NUS - Initiating Coverage (July 14, 2008)

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Equity Research
July 14, 2008
NAUTILUS MINERALS INC. NUS-T (07/11/08): C$1.93
OVERWEIGHTOpening Davy Jones' Locker; Initiating Coverage With An
Overweight Rating Initiating Coverage
Key Data FY 2007 2008 2009
52-Week Range: $1.87 - $4.84 EPS (US$)
Market Cap (mn) $282 Q1 NM NM NE
Shares Out. (mn): 145.9 Q2 NM NE NE
Avg. Daily Vol: 163,987 Q3 NM NE NE
Fiscal Year-End: 31-Dec Q4 NM NE NE
Dividend (Ind. Annual) $0.00 Year NM NE NE
Yield 0.00% P/E NM NM NM
Working Capital (US$ mn) $305 CFPS (US$) NM NE NE
Long-term debt (US$ mn) $0 P/CF NM NM NM
NAVPS $4.50 Revenues (US$ mn) NM NE NE
P/NAV: 0.4x EBITDA (US$ mn) NM NE NE
3 Year Production Growth N/A EV/EBITDA NM NM NM
Price Target $4.50 Capex (US$ mn) NM $75E $150E
Total Potential Return 133% Free Cash Flow (US$ mn) NM ($101)E ($176)E
Note: Price is as of the close on the date indicated. All monetary figures are in the same currency as noted in market price. Any
price target displayed in the data box above represents either a specific price target or the midpoint of a range.
Exchange rate as of 07/11/08 C$1 : U.S.$0.99
Executive Summary
We are initiating coverage of Nautilus Minerals with an Overweight rating and a $4.50 12-month price
target. Nautilus Minerals is the first company to commercially explore the seafloor for high grade
copper-gold-zinc-silver Seafloor Massive Sulphide ("SMS") deposits. Nautilus has already defined a
resource at its 100% Solwara 1 project and mine planning is underway. All contracts for the proposed
mining system are now in place and we see few hurdles to the successful commencement of
production in 2010. In addition, we believe that Nautilus has significant upside potential from its
exploration activities.
We believe that as a first mover in the emerging seafloor mining industry, Nautilus has significant
advantages over potential new entrants into the industry:
• Vast tenement licenses cover prime acreage within the western Pacific Ocean’s “Rim of Fire”
where SMS discoveries have been extensively studied by academia.
• Tenement locations in shallower waters situated in favorable mining jurisdictions with established
mining codes.
• Significant progress made by developing and refining its own undersea exploration methodology.
• Strong management team and technical alliances with some of the leaders in the deep sea
construction and development industry.
• Key strategic shareholders including mining heavyweights such as Epion Holdings Ltd (22.4%),
Teck Cominco Ltd (7.2%) and Anglo American PLC (5.7%).
METALS AND MINING
Base Metals
Matthew O'Keefe
416.815.3087
mokeefe@tweisel.com
Rahul Paul
416.815.3128
rpaul@tweisel.com

NAUTILUS MINERALS INC. (NUS-T) Initiating Coverage
July 14, 2008 Thomas Weisel Partners LLC
Page 2 of 33 Matthew O'Keefe 416.815.3087
Company Description: Nautilus Minerals is the first mineral exploration and development company to commercially explore the seafloor for high grade
copper-gold-zinc-silver Seafloor Massive Sulphide ("SMS") deposits; the modern day analogue to traditional land-based Volcanogenic Massive Sulphide (VMS)
deposits which are a prime source of the world's base and precious metals. Mine planning is well underway for the world's first seafloor copper-gold mine at
Nautilus' 100% owned Solwara 1 Project located in 1,500 meters of water in the territorial waters off Papua New Guinea (PNG). Nautilus has among its
largest shareholders some of the world's leading international resource companies, Epion (22.4%), Teck Cominco (7.2%) and Anglo American (5.7%).
Despite the upside potential, Nautilus currently trades at 0.9x its cash holdings, which we
believe significantly undervalues the company’s growth potential. We believe the disconnect
exists largely because the viability of seafloor mining has yet to be proven. Over the next few
years we expect to see the stock price appreciate as the Solwara 1 project moves closer to
production, thus proving the viability of seafloor mining and Nautilus’ technology. We believe
that the following upcoming milestones should help serve as potential catalysts for stock price
appreciation:
• Results from the ongoing exploration program, that should help add to the existing resource
at Solwara 1.
• ML application and EIS submission in Q3/2008.
• Decision on mining and environmental permits in Q1/2009.
• Integration of equipment into mining support vessel in Q1/2010.
• Commencement of operations at Solwara 1 in Q4/2010 .
Overall, we believe that Nautilus is on track to become the first successful seafloor mining
company. Our 12-month $4.50 target is driven by the potential success at Solwara 1 and the
company’s cash reserves. However, we believe that this should prove to be conservative given
the upside potential from the company’s 365,000 km2 exploration acreage. Given the upside
potential, we are initiating coverage on Nautilus Minerals with a $4.50 target and an Overweight
rating. Investors should consider a position in Nautilus for exposure to what could potentially
be the next big thing in mining.

INTRODUCTION
Nautilus Minerals is the first mineral exploration and development company to commercially
explore the seafloor for high grade copper-gold-zinc-silver Seafloor Massive Sulphide ("SMS")
deposits; the modern day analogue to traditional land-based Volcanogenic Massive Sulphide
(VMS) deposits which are a prime source of the world's base and precious metals (Appendix A).
The company is on track to tap this vast offshore mineral potential by adapting existing deep sea
oil and gas technology. Mine planning is well underway for the world's first seafloor copper-gold
mine at Nautilus’ 100% owned Solwara 1 Project located in 1,500 meters of water in the
territorial waters off Papua New Guinea (PNG). Production is targeted for 2010. With a strong
management and technical team, key technical alliances with leading engineering and offshore
equipment suppliers and geologists in seabed minerals deposits, we see Nautilus as well-
positioned for success in undersea mining.
Impressive Crew
Nautilus has assembled an excellent team led by CEO Stephen Rogers (previously the Chief
Development Officer of Nautilus). Mr. Rogers has nearly 30 years of experience in the oil and
gas industry, with particular extensive experience in deepwater project development. Over the
last 15 years Mr. Rogers has led a number of capital intensive projects over $1 billion in value,
which we believe makes him an ideal person to lead the development of the world’s first
seafloor copper-gold mine. Mr. Rogers recently took over from David Heydon, the visionary
who brought the company from concept and exploration to its current development stage. The
company’s strong management and technical teams (Appendix B) are further augmented by the
deep sea exploration team from Teck Cominco, which remains committed to jointly exploring
Nautilus’ attractive tenement base.
First Mover Advantage
As the first company to commercially explore and potentially mine seafloor deposits, we believe
that Nautilus has significant advantages over possible new entrants into the space. This comes
primarily through its extensive and prospective tenement base that includes prime acreage
within the western Pacific Ocean’s “Rim of Fire” where polymetallic SMS and hydrothermal
sulphide system discoveries have been extensively studied by academia. At the end of 2007,
Nautilus had amassed a vast area of 365,000 km2 of exploration tenements (Exhibit 1;
Appendix C).

Exhibit 1. Location of Nautilus’ Tenements
Source: Company reports
In addition to having the proper geology, the bulk of this package is also located in the territorial
waters of Papua New Guinea and Tonga which are favorable mining jurisdictions with
established mining codes. Further, the majority of Nautilus’ exploration tenements are located
in relatively shallow water (less than 2,500 m depth), which should provide for easier
development and operation of its undersea mining system. Nautilus has also made significant
progress by developing and refining its undersea exploration methodology. This puts Nautilus
several years ahead of any would-be competitor and arguably further considering the ~10-yrs
research work done on its undersea tenements. As a result, we believe that Nautilus has
established a clear lead which should translate into significant value for shareholders as the
company proves the viability of undersea mining.
Major Attention
Nautilus’ first mover advantage in the space has attracted investment from major mining
companies including:
Epion Holdings Limited (22.4%) - Epion Holdings Ltd. ("Epion") holds 22.4% of Nautilus'
issued shares, following a total investment of US$109 million in 2006 and 2007. Epion is a
company controlled by Mr. Alisher Usmanov who is the founder of the Metalloinvest Group,
Russia's largest iron ore producer.
Teck Cominco Limited (7.2%) - Teck Cominco Limited (“Teck”, TCK.B; not covered), a
Vancouver-based diversified mining company, has invested a total of US$40mn in equity capital
since 2006. Teck is also an exploration partner and has a commitment to spend US$12mn on an
exploration program on Nautilus’ tenements in 2008.

Anglo American plc (5.7%) - Anglo American plc ("Anglo"), one of the world's largest mining
and natural resource groups, invested US$25 million in 2006 and holds 5.7% of Nautilus.
Nautilus and Anglo have signed a Heads of Agreement under which Anglo may assist Nautilus
in its development of Solwara and other projects by seconding personnel with specialist skills to
the project at Anglo's cost.
All three major shareholders have signed non-compete agreements in various jurisdictions in the
South Pacific in seafloor mining for a period of five years from agreement date. In the event of
a takeover bid for Nautilus and recommendation by the Board, these shareholders have agreed
that they will accept the bid or make a higher counter offer. This ensures a premium bid for
NUS shareholders in the event of a takeover.

SEAFLOOR MINING – AN EMERGING INDUSTRY
Mining companies are continually seeking to replenish depleting base and precious metal
resources. This is becoming increasingly difficult and expensive as fewer new discoveries are
made each year with the average grades of global resources, such as copper, falling. This makes
land-based resources increasingly more expensive, a situation that has recently been exacerbated
by escalations in capital and operating costs.
By contrast, the seafloor (which covers about 71% of the Earth’s surface) is known to have
abundant mineral belts with high grades of copper, gold and zinc that have yet to be exploited.
We believe that the current economic conditions (high commodity prices and development
costs) and the technological advances in the oil and gas industry have reached the point where
underwater mining is imminent. The situation is similar to the development of the off-shore oil
& gas industry which grew quickly after the first well was started in 1947, such that by 1961
there were 415 active leases in the Gulf of Mexico producing 80mn barrels of oil (BOE) which,
by 2001, had grown 18-fold to 7,365 active leases and 1,450mn BOE. We believe that the
development of the seafloor mining industry will likely accelerate more quickly since the heavy
equipment technology that allows for existing deep-sea oil & gas extraction equipment can be
customized for mining seafloor deposits.
There are several advantages to the deep sea mining of SMS deposits compared to the land-
based mining of VMS deposits as illustrated in Exhibit 2:

Exhibit 2. Land-Based Mining Versus Seafloor Mining
Land-based Mining Seafloor Mining
Mineral Deposits VMS grades are typically lower
(<2.5% copper, <2 g/t gold) resulting
in lower margins. Deposit needs to be
considerably larger in order to be
feasible.
SMS Grades are typically higher
(Solwara 1 is 7% copper and 7 g/t gold)
resulting in higher margins. Deposit can
be relatively smaller and still feasible.
Opex Lower: Costs tend to be lower due to
economies of scale, better infrastructure
and typically cheaper power.
Higher: A heavy reliance on contractors,
toll treatment and power from diesel fuel
contributes to a higher unit cost.
Capex Higher: Mine construction typically
requires significant investment in
infrastructure and relatively larger fleets
of equipment.
Lower: Smaller equipment, lower
infrastructure requirements and a heavy
reliance on contractors contributes to
lower capital expenditures.
Waste Higher: Mining typically involves
significant overburden stripping and
waste removal to access ore bodies
since most VMS deposits are found well
below the ground surface.
Lower: Mining will require little or no
stripping of overburden or waste
removal since SMS deposits are typically
located at the surface of the seafloor.
Infrastructure Fixed: Land-based mining
infrastructure is mostly fixed and
cannot be moved to another location at
the end of mine life, resulting in
significant sunk costs.
Mobile: Most of the equipment required
for seafloor mining is mobile and can be
moved to another location at the end of
the mine's life. The exception is the
concentrator which will, in the short
term, be land-based.
Timeline Longer: Time to production and cash
flow is longer, since exploration,
permitting and construction consume
more time.
Shorter: Time to production and cash
flow is shorter, given that exploration,
permitting and construction consume
less time.
Technology Proven: Mining has relied on the same
basic technology for over a century and
is therefore proven and low risk.
Unproven: Seafloor mining has yet to be
proven, although the technology and
equipment that is to be adapted from
other industries is well-proven.
Social
Disturbance
Higher: Mine development can cause
potentially significant levels of social
disturbance. However they can also
provide reasonable levels of
employment opportunities.
Lower: Seafloor mining activities should
result in minimal social disturbance as
off-shore deposits tend to be located in
secluded waters. However, direct
employment opportunity is minimal.
Environmental
Impact
Larger: The larger footprint and
complicated interaction between air
land and water results in stringent
environmental permitting and
reclamation costs at the end of the mine
life. NGOs are active.
Smaller: The environmental permitting
should be easier considering the smaller
footprint and simpler deep sea eco-
system. As such, development of a
seafloor mine offers a greener solution to
land-based mining and less of a concern
to NGOs.
Source: Company reports and Thomas Weisel Partners LLC

The most obvious concern focuses on the environmental impact. Nautilus is keenly aware of the
sensitivity around this issue and has committed significant dollars and resources to planning and
completing a comprehensive Environmental Impact Statement (EIS). A strong regulatory
framework and practices already exist for the dredging and offshore oil and gas industries but
Nautilus is building on this and is focused on producing an EIS that will also satisfy specific
concerns raised by the government of PNG as well as NGOs that monitor the project. The EIS
will provide a baseline for the existing marine environment, the potential impact of mining
activities and strategies to minimize those impacts. The lead consultant is Coffey Natural
Systems, a specialist in environmental and social impact assessment that has been servicing the
mining, oil and gas and infrastructure sectors for 29 years. To ensure an EIS of the highest
quality, Nautilus has also involved other leading groups including Scripps Institute of
Oceanography, Duke University, The University of Toronto, CSIRO and the University of
Papua New Guinea.
Following its release sometime in 3Q08, the EIS will be publicly reviewed by independent
scientists and be the subject of local community consultation. The EIS is the key to the mining
permit and a critical path item. We are satisfied that Nautilus is taking all necessary steps to
ensure it can minimize the environmental impact.

TECHNOLOGY TRANSFER FROM THE OIL AND GAS INDUSTRY
As the first company to attempt to mine the seafloor, Nautilus proposes to combine various
technologies that have been successfully deployed in the exploration and development of deep
sea oil & gas. The basic process involves disaggregating seafloor sulphide material and pumping
it as slurry to surface where it is dewatered and shipped by barge to an on-shore treatment
facility (Exhibit 3).
Exhibit 3. Summary Of The Proposed Process
Although Nautilus currently plans to conduct mining activities up to depths of 1,500 m, the
offshore mining system is being developed to work at depths of up to 2,500m. This would
provide Nautilus with the capacity to move into deeper waters, following the depletion of
shallower reserves using existing technology and minimal incremental capital expenditures. The
proposed offshore mining system is expected to be made of three main components:
1. The Seafloor Mining Tool (“SMT”): The first stage of the mining operation involves the
remotely operated SMT (Exhibit 4), expected to measure 15m long x 13m wide x 8m high
weighing approximately 190 tonnes. The SMT is capable of moving along the seafloor and
will operate multiple cutting heads along with a suction device for recovery of ore material.
It is expected to mine in 3 - 5m lifts and work 3-4 days at a time before having to be
brought to the surface for maintenance. A second SMT will resume mining activities during
the maintenance period allowing for near continuous mining. The SMT is expected on
average to mine 100 m3/hour and have a peak production capacity of approximately 6,000
tonnes per day. In December 2007, a £33MM SMT contract was awarded to UK based Soil
Machine Dynamics Ltd; a leading designer and manufacturer of complex marine excavation
systems. This contract is for two machines and includes a comprehensive test program and

vessel integration, which is expected to be completed in Q1/2010. Although the SMT is
developed in its current form for the first time, it is essentially a new combination of
proven components. As a result, we believe that the technology risk to this component is
relatively low.
Exhibit 4. The Seafloor Mining Tool
2. The Riser and Lifting System (“RALS”): The RALS will be used to pump the sulphide
ore disaggregated by the SMT to a barge on the surface, and will include subsea pumps, the
riser pipe, riser handling system and associated deck equipment. The riser unit is expected
to weigh approximately 750 tonnes and can easily be extended to work in deeper waters. In
April 2008 the RALS contract was awarded to Technip USA Inc; an integrated engineering,
technology and construction services provider and one of the global leaders in deepwater
riser technology. The US$116mn contract provides engineering, procurement and
construction management (EPCM) services for the RALS. Under the contract, the majority
of the equipment is to be provided on a fixed price basis which provides Nautilus with a
certain level of protection from cost escalation. The RALS system is comprised of off-the-
shelf components, as a result of which we consider technology risk to be minimal.
3. The Mining Support Vessel (“MSV”): The MSV will support mining operations, and is
expected to be fully integrated with the SMT and the RALS. On June 20, 2008 Nautilus
announced that it had entered into a binding agreement with North Sea Shipping Holding
AS, to provide the MSV on a five year charter basis with options to buy the ship thereafter
or to extend for another 5 years. The 160m vessel (Exhibit 5) will be fitted with specialized
equipment such as a 400 tonne heave compensated crane capable of working at 2,500m
water depth. The build of the hull is already in an advanced stage and the ship is expected
to be completed in June 2010. The MSV contract is valued at US$125mn over the initial
five year period.

Exhibit 5. The Mining Support Vessel

SOLWARA 1 - THE FIRST SEAFLOOR MINERAL RESOURCE
Australia’s Commonwealth Scientific and Industrial Research Organization (CSIRO) first
identified the Solwara Field in 1991. Extensive research campaigns were undertaken on the
Solwara fields between 1993 and 1997 and in March 2005, Nautilus undertook exploration at
Solwara 1 using side scan sonar and dredge sampling. To define a NI 43-1011 compliant
resource, Nautilus had to develop an underwater, remotely operated drill. It was successful and
on December 20, 2007, Nautilus announced the world’s first SMS resource at Solwara 1, with an
Indicated Mineral Resource of 0.87 million tonnes @ 6.8% Cu, 4.8 g/t Au, 23 g/t Ag, 0.4% Zn
and an Inferred Mineral Resource of 1.3 million tonnes @ 7.5% Cu, 7.2 g/t Au, 37 g/t Ag,
0.8% Zn. A cut-off of 4.0% Cu was used (Exhibit 6). Metallurgical investigations of the high
grade deposit concluded that a marketable copper concentrate with grades of better than 28%
copper can be produced by standard flotation techniques with copper recoveries of more than
85%.
Exhibit 6. Mineral Resource Estimate For Solwara 1 at 4% Cu Cut-Off
Class Domain Tonnes (kt) Cu (%) Au (g/t) Ag (g/t) Zn (%)
Indicated Massive sulphide 870 6.8% 4.8 23 0.4%
Chimney 80 11.0% 17 170 6.0%
Lithified Sediment 2 4.5% 5.2 36 0.6%
Massive sulphide 1200 7.3% 6.5 28 0.4%
Inferred total 1282 7.5% 7.2 37 0.8%
Inferred
Sources: Company reports
The resource is open to the west and at a depth where 38% of holes drilled in 2007 finished in
mineralization so additional resource may be added at depth (Exhibit 7).
1 National Instrument 43-101 (NI 43-101) is a rule developed by the Canadian Securities Administrators (CSA) that
govern how issuers disclose scientific and technical information about their mineral projects to the public. It requires
that all disclosure be based on advice by a "qualified person" and in some circumstances that the person be independent
of the issuer and the property.

Exhibit 7. Solwara 1 Resource
The grades outlined in this first resource demonstrate a much higher grade than that of average
land-based VMS deposits. At 7% copper and 7 g/t gold, the deposit has a value of about
US$827/tonne at today’s metal prices and US$520/tonne applying our long-term values of
$1.60 for copper, $1000/oz for gold.
Exploration Upside – A Lot More Solwara’s In The Sea
Since 2005, Nautilus has made a number of discoveries on its growing tenement package
(Exhibit 8). The Solwara 1 Project and Solwara 2-8 Prospects are on 100% owned Nautilus
tenements. As such these tenements are not covered by the exploration joint venture with Teck
Cominco providing NUS shareholders with the full upside from a successful mining operation.
New discoveries are numbering about four per year which we expect to continue. The company
continues to refine its exploration techniques with more sophisticated remote sensing
techniques and a proven ROV Drill that allows for resource definition.

Exhibit 8: Exploration Results
Prospect Samples Au g/t Cu % Zn % Ag g/t Year
Solwara 1 45 13.7 10.8 3.7 224 2005
Solwara 2 37 6.2 1.3 22.8 226 2006
Solwara 3 26 15.4 1.3 22.4 488 2006
Solwara 4 28 13.5 11.3 22.4 263 2006
Solwara 5 13 17.37 6.72 7.78 273 2007
Solwara 6 4 18.1 14.24 18.66 217 2007
Solwara 7 7 17.15 5.87 24.08 404 2007
Solwara 8 12 16.9 6.1 32.5 328 2007
The goal of Nautilus’ 2008 exploration program is to increase the resource inventory through
continued work near Papua New Guinea and to expand the project pipeline by focusing on its
tenements in Tonga where a number of known high-grade mineralized systems are known. .
The combination of a large tenement package and improved exploration techniques should
ensure a healthy project pipeline and no shortage of ore once mining begins in 2010.
Teck Cominco – Joining the Fleet
Teck Cominco has committed to spending $12mn in 2008 with focus over Nautilus' exploration
tenements in the territorial waters of PNG and Tonga. At the completion of this program Teck
Cominco will have the right to elect to enter into joint ventures with Nautilus in up to six
countries, earning between 40% and 50% (depending on the country) by the expenditure of
US$25 million in that specific country area. Teck appears fully committed to the concept and
has assembled an offshore mineral exploration team of its own consisting of 12 professionals in
Brisbane dedicated to Nautilus, signaling Teck’s commitment to advancing the partnership. The
combined Nautilus and Teck exploration programs should result in total exploration spending
of US$30mn in 2008, which we believe is key to adding to Nautilus’ existing resource. Overall,
we view the involvement of a major exploration partner such as Teck Cominco as a positive for
Nautilus, as it increases capital available for exploration purposes while Nautilus continues to
focus on the successful permitting and development of the Solwara 1 Project. It also increases
our confidence in the upside potential of Nautilus’ tenements in PNG and Tonga.

VALUING NAUTILUS - THE FIRST OCEAN FLOOR MINING COMPANY
We calculate the net asset value for Nautilus Minerals at $677mn or $4.50 per share (Exhibit 9).
Exhibit 9: NAV Summary
Project Interest Value Value/Share Valuation
Solwara + Exploration - 100% (US$) 100% $354.6 $2.37 DCF NAV at 12%
Subtotal - Operations $354.6 $2.37
Working Capital (pro-forma)2 (US$) $288.2 $1.93
Long-term debt (US$) $0.0 $0.00
Net Working Capital (Debt) (US$) $288.2 $1.93
Net Asset Value (US$) $642.8 $4.29
Exchange Rate (C$/US$) $0.95 $0.95
Net Asset Value (C$) $676.6 $4.50
Pro-forma Shares (mn) 175.5 175.5
Target mulitple 1.0x
Price Target (C$) $4.50
Source: Thomas Weisel Partners LLC estimates
The bulk of this value is driven by our base-case conceptual model of an ongoing SMS mining
operation starting at Solwara-1 resource (Exhibit 10). Our key assumptions are outlined in
Exhibit 10. Although at present, Solwara 1 provides enough resource for less than 2 years
production, we have applied a 10-year mine life on the expectation that a) Solwara 1 will
increase in size with depth, and b) ongoing exploration will be successful in bringing additional
SMS deposits into the mine plan. Based on our conceptual mine model (at capacity), Nautilus
should have annual production of approximately 240mn lbs of copper and 317,000 ounces of
gold annually contributing about equal parts to operating cash flow of approximately $200mn
per year. We recognize that there will be grade variability from deposit to deposit but note that,
based on our model, an ore value of $200/tonne is required to breakeven. This is equivalent to
about 2.4% copper, 10% zinc or 7 g/t gold which are well below values over the 8 targets
sampled to date.

Exhibit 10: Conceptual Model For Solwara Mining Operation
Potential resource (mn Tonnes) 14.0
Copper grade (% ) 7.0
Gold Grade (g/t) 6.0
Capex ($mn) 250.0
First Production 2010E
Mine Life (years) 10
Annual Production (at capacity)
Throughput (tonnes per day) 5,000
Copper Production (mn lbs) 239
Gold Production (ounces) 316,840
Onsite costs (US$/tonne mined) $125
Offsite costs (US$/tonne mined) $75
NPV (US$ mn)
@ 5% discount rate 734.0
CONCEPTUAL MODEL SUMMARY
The main uncertainties remain the timeline to production (the most likely source of delay being
permitting) and the operating costs that should be clear once the Mining Services contract is
awarded. We have assumed a very slow ramp up of five years to full production rate of 5,000
tpd (the company anticipates less than one year). We have also inflated our operating cost
estimates by 50% over the company’s 2006 estimates to reflect increased fuel and labor costs
that are an industry-wide issue. The valuation is most sensitive to metal prices and grade
(Exhibit 11) and least sensitive to capital costs.
To account for higher-than-normal risk associated with applying a new mining method, we have
applied a 12% discount rate. When valuing base metal companies at the development stage, we
typically apply a discount rate of 8%-10% and for gold companies, 5%-8%.

Exhibit 11: Sensitivity Analysis
NAV Sensitivity to Grades, Opex, Capex & Throughput
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
-50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50%
% Change in Input
NautilusNAV(@12%discountrate)
Copper Grade Gold Grade Opex Mill Throughput Capex Copper price LT Gold price LT
The company maintains a strong balance sheet with no debt and US$308mn in cash which is
enough to move the project to production and continue its exploration programs. While most
of this cash is earmarked for development of the project, it does remove the bulk of financing
risk for the Solwara project.
Potential Upside To Valuation
Several scenarios point to significant potential upside to our valuation:
1. Our DCF valuation for the Solwara 1 project is based on 12% discount rate in order to
account for an unproven mining method. However, successful implementation of the
technology would drop our discount rate to 8%-10%, in line with what we typically use for
base metal companies. A 10% discount rate would result in a NAV of $5.10 a share, while
an 8% discount rate would result in a NAV of $5.80 per share.
2. Our valuation is based on a no growth scenario, under the assumption that all mining is
done using one ship and the equipment currently under contract. However, following
success at Solwara, Nautilus could add additional ships and equipment to the operations,
thus growing annual production. This would represent potential upside from our NAV.
3. Our current valuation is based on mining just the Solwara area, a very small portion of
Nautilus’s vast tenement base. Nautilus has had good exploration results so far and as
outlined previously, it is likely that mineable deposits will be located in other locations
around the world. As such, mining operations could continue well beyond our 10 year base
case scenario, extending almost to perpetuity. We estimate that under this assumption,
Nautilus could be worth almost $8.00 per share.

Major Potential Catalysts
Subject to timely permitting, production at Solwara 1 is planned in Q4/2010. The timeline of
key events as follows:
2Q/2008 All Major contracts in place
3Q/2008 EIS and ML Submission
1Q/2009 Decision on mining and environmental permits.
1Q/2010 Commence integration of equipment into mining support vessel.
4Q/2010 Solwara 1 Mining Commences (subject to timely permitting).

RISKS
Permitting: Nautilus’s construction plans for a seafloor mine and related land-based facilities
depend on the company’s ability to secure a number of mining and environmental permits. As
with most mining operations, there is no guarantee that the company will be able to obtain the
necessary permits and there is limited visibility into the permitting timelines. Failure to secure
the necessary permits or a prolonged permitting delay could adversely impact the company’s
share price.
Unproven Mining Method: While many of the technologies and processes have been used
successfully in other industries, the process being proposed has yet to be proven in the context
of deep sea mining. Should the process not work as planned, additional time and capital could
be required.
Capital and Operating Costs: Given the lack of comparable industry information or feasibility
study, capital and operating costs cannot be estimated with certainty. As such actual operations
could be higher than our estimates.
Metal Prices: As a gold and base metal producer, Nautilus will be heavily leveraged to the price
of these metals. The company has not sold forward or hedged its production so there is no
guarantee regarding future metal prices. A decline in metal prices below our estimates would
negatively impact the share price. We note that the high grades of the deposits at Solwara 1
point to a robust operation and the company may choose to lower this risk by hedging.
Foreign Exchange: Nautilus’ future operations are expected to be based in Papua New Guinea
and Tonga, thus making the company vulnerable to foreign exchange fluctuations since gold
and base metal prices are typically settled in US dollars, while a portion of capital and operating
cost will be incurred in the local currency. In the absence of currency hedges, this exposure
could adversely impact project valuations and share price performance if the US dollar were to
depreciate significantly against local currencies.
Share Dilution: As of March 31, 2008, Nautilus had approximately US$308mn in cash
available, which should allow the company to fund a significant portion of its exploration,
feasibility and development activities. However, it is possible that Nautilus may require
significant additional debt or equity funding given the scale of its projects. The issuance of
equity may cause the ownership of existing shareholders to dilute.

CONCLUSION
Nautilus Minerals appears well-positioned to sail into history as the first to commercially mine
the seafloor for base and precious metals. The company has made significant progress in the last
three years in refining its exploration techniques, defining a high grade resource, developing the
technology and establishing partnerships for commercial. Engineering and construction has
begun and we believe the company should be able to prove the viability of seafloor mining by
2010. Its rapidly expanding strategic tenement position provides an excellent advantage over
would-be competitors and should allow its shareholders to fully benefit from mining success.
We are initiating coverage of Nautilus with an Overweight rating and $4.50 12-month price
target. Investors should consider a position in Nautilus for exposure to what could potentially
be the next big thing in mining.

APPENDIX A: SEAFLOOR MASSIVE SULPHIDES
Seafloor massive sulfide (SMS) accumulations are interpreted to be the modern day equivalent
of ancient Volcanic Massive Sulfide (VMS) deposits, such as the famous Kidd Creek mine in
Timmins, Ontario Canada. Both deposit types form along tectonic plate boundaries (Refer
Exhibit 13) where hydrothermal convection cells deep within the Earth’s concentrate metal rich
fluids which rise upwards through volcanic and sedimentary units to the seafloor.
Exhibit 13. Plate Boundaries
Source: Halback
When the hydrothermal fluids reach the seafloor and mix with cold seawater, the metals
contained in the fluids precipitate as sulfides on or within the seafloor. The accumulation of
sulfides around these active hydrothermal vents results in the gradual development of sulfide-
rich chimneys that are a key element in Seafloor Massive Sulfide (SMS) deposits (See Exhibit
14).

Exhibit 14. Schematic diagram development of SMS deposits
Note: Red arrows illustrate the flow of hydrothermal fluids.
Source: Nautilus Minerals (Modified from Lyndon 1983)
VMS deposits form in the same way but, over a long period of time, are subject to further
tectonic deformation eventually forming part of the continental crust as traditional VMS
deposits.
Exploration Tools
Nautilus has continued to refine its exploration techniques and grow its project pipeline since it
first sampled Solwara 1 in 2005. The main tools include:
• Remotely Operated Vehicle (ROV): These pilot-less submersibles serve as a platform for
the exploration tools.
• Sidescan Sonar: This system allows for detailed bathymetric (seafloor) maps.
• Deep Ocean Electromagnetic (EM) Surveying: This saltwater EM-system can help
discern the presence of copper over other minerals allowing the groups to prioritize targets
quicker and with considerably lower expense.
• Physical Sampling: Surface samples are collected by ROV through dredging, grab
sampling and scout drilling for mineralogical and assay analysis.
• Core drilling: The purpose-built ROV Drill can drill about 20 meters into the deposits and
return drill core to the surface for assay. It was successfully deployed on Solwara 1 where it
completed 111 holes which were key for the determination of a NI 43-101 resource at
Solwara 1.

APPENDIX B: BOARD OF DIRECTORS
A. Geoffrey Loudon (Chairman and Non-Executive Director)
Mr. Loudon, a London-based mining professional, has several years of international experience
covering resource exploration development, production and finance in Australasia, Asia, the
Americas and Europe. Mr. Loudon was the founder and chairman of Niugini Mining. He is
currently a founding director of Lihir Gold Limited and is chairman of L&M Petroleum
Limited. Mr. Loudon is also a fellow of the Australasian Institute of Mining and Metallurgy.
David Heydon (Non-Executive Director)
(Formerly President & Chief Executive Officer of Nautilus)
Mr. Heydon, an applied geologist, has been President and CEO of the Nautilus Group since
2003. He is a foundation fellow of the Australian Institute of Company Directors, a director of
the International Marine Minerals Society, a co-sponsor of the Underwater Mining Institute, a
member of the International Society of Offshore and Polar Engineers and a member of the
Australasian Institute of Mining and Metallurgy. Mr. Heydon is also a member of the
Engineering Committee on Oceanic Resources (ECOR) Specialist Panel on deepwater mining.
Mr. Heydon was succeeded by Mr. Stephen Rogers (former Chief Development Officer), as
President and CEO, effective June 4, 2008.
David De Witt (Non-Executive Director)
Mr. De Witt, a lawyer, is a founder and the chairman of Pathway Capital Ltd, a private venture
capital firm. Mr. De Witt has spent 15 years as a practicing lawyer and has held positions on the
boards of mining companies such as Arequipa Resources Ltd, Bear Creek Mining Corp and
Peru Copper Ltd.
Russell Debney (Non-Executive Director)
Mr. Debney, a lawyer, was chairman of the Board of Directors of Nautilus Minerals Niugini
Limited and Nautilus Minerals Oceania Limited prior to the acquisition of those companies by
Nautilus. He has extensive experience in the management, financing and structuring of resource
projects, particularly in the offshore environment and has held positions on the boards of a
number of companies in the mining and resources industry.
A. Farhad Moshiri (Non-Executive Director)
Mr. Moshiri, a Chartered Certified Accountant, is Chief Executive of London-listed Europe
Steel Plc. He has extensive experience with a number of Russian and UK-based steel and mining
companies and his directorships include Epion Holdings Limited, Ural Steel, ZAO
Metalloinvest, and Gallagher Holdings Limited.
John O'Reilly (Non-Executive Director)
Mr. O'Reilly has over 40 years experience in the international mining industry including 19 years
with Rio Tinto Plc and previously was Chief Executive Officer of Lihir Gold Ltd.

APPENDIX C: MANAGEMENT TEAM
Stephen Rogers, President & Chief Executive Officer
(Formerly Chief Development Officer of Nautilus)
Mr. Rogers joined Nautilus from Clough Limited (one of Australia's largest multi-disciplinary
engineering firms) where he was CEO for oil and gas. He has 30 years of experience in project
and corporate management and has extensive deepwater offshore project development
experience. Over the last 15 years Mr. Rogers has worked at steering committee and project
director level on capital intensive projects with values in excess of US$1 billion. Mr. Rogers
succeeded Mr. David Heydon as President and CEO, effective June 04, 2008.
Anthony O'Sullivan, Chief Operating Officer
Mr. O'Sullivan joined Nautilus as Vice-President - Corporate Development and later became
Chief Operating Officer. Mr. O'Sullivan has 18 years of international experience in the mining
industry, 15 of which were with BHP Billiton where he held several senior positions.
Shontel Norgate, Chief Financial Officer
Ms. Norgate previously was the financial controller of Macarthur Coal Ltd. She has several years
of experience in the resources industry and is a qualified Chartered Accountant.
Michael Johnston, Vice-President - Corporate Development
Formerly general manager for Exploration with Placer Dome, Mr. Johnston has 20 years'
experience in the mining industry, primarily within the Asia-Pacific region. He also has a strong
understanding of all aspects of deep sea mining, through his management of Placer Dome's
involvement in the Solwara Projects.
Scott Trebilcock, Vice-President - Business Development
Mr. Trebilcock is a professional engineer with over 12 years of experience in the metallurgical,
mining and materials industries and has worked with companies such as Hatch Associates,
Noranda Inc and DuPont Canada. Prior to joining Nautilus, he worked with PRTM, consulting
to Fortune 100 chemicals, materials and energy firms.
Mel Togolo, PNG Country Manager
Mr. Togolo has 25 years' experience working in senior roles in industry and government, both
internationally and in Papua New Guinea, and is the vice-president of the Business Council of
Papua New Guinea.
Paul Tamoepeau, Tonga Country Manager
Mr. Tamoepeau has over 16 years experience working in the public and private sector in Tonga.
Mr. Tamoepeau is Vice President of the Tonga Chamber of Commerce & Industry.

APPENDIX D: DETAILS OF NAUTILUS’ EXPLORATION TENEMENTS
At the end of 2007, Nautilus had approximately 154,000 km2 of granted tenements, and
approximately 210,000 km2 of applications for tenements in the territorial waters and Exclusive
Economic Zones (EEZ) of Papua New Guinea, Tonga, Solomon Islands, Fiji and New
Zealand, for a total area of 365,000 km2. Teck Cominco Limited (Teck) has the option to
participate and fund exploration on a number of Nautilus tenements in PNG, Fiji, and Tonga.
As part of the agreement, Teck is currently conducting an exploration program on Nautilus's
tenements.
Papua New Guinea (PNG) Tenements - As of March 31, 2008 Nautilus had been granted 19
exploration licenses and has a further 71 tenements in applications, in the Bismarck and
Solomon Seas, encompassing approximately 205,000 km2 in area. Teck Cominco has the option
to explore the majority of this tenement base excluding the Solwara 1 to 8 projects (a 17,000
km2 tenement package in PNG) and applications in Tonga and Fiji applied for before October
20, 2006 which remains 100% owned by Nautilus.
Tonga Tenements - As of March 31, 2008, Nautilus had been granted 16 offshore exploration
licenses covering 78,977 km2, being an area containing most known prospects and the
exploration licenses cover a strike of over 900 km of highly prospective geology known to
contain SMS occurrences. Nine of the 16 granted titles in Tonga licenses are 100% owned by
Nautilus, and the other seven Tongan licenses subject to exploration by Teck under the JV
agreement.
Solomon Island Tenements - As of November 31, 2008 Nautilus had been granted 14
tenements covering 10,641 km2 in the Exclusive Economic Zone (EEZ) of the Solomon
Islands, with 100% of these licenses owned by Nautilus.
Fiji Tenements - As of March 31, 2008 Nautilus has applied for 9 tenements covering 18,341
km2 in the EEZ of Fiji.
New Zealand Tenements - As of March 31, 2008 Nautilus has applied for 1 tenement
covering 48,200 km2 in New Zealand's EEZ.

APPENDIX E. CONCEPTUAL MODEL SUMMARY
2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E
Metal Prices
Copper ($/lb) $3.25 $3.00 $2.35 $2.00 $1.60 $1.60 $1.60 $1.60 $1.60 $1.60 $1.60 $1.60
Gold ($/oz) $938 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Zinc ($/lb) $1.15 $1.10 $1.00 $0.90 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80 $0.80
Reserves
Beginning Resource (mn tonne) 2.2 2.2 2.2 4.0 5.1 5.7 6.1 6.4 6.5 6.7 4.9 3.1
Reserves processed 0.0 0.0 (0.2) (0.9) (1.4) (1.6) (1.7) (1.8) (1.8) (1.8) (1.8) (1.8)
Reserves added 0.0 0.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 0.0 0.0 0.0
End of year reserves (mn tonnes) 2.2 2.2 4.0 5.1 5.7 6.1 6.4 6.5 6.7 4.9 3.1 1.2
Mining & Processing
Tonnes of Ore Processed (daily) 0 0 500 2,500 3,750 4,500 4,750 5,000 5,000 5,000 5,000 5,000
Copper Head Grade (%) 0.00% 0.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Copper Recovery (%) 0% 0% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85%
Annual Copper production (MM lbs) 0.0 0.0 23.9 119.7 179.5 215.5 227.4 239.4 239.4 239.4 239.4 239.4
Copper Revenue (US$MM) $0.0 $0.0 $56.3 $239.4 $287.3 $344.7 $363.9 $383.0 $383.0 $383.0 $383.0 $383.0
Gold Head Grade (g/t) 0.00 0.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00
Gold Recovery (%) 0% 0% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90%
Gold Produced (troy ounces) 0 0 31,684 158,420 237,630 285,156 300,998 316,840 316,840 316,840 316,840 316,840
Gold revenue (US$MM) $0.0 $0.0 $31.7 $158.4 $237.6 $285.2 $301.0 $316.8 $316.8 $316.8 $316.8 $316.8
Operating Costs
Onsite costs (US$/tonne mined) $0 $0 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Offsite Costs (US$/tonne mined) $0 $0 $80 $77 $75 $75 $75 $75 $75 $75 $75 $75
Captial Costs (US$MM)
Capital Expenditures $75.0 $150.0 $25.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0
Sustaining Capital $0.0 $0.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0
Total Capex $75.0 $150.0 $32.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0
US$MM 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E
MINE INCOME STATEMENT
Revenue $0.0 $0.0 $70.0 $349.9 $524.9 $629.9 $664.9 $699.9 $699.9 $699.9 $699.9 $699.9
On-site costs (Mine operating costs) $0.0 $0.0 $22.8 $114.1 $171.1 $205.3 $216.7 $228.1 $228.1 $228.1 $228.1 $228.1
Off-site costs $0.0 $0.0 $14.6 $70.7 $102.4 $122.9 $129.8 $136.6 $136.6 $136.6 $136.6 $136.6
Mine Operating Income $0.0 $0.0 $32.6 $165.2 $251.4 $301.6 $318.4 $335.2 $335.2 $335.2 $335.2 $335.2
Royalties $0.0 $0.0 $0.7 $3.7 $5.7 $6.8 $7.2 $7.5 $7.5 $7.5 $7.5 $7.5
SG&A $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0 $6.0
Total Operating Income ($6.0) ($6.0) $25.9 $155.5 $239.7 $288.8 $305.2 $321.6 $321.6 $321.6 $321.6 $321.6
Exploration $20.0 $20.0 $33.0 $33.0 $33.0 $33.0 $33.0 $33.0 $33.0 $33.0 $33.0 $33.0
EBITDA ($26.0) ($26.0) ($7.1) $122.5 $206.7 $255.8 $272.2 $288.6 $288.6 $288.6 $288.6 $288.6
Depreciation $0.0 $0.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0
Earnings Before Tax (EBT) ($26.0) ($26.0) ($39.1) $90.5 $174.7 $223.8 $240.2 $256.6 $256.6 $256.6 $256.6 $256.6
Effective Tax rate (%) 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35%
Current taxes $0.0 $0.0 $0.0 $31.7 $61.1 $78.3 $84.1 $89.8 $89.8 $89.8 $89.8 $89.8
Net income ($26.0) ($26.0) ($39.1) $58.8 $113.6 $145.5 $156.1 $166.8 $166.8 $166.8 $166.8 $166.8
Add: Depreciation $0.0 $0.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0 $32.0
Deduct: Capex $75.0 $150.0 $32.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0 $7.0
Mine cash flow (US$MM) ($101.0) ($176.0) ($39.1) $83.8 $138.6 $170.5 $181.1 $191.8 $191.8 $191.8 $191.8 $191.8
Cash Flow from Operations ($26.0) ($26.0) ($7.1) $90.8 $145.6 $177.5 $188.1 $198.8 $198.8 $198.8 $198.8 $198.8
Source: Company reports, Thomas Weisel Partners LLC estimates

APPENDIX F: OPTIONS AND WARRANT SCHEDULE
(As of March 31, 2008)
Shares
Weighted average
remaining contractual life
(years)
Weighted average
exerciseable price
(C$)
Implied Expiry Date Shares
Weighted average
exercise price (C$)
587,667 0.2 $1.40 June 12, 2008 587,667 $1.40
3,409,964 1.0 $2.22 March 31, 2009 2,369,964 $2.22
2,445,000 2.5 $3.20 September 29, 2010 1,168,500 $3.20
2,283,639 2.3 $4.69 July 18, 2010 517,160 $4.75
4,530,000 4.5 $5.33 September 28, 2012 100,000 $5.12
425,000 2.2 $6.38 June 12, 2010 85,000 $6.38
13,681,270 2.6 $3.93 4,828,291 $2.76
Shares
Weighted average
remaining contractual life
(years)
Weighted average
exerciseable price
(C$)
Expiry Date Shares
Weighted average
exercise price (C$)
48,611 0.1 $1.50 May 4, 2008 48,611 $1.50
750,000 0.2 $5.26 June 1, 2008 750,000 $5.26
185,000 0.7 $3.47 December 7, 2008 185,000 $3.47
549,395 0.8 $4.53 February 2, 2009 549,395 $4.53
549,910 0.8 $4.22 February 2, 2009 549,910 $4.22
10,540,874 0.9 $5.66 February 21, 2009 10,540,874 $5.66
3,257,907 1.7 $3.80 November 28, 2009 3,257,907 $3.80
15,881,697 1.0 $5.13 15,881,697 $5.13
Exerciseable optionsTotal options outstanding
OptionsOutstandingWarrantsOutstanding
Total warrants outstanding Exerciseable warrants
Sources: Company reports and Thomas Weisel Partners LLC

APPENDIX G: TECHNICAL ALLIANCES AND PARTNERSHIPS
Company Name Nature of Alliance Company Description
North Sea Shipping
Holding AS
Contract to build and operate
specialized Mining Support
Vessel (MSV) for Solwara 1
North Sea Shipping is a leading Norwegian ship
owner and operator in the offshore oil and gas
industry.
Soil Machine
Dynamics (SMD)
Contract to build the Subsea
Mining Tools for Solwara 1.
SMD is one of the world's leading subsea
engineering companies and specializes in the
design and manufacture of remotely operated
vehicle ("ROV") systems.
Technip SA (TEC-
PAR, €51.02, Not
Covered)
EPCM Contract for Solwara 1's
riser and lifting system.
Technip is an integrated group providing
engineering, technologies and construction
services to the oil/gas and petrochemical industry
worldwide. Technip ranks among the 5 major
players in full-service engineering and construction
services in the field of hydrocarbons and
petrochemicals.
Canyon Offshore
Inc. - part of Helix
Energy Solutions
Group Inc. (HLX-
N,$38.39, Not
Covered)
Contracts for provision of
marine services and ROV drilling
equipment to support the
Nautilus exploration program.
Canyon provides ROV systems and skilled
offshore teams for critical-path deepwater
construction and specialty marine contracting
projects.
Ocean Floor
Geophysics Inc
Partnered with Nautilus and
Teck Cominco to develop and
deploy the new deep-ocean
electromagnetic technology used
in the deep-sea exploration
program.
Ocean Floor Geophysics (a partnership between
Frontier Geosciences Inc, PK Geophysics Inc and
Cellula Robotics Ltd.) offers comprehensive
geophysical consulting and survey services to
industries such as mineral exploration and civil
engineering.
Perry Slingsby
Systems
Perry designed and built the 20m
ROV drills used in the 2007
drilling program on Solwara 1.
Perry Slingsby is a leading global manufacturer of
deep ocean remote operated vehicles (ROV) for
the oil/gas and telecommunications industries.
Coffey Natural
Systems – division
of Coffey
International Ltd
(COF-AU, A$1.98,
Not Covered)
Lead consultant on the EIS for
Nautilus’ 100% owned Solwara 1
project.
Coffey Natural Systems is a specialist
environmental and social impact assessment
consultancy servicing the mining, oil and gas and
infrastructure sectors for 29 years.
Source: Company Reports, FactSet and Thomas Weisel Partners LLC

APPENDIX H: NAUTILUS MINERALS - HISTORICAL STOCK PRICE PERFORMANCE ALONG WITH A TIMELINE OF KEY
EVENTS
7/06 10/06 1/07 4/07 7/07 10/07 1/08 4/08 7/08
2
3
4
5
6
7
8
Barrick
converts JV to
9.6% stake
($2.08)
Teck
Cominco
exercises 3
MM warrants
(US$5.00)
NUS
Graduates to
the TSX from
the Venture
exchange
NUS
Releases
43-101
Resource at
Solwara 1
Heads of
Agreement
with Belgium
based Jan de
Hul to build
deep sea
mining
vessel
Reverse
takeover of
Orka; NUS
starts trading
on TSX-V
($2.00)
Anglo
American
invests
US$25 MM
($3.37)
Teck
Cominco
invests $35.4
MM ($3.76)
US$175 MM
financing in
AIM & North
America
($4.30)
ABCP Crisis
Epion invests
$39.1 MM
($3.60)
Lapse of
mining
services
agreement
with dredging
contractor,
Jan de Nul
Vessel
contract
signed with
North Sea
Shipping
Holding
Cash value -
$2.13 per
share
©FactSet Research Systems
Nautilus Minerals Inc. (NUS-CA)
10-May-2006 to 11-Jul-2008 (Daily) High:7.39 Low: 1.84 Last: 1.93
Source: FactSet and Thomas Weisel Partners LLC

ADDITIONAL INFORMATION IS AVAILABLE UPON REQUEST.
ANALYST CERTIFICATION AND IMPORTANT DISCLOSURES:
The Research Analyst(s) principally responsible for the analysis of any security or issuer included in this report certifies that the views
expressed accurately reflect the personal views of the Research Analyst(s) about the subject securities or issuers and certifies that no part
of his or her compensation was or is or will be, directly or indirectly, related to the specific recommendations or views expressed by the
Research Analyst(s) in this report.
Our European Conflicts Management Policy is available on our website at http://www.tweisel.com
Notes: Price chart updated as of 7/11/2008. All price targets displayed in the chart above represent either a specific price target or the midpoint of a range. Prior to
November 16, 2006, Thomas Weisel Partners LLC used a three-tier rating system with different rating names and definitions: Outperform, Peer Perform and
Underperform.
Source: First Call, FactSet and Thomas Weisel Partners LLC
Nautilus Minerals Inc.: Our 12-month price target of $4.50 is in line with our NAV estimate. There are always risks that the price
target for any security will not be realized. In addition to general market and macroeconomic risks, investors in Nautilus Minerals
may be subject to a number of risks including: (1) potential failure of an unproven mining method, (2) potential inability to obtain
the necessary permits, (3) unforeseen escalation in capital and operating costs, (4) potential decline in metal prices, (5) potential
weakening of the US dollar, (6) potential dilution from future issuance of debt or equity.

The following table outlines the Thomas Weisel Partners LLC stock rating system, along with the relevant definitions, effective
November 16, 2006.
PCT. OF PCT. FOR
SECURITIES WHICH IB
STOCK RATED IN SERVICES HAVE
RATING STOCK RATINGS DEFINITIONS EACH CATEGORY BEEN PROVIDED
Overweight (O)
When an analyst rates a stock Overweight, he/she is
advising our clients to carry a position in the stock that is
in excess of its weighting relative to the stocks either in
that analyst's coverage or an index identified by the analyst
that includes, but is not limited to, stocks covered by that
analyst.
54.7% 31.6%
Total Buy 54.7% 31.6%
Market Weight (M)
When an analyst rates a stock Market Weight, he/she is
in line with its weighting relative to the stocks either in
that analyst's coverage or an index identified by the analyst
that includes, but is not limited to, stocks covered by that
analyst.
42.1% 10.1%
Total Hold 42.1% 10.1%
Underweight (U)
When an analyst rates a stock Underweight, he/she is
below its weighting relative to the stocks either in that
analyst's coverage or an index identified by the analyst that
includes, but is not limited to, stocks covered by that
analyst.
3.3% 0.0%
Total Sell 3.3% 0.0%
Suspended Rating (S) The stock rating has been suspended.
Not Rated (NR)
The stock is not rated, but it is covered by a Thomas
Weisel Partners LLC analyst.
Not Covered (NC)
The stock is not covered by a Thomas Weisel Partners
LLC analyst.
Notes: The percentage of investment banking services is calculated as of 3/31/2008. The percentage of securities rated in each category is calculated as of 7/14/2008.
The new rating system is effective 11/16/2006. An analyst's coverage universe is defined as all of the stocks within the analyst's industry that reasonably are part of
his/her potential coverage, not necessarily the stocks specifically covered. "Buy", "Hold" and "Sell" are not ratings categories defined by Thomas Weisel Partners
LLC and should not be interpreted as investment opinions. We show these categories for illustrative purposes in accordance with NASD and NYSE regulations. The
above table includes Thomas Weisel International stocks.
Source: FactSet and Thomas Weisel Partners LLC
The following grid outlines the Thomas Weisel Partners LLC industry rating system, along with the relevant definitions, effective
November 16, 2006.
INDUSTRY RATINGS INDUSTRY RATINGS DEFINITIONS
Favorable
When an analyst assigns a Favorable rating to an industry that means he/she believes that, generally, the
industry's fundamentals or stock prospects are improving.
Neutral
When an analyst assigns a Neutral rating to an industry that means he/she believes that, generally, the
industry's fundamentals or stock prospects are stable.
Unfavorable
When an analyst assigns an Unfavorable rating to an industry that means he/she believes that, generally,
the industry's fundamentals or stock prospects are deteriorating.
Source: Thomas Weisel Partners LLC

The following grid outlines the Thomas Weisel Partners LLC stock rating system, along with the relevant definitions, in effect from April
4, 2003, to November 16, 2006.
COMPANY RATING RATINGS DEFINITION
Outperform (O)
The stock is expected to outperform the median performance of the Analyst's coverage universe over the
next six to 12 months.
Peer Perform (P)
The stock is expected to perform in line with the median performance of the Analyst's coverage universe
over the next six to 12 months.
Underperform (U)
The stock is expected to underperform the median performance of the Analyst's coverage universe over
the next six to 12 months.
Suspended Rating (S) The stock rating has been suspended.
Not Rated (NR) The stock is not rated, but it is covered by a Thomas Weisel Partners LLC analyst.
Not Covered (NC) The stock is not covered by a Thomas Weisel Partners LLC analyst.
SECTOR RATING SECTOR RATING DEFINITION
Overweight (OW) The Analyst's coverage universe is expected to outperform the S&P 500 over the next six to 12 months.
Market Weight (MW)
The Analyst's coverage universe is expected to perform in line with the S&P 500 over the next six to 12
months.
Underweight (UW)
The Analyst's coverage universe is expected to underperform the S&P 500 over the next six to 12
months.
Source: Thomas Weisel Partners LLC
This report contains statements of fact relating to economic conditions generally and to parties other than Thomas Weisel Partners.
Although these statements of fact have been obtained from and are based on sources that Thomas Weisel Partners believes to be
reliable, we do not guarantee their accuracy and any such information might be incomplete or condensed. All opinions and
estimates included in this report constitute Thomas Weisel Partners LLC's judgment as of the date of this report and are subject to
change without notice. This report is for information purposes only. It is not intended as an offer or a solicitation with respect to the
purchase or sale of a security, and it should not be interpreted as such. This report does not take into account the investment
objective, financial situation or particular needs of any particular investor. Investors should obtain individual financial advice based
on their own particular circumstances before making an investment decision based on the recommendations in this report.
Thomas Weisel Partners International Limited, which is authorized and regulated by the Financial Services Authority, has approved this
document for the purposes of the financial promotion regime under Section 21 of the Financial Services and Markets Act of 2000 for
communication only to eligible counterparties and professional clients. It is not intended for communication to retail customers and it
may not and is not intended to be passed on, directly or indirectly, to retail customers. The investments and/or services detailed in this
document are available only to eligible counterparties and professional clients, and only they should rely upon this document. Retail
clients should not rely on the contents of this document in any way.
© Thomas Weisel Partners LLC, 2008. All rights reserved. Any unauthorized use, duplication or disclosure is prohibited by law and will
result in prosecution.

Thomas Weisel Partners LLC • One Montgomery Street • San Francisco CA 94104 • tel 415.364.2500 • fax 415.364.2695 • www.tweisel.com
E Q U I T Y R E S E A R C H D I R E C T O R Y
R. Keith Gay • Head of Research • kgay@tweisel.com • 415.364.2582
John Grandy • Associate Head of Research • jgrandy@tweisel.com • 416.815.3067
Consumer
Gaming & Lodging and
Interactive Market Services
Jake Fuller
jfuller@tweisel.com 212.271.3821
Timothy Forrester 212.271.3843
Lifestyles/Sports Retailers
Jim Duffy
jduffy@tweisel.com 415.364.5974
Christian Buss 415.364.2519
Sam Bitetti 617.488.4630
Retailing: Hardlines
Matt Nemer
mnemer@tweisel.com 415.364.5901
Trisha Dill, CFA 415.364.2619
Retailing: Softlines
Liz Dunn
ldunn@tweisel.com 212.271.3806
Bill Strauss 212.271.3425
Christina Colone 212.271.3582
Energy
Alternative Energy
Jeff Osborne
josborne@tweisel.com 212.271.3577
Dilip Warrier 415.364.2983
Scott Reynolds 212.271.3429
Energy Equipment and Services
Dana Benner, CFA
dbenner@tweisel.com 403.268.9168
Lara King, CFA 403.268.9150
Chris LeGrow 403.268.9169
International Oil & Gas
David Dudlyke
ddudlyke@tweisel.com +44 207.877.4410
Quinn Sievewright +44 207.877.4412
Thomas Martin +44 207.877.4411
Oil & Gas Exploration and Production
Kurt Molnar
kmolnar@tweisel.com 403.268.9156
Michael Scialla
mscialla@tweisel.com 720.479.2435
Daniel Guffey 720.479.2437
Alistair Toward, CFA
atoward@tweisel.com 403.268.9153
Juan Jarrah 403.268.9164
Financial Services
Diversified Financials
Horst Hueniken, CFA
horst.hueniken@tweisel.com 416.815.1633
Ari Black 416.815.3103
Real Estate Investment Trusts
Dean Wilkinson, CFA
dwilkinson@tweisel.com 416.815.3124
Rahul Paul 416.815.3128
Healthcare
Biotechnology
Ian Somaiya
isomaiya@tweisel.com 212.271.3761
Michael Ulz 212.271.3423
Sasha Blaug, PhD 212.271.3818
Stephen Willey
swilley@tweisel.com 212.271.3620
Healthcare Information Technology and
Pharmaceutical Services
Steven P. Halper
shalper@tweisel.com 212.271.3807
Alan Fishman 212.271.3679
Topher Orr 212.271.3659
Life Science and Diagnostics
Peter Lawson, PhD
plawson@tweisel.com 212.271.3859
Eric Criscuolo 212.271.3592
Medical Devices
Raj Denhoy
rdenhoy@tweisel.com 212.271.3698
Jared Holz 212.271.3644
Philip E. Legendy
plegendy@tweisel.com 212.271.3762
Pharmaceuticals: Specialty
Donald B. Ellis, PharmD
dellis@tweisel.com 415.364.7038
Aaron Mishel 415.364.2622
Yumi Odama 415.364.5965
Internet, Media and Telecom
Broadcasting and Entertainment
Ben Mogil
bmogil@tweisel.com 416.815.3078
Benjamin Shapiro 416.815.3106
Internet Services
Christa Quarles, CFA
cquarles@tweisel.com 415.364.7154
Cyrus Modanlou 415.364.2976
Jennifer Wang, CFA 415.364.2590
Media & Entertainment
Lloyd Walmsley
lwalmsley@tweisel.com 415.364.2584
Telecom Services
James D. Breen, Jr., CFA
jbreen@tweisel.com 617.488.4107
Louie DiPalma 617.488.4167
Shane J. Larkin 617.488.4108
Metals and Mining
Gold & Precious Metals
Heather Douglas, CFA
hdouglas@tweisel.com 416.815.3108
Josh Wolfson 416.815.3080
Andrew Mikitchook, P. Eng., CFA
amikitchook@tweisel.com 416.815.1622
Nana Sangmuah 416.815.3113
Metals and Mining, continued
Base Metals
Matthew O’Keefe
mokeefe@tweisel.com 416.815.3087
Rahul Paul 416.815.3128
Technology
Applied Technologies
Ajit Pai
apai@tweisel.com 212.271.3695
Sven Eenmaa 212.271.3838
Andy Yeung, CFA 415.364.2589
Computer Systems and Storage
Doug Reid, CFA
dreid@tweisel.com 212.271.3841
Nehal Chokshi 212.271.3653
Electronic Supply Chain
Matt Sheerin
msheerin@tweisel.com 212.271.3753
Alberto Mann 212.271.3635
Aaron Berman 212.271.3427
Information & Financial Technology Services
David Grossman
dgrossman@tweisel.com 415.364.2541
Nicole Conway 415.364.5934
Melissa Moran, CFA 415.364.2586
Semiconductors: Analog & Mixed Signal
Tore Svanberg
tsvanberg@tweisel.com 650.688.5261
Evan Wang 650.688.5263
Brian Williamson 415.364.2550
Semiconductors: Multimedia & Specialty
Heidi T. Poon, CFA
hpoon@tweisel.com 415.364.2505
Semiconductors: Processors & Components
Kevin Cassidy
kcassidy@tweisel.com 650.688.5264
Software: Applications
Blair Abernethy, CFA
babernethy@tweisel.com 416.815.3050
Doug Taylor 416.815.3127
Software: Applications & Communications
Tom Roderick
troderick@tweisel.com 415.364.5952
Gur Talpaz 415.364.2608
Chris Koh 415.364.2655
Software: Infrastructure
Tim Klasell
tklasell@tweisel.com 415.364.2949
Dormain Geyer 415.364.2807
Marc Griffin 415.364.6951

NUS - Initiating Coverage (July 14, 2008)

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