Slide 1: Strengthening our World: 2nd Quarter Update
Strengthening our World 2nd Quarter Update 2015 April 22, 2015 TSX: NB; OTCQX: NIOBF & FSE: BR3
Slide 2: Disclaimers
Disclaimers This presentation contains forward looking statements. These statements include, but are not limited to, statements with respect to the completion of Resource Estimates, Preliminary Economic Assessment, Feasibility Studies, and management’s expectation that the results of these studies w
Slide 3: Agenda
Agenda Executive Summary Our Products & Target Markets The Unique Elk Creek Resource Path for Growth Investment Thesis 3
Slide 4: NioCorp At A Glance
NioCorp At A Glance Company Description Enterprise Value Calculation TSX-listed mineral exploration and development (CAD$, figures in 000’s, except per share data) company focused on the Elk Creek Nb/Sc/Ti project in Share Price as of 16-Nov-2015 $0.60 southeastern Nebraska. Basic Shares Outstandi
Slide 5: Compelling Investment Thesis
Compelling Investment Thesis Elk Creek is the Elk Creek is the highest grade primary Niobium resource in North America, one of the largest in the Premier world, and the only niobium resource under development in the U.S. Niobium Project The project includes valuable co-product scandium trioxide
Slide 6: Strong Management Team
Strong Management Team Mark A. Smith NealShah Neal Shah Executive Chairman, President and Chief Executive Officer Interim Chief Financial Officer Former President and CEO of Molycorp and Chevron 20 years of experience with Molycorp, Intel, Boeing Mining Inc. and IBM. Served on the board of Com
Slide 7: Top-Tier Development Partners
Top-Tier Development Partners 7
Slide 8: Powerful External Project Support
Powerful External Project Support Offtake agreement signed with ThyssenKrupp Metallurgical Products GmbH for ~50% of the project’s planned Ferroniobium production for an initial ten-year term. Project has received in-principle eligibility approval for a loan guarantee from the German Government’
Slide 9: Agenda
Agenda Executive Summary Our Products & Target Markets The Unique Elk Creek Resource Path for Growth Investment Thesis 9
Slide 10: Our Products Are Vital to Multiple Industries
Our Products Are Vital to Multiple Industries Ferroniobium (FeNb) Scandium Trioxide (Sc2O3) Titanium Dioxide (TiO2) Primary Product Co-Product By-Product Essential for the Scandium is used • Titanium is used in steel industry and in environmentally the manufacture super alloys for preferred soli
Slide 11: Niobium Makes Steel Stronger & Lighter
Niobium Makes Steel Stronger & Lighter High Strength, Low Alloy Steel (“HSLA”) Ferroniobium helps make stronger and lighter-weight HSLA steel, which allows for the construction of lighter and less costly structures. Ferrovanadium is the closest potential substitute, but requires double the amoun
Slide 12: Niobium Makes Steel Stronger & Lighter
Niobium Makes Steel Stronger & Lighter Oil and Gas Pipelines: 16% HSLA with ferroniobium gives pipelines superior ability to withstand increased pressure and volumes over greater distances. Shipbuilding: 6% HSLA with ferroniobium allows for lighter ships and lower fuel consumption, as well as st
Slide 13: NioCorp Will Increase the Diversity of Global Niobium Supply
NioCorp Will Increase the Diversity of Global Niobium Supply CBMM Niobium Market Share by Producer 70% privately held company / 30% owned by various investors via purchases in 2012. 6% US$13.3 billion implied enterprise value in 2012. 8% Niobec Inc. (“Niobec”) Reported mine production of 5,200
Slide 14: Ferroniobium Product Pricing is Stable
Ferroniobium Product Pricing is Stable In early 2012, a 30% interest in CBMM was sold in two transactions to Japanese/South Korean and Chinese consortiums for a combined sale price of USD $3.95 billion. Market prices for FeNb have been relatively stable since that time. 14
Slide 15: Scandium's Important Role in Clean Energy
Scandium’s Important Role in Clean Energy • Solid Oxide Fuel Cells (SOFC) are environmentally preferred because they generate electricity with high efficiency, fewer greenhouse gases and other pollutants, less water use, a small footprint, and greatly enhanced reliability (99.99%+ uptime) • The elec
Slide 16: Scandium Can Deliver Huge Value To Commercial Aviation
Scandium Can Deliver Huge Value To Commercial Aviation • Scandium strengthens aluminum. It provides up to a 100% improvement, allowing for lighter products. This can deliver up to a 20% weight reduction in aircraft, with comparable benefits in reduced fuel burn – a huge value. • Scandium allows for
Slide 17: Scandium Broadens the Range of Markets for Aluminum
Scandium Broadens the Range of Markets for Aluminum Conventional aluminum alloys suffer surface pitting, inter-granular corrosion, and failure in salt-rich conditions. Limits current market applications for aluminum Key safety issue in a range of markets Considered to be a factor in the 1988 A
Slide 18: Scandium Trioxide Pricing Models
Scandium Trioxide Pricing Models Scandium Trioxide Pricing Outlook (US$/kg) 2015 - 2023 Chart Courtesy of OnG Commodities LLC Estimates and Analysis 18
Slide 19: Agenda
Agenda Executive Summary Our Products & Target Markets The Unique Elk Creek Resource Path for Growth Investment Thesis 19
Slide 20: Advancing The Elk Creek Resource
Advancing The Elk Creek Resource Development Overview 2014/2015 Drilling: 18,736 meters Integrated drilling program completed between May 2014 and July 2015: - Resource: 12,710 meters - Metallurgy: 2,673 meters Approximate outline - Hydrogeology: 2,532 meters of deposit known to - Geotechnical: 82
Slide 21: The Elk Creek Resource
The Elk Creek Resource Tonnage Contained Contained Contained (‘000 Grade Nb2O5 Grade TiO2 Grade Sc2O3 Classification Tonnes) (Nb2O5%) (‘000 kg) (TiO2%) (‘000 kg) (Sc g/t) (‘000 kg) NI 43-101 80,500 0.71 572,000 2.68 2,160,000 72 8,900 Indicated NI 43-101 99,600 0.56 558,000 2.13 2,300,000 63 9,600 I
Slide 22: Extracting Value from the Resource
Extracting Value from the Resource Tonnage Contained Contained Contained (‘000 Grade Nb2O5 Grade TiO2 Grade Sc2O3 Classification Tonnes) (Nb2O5%) (‘000 kg) (TiO2%) (‘000 kg) (Sc g/t) (‘000 kg) May 2015 48,400 0.82 378,000 2.90 1,339,000 68 4,900 PEA Mine Plan October 2015 31,100 0.80 248,800 2.84 88
Slide 23: 3D Model of the Resource at Elk Creek
3D Model of the Resource at Elk Creek 3D Views Looking Northeast of Selected Grade Shells Please see the description of NI 43-101 “Qualified Persons” at the end of the presentation. 23
Slide 24: Extensive Metallurgical Development
Extensive Metallurgical Development 6 Labs | >1,000 bench tests | 8 Pilot Plants Niobium Precipitation Test at SGS Solvent Extraction Pilot Plant at SGS Lakefield, 2014 Lakefield, 2015 In-Spec Ferroniobium Product Sample, Produced August 2015 in KPM labs 24
Slide 25: Creating Value: Process Flowsheet
Creating Value: Process Flowsheet Ore Residue NaOH Crushing and Acid Bake and Niobium Phosphorous Grinding Water Leach Precipitation Removal H2SO4 HCl Iron Titanium Pyromet Slag Leach Reduction Precipitation Iron TiO2 Ferroniobium Scandium Scandium Neutralization SX (HCl) SX (H2SO4) Lime Tails HCl K
Slide 26: Agenda
Agenda Executive Summary Our Products & Target Markets The Unique Elk Creek Resource Path for Growth Investment Thesis 26
Slide 27: PEA (Oct. 2015) Economic Model Results
PEA (Oct. 2015) Economic Model Results Economic Results Scandium Pricing - Sensitivity Analysis (calculated using an 8% discount rate) Sc Base Case Sc Slow Aerospace (US$ M) Uptake (US$ M) Pre-tax NPV of US$3.07 billion Initial Capital $979 $979 After-tax NPV of US$2.30 billion Before Tax NPV $3
Slide 28: We're Making Good Progress Against Goals
We’re Making Good Progress Against Goals Q1 – Q2 2015 Status Complete hydrometallurgical mini-pilot Complete preliminary pyrometallurgical test and produce ferroniobium Initiate full flotation pilot Initiate full hydrometallurgical pilot Issue formal PEA report Q2 – Q4 2015 Com
Slide 29: Agenda
Agenda Executive Summary Our Products & Target Markets The Unique Elk Creek Resource Path for Growth Investment Thesis 29
Slide 30: Our Project Has Robust Economic Merit
Our Project Has Robust Economic Merit Growing Demand, Favorable Competitive Healthy Growth, High IRR Potential, and Landscape, and Strong Local Support Make Strong Cash Flow Make NioCorp NioCorp Stand Out a Great Investment Growing end use demand across diversified Excellent growth opportunity,
Slide 31: Technical Reports and NI 43-101 Qualified Persons
Technical Reports and NI 43-101 Qualified Persons This presentation contains information taken from the following reports: • Technical report dated November 3, 2014, titled “NI 43-101 Technical Report on Resources – Elk Creek Niobium Project - Nebraska”, prepared by SRK Consulting (U.S.), Inc., file