Nautilus Minerals Releases 2010 Annual Results (Canada)

Nautilus Minerals Inc ended 2010 in a strong financial position with US$165 million in cash and cash equivalents, and after making significant progress in the development of its pioneering seafloor resource project in the Bismarck Sea of Papua New Guinea.

The company has released its 2010 full year financial results, Annual Information Form and updated NI43-101 Technical Report.

The highlights of the year were as follows:

* Commencement of a major exploration drilling campaign in the Bismarck Sea, which has delivered an enhanced understanding of the Solwara 1 deposit.

* Advanced development of the Solwara 1 project, with the key contract for construction of Seafloor Production Tools (SPT) reinstated during the year

* Release of a comprehensive study outlining expected capital and operating costs associated with production of ore from the Solwara 1 deposit, which confirms the robust commercial aspects of the project (link to full study below in links section).

Since the year end, the company has announced further major progress in the development of the Solwara 1 project, and in other exploration initiatives.

* In January, the PNG Government granted Nautilus the first Mining Lease in the Pacific region to allow deep sea resource development in the Bismarck Sea. The lease provides Nautilus with a 20 year licence to mine an area of approximately 59 km2 surrounding Solwara 1, 50 km north of Rabaul, where Nautilus intends to mine high-grade copper and gold deposits on the seafloor, at depths of approximately 1600 metres. (link to full study below in links section)

* In March, the PNG government confirmed its intention to take a 30% stake in the Solwara 1 project as a joint venture partner. The government will contribute funds to the project in proportion to its interest, including its share of the exploration and development costs incurred to date.

* Also in January, Nautilus moved to a 100% interest in United Nickel Inc (since renamed), which has applied to the International Seabed Authority for a license to explore for polymetallic nodules in a 75,000 square kilometre area of the seafloor in the Clarion Clipperton Zone (CCZ) of the Eastern Pacific. The CCZ contains significant accumulations of polymetallic nodules, which may become an important source of copper, nickel and cobalt in the future.

The company reported a loss of US$45 million for the year, with total expenses of US$46.5 million, including US$26 million in exploration costs, and wages and salaries of US$7.7 million. Total assets were US$207 million, including US$165 million in cash and cash equivalents, leaving the company well positioned for the ongoing development of the Solwara 1 project in 2011.

“Nautilus made excellent progress in 2010, the most significant milestone being the grant of the Mining Lease early in the New Year,” said Nautilus President and CEO Stephen Rogers.

“We are now finalising an agreement with a potential joint venture partner, and our exploration drilling campaign has produced encouraging results. We look forward to further significant advancements in the project during the remainder of 2011,” he said.

Nautilus Minerals Inc.

Nautilus is the first company to commercially explore the ocean floor for polymetallic seafloor massive sulphide deposits and is currently developing its first project. The Company’s main focus is the Solwara 1 project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.

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Source: nautilusminerals , March 24, 2011;