Nautilus Minerals Reports Solid Year End Results

Nautilus Minerals Inc. ended 2011 in a solid financial position with $149.4-million (U.S.) in cash and cash equivalents, after a milestone year which saw the company granted the first deep sea hard-rock mining lease for its Solwara 1 project in the Bismarck Sea, Papua New Guinea.

The company today released its 2011 full-year financial results and annual information form.

Nautilus delivered several key achievements during the year, with the highlights being:

Mining lease ML154 (the area containing Solwara 1) granted by the PNG

government for subsea production in the Bismarck Sea;

Agreement to form a mining joint venture with the state of PNG for the

Solwara 1 project; Agreement to form a vessel joint venture with Harren and Partner to own

and operate a production support vessel;Awarded exploration tenements in the eastern Pacific and Fiji;Raised $98.1-million in private placement of common shares;

Increased mineral resources at Solwara 1 and declared a maiden inferred

resource at nearby Solwara 12;

Continued progress and development advances for the Solwara 1 project.

• Mining lease ML154 (the area containing Solwara 1) granted by the PNG

government for subsea production in the Bismarck Sea;

• Agreement to form a mining joint venture with the state of PNG for the

Solwara 1 project;

• Agreement to form a vessel joint venture with Harren and Partner to own

and operate a production support vessel;

• Awarded exploration tenements in the eastern Pacific and Fiji;
• Raised $98.1-million in private placement of common shares;
• Increased mineral resources at Solwara 1 and declared a maiden inferred

resource at nearby Solwara 12;

• Continued progress and development advances for the Solwara 1 project.

Since the year-end, the company has continued to work with the PNG government and Petromin PNG Holdings, a company wholly owned by the state of PNG, to finalize contracts and financing arrangements for Petromin’s 30-per-cent holding in the Solwara 1 project.

At year-end the company reported a loss of $34-million (U.S.), with total expenses of $35.0-million (U.S.), including $14.2-million (U.S.) in exploration costs, and general and administrative expenses of $17.2-million (U.S.). Total assets increased to $282.6-million (U.S.) with the capitalization of expenditure for mineral properties following the grant of the mining lease and the increase in assets under construction. The cash and cash equivalents balance was also positively impacted by the receipt of funds from the private placement in fourth-quarter 2011.

“Nautilus achieved several milestones in 2011 that has positioned the company well to reach its production target in Q4 2013,” said Nautilus chief executive officer Stephen Rogers.

“Two thousand twelve is going to be another productive year as equipment takes shape on the project, the treatment and marketing route is finalized, and we continue our exploration work in the Bismarck Sea and other areas to build the production pipeline.”

Conference call details

A conference call and webcast will be held on Tuesday, March 27, 2012, at 9 a.m. (Toronto time).

Dial-in numbers:

International dial-in number:  61-2-8524-5042

Australia:  1-800-801-825

Canada:  1-855-842-3490

United Kingdom:  08-000-159-725

United States:  1-855-298-3404

Please quote conference ID:  8875176

International dial-in number:  61-2-8524-5042

Australia:  1-800-801-825

Canada:  1-855-842-3490

United Kingdom:  08-000-159-725

United States:  1-855-298-3404

Please quote conference ID:  8875176

If your country dial-in number is not included here, please e-mail the company.

A presentation to support the conference call will be posted on the company’s website for download by 8:30 a.m. (Toronto time) on March 27, 2012.

The following documents have been filed on SEDAR and are available from the company’s website:

Audited consolidated financial statements and management’s discussion

and analysis for the year ending Dec. 31, 2011; Annual information form.

• Audited consolidated financial statements and management’s discussion

and analysis for the year ending Dec. 31, 2011;

• Annual information form.