Nautilus Minerals Inc.

Nautilus Minerals Inc.

February 20, 2007 09:46 ET

Nautilus Minerals Inc.: US$75 Million North American Private Placement Completed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2007) -


Nautilus Minerals Inc. (TSX VENTURE:NUS) (AIM:NUS) (AIM:NUSR) (the "Company" or "Nautilus") is pleased to announce that it has completed the private placement of Units announced on December 22, 2006 and February 5, 2007 for gross proceeds of C$88.5 million (equal to US$75 million or Pounds Sterling 38 million) (the "Offering").

David Heydon, President of the Company, commented: "The Company is well positioned to execute its business plan, with cash on hand of approximately C$324 million (equal to US$275 million or Pounds Sterling 139 million) which, together with other potential sources of capital, is expected to fund an aggressive exploration program and, subject to timely permitting, to be sufficient to fund the Company into production at its primary project, Solwara 1, in the territorial waters of Papua New Guinea. The Company's funds are planned to be deployed in the detailed design and construction of sub sea mining equipment, including two mechanical miners, power umbilicals, pumps, a 1,800 metre riser pipe and related handling equipment, as well as, subject to permitting, the construction of an on-shore concentrator plant and the acquisition of the necessary land on which to build the plant and port."

Heydon added: "This is the next piece in our business plan, since taking Nautilus public only ten months ago, to develop a low cost base metal mine based on seafloor massive sulphide copper-zinc-gold silver deposits. This financing from North American institutional investors complements the US$99.6 million financings late last year by Anglo American, Teck Cominco and Epion and the US$100 million London based institutional financing earlier this month."

At the closing of the Offering, the Company issued a total of 20,344,850 Units for C$4.35 per Unit (equal to US$3.69 or 187 pence), with each Unit consisting of one common share and one-half of one warrant of the Company. Each whole warrant entitles the holder to purchase one additional common share of the Company at a price of C$5.655 per share prior to February 21, 2009. In the event that the volume weighted average price of the Company's common shares on the TSXV or the TSX exceeds C$6.525 for a period of at least 20 consecutive trading days, Nautilus has the right to give notice to the holders of the warrants that the warrants will expire if not exercised within 30 days, provided that such notice may not be given prior to June 21, 2007.

The Offering was managed by a syndicate of agents led by Salman Partners Inc. and included BMO Capital Markets, GMP Securities L.P., TD Securities Inc., Blackmont Capital Inc., and Westwind Partners Inc. The agents received a 5% cash commission of the gross proceeds of the Offering on the closing and broker warrants exercisable for 368,449 common shares at a price of C$5.655 per share prior to February 21, 2009.

In addition to the four month hold period imposed by applicable Canadian securities laws and the policies of the TSXV which will end on June 21, 2007, all purchasers under the Offering are restricted from selling, transferring, pledging or otherwise trading the shares forming part of the Units and underlying the warrants through the facilities of any stock exchange in Canada or the United Kingdom prior to June 21, 2007.

Application has been made for the 20,344,850 common shares issued in connection with the Offering, and for 10,250 common shares issued as a result of the exercise of certain options, to be admitted to AIM. The common shares are expected to be admitted to trading on February 21, 2007.

The Company currently has on issue:

130,149,618 issued common shares
17,171,817 warrants
7,822,964 options
155,144,399 fully diluted

Exchange rates used herein: C$1.00 equal to US$0.85 and Pounds Sterling 0.43.

Grant of Options

In addition, the Company is pleased to announce that it is continuing to increase staff and as such has granted 255,000 options to new employees of the Company on February 12, 2007, at a price of $4.85 for a term of three years vesting as to 20% every six months for a period of 30 months starting six months after the date of grant.

About Nautilus Minerals Inc.

Nautilus is the first company to commercially explore the ocean floor for high grade gold-copper-zinc-silver seafloor massive sulphide deposits and is positioned to become a world leader in underwater mineral exploration. The Company's main focus for 2007 is the Solwara 1 Project, located in the territorial waters of Papua New Guinea in the western Pacific Ocean. The four largest shareholders of the Company are resource companies Anglo American, Teck Cominco, Epion and Barrick Gold.

Legal Note on Forward-Looking Statements

Any statements made in this press release which are not statements of historical facts may constitute "forward-looking statements," including those concerning the Company's goals, assumptions or expectations. Forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ including, but not limited to receipt of necessary regulatory approvals and the lack of any assurance that the Company will receive the necessary governmental approvals to proceed with the development of Solwara Project. These risks are generally outlined in the Company's disclosure filings with the British Columbia Securities Commission. For more information on the Company, investors should review the Company's public filings available at

Neither the TSX Venture Exchange nor the London Stock Exchange accept responsibility for the adequacy or accuracy of this release.

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