Scoping Study Results

    Scoping Study Results
             



                                  �
                        FOR IMMEDIATE RELEASE
 ����������������������������������������������������� ����������� 1
                              May 2008
                                  �
                        NEPTUNE MINERALS Plc
                    ("Neptune" or the "Company")
                                  �
   SCOPING STUDY CONFIRMS ATTRACTIVE ECONOMICS OF SEAFLOOR MINING
                                  �

  *�Positive engineering scoping study confirms economic
    attractiveness of seafloor mining
  *�Compelling margins possible from SMS mining given expected
    operating costs
  *�Goal to commercially develop New Zealand SMS through pilot mining
    by 2010

�
Neptune Minerals  (AIM: NPM),  a leading  explorer and  developer  of
seafloor massive  sulphide (SMS)  deposits,  has received  the  final
report of  a  seafloor  mining  engineering  scoping  study  for  the
commercial development  of SMS  deposits offshore  New Zealand.  �The
report was prepared by Genesis, a leading consultancy and engineering
company  affiliated  to  Technip,  a  world  leader  in  engineering,
technologies and project management for the oil and gas industry.
�
The study evaluated alternative technologies for seafloor mining, ore
lifting, dewatering and surface offtake.�  A key aspect of the  study
was  the  extensive  utilisation  of  existing  marine   technologies
currently deployed  in the  oil &  gas, marine  diamond and  offshore
dredging industries. Appropriate technologies were evaluated on cost,
efficiency, reliability and environmental  impact in determining  the
preferred mining system.
�
Neptune is evaluating contract  mining options, whereby a  contractor
would build, own and operate all the mining production assets.�  This
would significantly reduce Neptune's capital expenditure for a  minor
raise in operating costs.
�
Technip's    recommended     mining     system     incorporates     a
dynamically-positioned production vessel, a flexible production riser
and an airlift  pumping system connected  at the seafloor  to an  ore
crusher and seafloor  miner.�� The  advantage of  this technology  is
that it can be used on a range of SMS deposits in multiple locations.
�
This system  considered by  Technip was  for a  nominal 10  year  SMS
mining project.� Envisaged operations will commence with pilot mining
to optimise the  technologies before operations  are increased to  an
anticipated full production of 2 million tonnes per annum.� Over  the
10 year scenario; project costs in 2010 US$ terms are:
�
Reported tonnes of SMS  mined:������������� ����������� 16.2  Million
tonnes
Reported Operating cost (Opex) per tonne:���������� US$91
Reported Total Capital Expenditure (Capex):�������� US$501.1  million
(The installed cost includes a full separate pilot mining system)
�
Neptune has calculated, based on  workings from the Technip study,  a
total Capex plus Opex  per tonne (mined,  lifted and dewatered  which
includes maintenance and  replacement costs)  range of  US$145-US$162
and highlights  the compelling  margins that  are possible  from  SMS
mining.� The  SMS  deposits  held  internationally  by  Neptune  have
typical in  ground value  per  tonne of  US$500 to  US$2000  yielding
attractive  margins.�  This  cost  does  not  include  onshore   bulk
handling, metal refining and processing.
�
Neptune is embarking on a  long term advanced exploration program  in
New Zealand waters (Project  Trident) the aim of  which is to  define
multiple SMS deposits over which mining Licence applications will  be
made.� These deposits  will generate  the SMS tonnages  that will  be
exploited by  Technip's proposed  or  an alternative  mining  system.
Neptune has a goal of pilot mining by 2010.
�
�
�
Neptune's summary of  the Technip  Genesis report will  be placed  on
Neptune's website.
�
�
Neptune's Chief Executive Officer Dr Simon McDonald said:
"Neptune is encouraged by the reported attractive economics of mining
SMS deposits  confirmed by  this scoping  study. Genesis-Technip  has
provided  a  realistic,  commercially  engineered  solution  to   the
challenge of seafloor mining. Neptune is now poised to take the  next
step from SMS  explorer to  developer.� Technip's  reported cost  per
tonne highlights the  attractive margins possible  in SMS Mining  and
reinforces the  company's  expectation  that pilot  mining  phase  of
commercial development  of  SMS mining  by  the  end of  2010  is  an
achievable  goal.�  Neptune   is  moving  actively   to  bring   that
expectation to reality."
�
END
�
�
�
For further information please contact:
�
Simon       McDonald        (Neptune       MD        and        CEO):
��������������������������������� T: +61 (0) 2 9957 5244
�
By                   email                   to                   the
Company����������������������������������������������������������
info@nepmins.com
�
Richard  Hail  (Fox  Davies  Capital  Limited,   Broker):������������
����������� T: +44 (0) 20 7936 5230
�
Fiona Owen (Grant Thornton Corporate Finance, Nomad):� ����������� T:
+44 (0) 20 7383 5100
�
Rozanne  Ichikowitz   (Grant  Thornton   Sydney):������   �����������
����������� T: +61 (0) 2 8297 2522
�
Nadja     Vetter      /      Matthew     Law      (Cardew      Group,
PR):������������������������ T: +44 (0) 20 7930 0777
�����������������������������������������������������������������������������������������������
T: +44 (0) 7941 340 436
�
The Neptune Minerals Website is www.neptuneminerals.com
�

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