Mr. Mike Johnston reports

NAUTILUS MINERALS VESSEL PROGRESS UPDATE

Nautilus Minerals Inc. has provided an update. The production support vessel (PSV) was floated in the dry dock last week to allow the launch of two adjacent vessels. The PSV is to be used by Nautilus and its Papua New Guinea partner, Eda Kopa (Solwara) Ltd., as the base for its sea floor operations planned at the Solwara 1 project site, in the Bismarck Sea of Papua New Guinea.

Mike Johnston, Nautilus's chief executive officer, commented: "The company was very excited to see the PSV floated in the dry dock last week, as it shows the fantastic progress the team at the Fujian Mawei Shipyard Ltd. (FMSL) and Marine Assets Corporate (MAC) have made over the past three months. When you consider the first block for the PSV was laid on the 10th of June this year, to having a 220-metre hull able to be floated some 14 weeks later, it is a huge achievement by FMSL and a significant milestone for our company. We have worked with FMSL, MAC and others on the PSV for over two years now. During this time we have established a very good working relationship, with very capable stakeholders. We are now looking forward to continuing that strong working relationship as we progress the final build phase and fit out of the vessel."

Subject to further financing, Nautilus's objective remains to develop the world's first commercial high-grade sea floor copper-gold mine and launch the sea floor resource production industry.

                         VESSEL PROGRESS TO DATE
Item                                                           Completed (%)

Production drawings issued                                   greater than 90
Steel cut (out of a total 20,068 tonnes)                     greater than 90
Blocks completed structure fabrication                                    90
Blocks completed assembly and painting                                    83
Blocks lifted to dry dock                                                 65
Blocks completed erection in dry dock                                     36

About Nautilus Minerals

Nautilus is the first company to explore the ocean floor for polymetallic sea floor massive sulphide deposits. Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver. The company has also been granted its environmental permit for this site.

Nautilus also holds highly prospective exploration acreage in the western Pacific (granted and under application), as well as in international waters in the central Pacific.

We seek Safe Harbor.