Nautilus Minerals Inc.
TSX : NUS
OTCQX : NUSMF

Nautilus Minerals Inc.

October 26, 2016 16:10 ET

Nautilus Minerals EGM Results: Shareholders approve bridge financing

TORONTO, ONTARIO--(Marketwired - Oct. 26, 2016) - Nautilus Minerals Inc. (TSX:NUS)(OTCQX:NUSMF)(OTC:NUSMF Nasdaq Intl Designation) (the "Company" or "Nautilus") announces the results of its Extraordinary General Meeting (EGM) held today in Vancouver, BC.

Eligible shareholders voted in favor of the bridge financing to be provided by the Company's two largest shareholders by way of a private placement pursuant to a subscription agreement dated August 21, 2016 and amended September 19, 2016 (Subscription Agreement). Details of the arrangements are set out in the press release dated August 22, 2016 (see links section) and the Company's information circular dated September 19, 2016 (Information Circular).

Mike Johnston, Nautilus' CEO, said, "I would like to thank our shareholders for approving this bridge financing and our two major shareholders for providing the funds for this arrangement. We appreciate your continued support for our Company as we look towards developing the seafloor mining industry."

The gross proceeds available under the Subscription Agreement will provide the bridge financing necessary to enable the Company to continue operating and to carry on the Solwara 1 Project as described in the press release dated August 22, 2016 (see links section), while it continues to explore additional financing, joint ventures or other transactions that provide the funding required in order to complete the development of the Solwara 1 Project. There can be no assurances that the Company will be successful in securing any such transactions.

The Company provides the following report on the voting results of the matter considered at the EGM, the particulars of which are set out in detail in the Company's Information Circular, filed on SEDAR. The vote was conducted by ballot at the EGM.

Results of voting in respect of the bridge financing were as follows:

Votes for 99.70%
Votes against 0.30%

38.85% of the eligible issued shares were voted on the resolution, and a total of 256,584,785 shares held by Mawarid Offshore Mining Ltd. and Metalloinvest Holding (Cyprus) Limited were excluded from the vote as required by the Toronto Stock Exchange (TSX) and applicable securities laws.

The financing remains subject to customary post-EGM filings with, and final approval of, the TSX, as well as compliance with the TSX's requirements in respect of each private placement under the bridge financing.

Links: http://www.nautilusminerals.com/irm/PDF/1818/NautilusobtainsbridgefinancingandrestructuresSolwara1Projectdelivery

For more information please refer to www.nautilusminerals.com.

Neither the TSX nor the OTCQX accepts responsibility for the adequacy or accuracy of this press release.

Certain of the statements made in this news release may contain forward-looking information within the meaning of applicable securities laws, including statements with respect to the closing of the bridge financing, the use of proceeds of the bridge financing, the restructuring plan, and plans to develop the seafloor mining industry. We have made numerous assumptions about such statements, including assumptions relating to the bridge financing, project funding, completion and operation of the Company's seafloor production system and assumptions regarding the timing and effect of the restructuring plan, including securing agreements with third parties to complete the construction of the remaining seafloor production system within certain timeframes. Even though our management believes the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that they will prove to be accurate. Forward-looking information by its nature involves known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information. Please refer to our most recently filed Annual Information Form in respect of material assumptions and risks related to the prospects of extracting minerals from the seafloor and other risks relating to the Company's business and plans for development of the Solwara 1 Project. Risks related to advancing towards production include the risk that the Company will be unable to obtain at all or on acceptable terms the remaining financing necessary to fund completion of the build, testing and deployment of the Company's seafloor production system and that agreements with third party contractors for building slots within certain timeframes are not secured as required. As the Company has not completed an economic study in respect of the Solwara 1 Project, there can be no assurance that the Company's production plans will, if fully funded and implemented, successfully demonstrate that seafloor resource production is commercially viable. Risks related to the restructuring plan include the risk that the plan cannot be implemented as expected, the risk that the plan does not result in the cost savings expected and the risk that the restructuring plan and the bridge financing do not provide sufficient time for the Company to secure project financings for the Solwara 1 Project. Except as required by law, we do not expect to update forward-looking statements and information as conditions change and you are referred to the full discussion of the Company's business contained in the Company's reports filed with the securities regulatory authorities in Canada.

About Nautilus Minerals Inc.

Nautilus is the first company to explore the ocean floor for polymetallic seafloor 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.

A Canadian registered company, Nautilus is listed on the TSX:NUS stock exchange and trades on the OTCQX:NUSMF, and is also a member of the Nasdaq International Designation program. Its corporate office is in Brisbane, Australia. Its major shareholders include MB Holding Company LLC, an Oman based group with interests in mining, oil & gas, which holds a 27% interest and Metalloinvest, the largest iron ore producer in Europe and the CIS, which has a 15% holding (each on a non-diluted basis, excluding loan shares outstanding under the Company's share loan plan).

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