Northern Minerals : Annual Report to shareholders

ACKNOWLEDGEMENT OF COUNTRY

We acknowledge the Traditional Custodians of the lands upon which we operate, the Jaru, Purnululu, Tjurabalan and Malarngowem peoples. We recognise their unique cultural heritage, beliefs and connection to these lands, waters and communities. We pay our respects to all members

of these Indigenous communities, and to Elders past, present and emerging. We also recognise the importance of continued protection and preservation of cultural, spiritual and educational practices. We recognise and respect that there are areas of special heritage and cultural significance and continue to honour our agreements when managing land clearing, protecting heritage values, and environmental management and reporting. As we value treating all people with respect, we are committed to building successful and mutually beneficial relationships with the Traditional Custodians throughout our areas of operation.

CONTENTS

Letter From Executive Chairman			7
2023 Operational Review			11
Strategic		Partnership with Iluka Resources			12
Browns		Range Project Funding			13
Critical		Minerals Development Grant			14
Increased Wolverine Mineral Resource Estimate	14
Financial	15
Updated Definitive Feasibility Study (2023 DFS)	15
Exploration	17
Environmental, Social, & Governance	18
People and Culture	21
Senior Leadership Team	21
Mineral Resources and Ore Reserves Statement	23
Financial Statements			29
Tenement Report			107
Shareholder Information			109
Corporate Directory			113

Northern Minerals Annual Report 2023

WHO WE ARE

Northern Minerals' vision is to be a globally critical source of ethically supplied Dysprosium and Terbium in support of decarbonisation.

Our purpose is to create value and contribute to a cleaner earth for current and future generations.

Our vision and purpose are underpinned by our Values. These values form the heart of our company culture and guide how our team work together.

Respect

Integrity

Safety

Accountability

Innovation

Clarity

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CONTENTS

CHAIRMAN'S 2023 OPERATIONAL

LETTER REVIEW

MINERAL

RESOURCES

FINANCIAL

STATEMENTS

TENEMENT

REPORT

SHAREHOLDER	CORPORATE
INFORMATION	DIRECTORY

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The Wolverine deposit at Browns Range is understood to be the highest grade Dysprosium and Terbium orebody in Australia and the only known substantial source outside of China and Myanmar

LETTER FROM EXECUTIVE CHAIRMAN

I have the pleasure in presenting the 2023 Annual Report for Northern Minerals.

Firstly, I wish to acknowledge the Traditional Custodians of the lands upon which we operate, the Jaru, Purnululu, Tjurabalan and Malarngowem peoples. Our partnership with the local community is of utmost importance to our company. The partnership must be built on an acknowledgment and genuine respect for the of cultural, spiritual and educational practices of the Traditional Custodians. I want to thank the Traditional Owners for the continued cooperation and mutual trust.

The past year has been a pivotal year for Northern Minerals. We have established a clear strategy to develop the Wolverine deposit as our first mine within the Browns Range system. We are working to become a critical supplier of Dysprosium and Terbium in concentrate form which will be refined by Iluka Resources into metals critical to the operation of high-performance magnets that are essential to global

decarbonisation. The Wolverine deposit at Browns is understood to be the highest grade Dy and Tb orebody in Australia and the only known substantial source of Dysprosium and Terbium outside of China and Myanmar. These metals are critical inputs for electric vehicles and wind turbines and are required to retain magnetic properties at high temperature ranges, important for operational reliability, with no known substitute.

We have an important partnership with Iluka Resources. The long- term supply agreement, supported by the funding partnership with Iluka Resources, covers 100% of production up to a maximum of 5.5ktpa and 30.5kt in total. This positions Northern Minerals well to execute on its strategy to be a globally leading concentrate producer of Dysprosium and Terbium. Global Dysprosium and Terbium oxide demand is forecast to have a 9% compound annual growth rate (CAGR) until 2035.

Despite a strong growth in possible supply of Neodymium and Praseodymium, the core rare earths used in magnets, a lack of emerging supply in Dysprosium and Terbium remains a key constraint in meeting the forecast demand growth for high performance permanent magnets. This positions the Browns Range Project, including Wolverine and the other known areas of mineralisation within the Browns Range system, to become a key alternative supplier outside of China and Myanmar.

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During the year, our highly experienced team focused on updating the Definitive Feasibility Study ("DFS") for the project, leveraging the work undertaken in the 2015 DFS, with completion of the DFS expected late in the 2023 Calendar Year. This will be used to support the financing towards Final Investment Decision targeted in H1 of the 2024 Calendar Year and first production targeted for 2026. We have actively advanced discussions with potential financiers so we can build on the support given by Iluka Resources. I would like to thank them for their trust in our team.

Northern Minerals is well engaged with the Northern Australian Infrastructure Facility (NAIF) and Export Finance Australia (EFA), as part of the consideration of various funding packages. I am delighted that the project has fulfilled the initial strategic assessment phase of NAIF's investment decision process.

Our aim is to move into production as soon as possible to provide strong returns to our shareholders. I would like to thank shareholders for their patient support to date and we look forward to a successful 2024 Financial Year advancing this exciting project towards first production. I would also like to thank the entire team at Northern Minerals, who have continued to bring their energy, passion and experience to making real the important vision of the company to bring the Browns Range Project into production.

Nicholas Curtis AM

Executive Chairman

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