Kermadec 07

Neptune Minerals announces that the Kermadec 07 exploration program has been completed and that it has discovered a second inactive SMS zone on the Rumble II West seamount in the Company's prospecting licence PL39-195. Neptune intends to lodge its first Mining Licence Application (MLA) to the New Zealand Goverment over these inactive SMS zones.

The newly discovered SMS zone is located several hundred metres south of the previously announced SMS discovery on Rumble II West. Geophysical and video seafloor mapping activities defined a zone of relict sulphide "chimneys" up to 4m high with no indications of hydrothermal activity and with biota commonly found on rocky seafloors at similar depths.

Significant samples could not be gathered from the Rumble II West SMS zones due to mechanical difficulties, which were unable to be rectified within the bounds of the program. Kermadec 07 has been completed within budget despite significant delays due to the extreme weather conditions which undermined equipment performance levels.

Marine biologists from New Zealand's National Institute of Water and Atmospheric Research (NIWA) (www.niwa.co.nz) monitored the exploration operations and will provide an independent report on baseline enviromental conditions and likely impact assessment of exploration activities.

Colville-Monowai 07

Neptune also announces that operations on Colville-Monowai 07 are progressing as planned. More than 20,000 km² of ship-mounted multi-beam bathymetry ("swath") mapping has been completed over Neptune's prospecting licence PL39-194 (Monowai). The specialised survey vessel RV Tangaroa, owned and operated ny NIWA, currently acquiring swath data over Neptune's PL39-205 (Colville). Colville-Monowai 07 will conclude on August 28 with the return to port RV Tangaroa.

Future Exploration - Project Trident

Neptune has entered into negotiations with prominent marine survey contractors who have expressed interest in tendering for Neptune's future exploration program, to be known as "Project Trident". It is intended, subject to funding, that the Trident will involve the chartering of a suitable exploration vessel equipped with specialised mapping and sampling tools to conduct continuous exploration for an initial 2-year period.

Trident will be focused initially on Neptune's New Zealand tenements, conducting detailed following up on the numerous targets outlined during the Kermadec 2007 and Colville-Monowai 2007 exploration programs, with operations scheduled to commence in 2008.

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

"We are delighted to have located and defined, during Kermadec 07, inactive SMS zones which will form the basis for Neptune's first MLA in New Zealand. This is a significant step forward for Neptune to meet its goal of commercial SMS production.

"Neptune is pleased with the relationship that developed with Geosubsea (now DOF Subsea) throughout Kermadec 07 and I commend the Geosubsea and Neptune staff who undertook the program. It is regretted that Kermadec 07 was delayed and equipment performance was hampered by weather conditions which limited the envisaged sampling program.

"The preliminary swath images from Colville-Monowai 07 shows that there are numerous previously unknown SMS targets which will need to be defined in further work. The prospectivity of Neptune's Monowai and Colville areas has been tremendously enchanced by the program.

"The rationale for the Project Trident is to establish an exploration vessel in New Zealand waters for an extended program:  this will significantly limit the impact of problems associated with short-term "spot charters" and will allow an intensive and ongoing exploration effort to be maintained and will accelerate the process of identifying and defining SMS areas in which to make Mining Licence Applications."

For further information please contact:

Simon McDonald (Neptune MD and CEO):                                                    This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Olly Cairns (Blue Oar Securities Plc, Nomad and Broker):                         T:+44 (0) 20 7448 4400

Sofia Rehman (Cardew Group, PR):                                                               T:+44 (0) 20 7930 0777

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