Northern Dynasty welcomes US government ac5on to address cri5cal mineral supply chain vulnerabili5es

October 7, 2020 Vancouver - Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE American: NAK) ("Northern Dynasty" or the "Company") acknowledged today the first tangible step the US government has taken to address the threat to America's economy and military security posed by a severe over-reliance on foreign adversaries for the supply of criNcal mineral and metals.

On October 5, 2020, the United States government announced it would direct the $60 billion US InternaNonal Development Finance CorporaNon, a federally-funded lender and investor created under President Trump, to invest $25 million in a UK-based mining group that specializes in producing rare earth metals. The investment in TechMet Ltd. will go toward developing a mine in Brazil that produces nickel and cobalt, both essenNal for the manufacture of electric vehicles, mobile phones and ba[eries.

The announcement follows an ExecuNve Order issued by President Trump last week on 'Addressing the Threat to the Domes1c Supply Chain from Reliance on Cri1cal Minerals from Foreign Adversaries." In it, he declares a naNonal emergency and states "our NaNon's undue reliance on criNcal minerals, in processed or unprocessed form, from foreign adversaries consNtutes an unusual and extraordinary threat."

The Trump AdministraNon has recognized the threat to America's economic and military security, its domesNc manufacturers and other industries, and its ability to respond to climate change through the development of clean and renewable power, since ExecuNve Order 13817 ('A Federal Strategy To Ensure Secure and Reliable Supplies of Cri1cal Minerals') was issued in 2017. However, the Tech-Met investment represents the first tangible acNon to address this threat.

The US government previously acknowledged there are 35 minerals "essenNal to the economic and naNonal security of the United States" that have supply chains vulnerable to disrupNon, including rhenium. For 31 of these minerals, the country is reliant on foreign producers for between 50 - 100% of its annual needs.

The most recent ExecuNve Order goes further, authorizing use of the Defense ProducNon Act to speed the development of mines in the US, and opening the door to government grants and loans to facilitate domesNc mineral producNon. It also suggests the US could impose tariffs and quotas on mineral imports from China.

While Northern Dynasty does not expect any US government financial support or regulatory assistance with respect to the advancement of its 100%-owned Pebble copper-gold-molybdenum-silver-rhenium project in Alaska, President & CEO Ron Thiessen said recent pronouncements from the Trump AdministraNon underline the importance of developing domesNc sources of strategic metals. He said the Pebble Project can help address many of the criNcal mineral supply vulnerabiliNes outlined in the President's recent order.

Last week, Northern Dynasty filed its '2020 Technical Report on the Pebble Project, Southwest Alaska, USA,' highlighNng a revised mineral resource esNmate that establishes Pebble as the most significant source of rhenium in the world (see h[ps://www.northerndynastyminerals.com/site/assets/files/4870/2020-10-02-ndm-nr.pdf).

Rhenium is one of 35 criNcal minerals acknowledged by the US government, and one for which the country is reliant on foreign producers for 82% of its needs (see h[ps://doi.org/10.3133/mcs2020). Jet engine and related military applicaNons account for 80% of annual US rhenium consumpNon, in addiNon to industrial applicaNons that employ rhenium as a catalyst - including for the producNon of high-octane,lead-free gasoline.

Once in producNon, the proposed Pebble mine has the potenNal to produce ~12,000 kg of rhenium each year over 20 years of operaNons1. This represents a 143% increase in the United States' annual producNon of rhenium over 2019 levels. This level of producNon could also reduce the percentage of US rhenium requirements sourced from offshore producers by 25% over 2019 levels.

Last week's ExecuNve Order also provides impetus to the domesNc producNon of other metals present in the Pebble deposit, and for which the United States is currently dependent on countries with inferior records for health and safety, human rights and environmental protecNon. In addiNon to rhenium, the US currently relies on foreign producers for 35% of its annual copper needs and 68% of its annual silver needs.

"We are excited to be advancing Pebble through federal permirng at a Nme when the US is focusing its a[enNon on promoNng the domesNc producNon of important metals," Thiessen said. "Once in producNon, Pebble will significantly increase US domesNc producNon of several strategic minerals and metals - including copper, rhenium, molybdenum and silver, among others - while reducing US dependence on foreign suppliers."

The technical informaNon in this release was reviewed and approved by Stephen Hodgson, P.Eng., a Qualified Person who is not independent of Northern Dynasty.

***

From the 'Execu1ve Order on Addressing the Threat to the Domes1c Supply Chain from Reliance on Cri1cal Minerals from Foreign Adversaries':

"In addiNon, I find that the United States must broadly enhance its mining and processing capacity, including for minerals not idenNfied as criNcal minerals and not included within the naNonal emergency declared in this order. By expanding and strengthening domesNc mining and processing capacity today, we guard against the possibility of supply chain disrupNons and future a[empts by our adversaries or strategic compeNtors to harm our economy and military readiness. Moreover, addiNonal domesNc capacity will reduce United States and global dependence on minerals produced in countries that do not endorse and pursue appropriate minerals supply chain standards, leading to human rights violaNons, forced and child labor, violent conflict, and health and environmental damage. Finally, a stronger domesNc mining and processing industry fosters a healthier and faster-growing economy for the United States. Mining and mineral processing provide jobs to hundreds of thousands of Americans whose daily work allows our country and the world to "Buy American" for criNcal technology."

About Northern Dynasty Minerals Ltd.

Northern Dynasty is a mineral exploraNon 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 ("PLP"), is a 100% interest in a conNguous block of 2,402 mineral claims in southwest Alaska, including the Pebble deposit. PLP is the proponent of the Pebble Project, an iniNaNve to develop one of the world's most important mineral resources.

For further details on Northern Dynasty and the Pebble Project, please visit the Company's website at www.northerndynastyminerals.com or contact Investor services at (604) 684-6365 or within North America at 1-800-667-2114. Review Canadian public filings at www.sedar.com and US public filings at www.sec.gov.

  • Based on proposed producNon of 15,000 tons year of molybdenum concentrate with a rhenium content of 900 ppm.

Ronald W. Thiessen

President & CEO

US Media Contact:

Dan Gagnier

Gagnier CommunicaNons (646) 569-5897

Forward Looking Informa5on and other Cau5onary Factors

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploraNon drilling, exploitaNon acNviNes and events or developments that the Company expects are forward-looking statements. These statements include statements regarding (i) the mine plan for the Pebble Project, (ii) the social integraNon of the Pebble Project into the Bristol Bay region and benefits for Alaska, (iii) the poliNcal and public support for the permirng process, (iv) the issuance of a posiNve Record of Decision by the US Army Corps of Engineers and the ability of the Pebble Project to secure state permits, (v) the right-sizing and de-risking of the Pebble Project, (vi) the design and operaNng parameters for the Pebble Project mine plan, (vii) exploraNon potenNal of the Pebble Project, (viii) future demand for copper and gold, (ix) the potenNal partnering of the Pebble Project, and (x) the ability and Nmetable of NDM to develop the Pebble Project and become a leading copper, gold and molybdenum producer. Although NDM believes the expectaNons expressed in these forward-looking statements are based on reasonable assumpNons, such statements should not be in any way be construed as guarantees that the Pebble Project will secure all required government permits, establish the commercial feasibility of the Pebble Project or develop the Pebble Project. AssumpNons used by NDM to develop forward-looking statements include the assumpNons that (i) the Pebble Project will obtain all required environmental and other permits and all land use and other licenses without undue delay, (ii) studies for the development of the Pebble Project will be posiNve, (iii) NDM's esNmates of mineral resources will not change, (iv) NDM will be able to establish the commercial feasibility of the Pebble Project, and (v) NDM will be able to secure the financing required to develop the Pebble Project. The likelihood of future mining at the Pebble Project is subject to a large number of risks and will require achievement of a number of technical, economic and legal objecNves, including (i) obtaining necessary mining and construcNon permits, licenses and approvals without undue delay, including without delay due to third party opposiNon or changes in government policies, (ii) finalizaNon of the mine plan for the Pebble Project, (iii) the compleNon of feasibility studies demonstraNng that any Pebble Project mineral resources that can be economically mined, (iv) compleNon of all necessary engineering for mining and processing faciliNes, (v) the inability of NDM to secure a partner for the development of the Pebble Project, and (vi) receipt by NDM of significant addiNonal financing to fund these objecNves as well as funding mine construcNon, which financing may not be available to NDM on acceptable terms or on any terms at all. NDM is also subject to the specific risks inherent in the mining business as well as general economic and business condiNons, such as the current uncertainNes with regard to COVID-19.

The NaNonal Environment Policy Act Environmental Impact Statement process requires a comprehensive "alternaNves assessment" be undertaken to consider a broad range of development alternaNves, the final project design and operaNng parameters for the Pebble Project and associated infrastructure may vary significantly from that contemplated in this presentaNon. As a result, the Company will conNnue to consider various development opNons and no final project design has been selected at this Nme.

For more informaNon on the Company, Investors should review the Company's filings with the United States SecuriNes and Exchange Commission and its home jurisdicNon filings that are available at www.sedar.com

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Northern Dynasty Minerals Ltd. published this content on 07 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 October 2020 15:14:05 UTC