NioBay Metals provides an update on the exploration permit application at the James Bay Niobium project

Press release

TSX-V: NBY

NioBay Metals provides an update on the exploration permit application at the James Bay

Niobium project

Montreal, June 12, 2017 – Niobay Metals Inc. (“NioBay” or the “Company”) (TSX -V: NBY) has been

informed by the Ministry of Northern Development and Mines of Ontario (‘’MNDM’’) that its

application for an exploration permit on the James Bay Niobium project will remain on temporary

hold for now. Despite a number of requests, the leadership of Moose Cree First Nation (“MCFN”)

has to this day refused to open a dialogue with the Company and to discuss their concerns

associated with the exploration program and the project. The MNDM is taking steps to organize a

meeting with representatives of the MCFN to a ddress any concerns they may have about the

proposed drilling campaign.

The Company has filed a permit application in October 2016 with the MNDM to conduct a drilling

program on the James Bay Niobium project. The program consists of 10 to 12 drill holes for a total of

approximately 4,000 m and the objective is to validate historical data obtained from a drilling

campaign conducted in the 1960s.

The Company’s focus remains on the development of the James Bay Niobium project . The Company

will continue to hold discussions with the local community members, government officials and will

maintain its efforts to engage with the MCFN leadership.

About the James Bay Niobium Project

The James Bay Niobium property is located in the district of Cochrane, 40 km south of Moosonee in

Ontario, Canada. It was discovered in 1966 with significant exploration work carried out

subsequently, including 14,000 meters of drilling over 85 holes, which established a deposit

extending to 275 meters in depth and 500 meters longitudinally. A historical estimate was finalized

by Bechtel Canada in 1967 and indicated 62 million tonnes at 0.52% Nb 2O5. Moreover, pilot plant

tests demonstrated a recovery rate of 78%, which is considered high for niobium processing.

The historical resource estimate and the historical metallurgical testing are based on data obtained

by previous operators in the 1960s. NioBay Metals has not done suff icient work to verify or classify

those historical results. Economic studies completed in the 1960s do not mean the James Bay

Niobium deposit would be found to be economic today. NioBay Metals is not treating the historical

results as a current mineral resource nor as having been verified by a qualified person.

About NioBay Metals Inc.

NioBay Metals Inc. is a mining exploration company holding a 100% interest in the James Bay

Niobium property in Ontario, Canada and a 72.5% interest in the Crevier niobium / tantalum

resource in Qu ébec, Canada. The Company is also actively reviewing the potential of other mineral

properties, including properties in Quebec jointly held with SOQUEM.

Cautionary Statement

Certain statements contained in this press release consti tute forward looking information under the

provisions of Canadian securities laws. Such statements include, without limitation, the Company's

plans and objectives to conduct a drilling program and complete a resource estimate. Such

statements reflect the Company's views as at the date of this press release and are subject to certain

risks, uncertainties and assumptions, and undue reliance should not be placed on such statements.

Such risks include, but are not limited to: delays in obtaining or failure to o btain all the necessary

permits to conduct a drilling program and uncertainties related to historical data, historical

resources and future exploration results. Actual results may be materially different from those

currently anticipated. Many factors, know n and unknown could cause the actual results to be

materially different from those expressed or implied by such forward looking statements. The

Company does not intend, and does not assume any obligation, to update these forward -looking

statements and information, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the

policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this

release.

For more information, contact:

Claude Dufresne, P.Eng.

President & CEO

NioBay Metals Inc.

Tel.: 514 866-6500, Ext. 2221

Email: [email protected]

Website: www.niobaymetals.com