Nautilus Minerals RALS Project presentation to AFTP

Paris, October 21 2008

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II. Seafloor Massive Sulphide (SMS) Exploration

IV. Nautilus Minerals presentation

VI. Riser and Lifting System (RALS) project

Contents

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1. Seafloor Massive Sulphide (SMS) Advantages

3. A potential massive market

5. Why now?

I. Seafloor Massive Sulphide (SMS) Exploration

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First analyses show a high grade base & precious metals: 5 to 20 times more concentrated than onshore deposit average

Metal Value USD$ 500-1200/ton compare to USD$ 50-100/ton for Onshore deposit

Massive resource potential of SMS deposits Several sampling campaign ongoing in Papua New Guinea Preliminary tests indicate 2 to 10 Mt of SMS deposit per attractive field which is

equivalent to 5 to 10 years of operation

No mining waste or overburden

Minimal mining infrastructure and disturbance

1. Seafloor Massive Sulphide (SMS) Advantages

10 – 50g/t20 – 1200 g/tSilver

0.25% - 1.5%5 - 15%Copper

<5%5 - 50%Zinc

1 – 4 %3 - 25%Lead

0.1 – 0.5g/t2 – 20 g/tGold

Onshore*Offshore

* Typical current project

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2. A potential massive market

The resource potential of seafloor massive sulphide (SMS) deposits is massive Oceans and seas cover 71% of Earth, with the surface area of the Pacific Ocean

twice that of all the continents

With 97% of the ocean floor yet to be extensively explored, it is likely that numerous deposits remain undiscovered.

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SMS deposits now provide a compelling opportunity against the backdrop of robust commodity pricing and depletion of resources from traditional sources

Pacific region is stable political environment

Government legislations support offshore mineral exploration

Well recognized offshore oil and gas marine industry

Active marine contracting sector which includes ships, platforms and remotely operated seafloor vehicles (ROV)

Seamount sites at depths of 120 metres to 1,800 metres under water at well within the operating range for existing technologies

3. Why now?

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1. Main figures

3. Offshore fields location

5. Project details

7. Mining concept details

II. Nautilus Minerals Presentation

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1. Main figures

Listed – TSX & London (Symbol NUS in May, 06), AIM (December, 06)

Main Industry Shareholders Epion Holdings (22,4%) Anglo American (5,7%) Teck Cominco (7,2%)

Cash on Hand US$310 million as at December 31, 2007

Additional potential cash from full dilution - US$133 million

365,000 km2 of tenement licences and exploration applications in the territorial waters of PNG, Fiji, Tonga, the Solomon Islands and NZ

Project Team in Brisbane

Remarks: First development with NUS as operator Location: 1st deposit: Solwara 1 (WD 1,700m) - Bismarck Sea, PNG Product: Cu/Pb concentrate (+ possibly Zn concentrate and pyrite)

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2. Offshore fields locations

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Mining of Seabed Massive Sulphides Strength 5-35Mpa avg. 18Mpa Dry density 2.6 – 3.8t/m3 avg. 3.2t/m3 Production 1.8MTPA (5000t/day)

Mining and processing Concepts Process 1 : Mining

– The first step in the mining process involves cutting the seafloor material and drawing it into the suction mouth of the Seafloor Mining Tool (SMT) as slurry.

– It is then transported to a pumping module and lifted up a steel riser pipe by pumping (RALS)

– At the surface, the Mining Support Vessel (MSV) receive the material for dewatering.

– After dewatering, the ore is transferred to barges on a continuous cycle for shipment to a nearby port facility.

Process 2 : Processing– Treatment by flotation cell– Concentrating plant installed on a spread-moored

floating support– Export of Concentrate to existing smelters on land

3. Project details

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Subsea mining tool (SMT) details Awarded to Soil Machine Dynamics (Newcastle). The £33 million fixed price contract is for the design and

production of two identical 190 tonne SMTs. The system is designed to operate at production rate of

6,000 tonnes/day.

Riser and Lifting System (RALS) details A second contract with a US $116 million target price was

awarded on April 3, 2008 to Technip USA Inc. to provide EPCM services for the RALS components comprising Subsea pumps, Riser pipe, Riser handling system and associated deck equipment.

Mining Support Vessel (MSV) details The third contract, was awarded on June 20, 2008 with

North Sea Shipping Holding AS to provide the specialist Mining Support Vessel ("MSV") .

They will provide a 160m DP new build ship, on a five year charter basis

The value of the MSV contract is approximately US$125 million over the initial five year period as operating expense to Nautilus.

4. Mining concepts details

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3. xxx

III. RALS project

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SCOPE OF WORK – Technip Riser And Lift System

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Riser and handling system

Riser and handling system fits in North Sea Shipping proposed vessel

Riser & Subsea pump connected to the SMT thru an “S” shaped flexibleSMT

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Riser and Lift System Sized for 6,000 tons/day

13-5/8” Riser x 8-5/8” water injection lines

~ 6.5 m x 6.5 m x 5 m x 130 tonnes subsea pump

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Features for accommodating deepwater fields

Pump suspended above seafloor provides mobility for covering large fields

“S” shape flexible decoupled vessel motion from SMT

Waste water discharged near sea floor

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Designed for 2,500 m, ordered 1,700 m with 800 m option

Riser ID = 12-1/8” with a provision of 1/8” wear allowance

Subsea Riser Transfer Pipe ID = 10”

1.8 m Tons/year, SG = 3, and Ct = 12% (delivered volumetric percentage)

Lift System - Hydril 2 x quintuple diaphragm pump banks Hydraulic (water) power supply Exhaust water temp at seabed 9 to 15 deg C Retrieve pump and RTP without pulling riser

Offloading & dewatering on MSV Slurry pumped to dewatering system Processed waste water pumped back to seabed Filtration to 6 microns Holding, mixing and by pass tanks on MSV

Design Basis

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Preliminary Pump Flow Summary

Total PowerCt SGs Da Qm TP Power Change

ID Description ( - ) ( - ) (in) (gpm) (psi) (MW) (%)1 Design Case 0.12 3.0 1.00 3,058 1,287 3.2 0.0%2 Minimum Pressure 0.072 3.0 1.00 5,096 999 5.1 59%3 1700 m depth 0.12 3.0 1.00 3,058 875 2.4 -25%4 Increased SGs 0.12 3.6 1.00 2,548 1,785 3.4 6.0%5 Reduced Ore size 0.12 3.0 0.25 3,058 1,116 2.9 -9.4%6 Increased Ct 0.17 3.0 1.00 2,158 1,847 3.0 -7.2%7 Both 5 & 6 0.17 3.0 0.25 2,158 1,510 2.6 -20%

Ore Production - 6000 tonnes/day (24 hr days) & 2500 m depth

Power requirementsHydril pump 5.7 MWCutting Tool 2.4 MW

Vessel – 21 MW

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Riser Component Quantities(62 ft Make-up Length)

Item Description Quantity

1 External Tieback Connector / Transition Mandrel 1

2 Transition Joint 1

3 Water Injection Line Adapters (set of 2) 1

4 Standard Riser Joint (62 ft) 68

5 Thick Wall Riser Joint (optional for 2,500 m case) 40

6 Buoyancy Joints (62 ft) 16

7 Straked Joints (62 ft) 24

8 Pup Joint (20 ft) 4

9 Pup Joint (10 ft) 2

10 Flex Joint Assembly 1

11 Flex Joint Receptacle 1

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Standard joints includes spares totaling 5% of total length.

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Equipment / Tool Quantities

Item Description Quantity

11 Flex Joint Handling and Running Tool 1

12 Riser Spider 1

13 Gimbaled Table 1

14 Riser Handling and Running Tool 1

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Riser System

Flex Joint

Provides interface between riser and vessel

Provides vertical and rotational support

Standard offshore technology

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Sizing of Transition Joints

Technip program STRESSJ used to size transition joints

Transition Joint between flex joint and riser pipe Length - 12 feet OD - 15.125” OD to 13.625” WT - 1.5” to 0.75”

Transition joint between riser pipe and pump module Length - 6 feet OD - 14.125” OD to 16.125” WT - 1.0” to 2.0”

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Riser System

12-1/8” I.D.

Dual 8-5/8” OD water injection lines Vertically and laterally

supported by riser joint

Straked joints interchangeablewith standard joints

Flexible hang-off at vessel Accounts for vessel motions

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API BOLTED FLANGE TOSPOOL PIECE CONNECTION

RECEPTACLE PORCH ADAPTER(PROVIDED BY MSV CONTRACTOR)

RECEPTACLE BASKET(SPECIFIED BY RALS CONTRACTOR.PROVIDED BY MSV CONTRACTOR.)

FLEX JOINT

FLEX JOINT LOWER EXTENSION

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Riser System Main Pipes and Water Injection Lines

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Conceptual Design of Riser Connector

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Extrapolating from the Existing Technology

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Drill Riser with C/K lines – Dog Style End Connectors

Drill Riser with C/K lines – Flange Style End Connectors

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Swivel Joint

Isolates riser system from rotations initiated by subsea miner 200 psi operating pressure Freely rotates 180° Capacity 50 kips tension

12 kips shear150 ft-kips bending

Installed betweenpumps and flexibletransfer pipe.

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