Mr. Mike Johnston reports

NAUTILUS SEAFLOOR PRODUCTION TOOLS ARRIVE IN OMAN

Nautilus Minerals Inc. has provided an update on behalf of the Solwara 1 joint venture (comprising Nautilus -- 85 per cent and Eda Kopa (Solwara) Ltd. -- 15 per cent, a subsidiary of Petromin Holdings PNG). The three sea floor production tools have arrived safely at Duqm Port in Oman.

The three SPTs are scheduled to undergo extensive wet testing at Duqm Port. The testing is one of the next major steps in the progression toward sea floor production and will involve submerged testing of:

• Control systems operations and feedback;
• Hydraulic functions;
• Collection system functions;
• Survey and visualization systems.

The wet testing program is being undertaken by the Solwara 1 joint venture production team and representatives of Soil Machine Dynamics, with further logistics and engineering support from United Engineering Services Ltd., in Duqm Port, Oman. The preparatory works for the program will commence in April with initial testing operations scheduled to occur shortly thereafter.

The SPTs were designed and assembled in Newcastle upon Tyne by Soil Machine Dynamics, and the company ultimately plans to use the SPTs to cut and extract high-grade copper and gold from the sea floor at the Solwara 1 joint venture's project site in the Bismarck Sea, Papua New Guinea. Initial sea floor production operations are planned to commence at the Solwara 1 project site in the first quarter of 2018.

Nautilus chief executive officer, Mike Johnston, said: "The Solwara 1 joint venture partners are delighted that the SPTs have made it safely to Duqm Port. We look forward to commencing our wet testing program with the support of UES and Soil Machine Dynamics (U.K.), and I look forward to reporting the results to our shareholders and the market in general."

We seek Safe Harbor.