Northern Minerals Limited · ASX:NTU
Northern Minerals — Investor Presentation (June 2014)
35 slides from Northern Minerals's investor presentation, Jun 30, 2014
Slide 1: Browns Range Project Pre-Feasibility Study
NORTHERN MINERALS Browns Range Project Pre-Feasibility Study George Bauk, Managing Director / CEO jlo. Po JUNE | 2014 | ASX:NTU
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: Share price and volume
For personal use only Volume (m) 0.0 0.5 1.0 1.5 2.0 2.5 24-Jun-13 Low $0.11 22-Jul-13 19-Aug-13 High $0.27 16-Sep-13 14-Oct-13 Volume 11-Nov-13 09-Dec-13 06-Jan-14 Period average volume 03-Feb-14 03-Mar-14 31-Mar-14 Share price 28-Apr-14 26-May-14 * All in Australian Dollar denominations 23-Jun-14
Slide 4: Recent Achievements
Recent Achievements Co-existence Agreement finalised and mining lease granted Pre-feasibility Study completed Maiden Ore Reserve announced Environmental assessment lodged Powering Technology. Dysprosium 93% ve Lanthanum 4 Ya 4% Cerium Praseodymium 0.5% Neveyrniom 24%. Average LOM TREO distribution
Slide 5: 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 6: PFS key results
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 average annual operating free Dy net of by-product cash flow during revenue full operation
Slide 7: Mineral Resource and Ore Reserves
For personal use only 1 The Mineral Resource is inclusive of the Ore Reserves
Slide 8: Heavy Rare Earth Uses
Heavy Rare Earth Uses Powering Technology.
Slide 9: NdFeB Permanent Magnets
NdFeB Permanent Magnets Magnets Dysprosium ——Terbium Neodymium Praseodymium Rare Earths Essential for Hybrid & Electric Vehicles Toyota Prius ~TIkg of rare earths Powering Technology. a?
Slide 10: The rare earth marketing landscape
The rare earth marketing landscape se only Ir 7 HRE EE a =F supply resolved focus © shifting to new reliable sources of HRE ‘= Producers forecasting increased HRE prices in 2016 FOr perso 4M} HRE suppliers reporting upward pressure in demand Shortcomings of illegal mining becoming apparent - glut of
Slide 11: Total LOM revenue and operating free cash flow
For personal use only total LOM revenue average annual operating free cash flow during full operation Source: Curtin-IMCOA May 2014 and NTU
Slide 12: Project Location
Project Location a '@ Darwin a Taser Institute Survey of Mining Companies, 2013. NORTHERN TERRITORY BROWNS RANGE PROJECT (aH WESTERN Darwig. AUSTRALIA The Project is located within the Gordon “ts DROWNS RANGE: Downs pastoral lease in the Shire of Halls Creek, Western Australia, approximately 50km so
Slide 13: Project area map
For personal use only 5km Area 5
Slide 14: Beneficiation Plant
®@ 92.5% Dy recovery ® 89% TREO recovery Beneficiation Plant 585,000tpa @ 0.66% TREO 17,045tpa mineral concentrate @ 20% TREO $83/kg Dy operating cost Powering Technology.
Slide 15: Hydrometallurgical Plant
®@ 90% Dy recovery ® 88%TREO recovery 17,045tpa mineral concentrate @ 20% TREO 279,000kg Dy annual production 3,200,000kg @ 92% TREO annual production $170/kg Dy operating NORTHERN cost
Slide 16: Beneficiation and Hydrometallurgical 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 17: Site infrastructure
Accommodation village, peak 325 people 1.8km airstrip Diesel generators 9.6MW 1.32GL per annum groundwater supply Above ground Tailings Storage Facility Bulk consumable and reagent storage facilities Zz Gampit Pits si Gravel Pits l N NORTHERN MINERALS
Slide 18: Road Transport Routes
Road Transport Routes 5 triple or 7 double road trains each day Improve safety and serviceability, 2 month maximum outage Duncan and Gordon Downs roads upgrade - $22.9M Project access road 57km - $5.5M Wyndham and Darwin Ports
Slide 19: Licence to Operate
Licence to Operate Native Community Indigenous soils Engagement Employment Co-Existence Agreement Signing - June 2014 Cultural Awareness Training - Smoking Ceremony Powering Technology. Pe <
Slide 20: Pre-production Capital Cost Estimate
Pre-production Capital Cost Estimate Cost Area Mine Beneficiation Plant Hydrometallurgical Plant Plant Infrastructure Offsite Infrastructure Direct Costs Sub-Total Indirect Costs Contingency Total Project Pre-Production Capital Powering Technology. ASM $3.1 $35.6 $378 $56.6 $73.8 $206.9 $63.5 $43.3
Slide 21: Operating Costs by Expense Area
Operating Costs by Expense Area (585,000tpa plant throughput) Average Annual Operating Cost By Expense agm/a A$/kg A$/kg Dy Area Over LOM Dy . Hydrometallurgical Mining (Average over LOM) $33.3 $9 wo \ , sone Labour $19.4 $70 Power $14.3 $51 Reagents & Consumables $39.2 $140 Maintenance $6.1 $22 Gen
Slide 22: Cash Flows of LOM
For personal use only $m cumulative NCF Cash Flows of LOM - Cumulative NCF (after-tax) [LHS] ™ NCF (after-tax) [RHS] ™ Revenue [RHS] ee ' ih vt ne 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Powering Technology. ao $m per period
Slide 23: Pathway to Production
Pathway to Production 2016 Early Works Construction Program Pre-Feasibility Study Pilot Plant Programs Tenure and Native Title Project Approvals Feasibility Study Project Funding Detailed Design Procurement Plant Construction Commissioning Production Ramp Up Current Position + > a eS) ° ¢ GS o Ee a
Slide 24: Browns Range: The new Dy mine
Browns Range: The new Dy mine Robust Economics NPV of $446M Other RE revenue 38% 10 Year Mine Life Mining Lease and Native Title Dysprosium 62% Pathway to Production for 2016 Powering Technology. ao
Slide 25: Appendices
For personal use only APPENDICES N NORTHERN MINER. ALS
Slide 26: For personal use only
For personal use only • • • • • • • • • • • • • • • •
Slide 27: For personal use only
For personal use only • • • • • • • • • • • • • • •
Slide 28: Browns Range Dome
Browns Range Dome Northem Minerals Tenement Application © Northern Minerals RE Mineral Resource "J Toro Energy/Northern Minerals JV Tenements Northern Minerals RE Prospects rn — er Powering Technology. The dome is a major geological feature covering 1,500km2 60km x 30km HRE mineralised faults/brecci
Slide 29: Previous Capital Comparison
Previous Capital Comparison Indirect cost: construction indirect, NTU’s ae cost, first fill consumables, equipment spares, so 35a Sey issi i $300.0 ne: EPCM and commissioning : ae] Other infrastructure: TSF, water supply, 2 e000 a, . . woe . a $29.0 airstrip, building and other infrastructure z cams
Slide 30: Previous OPEX Comparison
Previous OPEX Comparison ® Beneficiation and hydrometallurgical *° plant costs relate to previously announced soso suse —_ — — operating costs of relevant plant | | we we . B Seb68 1575 238.0 ® Mining and administration estimate s . . generated from PFS not previously released po ® Increase in benef
Slide 31: Project milestones history
For personal use only • Identified HRE mineralisation at Browns Range • Acquisitions included John Galt and Browns Range NT • Completed first metallurgical test on Browns Range • Drilling confirms HRE at Wolverine, Gambit and Area 5 • Flowsheet developed, low capital costs • Pathway to production sc
Slide 32: Probable Ore Reserve
Probable Ore Reserve TREO Dy,0; Tb,0, Y,0; F AoA Ore kg kg kg PEPEse Grssiitectten Tonnes Contained ka/t Contained ka/t Contained ka/t Contained OPEN PIT Wolverine Probable 863,000 5.30 4,574,000 0.47 407,000 0.07 62,000 3.14 2,712,000 Gamert Probable 185,000 10.92 2,021,000 0.90 167,000 0.12 23,000
Slide 33: Mineral Resource notes
For personal use only 1Rounding may cause some computational discrepancies Cut off at 0.15% TREO TREO = Total Rare Earth Oxides - Total of La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3 HREO = Heavy Rare Earth Oxides– Total of Sm2O3, Eu2O3, Gd2
Slide 34: Distribution of Feed Type and Source
For personal use only Distribution of Feed Type and Source Gambit OP ® Years 1 to 6 from Ore Reserve cacao Wolverine OP Wolverine UG \ ® Years 7 to 10 from Inferred Resource at Wolverine UG below 325m ® Total mined tonnes LOM 5,037,000 — . Gambit West UG Gambit West OP —/ Wolverine UG I Forecast del
Slide 35: Notes and definitions
For personal use only Figures may not add due to rounding Based on LOM of 9.67 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
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