A PRIVATE SECTOR PERSPECTIVE ON
THE FUTURE OF
DEEP SEABED MINING
May 2013
Mi h l J h t
Michael Johnston, CEO CEO
May 2013
1
Disclaimer and Legal Notice

This Presentation may contain forward-looking statements within the meaning of the United States Securities Exchange Act of 1934 and
forward-looking information within the meaning of applicable Canadian securities law.

Material forward-looking
forward looking statements and forward-looking
forward looking information include,
include but are not limited to statements or information with respect
to the Company’s ability to locate, mine and transport mineralized material from the seafloor; estimates of future production; the method of
transport and amount of mineralized material from the Company’s Solwara project; estimates of anticipated costs and expenditures;
development and production timelines; the potential commercial extraction of seafloor resources in the CCZ, further development of
TOML’s CCZ territory and other potential resources in TOML’s CCZ territory.

We have made numerous assumptions about the material forward-looking statements and information contained herein, including those
relating to: the future price of copper
copper, gold,
gold silver and zinc; anticipated costs and expenditures; and our ability to achieve our goals
goals. Even
though our management believes that the assumptions made and the expectations represented by such statements or information are
reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Accordingly you should
not place undue reliance on forward-looking statements or information.

Forward-looking statements and information by their nature involve known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those described in forward-looking statements or information. "Risk Factors" are
presented in the Company's
Company s most recent Annual Information Form
Form, available on SEDAR (www
(www.sedar.com).
sedar com) Except as required by law,
law we
undertake no obligation to update forward-looking statements and information as conditions change.

No information in this presentation shall constitute an invitation to invest in Nautilus or any entities of the Nautilus Group. Neither Nautilus,
nor any entities of the Nautilus Group, nor their respective officers, employees or agents, shall be liable for any loss, damage or expense
however caused (including through negligence) which you may directly or indirectly suffer in connection with this presentation including,
without limitation, any loss of profit, indirect, incidental or consequential loss.

This information is not intended to take the place of professional advice and you should not take action on specific issues in reliance on
this information.

While efforts are made to keep the information in this presentation accurate and timely, neither Nautilus nor any of the entities of the
Nautilus Group guarantee or endorse the content, accuracy or completeness of the information herein. You are referred to the Company's
documents filed on SEDAR.

All graphics,
hi
effects,
ff t processes, iinformation
f
ti and
d data
d t in
i this
thi P
Presentation
t ti are owned
d or used
d under
d lilicense b
by N
Nautilus.
til
A
Any reproduction
d ti
or dissemination, in whole or in part, is strictly prohibited.

This presentation does not constitute an offer to sell or a solicitation of an offer to buy Nautilus common shares. In the United Kingdom
this presentation is only directed at (i) persons falling within Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended) and (ii) persons to whom the communication may otherwise lawfully be made (together
'relevant persons').This presentation must not be acted on or relied upon by any persons who are not relevant persons. Any investment or
investment activity to which this presentation relates is available only to relevant persons and will be engaged in only with relevant
persons.

Information contained herein includes references to the Company’s most recent 43-101 Technical Reports as filed on SEDAR.
May 2013
2
Overview
• Deep Sea Mineral Production on the cusp of realisation:
– World’s
World s demand for metals and minerals on the rise
rise,
including to meet the demands of a Green Economy
– Legislative and Technological advancements
– Deep Sea Mineral Production offers many social and
environmental advantages for mineral development
May 2013
3
Increasing Demand for Metal
•
•
Population Growth
Emerging economies transitioning to industrialised and urbanised
societies
May 2013
4
Terrestrial Mining: The Situation
• Land resources are stretched =
increasing economic, social and
environmental costs:
–
–
–
–
moving more rock per tonne of metal;
processing more rock per tonne of metal;
larger waste rock dumps;
increasing tailings disposal & noxious
waste;
– increasing deforestation, soil erosion, etc.
• Increasing
I
i land
l d use conflicts
fli t
• Metal
M t l demand
d
d out-pacing
t
i supply
l
May 2013
5
Minerals and Metals for a Green Economy
May 2013
6
Minerals and Metals for a Green Economy
1 Wind Turbine:
– 500 kg of Ni
– 1000 kg of Cu
12x more Cu to
create 1kw than
conventional
power generation
May 2013
7
Minerals and Metals for a Green Economy
• An electric vehicle
contains over TWICE the
Copper content of the
average car – 2 km of
copper wiring
• Nickel and Copper
essential for batteries in
Hybrid Cars
May 2013
8
Deep Sea Minerals for a Green Economy
=
Holistic approach to decision making is needed
May 2013
9
Whyy Go to the Sea?
Land‐based mine Deep sea production
High tech, high grade, low volume, g
, g g
,
,
low waste, small footprint
• World’s demand for metals continues to rise
• Land resources are stretched
• Every human activity impacts on the environment
May 2013
10
Social and Environmental Advantages
Average Reserve Grade Average Reserve
(%) of Land‐Based Copper Grade (%) of LandProjects:
Based Copper
Projects:
j
•
•
•
•
•
Seafloor Massive Sulphide (SMS)
deposits – HIGH GRADES of
copper, gold, zinc & silver
Minimal overburden, which on land
can be 75% of material moved
Less ore needed to provide the
same amount of metal; small
physical
h i l ffootprint
t i t
No indigenous or native populations
to disrupt
No blasting, no toxic chemicals,
reusable infrastructure, etc.
May 2013
7.2
Solwara 1 grade based on drilling, not just surface sampling
surface sampling
0.97
1980
1.0
1985
1.01
1990
0.96
1995
0.71
0.67
0.67
0.62
0.61
2000
2005
2006
2008
2009
Nautilus Indicated Resource
Source: Source: Brook Hunt, a Wood Mackenzie Company
Nautilus Resource Estimate prepared by Ian Lipton, BSc (Hons), FAusIMM,
Principal Geologist, Golder Associates Pty Ltd. Effective Date: 25 Nov 2011 .
Mineral Resources based on 2.6% Cu eq cut-off grade
11
Seafloor Production System
• Key Components
– Seafloor Production Tools (SPTs)
– Riser and Lifting System (RALS)
– Production Support Vessel (PSV)
• Equipment either existing of an
adaption of existing offshore
technology
May 2013
12
Technology
Exploration (Drilling)
Subsea
Floating Production
g




Multibeam, GPS/USBL
Dynamic Positioning, Heave compensation, Solwara 1 Pump
Billions spent developing deepwater offshore technologies in last 10 years
Industry currently spends $250 to $350 billion dollars per year on OPEX and CAPEX (Source Douglas Westwood ‐ Global FPS Prospects ‐ World FPS Congress 2009, London)
© Nautilus 2010
May 2013
13
Worldwide Technology Contribution
Seafloor Production Tools
Riser Buoyancy
S
Seawater Surface Pumps
t S f
P
Cranes
A‐Frames
VSD
VSDs
United Kingdom
Poland
PSV Build
Transformers
Slurry Pumps
SPT RTP Hoses
Netherlands
Hungary
Germany
Umbilicals
P d ti C tt
Production Cutters
HPU
Zeltweg, Austria
Norway
Riser Pipe Manufacture
Running & Retrieval (RALS)
Derrick /Flex Structure
Hang‐off Structure
Russia
China
Germany
Flexjoint
France
Locomotion Tracks
Locomotion
Tracks
Switchgear
Registered Office
Vancouver, Canada
Riser System Design
Riser
System Design
Riser Fabrication & Assembly
Subsea Slurry Lift Pump
Pull In Skid
LARS Lift Winches
Korea
Italy
Integration Yard Location
LARS Lift Wires
Singapore/Batam
Italy
Riser Joint Forgings
USA
Mexico
Charge Pumps
Project Office
Brazil
Brisbane, Australia
Engineering Consultants
g
g
Cape Town, South Africa
Integration Engineering & Management
Subsea Motors
Dewatering Plant
Dewatering Plant
Brisbane, Australia
Perth, Australia
Marine
Mining
Oil & Gas
May 2013
14
Approvals
pp
Legal
Social License
May 2013
15
Value means different things to different people
May 2013
16
Developing the Strategy...
• Risk assessment workshops; stakeholder
mapping
• Going beyond legal compliance
• Multi-stakeholder approach
• Get the science right
May 2013
17
Environment - Achieving Independence
• Independent researchers
– Freedom to publish
• Independent
p
review
– International experts
engaged by DEC
• Transparency
– EIS on website
•
•
•
•
•
•
•
•
•
•
•
•
•
•
May 2013
Duke University
Duke
University
Scripps Institution of Oceanography
University of Toronto, Canada WHOI
CSIRO, Australia Hydrobiology, Australia
University of Papua New Guinea
University of Papua New Guinea
Coffey Natural Systems, Australia Rabaul Volcano Observatory, PNG A i P ifi A li d S i
Asia Pacific Applied Science Associates A
i t
(APASA), Australia Australian National University
Curtin University of Technology Australia
Curtin University of Technology, Australia
James Cook University, Australia
Charles Darwin University, Australia
18
What Makes Good Minerals Policy Framework?
*Site Specific*
•
•
•
•
•
•
•
•
•
•
Clear guidelines, timelines
Transparency
Consistency
Efficiency
Benefits justify risk(s)
– Environmentally and Socially
responsible
– Economically
y viable
Independence of reviewers
Agreement from governing bodies and
affected stakeholders
Stability (e.g. tax)
Not too prescriptive
Provision for Adaptive Management
May 2013
Impacts
Benefits
19
Summary
• Deep Sea Mineral Production on the
cusp of realisation:
Deep Seafloor
Resource Production
– World’s
World s demand for metals and
minerals on the rise, including to
meet the demands of a Green
Economy
– Legislative
and Technological
g
g
advancements
– Deep Sea Mineral Production
offers many social and
environmental advantages for
mineral
development
i
ld
l
t
May 2013
It makes sense
20
Dr Samantha Smith
VP Corporate Social Responsibility
[email protected]
sls@nautilusminerals com
www.nautilusminerals.com
May 2013
21