NAUTILUS MINERALS

PNG Mining and Petroleum Conference Sydney, December 2012

December 2012

Disclaimer and Legal Notice

This Presentation may contain forward-looking statements within the meaning of the United States Securities Exchange Act of 1934 and forward-looking information within the meaning of applicable Canadian securities law. Material forward-looking statements and forward-looking information include, but are not limited to statements or information with respect forward looking forward looking include to the Companys ability to locate, mine and transport mineralized material from the seafloor; estimates of future production; the method of transport and amount of mineralized material from the Companys Solwara project; estimates of anticipated costs and expenditures; development and production timelines; the potential commercial extraction of seafloor resources in the CCZ, further development of TOMLs CCZ territory and other potential resources in TOMLs CCZ territory; the Companys ability to finalise the termination of contracts with suppliers; the Company having sufficient cash to support it moving forward. We have made numerous assumptions about the material forward looking statements and information contained herein, including those forward-looking herein relating to: the future price of copper, gold, silver and zinc; anticipated costs and expenditures; and our ability to achieve our goals. Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Accordingly you should not place undue reliance on forward-looking statements or information. Forward-looking statements and information by their nature involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those described in forward-looking statements or information. "Risk Factors are information Risk Factors" presented in the Company's most recent Annual Information Form, available on SEDAR (www.sedar.com). Except as required by law, we undertake no obligation to update forward-looking statements and information as conditions change. No information in this presentation shall constitute an invitation to invest in Nautilus or any entities of the Nautilus Group. Neither Nautilus, nor any entities of the Nautilus Group, nor their respective officers, employees or agents, shall be liable for any loss, damage or expense however caused (including through negligence) which you may directly or indirectly suffer in connection with this presentation including, without limitation, any loss of profit, indirect, incidental or consequential loss. This information is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. While efforts are made to keep the information in this presentation accurate and timely, neither Nautilus nor any of the entities of the Nautilus Group guarantee or endorse the content, accuracy or completeness of the information herein. You are referred to the Company's documents filed on SEDAR. All graphics, effects, processes, information and data in this Presentation are owned or used under license by Nautilus. Any reproduction or dissemination, in whole or in part, is strictly prohibited. This presentation does not constitute an offer to sell or a solicitation of an offer to buy Nautilus common shares. In the United Kingdom this presentation is only directed at (i) persons falling within Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) and (ii) persons to whom the communication may otherwise lawfully be made (together 'relevant persons') This presentation must not be acted on or relied upon by any persons who are not relevant persons Any investment or persons'). persons. investment activity to which this presentation relates is available only to relevant persons and will be engaged in only with relevant persons. Information contained herein includes references to the Companys most recent 43-101 Technical Reports as filed on SEDAR.
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Talk Outline Who is Nautilus Minerals p pp y Deep sea minerals: Opportunity for PNG Project status Our work in PNG Moving forward

December 2012

Who is Nautilus Minerals?

Focus: High grade copper, gold, zinc and silver from the deep sea Exploration in PNG since 1997 Worlds first SMS Exploration License Nautilus and PNG leading the world in deep sea exploration l ti

Major Industry Shareholders

21.0% 11.1% 16.9% 16 9% 4.5%

December 2012

Talk Outline Who is Nautilus Minerals p pp y Deep sea minerals: Opportunity for PNG Project status Our work in PNG Moving forward

December 2012

Opportunity for Papua New Guinea pp y p

Land-based mine Deep sea production

High tech, high g g , g grade, low , volume, low waste, small footprint

Worlds demand for metals continues to rise Land resources are stretched; declining g g grades Every human activity impacts on the environment

December 2012

Social and Environmental Advantages

Average Reserve Average Reserve Grade (%) of LandGrade (%) of LandBased Copper Based Copper Projects: j Projects:
7.2

Seafloor Massive Sulphide p (SMS) deposits HIGH GRADES of copper, gold, zinc & silver Minimal overburden Small physical footprint No land owners to disrupt

0.97

1.0

1.01

0.96

0.71

0.67

0.67

0.62

0.61

1980

1985

1990

1995

2000

2005

2006

2008

2009

Nautilus Indicated Resource

Source: Source: Brook Hunt, a Wood Mackenzie Company Nautilus Resource Estimate prepared by Ian Lipton, BSc (Hons), FAusIMM, Principal Geologist, Golder Associates Pty Ltd. Effective Date: 25 Nov 2011 . Mineral Resources based on 2.6% Cu eq cut-off grade

December 2012

Talk Outline Who is Nautilus Minerals p pp y Deep sea minerals: Opportunity for PNG Project status Our work in PNG Moving forward

December 2012

Solwara 1 Project Status

Located in the Bismarck Sea, PNG, at 1600m water depth NI 43-101 Resource established Environmental permit granted Dec 2009 Mining lease granted Jan 2011 30 km from nearest coast Small extraction area: 0.11 km2

December 2012

Status of State Equity Option Agreement

Without prejudice meetings ongoing Discussions will increase build time and cost Preserving cash Reviewing all aspects of the co pa y company

December 2012

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Seafloor Production System y

Production Support Vessel

Operational base. Power supply and dewatering plant

Riser and Lifting System

Pumps material to the surface

Seafloor Production Tools

Three remote operated machines, cutting and collecting material g

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Solwara 1 Project Build

53% complete (end of September) Factory Acceptance Testing completed for subsea pumps Surface pumps completed p p p Winches and A-Frames advanced Initial cutting trials completed

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Seafloor Production Tools Taking Shape g p

Yoke

Pilot chair

Chasis

Caterpillar Chasis tracks

December 2012

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Talk Outline Who is Nautilus Minerals p pp y Deep sea minerals: Opportunity for PNG Project status Our work in PNG Moving forward

December 2012

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Nautilus Approach pp
Early transparent and inclusive Early, stakeholder engagement Inclusive multi-stakeholder workshops to develop ESIA, EIS, EMPs, monitoring programme, etc
Communities World-renowned experts in various fields, from anthropologists to deep sea ecologists l i t Government NGOs

Community Accountable, Responsible Environmentally, Safe

www.cares.nautilusminerals.com

Ongoing Community Awareness and Consultations Established CARES - 2007

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Applying the Precautionary Approach

Nautilus commitments: Fully enclosed system No hazardous chemicals N t ili No tailings di h discharged t th sea d to the No blasting Biodegradable fluids/oils to be used in all subsea equipment No extraction impact shallower than 1300 m water depth at Solwara 1 t d th t S l (below where tuna, etc, live)

Transparency Freedom to publish p Independent monitors and reviewers

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Consultation Undertaken since 2007

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Improving Maritime Safety in PNG

Exploration data provided to PNGs National Maritime Safety Authority Improves detail and accuracy of navigational charts
(improvements to Chart AUS 391 shown)

Leads to greater maritime safety f t

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Nautilus-Duke University Opportunity Bursary y pp y y

Nautilus and Duke University (USA) currently have a collaborative scholarship scheme which was initiated in 2007. So far, 4 x PNG Nationals have been awarded a chance to study at Duke University University. Learn state-of-the-art techniques under the supervision of world renowned deep sea ecologists. Currently Mr Freddie Alei (New Ireland):
- Commenced 6 week courses: - Marine Ecology - Conservation Biology and Policy - Learning state-of-the-art marine science techniques. - Will conduct analyses on Solwara 1 samples

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Community Partnerships
Port M P t Moresby City Mission b Cit Mi i Nautilus committed $US100,000 in funding Donation is being used to improve the quality of life of street children, assisting them to integrate into society Namatanai Community Centre Nautilus donated K100,000 towards the centre Centre is currently a hub for hub community development initiatives in central New Ireland Province

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Commitment to Local Hire and Training

Nautilus is N il i committed to: i d local hire and training programs to encourage skill and capacity building in PNG employing and providing vocational training for t i i f geologists, geophysicists and l i t h i i t d environmental scientists Currently ~ 10% of Nautilus workforce is y PNG Nationals Nautilus ultimate goal is for 70% of the operation s operations workforce to be PNG Nationals

December 2012

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Talk Outline Who is Nautilus Minerals p pp y Deep sea minerals: Opportunity for PNG Project status Our work in PNG Moving forward

December 2012

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Community development fund y p

Voluntary contribution Aim: contribute to community projects, with a focus on health and education and stimulating small to medium enterprises Independent board will advise Nautilus on the management of the fund Will work with the relevant Provincial Governments t P i i lG t to identify community priorities Will be set up in 2013 (prior to production)
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The Way Forward

Seafloor Resource Production offers many social and environmental advantages for mineral development Application of the Precautionary Approach Transparency Independent studies M lti t k h ld approach Multi-stakeholder h Finalising discussions with the PNG Government on the State Equity Option Agreement

December 2012

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Mike Johnston CEO and President (Interim) mdj@nautilusminerals.com

www.nautilusminerals.com www.cares.nautilusminerals.com
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