Mr. Mike Johnston reports

US$113 MILLION RELEASED TO NAUTILUS AND SOLWARA 1 JV FORMED

The sum of $113-million (U.S.) has been released from escrow to Nautilus Minerals Inc. In addition, the joint venture between Nautilus and the nominee of Papua New Guinea in respect of the Solwara 1 project has now been formed.

Under the terms of the agreement between the parties, the nominee of Papua New Guinea has now fully financed its 15-per-cent interest in the Solwara 1 project up to first production.

Mike Johnston, Nautilus's chief executive officer, commented: "We are excited to have achieved completion under our agreement and to formally commence our partnership in the Solwara 1 project with the state's nominee, Eda Kopa (Solwara) Ltd., a wholly owned subsidiary of Petromin PNG Holdings Ltd. We appreciate the continued support we have received from the state nominee in reaching this significant milestone."

The focus of the project will now be to complete the build of the seafloor production equipment and vessel so that Nautilus can make seafloor mining a reality. Nautilus is excited to partner with the state nominee in the development of this new industry, which will generate significant economic activity within the state and the province of New Ireland.

We seek Safe Harbor.