Northern Minerals Limited signs rare earths concentrate supply agreement with Iluka Resources Limited covering the initial 8+ year mine life (30.5k tonnes of contained TREO) from Browns Range Production of dysprosium and terbium rare earth oxides in concentrate from Browns Range will complement Iluka's suite of rare earths products Northern Minerals has entered into a funding package to raise up to $78.0 million to fund the Browns Range Project (subject to satisfaction or waiver of certain conditions, and receipt of shareholder approvals) comprising: Iluka funding package (as below) of up to $73.0 million. Non-underwritten share purchase plan of up to 125 million shares at $0.04 per share to raise up to $5.0 million. Northern Minerals and Iluka have entered into funding arrangements which include the following: An initial placement by Northern Minerals to Iluka of 125.0 million shares at $0.04 per share to raise $5.0 million (subject to satisfaction or waiver of certain conditions), to be completed on or about 28 October 2022.

An issue by Northern Minerals to Iluka of a convertible note totalling $15.0 million (subject to satisfaction or waiver of certain conditions), convertible into up to 365.6 million shares at $0.048 per share (including assumed capitalised interest, and subject to various adjustment events), to be issued on or about 28 October 2022 A future placement by Northern Minerals to Iluka, to take place following Browns Range Project FID (and certain other conditions being satisfied or waived), pursuant to which Iluka will (subject to satisfaction or waiver of certain conditions) be issued up to an additional 230 million shares at a maximum price of $0.06 per share raising up to $13.8 million. A call option /put option arrangement pursuant to which Iluka will (subject to satisfaction or waiver of certain conditions) be issued up to an additional 653.3 million shares at a maximum price of $0.06 per share raising up to $39.2 million. The issue and grant of the call option and put option is conditional on Northern Minerals shareholder approval of the call option.

The call option can be exercised by Iluka at any time up until 31 December 2025. The exercise of the put option by Northern Minerals is conditional on (among other things) NTU making a positive FID in relation to the Browns Range Project and ILU completing due diligence in respect of NTU's DFS to ILU's satisfaction (acting in good faith). Once those conditions are satisfied, Northern Minerals may exercise the put option at any time up until 31 December 2025.

This funding package will enable Northern Minerals to complete the DFS for a mine and commercial-scale beneficiation plant at Browns Range, provide ongoing working capital and contribute to the future equity component of the capex and commissioning costs associated with the Browns Range Project Northern Minerals is targeting completion of the Wolverine Project DFS in Third Quarter 2023 with first production forecast to occur in 2026, subject to receipt of customary regulatory approvals.