Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (October 2014)
40 slides from Northern Minerals's investor presentation, Oct 17, 2014
Slide 1: Revision to Investor Presentation Oct 14
ASX ANNOUNCEMENT 17 October 2014 Revision to Investor Presentation Oct 14 For personal use only The company wishes to advise that the ASX announcement lodged on 17 October 2014 headed “Investor Presentation October 2014” inadvertently had a wrong year in slide 28. Attached is the revised presentatio
Slide 2: Investor Presentation October 2014
For personal use only INVESTOR PRESENTATION George Bauk Managing Director/CEO OCTOBER | 2014 | ASX:NTU OUR VISION To become the first significant dysprosium producer outside of China
Slide 3: 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 4: Northern Minerals
ly | ugse.on (Ue oe n For pers 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 Technol
Slide 5: Share price and volume
For personal use only 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 Pric
Slide 6: 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 7: Strategic management & leadership
Strategic management & leadership Confidence Values Integrity Rare earth operational experience For personal use only Knowledge Commitment Conglin Yue Initiative George Bauk International mining knowledge Relationships Our Kevin Schultz Honesty Mark Tory Develop Results Colin McCavana Management Exe
Slide 8: Heavy Rare Earth Uses
Heavy Rare Earth Uses Powering Technology.
Slide 9: Rare Earths Essential for Hybrid and Electric Vehicles
For personal use only Rare Earths Essential for Hybrid and Electric Vehicles China’s objective: to achieve 5 million hybrid and electric vehicles by 2020
Slide 10: The rare earth marketing landscape
The rare earth marketing landscape Dy still critical in energy intensive applications, lespite efforts to find ) substitute materials i) ee @D) Q, = ©Producers forecasting increased HRE prices in 2016 use only NdFeB magnet sector fastest growing - forecasted to grow 8-12% annually to 2020 Admission
Slide 11: Production: reserves and resources
A Production Wolverine 2,048,000k Current Reserve g @ comoit west 23,595,000kg TREO Reserves Gambit @ Areas | Gambit West Wohverne a 5 —s - ‘urrent Resource 1 (oy) 4,338,300kg Gambit J Area 52,372,000kg TREO Resources é Bevciops G Banshee @AreaSNorth (Dazzler | Nightcrawler @sohn Galt (Main Zone) |
Slide 12: 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 13: Browns Range Dome
Browns Range Dome = 920 ot The dome is a massive geological feature covering 1,500km2 and stretching 60km x 30km most of which hasn’t ae ; been effectively =i fant. = explored [| Nonhom MineraisGrarted Tenement.» [] Mining Lease [__] Notthern Minerals Tenement Application © Norther Minerals RE Miner
Slide 14: Extend Mine Life by Increasing Resources
Extend Mine Life by Increasing Resources OPEN... ambit, Gambit West and Area 5 Wolverine deposit open at depth and along strike, no drilling below 550m en near surface open at depth, No drilling below 200m etme D> NaBH ar + Renee NORTHERN MINERALS. NORTHERN Browns Range Pr | MINERALS GAMBIT WEST DE!
Slide 15: Ore Reserve and Mineral Resource summary
For personal use only 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
Slide 16: Project Location
Project Location a '@ Darwin a Taser Institute Survey of Mining Companies, 2013. NORTHERN TERRITORY BROWNS RANGE PROJECT (aH WESTERN Darwin, AUSTRALIA The Browns Range Project is located within Ss DROWNS RANGE: the Gordon Downs pastoral lease in the Shire Of Halls Creek, Western Australia, approxima
Slide 17: Licence to Operate
Environment Indigenous Employment > Government assessment & approval > Developing local xtensive studies & surveys to employment strategy “ce inform project design > Cultural awareness @ Ongoing rehabilitation > Ongoing employee support @® compliance reporting iD) = — LICENCE TO OPERATE % = Swag Com
Slide 18: 17,045tpa mineral concentrate
17,045tpa mineral concentrate @ 20% 3 NORTHERN
Slide 19: Mining & Production Process Flowsheet
For personal use only BENEFICIATION Mining & Production Process Flowsheet =al Wet Magnetic Cleaner Soe Flotation Be NY ROM Ore or pee OQO— ao Crushing lly hr 7 a Millit we Tals CODD =itration NY Mineral Tailings Storage Concentrate mn Facility it ,) NORTHERN og Cod BE Bake Solids (yyy) Leach MINERAL
Slide 20: 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 21: 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 22: 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 23: NPV, IRR and payback
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 Operating cost Operating cost excluding royalties including royalties and net of by-product revenue
Slide 24: 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 25: 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 26: Project Funding Status
For personal use only Project Funding Status ® Term sheets and MoUs out for discussion ® China, South East Asia and North America key target areas ® Flexible funding strategies including possible project joint venture partner, debt, equity and pre-sale of product ®@ Data room established with detail
Slide 27: For personal use only
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Slide 28: Pathway to Production
Pathway to Production 2014 Pijot Plant Programs = f8nure 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 a
Slide 29: Browns Range: The next Dy mine
Browns Range: The next Dy mine Powering Technology. Feasibility Study Fe Offtake and funding Discussions ongoing Licencing
Slide 30: Appendices
For personal use only APPENDICES N NORTHERN MINER. ALS
Slide 31: 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 32: 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 33: 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 34: 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 35: 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 36: Rare earth supply chain
For personal use only 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 37: For personal use only
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Slide 39: Distribution of Rare Earths at Browns Range
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 40: 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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