator, the Murray Gleeson, AC QC, has issued an award in Nautilus Minerals Inc.'s favour in respect of the issues that were the subject of the notice of arbitration initiated by Papua New Guinea.

The arbitrator's award includes:

• A declaration that the state was in breach of the state equity option agreement signed by the parties in March, 2011, in failing to complete the purchase of a 30-per-cent interest in the Solwara 1 project on Nov. 7, 2011;
• An order that the state is required to comply with its obligations under the agreement to complete the purchase of the 30-per-cent interest in the Solwara 1 project and pay 30 per cent of all project expenditure incurred to date within a reasonable time after the award.

Nautilus has today issued the state with a notice requiring completion to occur on Oct. 23, 2013. Nautilus estimates the total amount payable by the state at completion to be approximately $118-million (U.S.) (including interest).

Under the applicable arbitration rules the arbitrator's decision is final and binding.

Nautilus looks forward to bringing the Solwara 1 project into production and will work with the state in order to move the project forward in light of the arbitrator's award.

The company will hold a conference call and audio/webcast on Thursday, Oct. 10, 2013, at 10 a.m. Eastern Daylight Time.

Conference call details

Dial-in numbers:

International dial-in:  61-2-8524-5042

Australia:  1-800-801-825

Canada:  1-855-842-3490

United Kingdom:  0800-0150-9725

United States:  1-855-298-3404

Attendee passcode:  6326079

If your country dial-in number is not included here please e-mail the company.

A presentation to support the conference call will be posted on the company's website for download by 9:30 a.m. EDT (Toronto) on Thursday, Oct. 10, 2013.