Neptune makes strategic applications in Japan and PNG

Neptune Minerals Plc, the AIM listed explorer and developer of Seafloor Massive Sulphide ("SMS" deposits), announces that it has lodged 133 Prospecting Licence Applications, covering 9 areas highly prospective for SMS. All are within the territorial waters of Japan, and cover known sulphide mineralisation.

The applications were lodged by wholly-owned subsidiary, Neptune Minerals Japan Kabushiki Kaisha and made pursuant to the Japan Mining Act. A location map is available on the Company's website.

The application areas cover seafloor features extensively researched by Japanese and foreign institutions, including the Japan Agency for Marine-Earth Science and Technology (JAMSTEC) and the Japan Oil, Gas and Metal National Corporation (JOGMEC). This research has outlined numerous SMS deposits including Sunrise, which has been estimated by Japanese workers to contain SMS accumulations over an area of 400m x 400m with mound accumulations up to 30m thick.

Okinawa Trough

32 applications totalling 110km² were lodged in the Okinawa Trough, a back-arc basin stretching from Kyushu SW towards Taiwan, covering 3 highly prospective aras between 150-200km north and northwest of the island of Okinawa. Included in Nepune's application areas is the JADE hydrothermal field, where continuing research since its discovery in 1998 has highlighted extensive occurrences of SMS mineralisation over an area of 1,800m x 600m. Neptune's applications also cover the Minami-Ensei Knoll and Iheya North areas, both of which contain known SMS mineralisation.

Izu-Bonin Arc

101 applications totalling 348km² were lodged in the Izu-Bonin Arc, an island arc and associated back-arc basin stretching some 1000km southeast of Tokyo towards the Marianas Islands. Neptune's applications cover 6 highly prospective areas, including the Hakureui hydrothermal field, discovered by the Japanese researchers in 2003 approximately 500km south-southeast of Tokyo. Subsequent research has delineated a complex of sulphide mounds and chimneys covering an area of 700m x 500m, at a water depth of around 900m. Neptune's applications also cover the Myojin and Myojinsho Knolls, and the Suiyo and Kaikata Seamounts, all of which contain known SMS mineralisation.

Papua New Guinea

Neptune further announces that it has lodged five Exploration Licence Applications (ELAs) within the territorial waters of Papua New Guinea (PNG). The applications (ELA 1554 - ELA 1558) covering a total of 12,850 km², were lodged by wholly-owned subsidiary Neptune Minerals (PNG) Limited and were made pursuant to the PNG Mining Act. A location map is available on the Company's Website.

The applications cover prospective seamounts and other structural features that surround - and are submerged parts of - the island groups comprising the Tabar-Feni Arc. Numerous epithermal gold occurrences are known on these islands, including the Ladolam Deposit on Lihir Island (43Moz contained gold and currently producing at 650Koz gold per year) and the 2.4Moz Simberi gold deposit on the Tabar Island Group where gold production is due to begin in late 2007.

The target is high-grade epithermal gold mineralisation similar to that sampled and drilled by joint British and German cruises on Conical Seamount south of Lihir Island, and covered by Neptune's earlier ELA 1425. Previous research grab sampling at the summit in 1999 and 2002 recovered distinctive epithermal-style polymetallic veins with gold grades reaching 231g/t Au, averaging 25gt Au from 40 samples.

Research drilling at the summit plateau of Conical Seamount in 2002 (39 holes, 31% average recovery) confirmed the sub-seafloor extent of gold mineralisation and associated alteration depths of at least 4.5m. Drill core samples of clay-silica alteration contain average gold grades up to 14.2g/t Au over a length of about 30cm and appear to be part of a more extensive gold zone.

Dr Simon McDonald, Neptune's Chief Executive Officer, said:

"Neptune is pleased to have developed a good working relationship with Japan's Ministry for Economy, Trade and Industry (METI), the body responsible for granting and administering mineral exploration licences, and looks forward to continuing to build on that relationship as our licence applications progress towards granting through Japan's logical and transparent process. These applications are an important addition to Neptune's strategic portfolio.

"We are also pleased to have added prospective acreage to our Tabar-Feni Arc offshore gold project in PNG. When these licences are granted the search for Lihir-style mineralisation, such as that found at Conical Seamount, will form a significant and unique parallel stream in Neptune's development strategy.

"Furthermore, planning for the Company's Kermadec 07 exploration program in New Zealand continues and Neptune is on track to have the Geo Subsea vessel "Geosounder" on charter in March and on station in April 2007."

END

Note: The information in this announcement that relates to geology and drilling samples has been prepared and reviewed by Dr Simon McDonald, who is a competent person as described in Part two of the AIM Guidance Notes for Mining and Oil and Gas Companies.

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