Northern Minerals Limited · ASX:NTU
Northern Minerals — Magnetics Conference 2015
24 slides from Northern Minerals's conference presentation, Jan 21, 2015
Slide 1: Securing a sustainable dysprosium supply for the ROW
For personal use only Securing a sustainable dysprosium supply for the ROW George Bauk Managing Director/CEO MAGNETICS CONFERENCE, ORLANDO, USA OUR VISION 21-22 JANUARY | 2015 | ASX:NTU 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: Changing production profile of rare earths
Changing production profile of rare earths 140 GLOBAL PRODUCTION 1307 OF RARE EARTH OXIDES 120 1950 - 2013 no 100 1950 1960 : 1970 1980 : 1990 2000 : 2013 MONAZITE-PLACER ERA MOUNTAIN PASS ERA ; : : CHINESE ERA } EXPORT QUOTA ERA >¢ : ¢ >¢ > Powering Technology.
Slide 4: HRE Project vs LRE Project rare earth distribution
HRE Project Northern Minerals - Browns Range RE distribution* Neodymium 55% ‘Cerium Lanthanum. brs 0.48% Praseodymium 0.58% 060% || / 074% Terbium 132% Samarium Gadolinium 57% ——Dysprosium 8.79% “Based on Wolverine Mineral Resource Powering Technology. LRE Project Molycorp - Mountain Pass REO compos
Slide 5: Permanent magnets and rare earth applications
15-20% 12-14% 6-10% For personal use only MRI Transportation Renewable Energy Technology Permanent Magnets 66 65 60 59 Dy Tb Nd Pr Dysprosium Terbium Neodymium Praseodymium Global Sustainability 5 million Kyoto Protocol 39
Slide 6: Substitution and reduction in magnet market
Substitution and reduction in magnet market ze Pa fi u Powering Technology. a
Slide 7: Current status of the USA
For personal use only Current status of the USA Molycorp @ Mountain Pass commissioning @ Mine to magnet Innovation Metals ® DOD solvent extraction testwork Current USA separating initiatives ® Accelerated solvent extraction ® Continuous ion exchange ® Chromatographic systems ® Electrolytic separatio
Slide 8: USA - Critical Minerals Strategy
USA - Critical Minerals Strategy Diversifying Developing Promoting THREE global supply material and recycling, reuse STRATEGIC chains to technology and more efficient mitigate substitutes use to lower global PILLARS supply risk demand Source: US Department of Energy Powering Technology. a
Slide 9: Mine to magnet supply chain
Mine to magnet supply chain J Midstream k Downstream Oxide to Component End-use Separation metal manufacture § manufacture manufacture Refining/Recycling High purity oxides (99-99.9%) Powering Technology.
Slide 10: Reasons for lack of ROW supply
Reasons for lack of ROW supply ® No viable source of heavy rare earths available to date Northern Minerals: a new secure supplier ® Capital intensive nature of RE development of dysprosium @ Requires development of entire supply chain ® Complexity of project delivery @ Opaque market - demand, price
Slide 11: USA - China's 2nd largest customer
USA - China’s 2" largest customer China’s rare earth export destinations April 2014 United States 14% Vietnam 13% Thailand 3% South Korea 3% For personal use only Source: Argus Metal Pages, June 2014 Powering Technology. Total Global REO consumption by region 2013 United States Europe 4% Japan 14% C
Slide 12: Chinese HRE exports
Chinese HRE exports ® Export price premium $3,000 60% an on om consistently above 25% sso i Wo Kt : — oe interim export duty rate ‘ ful z Bae ey as vo” ee mt ® Over past 4 years 2 wi coma) 8 mi dysprosium export prices fas ut nd have attracted a 60% : \ H 7 i premium = ' pom i am ® National buying c
Slide 13: HRE landscape
HRE landscape Effectiveness of [ 1 Likely to always substitution or HRE enhance performance complete elimination L for those nations that can access them Ultimately market fundamentals will drive future long Uncertainty of supply is impacting growth term growth Powering Technology. a
Slide 14: Northern Minerals - ahead of the pack
Northern Minerals - ahead of the pack Shovel ready primary permits granted Simple mineralogy xenotime mineralisation Competitive New HRE CAPEX supply pre-production outside of China all primary government permits in place Powering Technology. rich in dysprosium, current mineral resource supports a 1
Slide 15: Northern Minerals
Northern Minerals Listed ASX October, 2006 (ASX:NTU) Flagship project Browns Range WA, 100% owned Since July 2010 expenditure exceeds $75M From maiden drill hole to PFS in under 3 years Powering Technology.
Slide 16: For personal use only
For personal use only High $0.30* (closing) Low $0.115* (closing) Volume Period average volume Share price
Slide 17: Browns Range Project
Browns Range Project ® 100% ownership One of highest grade dysprosium projects in the world ®@ Greenfields discovery 2010 to 52,372,000kg JORC compliant resource Two stages of processing located on site Production: 279,000kg dysprosium, contained within 3,200,000kg per annum ey ; of high purity mixe
Slide 18: Mining and production process
Mining and production process @®- 2 1D Q-O-F = y ‘e) 2 ” Open Pit & Xenotime . Grinding Magnetic Flotation (@) Underground Ore Crushing Separation i 2 LL minine | a BENEFICIATION di | j @ ( J = an I | s) | u ” ee ATITIN i i Stored Mineral iS | oy A Tailings Concentrate ror Purification v — / (S) FEE
Slide 19: Environment, community and indigenous employment
Environment Indigenous Employment > Government assessment & approval > Developing local employment & training strategy For personal use only > Extensive studies & surveys to inform project design > Cultural awareness > Ongoing rehabilitation & > Ongoing employee support compliance reporting Communit
Slide 20: 10% discount rate
For personal use only 110% discount rate
Slide 21: For personal use only
For personal use only • • • • • • • • • • • • • • •
Slide 22: Pathway to production
Pathway to production Specialist engineers and consultants 2015 2016 contributing to the Definitive Feasibility Study ADRA accenture High performance. Delivered. Project Approvals \ 1 1 ' \ 1 ' 1 \ 1 1 \ 1 \ 1 i i 1 \ 1 \ 1 1 \ 1 Definitive Feasibility Study Hi H H i i 1 \ 1 ' 1 Project Funding i H
Slide 23: Browns Range: an opportunity to secure Dy supply
Browns Range: an opportunity to secure Dy supply Definitive Feasibility Study Fe ry 2015 Offtake and Funding Discussions ongoing Exploration Only limited by funding Powering Technology.
Slide 24: Northern Minerals: an integral part of the magnet supply chain
Northern Minerals: an integral part of the magnet supply chain If you would like to discuss the opportunities, contact us: E: info@northernminerals.com.au P: +618 9481 2344 W: northernminerals.com.au Typical landscape Browns Range Project Powering Technology. a A,