Deep Ocean Seafloor Mineral Extraction – The Dawn of a New Industry STAR SESSION 16 October, 2010

121 Apr 2023 1October 2010© Nautilus 2010

TSX : NUSAIM : NUS

Deep Ocean Seafloor Mineral Extraction –

The Dawn of a New Industry

STAR SESSION

16 October, 2010


Forward Looking Information and Disclaimer

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 to the Company’s ability to locate, mine and transport ore from the seafloor; estimates of future production; the method of transport and amount of ore from the Company’s Solwara project; estimates of anticipated costs and expenditures; and development and production timelines.

We have made numerous assumptions about the material forward-looking statements and information contained herein, including those 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 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.

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Outline

Introduction Approvals Process International vs Local Perspective Nautilus’ Leading Strategy Concluding Remarks


World’s demand for metals continues to rise Every human activity impacts on the environment Land resources are stretched A new concept

Why Go to the Sea?

Land-based mine Deep sea production

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


Nautilus is the first company to commercially explore for Seafloor Massive Sulphide (SMS) deposits – HIGH GRADES of copper, gold, zinc & silver

Minimal overburden Smaller physical footprint than land-based counterparts Minimal social disturbance

Seafloor Production Makes Sense


Introduction

First project: Solwara 1 Bismarck Sea 1600 m depth 30 km from nearest

coast Small extraction area:

0.11 km20 20 40km

Konos

Namatanai

Rabaul

Kokopo

NEW BRITAIN

NEW IRELAND

SOLWARA 1 MLA 154

EL 1374

EL 1196EL 1196

EL 1374

BISMARCK SEA

PAPUA NEW GUINEA

BISMARCK SEA

LOCALITY MAP

NEW IRELAND PROVINCE

EAST NEW BRITAIN PROVINCE


Approvals

Social LicenseLegal


Legal Process

Mining Act 1992 Governs the exploration,

development, processing and transportation of minerals

Environment Act 2000 Outlines environmental

requirements of an activity EIS takes into account

social considerations


What Makes Good Minerals Policy Framework?

Clear guidelines, timelines Transparency Consistency Efficiency Benefits justify risk(s)

Environmentally and Socially responsible

Economically viable Independence of reviewers Agreement from government and

affected stakeholders Provision for Adaptive Management


Social License to Operate

Seafloor Production System

Seafloor Production Tools (SPTs)

Production Support Vessel (PSV)

Production Support Vessel (PSV)

Riser and Lifting System (RALS)

What are we seeking acceptance for?

1. Disaggregate seafloor material.

2. Transport the material to a ship.

3. Transport the material to market.


Early, transparent and inclusive stakeholder engagement

Inclusive multi-stakeholder workshops Communities World-renowned experts Government NGOs

Ongoing Community Awareness and Consultations

Established CARES

www.cares.nautilusminerals.com

Nautilus Approach


Achieving Independence

Independent researchersFreedom to publish

Independent reviewers Transparency

EIS on website

• Duke University• Scripps Institution of Oceanography• University of Toronto, Canada • WHOI• CSIRO, Australia • Hydrobiology, Australia• University of Papua New Guinea• Coffey Natural Systems, Australia • Rabaul Volcano Observatory, PNG • Asia Pacific Applied Science

Associates (APASA), Australia • Australian National University• Curtin University of Technology,

Australia• James Cook University, Australia• Charles Darwin University, Australia


Solwara 1: Defining Features

Small scale (0.11 km2) Avoids land clearance activities compared to

typical land-based mining No construction of haul roads Minimal overburden/waste removal No chemicals, no blasting Infrastructure can be relocated (mobile) No direct impact to communities


Potential Impacts (note: cartoon only)

International Focus


Limiting the Impacts

Reference Site (S Su)

Temporary Refuge Areas

Animal relocation

Artificial substrates

EL 1196

MLA 154

SOLWARA 1

Solwara 5Solwara 5

North SuNorth Su

South SuSouth SuSolwara 9aSolwara 9a

Solwara 9bSolwara 9b

Mining Lease Application

Existing Exploration Licence


Potential Impacts (note: cartoon only)

“Local” Focus


Coastal, Shallow- and Mid-Water Environment

Issues raised during previous community consultations: Protect marine environments:

• Reefs and fisheries

• Whales, sharks and turtles

Nautilus response: “Engineer out” impacts to surface

waters:• No extraction impact shallower than

1300 m water depth at Solwara 1 (below where tuna, etc live)

Only impact to surface waters: presence of vessel, supporting vessels and riser pipe


Community Awareness

Major focus


Consultation Methods


Community Meetings

Local presence/Community Relations Officer

Website

PresentationsPosters

Brochures


Delivering Community Messages Back to the Company

Name of Individual Position, Company/Affiliation Email and/or

Phone Number

Name Summary of Comments/Queries/Concerns/

Key Issues

Response/ Actions

Required

Commitment Date of

Follow-up

Responsible person

Call Date

Action by (name) Task Completed? When? Info

Attendance Sheets

Action List

Issues Register


Training and Up-Skilling

Employment Currently ~20% of Nautilus full time

employees – PNG Nationals (May 2010)

Nautilus’ ultimate goal is for project workforce to be PNG Nationals

Supporting Education Nautilus-Duke Opportunity Bursary Training in state-of-the-art techniques

under supervision of world renowned deep sea ecologists

Initiative short-listed for an Asian Mining Congress Sustainability Award


Concluding Remarks

Our Measure of SuccessEIS reviewed, with

commendationEIS approvedEnvironment Permit granted

Continue to have positive relationships with local communities, governments and scientific community


Advantages to Seafloor Production

Limited social disturbance

Limited social disturbance

Reusableinfrastructure

Reusableinfrastructure

Minimal overburdenor stripping

Minimal overburdenor stripping

Minimal waste

Minimal waste

Increased worker safety

Increased worker safety

From 2006 Annual Report


nautilusminerals.comTSX & AIM : NUS

A New Industry, Not Just a Projectp


Dr. Samantha [email protected]



Examples of Some of the Studies Conducted Biology Studies:

Macrofauna (incl., DNA studies) Benthic Habitat Assessment Bioaccumulation Bioluminescence

Existing Resource Utilisation Hazard and Risk Assessment Hydrodynamic Modelling:

Cutting Dewatering

Noise and Light Oceanography (12 mo) Sedimentation Rates (24 mo, ongoing) Sediment Chemistry Video Survey (>100,000 obs) Water Quality

Additional objective: science will also benefit from additional deep sea studies conducted to obtain data for the EIS


Seafloor Communities – ACTIVE SITES

3 Main Habitat Zones at SW1 and SS

Alvinoconcha sp. – aka “Hairy Snails”

Infremeria nautilei – aka “Black Snails

Eochionelasmus ohtai – “Barnacles


Seafloor Communities – DORMANT SITES

Keratoisis Stalked barnacles

Hydroids

No significant difference between samples taken from Solwara 1 and South Su (reference site) with respect to the numerically dominant species


Advantages

Unutilised resource Create jobs – multiplier effect,

support industries Skills and technology transfer Low disturbance Little disruption of land holders Increased worker safety Royalties and taxes Education for PNG students

(e.g. Duke bursary) Community Development Fund

(voluntary)

Project Advantages - PNG


Limiting the Impacts

Filter water prior to discharge

Dewatering discharge – 25 to 50 m above seafloor

Fast turn-around time (limit changes to water)

500 m exclusion zone (no collisions)

Fully enclosed ore delivery system (riser pipe)

Filter water prior to discharge (no chemicals)

Dewatering discharge – 25 to 50 m above seafloor

500 m exclusion zone recommended (no collisions)

Mineralised area

Legend

Documents

Deep Ocean Seafloor Mineral Extraction – The Dawn of a New Industry STAR SESSION 16 October, 2010