Nautilus Minerals Inc.

Nautilus Minerals Inc.

November 03, 2006 12:17 ET

Nautilus Minerals Inc.: US$68.5 Million Financing Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2006) - Nautilus Minerals Inc. (TSX VENTURE:NUS) (the "Company" or "Nautilus") is pleased to announce that it has closed the private placement of 22,833,334 common shares at a price of US$3.00 (or C$3.37(i)) per common share, for gross proceeds of US$68.5 million, which was previously announced on October 30, 2006.

The placees were a subsidiary of Anglo American PLC and a company that is wholly owned by Mr. Alisher Usmanov who is a prominent Russian investor in the Russian mining and metal industries.

Mr. Usmanov is the principal shareholder of the Metalloinvest Group, which owns and operates large iron ore and steel producers in Russia. The Group is the biggest Russian iron ore producer and Russia's 5th largest steel producer and currently has consolidated revenues of more than US$5.0 billion. The Group includes:

- Two of the biggest Russian iron ore producers, Lebedinsky and Mikhailovsky GOK, with total iron ore production in 2005 of 37.5 million tonnes of iron ore representing just under 40% of Russia's total production that year.

- Steel producing companies Ural Steel and OEMK, two of Russia's largest steel mills with total crude steel production of 7.0 million tonnes. The Group is also the managing shareholder in MMZ, a Moldavian EAF steel producer.

- Manufacturing company Ormeto-Yumz, which is one of the key manufacturers of mining and metallurgy equipment in Russia.

The two placees involved each became insiders of the Company by virtue of holding in excess of 10% of the Company's issued and outstanding common share capital upon completion of the private placement.

The proceeds of the private placement will be used to fund the development of the Company's business.

All securities are subject to a four-month hold period in Canada that expires on Mach 3, 2007.

(i) Exchange rate US$1.00 equals C$1.123

About Nautilus Minerals Inc.

Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulphide deposits and is positioned to become a world leader in underwater mineral exploration. The Company's main focus for 2006 is the Solwara Project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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