NauruOceanResourcesInc.

Worldsmostexperiencedultra deepseaminingteam d i i t

NORIiscommittedtooperatinginlinewiththe followinginternationallyacceptedEnvironmental, SocialandGovernanceprinciplesandstandards: UnitedNationsGlobalCompact MillenniumDevelopmentGoals IFC Performance Standards on Social and IFCPerformanceStandardsonSocialand EnvironmentalSustainability World Bank Group Environmental Health and WorldBankGroupEnvironmental,Health,and SafetyGuidelines PrecautionaryPrinciple

DevelopingResources foraDevelopingState

80%Uninhabitable

Environmental Rehabilitation >$200M

Nolandfor agriculture

Limited Opportunities Opportunities

Relianton ForeignAid

Depletedby Aus,NZ&British Aus NZ & British Phosphatemining

Withlimitedterrestrial t ted te est a resources,Naurumustlook totheoceansforitseconomic to the oceans for its economic development.NORIis workingtoprovideNauru working to provide Nauru withlongtermopportunities forasustainablefuture. for a sustainable future.

 Nocommerciallyprospectivemineral yp p resourcesinEEZ Nauru sponsored NORIs ISA exploration NaurusponsoredNORI sISAexploration applicationin2008. Proceeds from NORIs DSM will be ProceedsfromNORIsDSMwillbe distributedinNaurutopromoteeducation, training,healthandenvironmental t i i h lth d i t l rehabilitation.

CapacityBuildinginNauru Capacity Building in Nauru

MarineScience M i S i DSMRegulatoryFramework Administration NORIDSMProject PreEmploymentTraineeships StaffRecruitment CareerPlanning,Professional Development

NORIDSMCapacityBuilding NORI DSM Capacity Building

PreEmploymentTraineeships TrainingforNauruanNationaljobapplicantsnot alreadypossessingtherequisiteskillsfortheProject. l d i h i i kill f h P j BuildcapacityofNauruanNationalstoparticipatein Projectemployment. Project employment Recruitment Increaserepresentation; Buildtheskillsbase; E Expandcareeroptions; d i Increaseeconomicparticipation, ofNauruanNationalsintheProject sworkforce. of Nauruan Nationals in the Projects workforce

NORIProjectCapacityBuilding NORI Project Capacity Building

CareerPlanning,ProfessionalDevelopmentand DevelopmentofSustainableEmployment D l Developmentofcareerpathsforalreadyexperienced f h f l d i d NauruanNationalemployeestomovebeyondoperator andtradesroles; and trades roles; Providesustainableemploymentandskills developmenttoensureopportunitiesexisttofurther advancetheircareer. E.g.studyassistanceandscholarships,developmentof technicalcapabilities,buildingofcommercialskills, h i l bili i b ildi f i l kill leadershipdevelopment,technicaltrainingand experienceetc. experience etc

NORI sDSMwillbenefitallPICs NORIs DSM will benefit all PICs

Nauru=1st StatetosponsorISAReservedAreaapplication; precedentforallPICs,particularlythosewithfewmineral resources. resources PICsleadingthewayinBOTHNodule&SMSdevelopment. NORI sprojectwillgreatlyassistPICs,e.g.CookIslands& NORIs project will greatly assist PICs e g Cook Islands & Kiribati,asNORIwillhavedevelopedtheequipment,methods andprocessestodemonstrateDSMfeasibilityanddecrease p y costofcapital. NORIsEIAwillprovidevaluabledataforPICstomake environmentaldecisionswithintheirownEEZs. NaurusrequestforITLOSAOhasgivenpotentialPIC sponsoringStatesmorecertainty.

IsYourFutureMetalSupplySecure? Is Your Future Metal Supply Secure?

StateslackingmineralResourcesareexposedtofluctuatingmetal markets.Futuresupplyisnotguaranteed. SomeResourcerichStatesalreadyrestrictingsupplyofstrategic S R i h St t l d t i ti l f t t i metals.E.g.ChinaslashedH22010REEexportsquotasby72%,raisedtaxes,restricted
p productioncapacityandnowfurtherstrengtheningpricingpowerwithBaotouREE p y g gp gp Exchange.

Mn market:fewproducingnations PotentialforOPEClikecartel Q:HowcanStateslackinginmineralResourcesensureaccessto anuninterruptedfuturesupplyofmetalsatreasonablepricesto facilitatetheireconomicandsocialdevelopment? facilitate their economic and social development? A:Bylookingtotheseafloor.ManyStateshaverecognisedthe strategicimportanceoftheseafloorandhavebegunstakingclaims. strategic importance of the seafloor and have begun staking claims

Nauruhasenteredtheinternationalracetothebottomof theocean.WhichPICswanttobenext?

OpportunityforPICstobeaninternationalhub forDSMexcellenceinmuchthesamewasas for DSM excellence in much the same was as NorwayhasbeenforoffshoreOil&Gas

 ThroughoffshoreresourceextractionNorwayhas becomethe2nd richestcountryintheworld. Produced$1,500,000,000,000fromitscontinental shelf! WhilstNorwaysoffshorepetroleumproductionhas pastitspeakafter40years,revenuesfromoffshoreoil past its peak after 40 years revenues from offshore oil haveensureditslongtermeconomicfuture Norway sSovereignWealthFund=$500,000,000,000 Norways Sovereign Wealth Fund = $500 000 000 000

NorwaysGDPGrowthDrivenbyOffshore ResourceExploitation

ExploitationbeganonNorwegian l b continentalshelfin1971 causing rapidgrowthinGDPpercapitato nearly$100k nearly $100k

Whilst PICs will benefit significantly from DSM the DSM, biggest beneficiaries will be the billions of people around the world that need accessible and affordable minerals for their social and economic development.

DSMPolicy DSM Policy

PICshaveanopportunitytoplayanimportantrolein providingmuchneededsupplyofmetalstotheworld. Mostpeoplearenotawareoftheessentialservices Most people are not aware of the essential services metalssuchascopper(3rd mostusedmetalinthe world), manganese (4 ) and nickel provide and the role world),manganese(4th)andnickelprovideandtherole theyplayinadvancinghumanlivelihood.Becausethese servicesarenotadequatelyquantified,theyareoften giventoolittleweightinpolicydecisions. DSMpolicyshouldbeformulatedinlightofthe DSM policy should be formulated in light of the terrestrialminingindustry,internationalmetalmarkets, andtherolemetalsplayinsociety. p y y

Inallfour cornersof corners of theworld everyhumanbeingdeservesgoodhealthand h b i d d h lth d , p y pp ,q y shelter,employmentopportunities,quality education,andfreedom from from poverty, hungerand disease

Howcantheworldachievetheeconomic progressrequiredtoensurethese i dt th universalobjectivesaremet? j

A: By Unlocking the Value of y g New Sustainable Resources

EconomicGrowthDemandsMetals

CaseStudy:Water Howcanunderwaterminingincreaseaccess How can underwater mining increase access toanddistributionofcleanwaterin communitiesaroundtheworld?

Waterisessentialtosustainabledevelopment. <1%ofworld'sfreshwaterisaccessiblefordirecthumanuses. Criticalwedonotwastewhatlittlewaterisavailable. CopperandStainlessSteelareneededtodistributeandstorewater withoutwaste,corrosion,leaksorbacterialcontamination. Potassiumpermanganate 2nd onlytochlorine 884Mpeoplestillrelyondrinkingwaterfromunimprovedsources suchasponds,streams,irrigationcanalsandunprotecteddug wells. ll Almostonetenthoftheglobaldiseaseburdencouldbeprevented byimprovingwatersupplyandmanagementofwaterresources. by improving water supply and management of water resources

Rawwaterhandling,India

StainlessSteel (requiringNiand Mn)isreliedupon throughoutthe worldto distributeclean water.

TreatmentPipe,Germany Treatment Pipe Germany

OfficeBuildingPlumbing,China

WaterdistributionPiping,USA p g, WaterDistributionPipe,Canada

StainlessSteelTap,Italy

WaterTank,China ,

WaterStorageTank,Japan ReverseOsmosisPlant,Singapore

DeSalinationPlant,SaudiArabia

AGreen Economy isnotpossible withoutmetalsataffordableprices

1WindTurbine:500kg ofNi+1000kgofCu

12xmoreCutocreate 1kwthanconventional p powergeneration g

AnelectricvehiclehasoverTWICEtheCucontent oftheaveragecar 2kmofcopperwiring NiandCu essentialfor essential for batteriesin HybridCars. Hybrid Cars

Mn isneededforhighstrength steelsheettoreplaceheaviermild l h l h i ild carbonthusmakingvehicleslighter andimprovingfuelefficiencyand and improving fuel efficiency and reducingvehicleemissions.

Whilstmetalsarecriticaltodevelopmentweare runningoutofmineralResourcesonlandata timewhendemandisincreasing.Ifdemand increaseswithoutacommensurateincreasein supplythepriceofmineralswillbecome unaffordabletotheworldspoor. DSMoffersanewsupplywhichwillbecriticalin meetingincreasingdemand,andPICshavea uniqueopportunitytoleadthisnewindustry.

Worldcopperconsumption1900 2008(KTONNES) pp p ( ) Worldproduction1900:495kt;2008:over15Mt

Mininglowergradematerialisenvironmentally damagingasitrequiresmovingmorerockper tonneofmetalrecoveredwithattendantgreater surfaceareadisturbance,higherfuelemissions pertonneandlargerwasterockdumps.

MiningIndustryisbeingforcedtoproducefromfar moredangerous,remote,andpristineenvironments d d i i i onland

DSM:EnvironmentalAdvantages DSM: Environmental Advantages

UniqueopportunityhereforPICstoleadthewayinprotectingthe planetsoverallenvironmentbytakingpressureofftheland,which, whilstonlyaccountingfor30%oftheplanetssurfacearea,hasbeen hil t l ti f 30% f th l t f h b subjectto100%ofNiandCumining.

DSM=NoDeforestation

InternationalYearofForests International Year of Forests 2011

InternationalYearofForests International Year of Forests 2011

Diversityona40mrainforesttreecanexceed1millionlivingspecies; RainforestsamongthemostbiodiverseplacesonEarth exceptional biologicalrichnessonbothlandscapeandlocalscales,across taxonomicgroups.Mammals,amphibians,reptiles,birds,fish, t i M l hibi til bi d fi h insects,vascularplantspeciesetc. Rainforests protect threatened and endemic species. Rainforestsprotectthreatenedandendemicspecies. Rainforestsprovideessentialservicessuchascleanair,water,rainfall andstableclimate,andareasourceoffoodandmedicine. Increasingpressuresonrainforestsfromhydrocarbonandterrestrial miningprojects,illegallogging,oilpalmplantations,transportation projects,farming,humanpopulationgrowthetc. projects farming human population growth etc Forestsarehometo80%ofourterrestrialbiodiversity. Livelihoods of >1 6 billion people depend on forests Livelihoodsof>1.6billionpeopledependonforests.

Nickellateritesoccurinequatorialtropicalrainforestregions

Unlikenickellaterites,accesstoandminingofunderwatermineral depositsdoesnotresultindeforestation,andinturnwillnotcausea deposits does not result in deforestation and in turn will not cause a decreaseintheEarthscarbonabsorptioncapacity

ByavoidingdeforestationDSMhelpskeepourplanetgreen

DSM= Minimal Overburden and Stripping

Underwatermineraldeposits g generallyoccurdirectlyonthe y y seaflooranddonotdemandlarge prestripsoroverburdenremoval whichonlandcanbeupto4tonnes which on land can be up to 4 tonnes ofwasteforeverytonneofore.

600tonne dumptrucks

LumwanaCumineinZambiawillmine>20Mtpaoforeatan Lumwana Cu mine in Zambia will mine >20Mtpa of ore at an averageminestripratioof4.2:1overaminelifeof37years.

ConstructionofEscondidaincludedstripping180MTof wastejusttogettoorebody! t j tt tt b d !

Irreplaceable AndesEnvironment

Antamina Copper Mine 161Mt of waste CopperMine ofwaste movedinprestrippingduring2001alone!

Terrestrialmines@0.55%Cu e est a es @ 0 55% Cu Whydigup180tonnesofthe y g p Earthjusttoget1tonneof Copper? pp Isthisthewisest useoftheplanets environment?

DSM=MinimalWasteRock& MinimalTailings
Modernterrestrialopenpitmininghasveryhigh wastetoproductratio. E.g.Porphyrycopperdeposits(thelargestsourceof copperore)areaveraging0.55%Cuwhichmeans 99.45%isproducedastailings. e o e as e o go d e e eco e y a es ca Evenmorewasteforgoldwhererecoveryratescan beaslittleas510gramsofgoldpertonneofrock andoremined. Disposalofthiswaste(largevolumesandtoxic) generallyrecognisedasbiggestenvironmental generally recognised as biggest environmental threatposedbymining.

Tailings

DSM=LessOre,LessWaste&LessTailings
Seafloor Polymetallic Nodules N d l 43%MnO2, 1.3%Ni, 1.3% Ni, 1.1%Cu N/A N/A 4.6 N/A 54% 2.48 60 50 1,100 Lumwana Copper Mine Mi 0.74%Cu Ambatovy Nickel Mine Mi 1.04%Ni Eramet Manganese Mine Mi 43.10%Mn

Grade

Overburden StripRatio OreMined(Mtpa) WasteRock(Mtpa) Waste Rock (Mtpa) Tailings/Oreratio Tailings(Mtpa) NiProduct(ktpa) CuProduct(ktpa) Cu Product (ktpa) MnProduct(ktpa)

Yes 4.2:1 6.76 28.4 28 4 99% 6.69

Yes 1.33:1 5.77 7.67 7 67 99% 5.7 60

Yes 1:1 3.01 3.01 3 01 57% 1.71

54
14

50 1,100

Toobtain o obta equiv.metalfrom LandMining g 1,092Mtmined +271Mttailings g 20yrDeepSea 20 yr Deep Sea NoduleMine 92Mtmined+ 92Mt mined + 49.7Mttailings

Copper Grade G Ore per annum Overburden per annum

SMS 5%

Land ocut o cut 1%

4 mill tonnes 20 mill tonnes 0 60 mt (3:1 waste:ore) 80mtpa

Total tonnes 4mtpa per annum

TerrestrialCopperPorphyry=20xmoretonnage

Irreplaceable AndesEnvironment tensofmillionsofyearstoform. AftercopperisminedtheenvironmentwillNEVERreturntoprevious condition.Yet45%ofworldCucomesfromthisfragileAndes environment!

ThePeruvianAndesisfamous foritsuniqueandpristine f i i d i i cloudforests

RioBlancoporphyrycopperdeposit pristineregionoftheAndes mountainsontheborderofPeruandEcuador.Thisismerelyan explorationcamp,themountainwontexistaftermining!

RioBlancoopenpitmineoperatingat25Mtpafor20years= 500MILLIONTONNES removingawholemountain! @0.63%coppermeans>495MILLIONTONNESofWASTE! @ 0 63% 495 MILLION TONNES f WASTE!

Levellinga500Mtmountainjusttoget3.15Mtof Cu! Isthisthewisestwaytosourceourcopperwhen hundredsofmillionsoftonnesofCusitsonthe q p pp g seaflooranddoesnotrequireprestrippingor deforestation?

Mountainlevelledandreplacedwithhugewastepileandtailings stack.WithcopperremovedtheenvironmentwillNEVERreturnto stack With copper removed the environment will NEVER return to previouscondition.

PeruvianAndes

LosBroncesopenpitcoppermineinChileanAndes

Uniquemountains q continuetobelevelled onland24/7.This summitvanishedina i i h di day.Isthissustainable?

DSM=MinimalProductionInfrastructure

AmbatovyNickel,Madagascar 220kmorepipelinefrommineto processingplantthroughrainforest DSM=norail/road/pipelines

DSMprocessplantscanbeconstructedandoperatedinefficient andenvironmentallysoundlocationsasopposedtolandbased and environmentally sound locations as opposed to land based minesonsite oftencausingmassiveenvironmentaldevastation.

DSM=NoAcidMineDrainage DSM = No Acid Mine Drainage

Oneofthegreatestsourcesofpollutioncausedbyglobalmining isacidminewatersproducedbyexposingironsulfidestothe is acid mine waters produced by exposing iron sulfides to the atmosphere. Water contamination from mining poses one of the top three Watercontaminationfromminingposesoneofthetopthree ecologicalsecuritythreatsintheworld(USEPA). Incontrast,acidscannotbeproducedintheoceanbecause In contrast, acids cannot be produced in the ocean because seawaterisalkaline.

AMDatasulphiderichnickelandcopperoredeposit

DSMisSociallyAdvantageous DSM is Socially Advantageous

IncreasedWorkersafety Theoperationislargelyroboticandwillnotrequire operators'exposuretotypicallydangerousminingor "cuttingface"activities. LimitedSocialDisturbance ted Soc a stu ba ce Seafloorproductiondoesnotrequirethesocial displacementandtheresultingimpactoncultureor p g p disturbanceoftraditionallandscommontomany landbasedoperations. p

DSMissafer

Terrestrialminingoftenrequires minerstoworkinhazardous andunsafeconditionswith significantchemicalexposure

DSM:TheNew&SAFEMineFace

DSMBENEFITSTOPICs DSM BENEFITS TO PICs

IncreasedGDP Employment Training Training CapacityBuilding TechnologyTransfer T h l T f ForeignInvestment TaxRevenue/Royalties
Health&educationservicesetc.
withoutthenegativeimpactsgenerallyassociatedwiththeextractive industrysuchascommunitydislocationanddegradationofthenational environment.

OpportunityforPICstobecomeCopperProducers

PICs?

CookIslands/ Kiribati ?

HowcanPICsprovideaviableregulatoryframeworkto How can PICs provide a viable regulatory framework to encourageDSMinvestmentandachievethesepositive economic,socialandenvironmentaloutcomes? economic social and environmental outcomes?

Howmuchdoesitcosttobuildand operateaDeepSeaMine? t D S Mi ?

EconomicfeasibilityofDSMisyettobeproven Economic feasibility of DSM is yet to be proven CommercialtermsofRegulatoryRegimesmust g recognise: Uniquechallengesofstartinganewindustry pioneeringrisk economicand pioneering risk economic and technologicalrisksareVERYHIGH DSMisnotbankable High cost of capital Highcostofcapital Explorationcostsarehigherthanonland Industrymustdevelopnewtechnologies

PreludefloatingLNGplatform g p 488mlong $12billion $12 billi

SemiSubmersibles
$600Mbuyor$450kperdayhire

800

600

400

200

0 1 200 2 3 4 5 6 7 8 9 10 11 12 13

400

600

800

1000

1200

1400

VeryHigh UpFront &At Risk & AtRisk CAPEX

Dredgingindustrymoves2billiontonnes perannumoffseafloor