Slide 1: Browns Range Project Definitive Feasibility Study
For personal use only Browns Range Project Definitive Feasibility Study George Bauk Managing Director/CEO FEBRUARY | 2015 | ASX:NTU OUR VISION To become the first significant dysprosium producer outside of China
Slide 2: Important notice
Important notice This presentation has been prepared by Northern Minerals Limited (“Northern Minerals” or the “Company”. It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to
Slide 3: Northern Minerals
For personal use only Northern Minerals Listed ASX October, 2006 (ASX:NTU) Flagship project Browns Range WA Since July 2010 expenditure exceeds $75M From maiden drill hole to PFS in under 3 years Xenotime mineralisation - simple and HRE dominant Resource size only limited by funding Powering Technol
Slide 4: Browns Range rare earth distribution
Northern Minerals Browns Range Rare earth distribution ' Neodymium 55% ‘Cerium ans | Europium Praseodymium Lute [—wne [eer [us oO Holmium Samarium ane — Yiterbium Yttrium — 50.20% Gadolinium ——Dysprosium 8.79% 1 Based on Wolverine Mineral Resource Powering Technology. Rare earth oxide composition 2
Slide 5: For personal use only
For personal use only High $0.30* Low $0.115* Volume (m) Volume Share Price
Slide 6: Recent achievements
Recent achievements Definitive Feasibility Study complete Mineral Resource 56,663,000kg TREO increased partnership Jien Mining* announ Primary licence/approval *Subject to due diligence and shareholder approval Powering Technology.
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12-14% share of global NdFeB demand in 2020*° 15-20% annual growth in Dy demand to 2020° Transportation Renewable Energy l 1 J Permanent Magnets [ [a Pr Praseodymium Nd Neodymium Dysprosium Terbium 39 countrieshave introduced carbon pricing 5 million China’s target of hybrid & electric vehicles by 2
Slide 10: Rare earth supply chain
i Midstream k Downstream Oxide to Component End-use Separation metal manufacture § manufacture manufacture Refining/Recycling Produced at Browns Range High purity oxides (99-99.9%) Powering Technology.
Slide 11: The rare earth marketing landscape
For personal use on Still critical in energy intensive applications, despite efforts to find substitute materials 21% increase in the price of Dy in 2015 The rare earth marketing landscape Permanent magnet sector fastest growing accounting for an estimated 30% of end use market Chinese Government cl
Slide 12: For personal use only
For personal use only 26 29 13 28 66 66 39 Fe Iron Cu Al Aluminium Ni Nickel Tb Terbium Dy Dysprosium Y Yttrium Copper 65
Slide 13: $49.5M funding partnership Jien Mining
$49.5M funding partnership Jien Mining* @ Convertible note: conversion 25M shares at $0.20 total $5M ($3M received to date) Conglin Yue & Assoc 29.90% \ Jien Mining 33.10% @ Placement: ®@ 110M shares at $0.20 less conversion of convertible note ® TIOM options at exercise price of $0.25 expiring 1 ye
Slide 14: About Jien Mining
About Jien Mining ® Australian based subsidiary of Jilin Jien Nickel Industry Co Ltd Jilin Jien Nickel Industry Co Ltd ® Nonferrous metal production and processing, new energy material development and financial capital business operations @ One of the largest producers of nickel sulfate Listed on th
Slide 15: For personal use only
For personal use only net present internal rate of value1 return production in pre-production capital cost payback from commencement of operations 110% discount rate 2 Excludes royalty cost average annual operating free cash flow during operating cost2 full operation
Slide 16: DFS comparison
DFS comparison “OM Net present value $552M $106M A) 24% Operating cost (/kg TREO) $37.6 $22 © 6% Life of mine (LOM) 11.25yrs 15yrs @ 16% Total Dy produced LOM (Mkg) 3.13 0.44 A) 16% Total recovery 80.4% 2.1% A] 3.3% Pre-production capital $329M $15.7M fA)
Slide 17: Positioned for success
For personal use only Positioned for success Browns Range Project competitive advantage Exploration potential @ Large landholding 1,500km? 12% explored Current mineral Tesource 4,759,000kg dysprosium within 56,663,000kg TREO Mineralogy & production High grade Xenotime mineralisation Ease of processi
Slide 18: Supply, demand and revenue
Supply, demand and revenue Project’s production critical to global dysprosium supply from 2017 Forecast global supply for selected rare earth to 2020 incl. project production Dysprosium kg Terbium kg Yttrium kg Global Project Deficit NTU Global Project Deficit after NTU Global Project Deficit and be
Slide 19: For personal use only
Environment Indigenous employment | Government assessment & approval ~~) Developing local employment & : : : training strategy Extensive studies & surveys to inform project design Cultural awareness Ongoing employee support 2 ‘= Oe Ongoing rehabilitation & compliance @) reporting ) =) (or 2s — Wag ©
Slide 20: For personal use only
For personal use only TREO Dy2O3 Y2O3 Tb4O7 Ore kg kg kg kg Deposit Classification kg/t kg/t kg/t kg/t Tonnes contained contained contained contained TOTAL1 Probable 3,750,000 7.03 26,375,000 0.61 2,294,000 4.07 15,266,000 0.09 335,000 TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Deposit Category Mt % kg/t kg/t
Slide 21: Browns Range Dome
Browns Range Dome ae : ae aide The dome is a massive mf geological feature 2 en : =— covering 1,500km? ; and stretching 60km x 30km most of which hasn’t ; been effectively m= explored [| Norhom tinrais Granted Tenement Smtr Lease [__] Notthern Minerals Tenement Application © Norther Minerals RE Mine
Slide 22: For personal use only
A Production Bwoiverine Dcombit west Bcambit @ Areas Current Reserve 26,375,000kg TREO Reserves 2,294,000kg Domvit west Q@woverine Current Resource Dy | 4,759,000kg Deamvit areas 56,663,000kg TREO Resources! @ Banshee @crclops Havok Area 5 North Sabretooth eycloes Nignterawise Significant Drilling J
Slide 23: Extend mine life by increasing resources
Extend mine life by increasing resources OPEN.... Gambit, Gambit West and Area 5 open near surface and open at depth, ho drilling below 200m Powering Technology. NORTHERN MINERALS. NORTHERN MINERALS (leoking North) OPEN... Wolverine deposit open at depth and along strike, no drilling below 550m
Slide 24: Mining and development costs
Mining - UP Mining Development Costs -A$M Year 1 43.5 Year 2 13.0 Year 3 71 Year 4 19.1 Year 5 20.5 Year 6 81 Year 7 5.6 Year 8 41 Total 131.0 585,000tpa 0.66% TREO, pen pit and Powering Technology. Beneficiation plant 16,700tpa mineral concentrate @ 20% TREO 279,000kg Dy within 3,098,000kg TREO, in
Slide 25: Process flowsheet
For personal use only Mining and PLS “yy MINING ¥ : ] [———— BENEFICIATION production Sr Gas 7 Magnetic process flowsheet re) iN J Separation Flotation — _ ROM Ore Vows » | a4 .e) —_> oD crusting came? 1) BLE) Tails Fittation (UID) | t 4o.\ Mit 1 Tings Storage concanat Gas ¥ -acility $ $ $ H,SO, NORT
Slide 26: Ancillary infrastructure
Ancillary infrastructure Accommodation village 276 people 2.0km airstrip Diesel generators and distribution Groundwater supply and distribution Consumable and reagent storage facilities Road transport via Halls Creek to/from Wyndham Port Plant infrastructure @ Above ground tailings storage facility
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Slide 28: Pathway to production
Pathway to production 2016 2017 2015 Complete Environmental approvals & licences Primary Mining lease & land access Subordinate > aol 3 wn 24> pz Ev: 5 = £3 a4 2 22s Seu a2 €2 0 B32 a9 2 » & £ 22 % = 2 aaa Project funding Offtake » 3 Fo a 2 £2 52 S28 gases os oc Seta g Bes S28 2sEoE 256 5 aoe £ 3 ge
Slide 29: Browns Range: the next Dy mine
Browns Range: the next Dy mine Dysprosium —Lanthanum __ 1.0% Cerium 2.7% Praseodymium 0.4% Neodymium 2.3% Samarium 2.0% — Holmium S— erbium 5.5% ——— Thulium 0.8% Ytterbium 4.5% Lutetium 0.6% \— Yetrium 61.7% Average LOM TREO distribution Powering Technology. Definitive Feasibility Study rua 5 $49.5M
Slide 30: Appendices
For personal use only APPENDICES N NORTHERN MINER. ALS
Slide 31: Pre-production capital cost estimate
Pre-production capital cost estimate Cost Area Mine Beneficiation Plant Hydrometallurgical Plant Plant Infrastructure Non-process Infrastructure Direct Costs Sub-Total Indirect Costs Contingency Total Project Pre-Production Capital Powering Technology. A$M $13. $56.3 $48.7 $55 $62 $242.7 $57.8 $28.9
Slide 32: Previous capital comparison
Previous capital comparison Increased by $15.7M or 5%: $340 $8.3M -$2.7M . . $329.4M @ Earlier targeted production: se som commencement of the Wolverine $320 er decline g $310 ® Additional $20M NPV from & $500 improved hydromet recoveries $290 88% to 93%: increased soso hydrometallurgical plant equi
Slide 33: Operating costs by expense area
Operating costs by expense area (585,000tpa plant throughput) Average operating cost by A$M/a A$/kg A$/kg % expense area over LOM Dy,O, TREO Mining (average over LOM) SST 122.0 10.9 29.0% nngenoeee eel 249 903 81 21.4% Power 148 5a7 48 12.8% Reagents & consumables 30.4 N01 98 26.2% Maintenance Teh 2
Slide 34: Previous OPEX comparison
Previous OPEX comparison Reduced by average of $6.2M pa or $2.20/kg TREO @ Improved accuracy: general an administration costs @ Reduction reagent consumption and reagent costs: based on pilot plant results and formal supplier quotes @® Reduced diesel price: reducing site power costs Average LOM oper
Slide 35: Probable Ore Reserve
Probable Ore Reserve REO Dy,O ee) ) Depo a atio Ore g g g g g g g g OPEN PIT Wolverine Probable 833,000 615 5,124,000 | 055 460,000} 0.08 66,000 | 3.59 2,989,000 Gambit West Probable 219,000 | 10.10 2,212,000 | 0.83 182,000 on 25,000 | 5.52 1,209,000 Gambit Probable 37,000 | 8.05 298,000 | 0.68 25,0
Slide 36: Mineral Resource Estimate
Mineral Resource Estimate | Deposit | category] me | TO | Bes | 20s | tbe | MRO | MEO | Dyes Indicated 2.99 0.83 0.73 4.86 on 24,952,000 2,183,000 Wolverine Inferred 1.97 0.89 0.76 5.13 on oe 17,609,000 1,497,000 Total! 4.97 0.86 0.74 4.97 on 89 42,560,000 3,678,000 Gambi Indicated 0.27 1.26 1.07 7.
Slide 37: Distribution of feed type and source
Distribution of feed type and source ® Ore Reserve underpins approx. seven years of production ® Total mined LOM 6,408,000 tones Powering Technology. Distribution of feed type and source - TREO delivered to mill Banshee OP Area 5 OP 7 Gambit OP Nolverine UG YY Wolverine OP —“@ Area SOP — Gambit OP G
Slide 38: Notes and definitions
For personal use only Figures may not add due to rounding Based on LOM of 11.3 years. TREO = Total Rare Earth Oxides- Total of Dy2O3,La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 By-product Oxides- Total of La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, G