Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (October 2014)
39 slides from Northern Minerals's investor presentation, October 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION George Bauk Managing Director/CEO OCTOBER | 2014 | 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 t
Slide 3: Northern Minerals
Northern Minerals Listed ASX October, 2006 (ASX:NTU) Flagship project Browns Range WA, 100% owned Since July 2010 expenditure exceeds $74M From maiden drill hole to PFS in under 3 years Xenotime - simple mineralogy Resource size only limited by funding Powering Technology. & ‘® Darwin Wyndham Je Kun
Slide 4: Share Price ($/share)
High $0.285* 6.0 Low 0.30 $0.115* 5.0 0.25 4.0 0.20 Share Price ($/share) Volume (m) 3.0 0.15 2.0 0.10 1.0 0.05 0.0 0.00 11 Oct 13 08 Nov 13 06 Dec 13 03 Jan 14 31 Jan 14 28 Feb 14 28 Mar 14 25 Apr 14 23 May 14 20 Jun 14 18 Jul 14 15 Aug 14 12 Sep 14 10 Oct 14 Volume Share Price
Slide 5: Recent Achievements
Recent Achievements Dysprosium 9.3% = Per nn Cerium Feasibility Study commenced Praseodymium F Neodymi Mineral Resource — A Samarium 52,372,000kg TREO Europlum in /—— Gadolinium h— Terbium Holmium 2.0% — Thulium 0.8% Ytterbium 4.4% Lutetium 0.6% Ft 60.5% Hydromet recovery 92% “ Dy and 92.6% TREO imp
Slide 6: Our people
Strategic management & leadership Confidence Values Integrity Rare earth operational experience Knowledge Commitment Conglin Yue Initiative George Bauk International mining knowledge Relationships Our Kevin Schultz Honesty Mark Tory Develop Results Colin McCavana Management Executive people SPIRIT Y
Slide 7: Heavy Rare Earth Uses
Heavy Rare Earth Uses
Slide 8: Rare Earths Essential for Hybrid and Electric Vehicles
Rare Earths Essential for Hybrid and Electric Vehicles China’s objective: to achieve 5 million hybrid and electric vehicles by 2020
Slide 9: The rare earth marketing landscape
The rare earth marketing landscape Dy still critical in energy intensive applications, despite efforts to find substitute materials Producers forecasting increased HRE prices in 2016 NdFeB magnet sector fastest growing - forecasted to grow 8-12% annually to 2020 Admission by Chinese producers illega
Slide 10: Years is only the beginning
10 years is only the beginning A Production Wolverine Current Reserve 23,595,000kg TREO Reserves Gambit West @ camvit @ Areas 2,048,000kg a Resource 4,338,300kg Scambit area esources fo on ee ea” size only “ar Fae er eee signee limited by @sohn Galt (Main Zone) | Mystique ee Rutten, Fe! Pen Intersec
Slide 11: Outstanding Exploration Potential
Outstanding Exploration Potential 1,500km2 Browns Range Dome WA/NT Greenfields Discovery 2010 6 out of 13 targets converted mineral resource Growth Potential Exploration only limited by funding Blue Sky Massive landholding WA and NT Access rights to 95% and only 12% explored to date Powering Technol
Slide 12: Browns Range Dome
Browns Range Dome =1920otmn The dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t ae ; been effectively cai fant. = explored [| Nonhom MineraisGrarted Tenement.» [] Mining Lease [__] Notthern Minerals Tenement Application © Norther Minerals RE Min
Slide 13: Extend Mine Life by Increasing Resources
Extend Mine Life by Increasing Resources OPEN.... Gambit, Gambit West and Area 5 OPEN... Wolverine deposit open at depth and along strike, no drilling below 550m open near surface and open at depth, no drilling below 200m etme D> NaBH ar + Renee NORTHERN MINERALS. NORTHERN Browns Range Pr | MINERALS
Slide 14: Ore Reserve and Mineral Resource summary
TREO Dy2O3 Tb4O7 Y2O3 Ore kg kg kg kg Deposit Classification kg/t kg/t kg/t kg/t Tonnes contained contained contained contained Total1 Probable 3,409,000 6.92 23,595,000 0.60 2,048,000 0.09 306,000 4.01 13,663,000 TREO Dy2O3 Y2O3 Tb4O7 HREO TREO Deposit Category Mt % kg/t kg/t kg/t % kg Indicated 4.
Slide 15: Project Location
Project Location a most attractive investm ation by the Frase Institute Survey of Mining Companies, 2013. NORTHERN TERRITORY BROWNS RANGE PROJECT (aH WESTERN ae oS AUSTRALIA The Browns Range Project is located within Ss DROWNS RANGE: the Gordon Downs pastoral lease in the Shire of Halls Creek, Weste
Slide 16: Environment, Indigenous Employment, Community
Environment Indigenous Employment > Government assessment & approval > Developing local > Extensive studies & surveys to employment strategy inform project design > Cultural awareness > Ongoing rehabilitation nr) > Ongoing employee support s . & compliance reporting & LICENCE TO p2) OPERATE o = © ¢
Slide 17: Mineral concentrate production by year
Year 1 Year 2 Year 3 Year 4 Year 5 Total 17,045tpa mineral concentrate @ 20% TREO
Slide 18: Mining & Beneficiation Process Flowsheet
On) | MINING BENEFICIATION ‘Mining & Production ; Process Flowsheet SR é Gas = Wet Magnetic Cleaner [ome) wy Separation Flotation ROM Ore om fr Q —— up Crushing lly hr ete oe CODD itrtion aa mw Tailings Storage Concentrate Gas al Facility $$$ NORTHERN ‘ Leach MINERALS. ah d——b Ge Residue Sulphation
Slide 19: Accommodation village and site infrastructure
Accommodation village, peak 325 people 1.8km airstrip Diesel generators and distribution Groundwater supply and distribution Consumable and reagent storage facilities Road transport via Halls Creek to/from Wyndham and Darwin ports Above ground Tailings Storage Facility Water Ponds Waste Water Treatm
Slide 20: Pre-production Capital Cost Estimate
Pre-production Capital Cost Estimate Mining ae Cost Area Aor % Teel $4M Ww J aia Plant Mine $3.1 1% Ancillary Beneficiation Plant $35.6 1% Infrasucture Hydrometallurgical Plant $37.8 12% Plant Infrastructure $56.6 18% Ancillary Infrastructure $73.8 24% Direct Costs Sub-Total $206.9 66% Indirect Cost
Slide 21: Operating Costs
Operating Costs (585,000tpa plant throughput) Average Annual Operating Cost By Expense Area Over LOM Mining (Average over LOM) Labour Power Reagents & Consumables Maintenance General & Administration Product Transport Total Annual Operating Costs By-product Revenue Operating Cost Excluding Royalties
Slide 22: NPV, IRR and payback
net present internal rate of value1 return production in pre-production capital cost payback from commencement of operations 110% discount rate Operating cost Operating cost excluding royalties including royalties and net of by-product revenue
Slide 23: Source of Funds
Source of Funds Announced Source Feb 2013 Actual ee ee $M Placements $3.8 Rights Issue $26.5 16% of BR + 20% offtake $26.0 Sale Gardiner Tanami Gold Assets $2.0 R&D Net Funding Costs/Interest Total $58.3 * Placements includes $2M announced in November 2012 Powering Technology. $11.1" $26.6 $16.8 -$2
Slide 24: Application of Funds
Application of Funds Announced Actual/Forecast Expense Category Feb 2013 to 31 Dec 14 $M $M . On track to deliver Geology/Exploration _ $14.0 $16.6 Feasibility Study Engineering, Infrastructure and Mining - : /y Study $12.2 $10.6 with a significantly Mineral Processing and Metallurgy $9.7 $8.8 of En
Slide 25: Project Funding Status
Project Funding Status ® Term sheets and MoUs out for discussion ® China, South East Asia and North America key target areas Other RE . . . . . . revenue ® Flexible funding strategies including possible 38% project joint venture partner, debt, equity and pre-sale of product Dysprosium 62% ®@ Data ro
Slide 26: JORC resource increase and maiden Ore Reserve
+ JORC resource increase 52,372,000kg and maiden Ore Reserve 23,595,000kg * Co-existence Agreement signed, mining lease granted, primary environmental approval advanced * Completion of Pre-Feasibility Study, Feasibility study well underway
Slide 27: Pathway to Production
Pathway to Production 2014 Pilot Plant Programs = Tenure and Native Title = Project Approvals Feasibility Study Project Funding Procurement Early Works Construction Program Plant Construction Mining Commissioning Production Ramp Up Current Position > Powering Technology. 2015 Specialist engineers an
Slide 28: Browns Range: The next Dy mine
Browns Range: The next Dy mine Powering Technology. Feasibility Study Fe Offtake and funding Discussions ongoing Licencing
Slide 29: Appendices
APPENDICES NORTHERN
Slide 30: Probable Ore Reserve
Probable Ore Reserve Classification O°. OPEN PIT Wolverine Probable 863,000 5.30 4,574,000 0.47 407,000 0.07 62,000 3.14 2,712,000 Gambit West Probable 185,000 10.92 2,021,000 0.90 167,000 0.12 23,000 5.97 1,105,000 Gambit Probable 47,000 9.94 467,000 0.85 40,000 0.1 5,000 6. 287,000 Area 5 Probable
Slide 31: Mineral Resource Estimate
Mineral Resource Estimate Category Indicated 266 0.89 0.78 5.17 012 89 23,705,000 Wolverine inferred 18 0.81 0.67 4.45 Ol 87 14,564,000 Total! 4.46 0.86 0.74 488 on 88 38,269,000 Indicated 0.27 1.26 1.07 7.06 O14 90 3,424,000 Gambit West Inferred 012 0.64 0.54 3.67 0.07 85 753,000 Total! 0.39 1.07 0
Slide 32: John Galt Project (WA)
John Galt Project (WA) @ Rock chip samples up to 42% TREO with 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 source of scree is the primary
Slide 33: Boulder Ridge Project (NT)
Boulder Ridge Project (NT) ® Rock chip samples from the Boulder Ridge project confirm high-grade heavy rare earths (HRE) @ Best results exceed 12% TREO, including up to 1.15% Dysprosium, with a dominance of HRE - up to 99% @ Further exploration planned to commence in Q4 2014 to refine drill targets
Slide 34: Changing Production of Rare Earths
Changing Production of Rare Earths 140 GLOBAL PRODUCTION 30] OF RARE EARTH OXIDES 1950 - 2013 no 100 1950 MONAZITE-PLACER ERA } MOUNTAIN PASS ERA 1960 : 1970 1980 : 1980 2000 : CHINESE ERA 2013 i EXPORT QUOTA ERA Powering Technology. Production increasing from sources outside of China Mt Weld (Aus)
Slide 35: Rare earth supply chain
Upstream Midstream Downstream Extraction Beneficiation & Separation Alloy Component End-use Hydrometallurgy manufacture manufacture manufacture Refining/Recycling High purity Mixed carbonate oxides (99-99.9%)
Slide 36: The Right Leadership
The Right Leadership A wealth experience and knowledge to strategically guide Northern Minerals to the next dysprosium miner BOARD OF DIRECTORS Conglin Yue - Executive Chairman * Long standing relationship with a number of major steel producing companies in China. * Chairman of Conglin Baoyuan Inter
Slide 37: The Right Management
The Right Management Relevant range of experience and expertise to develop and commercialise the Browns Range Project EXECUTIVE MANAGEMENT TEAM Robin Wilson - Exploration Manager Robin Jones - Project Manager * Geologist, with 20 years experience in Australia and Africa. * More than 20 years experie
Slide 38: HRE Project vs LRE Project
HRE Project Distribution of Rare Earths at Browns Range Wolverine (February 2014) Neodymium 315% Cerium 477% Lanthanum Europium 18% 0.4a% Praseodymium —— Lutetium 0.68% 0.60% Thulium 0.74% Terbium 132% Holmium usa Samarium 212% Ytterbium 4.39% Yttrium — Erbium 58.21% 5.33% Gadolinium 571% ——Dysprosi
Slide 39: Typical Landscape Browns Range Project
Typical Landscape Browns Range Project = ts ¢ f ne = is es Wat OS ee A ring Technology. ga
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