Odyssey Marine Exploration Inc (OMEX)

[ChuckD-MSB]

Odyssey Update: Chatham Rock Phosphate News
Late yesterday afternoon, Odyssey learned that the New Zealand Environmental Protection Authority (EPA) rejected the Chatham Rock Phosphate (CRP) application seeking permission to mine phosphate from the Chatham Rise off New Zealand. The CRP deposit and the Don Diego deposit in Mexico have entirely different characteristics including the grade and geology of the respective deposits, as well as differences in the environmental and ecological settings of the prospective mining areas and the potential environmental impacts of the two projects are dramatically different.

Odyssey remains extremely confident in the extensive ground-breaking scientific analysis, fieldwork and conclusions contained in the Don Diego environmental impact statement, but as Mark Gordon stated in the November conference call, "The potential size, quality, and strategic significance of this resource . . . has drawn the interest of strategic investors who understand the phosphate industry and the significance of this deposit to the Mexican economy." The statement from the November call remains relevant and Odyssey expects to provide an update shortly.

The environmental impact statement analysis (EIA) in Mexico is progressing and Odyssey expects that documentation addressing the current iteration of the review process overseen by the Mexican government's SEMARNAT[Secretariat of Environment and Natural Resources]to be filed in line with government requirements. The Don Diego scientific team has taken exceptional care to address the questions raised by SEMARNAT and the environmental community, and we believe that the EIA is the most comprehensive and detailed study of its kind every completed for an ocean mineral project.

As stated, differences between the proposed Chatham Rock Phosphate and Don Diego projects exist. Key differences include:

Water Depth: The Don Diego deposit exists at an approximate water depth of 80 meters while the CRP deposit lies up to 250- 450 meters water depth. The decision to refuse the application cited that this project would be the first seabed mining project undertaken at these depths anywhere in the world. The use of the proposed dredging technology in waters up to 450 meters depth is untried; therefore management techniques proposed to minimize environmental impacts for the Chatham project are untested.

In contrast, the depth of the Don Diego deposit means the phosphate can be extracted with existing, proven dredging technology. Its impacts have been widely studied and carried out for many years in coastal waters, including Mexico.

Concentration of Deposit and Footprint of Operational Impact: The CRP deposit averages less than 1 meter thickness. The Don Diego deposit averages ~3 meters thickness with many areas shown to be of greater thickness. As such, a fraction of seabed surface area needs to be disturbed to recover the phosphate in the Don Diego as compared to the CRP proposal. (The CRP application proposed to mine 30 km2 per year anticipating that the initial 15 years an area of 450 km2 would be mined. Over 35 years a total mined area of 1050km2 was envisioned. The Don Diego application calls for dredging in an area smaller than 2 km2 per year.

Benthic Population: The CRP deposit is an area considered an important nursery for the fishing industry. In denying CRP's application, the EPA stated that mining would be largely occurring in an area where the seabed is currently protected from trawling and dredging by the Mid Chatham Rise Benthic Protection area. The CRP proposal included areas of seabed that had been specifically set aside as conservation areas to protect the benthic communities from extensive damage that had occurred elsewhere in the area from the use of heavy bottom gear from trawling. The EPA also stated the project would destroy "rare and vulnerable ecosystems" including communities dominated by the protected stony corals (a species potentially unique to the Chatham Rise) while also causing "permanent and adverse effects" to the nearby marine ecosystem.

In contrast, extensive surveys and environmental tests of the Don Diego area show remarkably low biodiversity in the proposed dredging zone and are not known to be a nursery ground for commercial fish species. In addition, the ecosystem components are not unique in the region of the project as the seabed deposits at the Don Diego site do not support any species which are not represented in greater abundance in the surrounding areas of the Bay of Ulloa.

The comparatively small seabed surface area to be dredged each year combined with the rapid re-colonization and recovery of biologic communities in benthic settings similar to the Don Diego site indicate minimal or no permanent impacts will result from the project. Extensive sound propagation modeling and sediment dispersion models, demonstrate little or no anticipated impact and toxicology testing conducted with Don Diego geologic samples demonstrated no impact to the biological community of the proposed Don Diego project site as a result of project activities.

Economic Impact and Government: The New Zealand EPA concluded that the economic benefit to the nation from the proposed project would be "modest at best". The economic and strategic benefit to Mexico from the Don Diego project is significant, potentially allowing Mexico to halt foreign phosphate dependence while transforming into a phosphate-exporting nation. The resource tonnage of CRP of ~25 million ore tonnes represents a small fraction (<10%) of the total ore tonnage from Don Diego

It is interesting to note that the report issued by the New Zealand EPA stated that "given their highly mobile behavior, it was unlikely they would sustain any significant direct, physiological impacts even with frequent encounters" in reference to noise effects on ten internationally or nationally threatened marine mammals sighted in the proposed area. It was also reported that "suspended sediment plumes of concentrations predicted are unlikely to cause impacts on whales and that in any case, plumes could be easily avoided" and "it was unlikely collisions or harmful interaction with a cetacean would occur."

For more information, please visit the Don Diego project website at:
http://www.dondiego.mx


Cautionary Note to U.S. Investors

The U.S. Securities and Exchange Commission (SEC) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this press release, such as "ore" "measured" "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit us from including in our filings with the SEC. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically or legally mineable, and urged to consider closely the disclosures in the our Form 10-K which may be secured from us or from the SEC's website at http://www.sec.gov/edgar.shtml.

Forward Looking Information

Odyssey Marine Exploration believes the information set forth in this email may include "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the Securities and Exchange Commission on March 17, 2014. The financial and operating projections as well as estimates of mining assets are based solely on the assumptions developed by Odyssey that it believes are reasonable based upon information available to Odyssey as of the date of this release. All projections and estimates are subject to material uncertainties, and should not be viewed as a prediction or an assurance of actual
future performance. The validity and accuracy of Odyssey's projections will depend upon unpredictable future events, many of which are beyond Odyssey's control and, accordingly, no assurance can be given that Odyssey's assumptions will prove true or that its projected results will be achieved.