Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (May 2015)
38 slides from Northern Minerals's investor presentation, May 1, 2015
Slide 1: Investor Presentation
For personal use only Investor Presentation George Bauk Managing Director/CEO MAY | 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: Browns Range Project: first significant dysprosium producer outside China
Das best in class the Browns Range Oo Project is positioned to be the . . age i ” first significant world producer of dysprosium outside of China. @ NORTHERN ec f ; TERRITORY © The Project will deliver dysprosium and other e = heavy rare earths that are Vital in ~ powering clean energy technology Cu
Slide 4: 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: Share price range
For personal use only Low $0.115 High $0.30
Slide 6: $49.5M funding partnership Jien Mining
$49.5M funding partnership Jien Mining* NTU shareholder base @ $5M received from convertible note. } : following transaction @ Placement of 110M shares at $0.20 (less conversion of convertible note) and 110M options at exercise price of Conglin Yue & Jien Mining $0.25 expiring one year after date of
Slide 7: Our values
Our values ‘SPIRIT’ Our people are an Retention of ET . . integral part of our value SAFETY intelligence from oroposition IPO to DFS TEAMS [ay j= PEOPLE NORTHERN MINERALS INITIATIVE INTEGRITY A winning team Respect and underpinned by our engage with all core values RESULTS our Stakeholders
Slide 8: For personal use only
For personal use only • • • • • • • • • •
Slide 9: Rare earth end uses
17% 14% 7.8% For personal use only MRI Magnets 66 65 60 59 Dy Tb Nd Pr Terbium Praseodymium Global Sustainability 5 million Kyoto Protocol 39
Slide 10: The rare earth marketing landscape
The rare earth marketing landscape use On| © Project’s production to ontribute 268,000kg of Dy 0 777,000kg global supply shortage in 2018 WY) pes @ p (or S LLvoi% increase in the price of Dy in 2015 (0) HM} Permanent magnet sector fastest growing accounting for an estimated 30% of end use market 0)
Slide 11: 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 12: 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 13: 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 14: Extend mine life by increasing resources
Extend mine life by increasing resources = e (s) PEN.... Gambit, Gambit Vest and Area 5 n near surface and open at depth, ho drilling below 200m For © LP RRC H Ta feepeonme ae + Ree tsrnae NORTHERN MINERALS. i # f NORTHERN: MINERALS. Browns Renge Project WOLVERINE DEPOSIT ‘Longitudinal Section Main
Slide 15: DFS financial highlights
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: Mining and production process
Mining and production process Qe Ph O-OC-S For personal use only Open Pit & Xenotime ©) 7 Grinding Magnetic Flotation Underground Ore Crushing Separation L wininc — eM od Exportation Containerised Mixed Rare Earth Carbonate (REC) L_ TRANSPORT _I a BENEFICIATION | V ctentetented —~4---- 1 os | | v |
Slide 17: Production flow and output
585,000tpa @ 0.66% TREO, open pit and underground mining Powering Technology. Beneficiation plant Hydrometallurgical plant = 16,700tpa mineral concentrate @ 20% TREO 279,000kg Dy within 3,098,000kg TREO, in a mixed RE carbonate
Slide 18: 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
Slide 19: Environment, community and indigenous employment
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: Pathway to production
Pathway to production 2016 2017 2015 Complete Environmental approvals & licences Primary Mining lease & land access Subordinate > acl 2 uo a > E32 £235 Dus 228 Seu 2 6 % 2 ao 2 » & £ 22% 2e aaa Project funding Offtake ” 2 2 Qa 2 ] 5 ra a 52 i268 gEshs: > E€RasBzsS o> G3 OB o2e2 g¢ 8 = 5 8 £5 6 oe €
Slide 21: Browns Range: the next Dy mine
Browns Range: the next Dy mine Rare Earths Essential for Detailed design and Hybrid & Electric Vehicles procurement Toyota Prius ~IIkg of rare earths Magnets | 60 59 ; Exploration Nd | Pr P Neodymium [Praseodymium| only limited by funding Powering Technology.
Slide 22: Appendices
For personal use only APPENDICES N NORTHERN MINER. ALS
Slide 23: For personal use only
For personal use only • • • • • • • • • • • • • • • • • •
Slide 24: Resources, reserves and exploration targets
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 25: John Galt Project (Western Australia)
John Galt Project (Western Australia) TE TE Se Tie @ Rock chip samples up to 42% TREO with im approximately 95% HREO @ Preliminary metallurgical tests indicate excellent recovery rates (>90%) with potential for concentrate grades >40% @ High grade mineralisation in talus (scree) material - hard-rock
Slide 26: Boulder Ridge Project (Northern Territory)
Boulder Ridge Project (Northern Territory) Geology and surface sampling location plan Powering Technology. Rock chip samples confirm high-grade HREs Best results exceed 12% TREO, including up to 1.15% dysprosium, with a dominance of HRE - up to 99% Further exploration planned to refine drill targets
Slide 27: 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 28: 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 $15.7M fA)
Slide 29: Pre-production capital cost estimate
Pre-production capital cost estimate Cost Area Mine Beneficiation Plant Hydrometallurgical Plant Plant Infrastructure Non-process Infrastructure Direct Costs Sub-Total Indirect Costs Contingency Total Project Pre-Production Capital Powering Technology. A$M $13. $56.3 $48.7 $55 $62 $242.7 $57.8 $28.9
Slide 30: 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 $290 88% to 93%: increased soso hydrometallurgical plant equi
Slide 31: Operating costs by expense area
Operating costs by expense area (585,000tpa plant throughput) Maintenance Average operating cost by A$M/a_ A$/kg A$/kg % expense area over LOM Dy,O, TREO Mining (average over LOM) 33.7 122.0 10.9 29.0% Pane cnek coe Lom 249 90381 -21.4% Power 14.8 53.7 48 128% Reagents & consumables 30.4 1101 98 26.
Slide 32: Previous OPEX comparison
Previous OPEX comparison Reduced by average of $6.2M pa or $2.20/kg TREO @ Improved accuracy: general and administration costs @ Reduction reagent consumption and reagent costs: based on pilot plant results and formal supplier quotes @® Reduced diesel price: reducing site power costs Average LOM ope
Slide 33: Previous timeline comparison
Previous timeline comparison Subordinate Definitive Feasibil Project Funding Detailed Design ing Operations Commissioning | or {ST Current Position _* October 2014 mm Current mm Powering Technology.
Slide 34: Sustaining capital
For personal use only Sustaining capital taining capital item Sustaining capital per operating year (A$M) 7 8 9 Mine development 43.5 13.0 171 191 205° 81 56 41 a 7 oa * i = 131.0 Process plant & infrastructure 31] - O06 - in - 06 0.6 - - - - - 6.0 TSF &evaporationponds- 53 a4 37 40 3S 40 56 47: 5ST
Slide 35: Growth in Mineral Resource
Growth in Mineral Resource Powering Technology. Hi Wolverine I Gambit West Marea Wi cambit Ml Banshee (Cyclops 28,084,000kg 10,500,000kg nt —_> Greenfields Discovery June 2014 Drilling to Date Includes all metres dried across ‘the Browns Range Project. December 2012 15,000m ained TREO October 2013 6
Slide 36: Mineral Resource and Ore Reserve tables
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 37: 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
Slide 38: Supply, demand and revenue
Supply, demand and revenue Project’s production . . . critical to global Forecast global supply for selected rare earths to 2020 incl. project production dysprosium supply from 2017 Dysprosium kg Terbium kg Yttrium kg an d beyo nd Global Project Deficit NTU Global Project Deficit after NTU Global Pr