Published: November 22, 2022 |

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Northern Dynasty Minerals has filed an updated preliminary economic assessment for the proposed Pebble Project in Southwest Alaska. The 2022 PEA updates the company’s September 2021 PEA to evaluate the impact of royalty financing.

The 2022 PEA updates the 2021 PEA to examine both the impact from the $12 million tranche of the previously completed royalty investment and the potential impact of a $60 million royalty investment if all five tranches are fully committed.

The 2022 PEA highlights that the Pebble Project remains very robust and, although the company believes the royalty has the potential to be very valuable, it has minimal impact on the forecasted economics of the project while strengthening the company’s balance sheet position.

The proposed project is as the project is described in the Pebble Project permit applications and its amendments. NEPA is the National Environmental Policy Act.
• Case shown includes major infrastructure (access road, port, power) provided by third parties under lease
  agreement
• Long-term metal prices: copper $3.50/lb; gold $1,600/oz; molybdenum $10/lb; silver $22/oz; rhenium $1,500/kg
• Net present value is calculated using a 7 percent discount rate, given the polymetallic nature of the Pebble
  deposit and the large contributions of gold to total project revenues.
• The life of mine values, no royalty are derived from 2021 PEA, now supplanted by 2022 PEA. The LOM values
  2 percent gold, 6 percent silver royalty are the results for the initial $12 million tranche, the LOM values 10
  percent Gold, 30 percent silver royalty are the results if all tranches of the royalty financing are completed.

“In the updated technical report we have detailed the impact of the royalty financing on the value of the project,” said Ron Thiessen, Northern Dynasty president and CEO.

“The results were aligned with our estimates at the time of the financing; the robust financial results of the 20-year base case are minimally impacted by the financing, which provides substantial working capital that we can use to advance the Pebble Project in permitting,” added Thiessen.

Additionally, the 2022 PEA also assesses the royalty’s impact on the projected results for the three potential mine expansion scenarios and potential alternative strategies for gold recovery that were also presented in the 2021 PEA and could form the basis for future permit applications and review. The royalty was found to have a minimal impact on the results of these potential scenarios.

The 2022 PEA also includes updates that reflect events disclosed in the company’s public disclosure record that have occurred since the 2021 PEA was filed.

The 2022 PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no assurance that the 2022 PEA will be realized.

About Northern Dynasty Minerals
Northern Dynasty is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty’s principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a 100 percent interest in a contiguous block of 1,840 mineral claims in Southwest Alaska, including the Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble Partnership is the proponent of the Pebble Project, an initiative to develop one of the world’s most important mineral resources.

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