Northern Dynasty: Alaska’s Pebble Project approaches key permitting milestone as COVID-19 and collapsing oil prices threaten state’s economy, fiscal health and employment

Northern Dynasty: Alaska’s Pebble Project approaches key permitting milestone as

COVID-19 and collapsing oil prices threaten state’s economy, fiscal health and employment

May 14, 2020 Vancouver – Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE American: NAK) ("Northern

Dynasty" or the "Company") reports that, though fewer than 400 cases of COVID-19 have been diagnosed in

Alaska, placing it among the lowest states in the country on an absolute and pe r capita basis, the economic

impact of the global pandemic on the largest US state are both severe and ongoing.

As a result of COVID -19 and an unprecedented worldwide collapse of oil prices, almost 20% of Alaska’s

workforce – some 62,000 people in a state of less than 750,000 – have active or pending unemployment

claims. Some economists forecast 50,000 Alaska job losses this year.

Meanwhile, with average oil prices languishing in the low $20/barrel range through April and May – less than

a third of th e price required to balance the state budget – Alaska is entering its sixth consecutive year of

deficit spending. The state has virtually depleted the substantial budget reserves it built up over decades of

high oil prices, and is now faced with generating new sources of revenue, introduction of personal income or

other taxes, and/or vastly reducing future capital and operating expenditures.

“Certainly, many expect North America’s oil and gas sector will be challenged to generate significant

investment in new production in the years ahead, and Alaska’s tourism sector has also be en severely

impacted by COVID-19,” said Northern Dynasty President & CEO Ron Thiessen. “The minerals sector, on the

other hand, has a much stronger outlook – with prices for gold and precious metals surging in the near-term,

and the medium-term view for copper and base metals suggesting an extended runway for investment and

growth.”

Thiessen said Alaska is well positioned to benefit from the anticipated resurgence of mineral commodity

prices, and a corresponding increase in investment in mineral exploration and development. He noted Alaska

recently rose to the #4 position among 76 jurisdictions ranked in the Fraser Institute’s annual Survey of Mining

Companies – 2019 (released February 2020) for overall ‘Investment Attractiveness’ – in part, due to the rise

of resource nationalism and other threats to foreign investment in developing countries, and the strong

commitment to the ‘rule of law’ in Alaska the United States.

Alaska is home to several large-scale and late-stage development projects. These include: Northern Dynasty’s

100%-owned Pebble Project, expected to receive a Final Environmental Impact Statement (EIS) and Record

of Decision (ROD) from the US Army Corps of Enginee rs in mid-2020; the Donlin Gold Project in southwest

Alaska, owned jointly by Barrick and Novagold, which received its Final EIS and ROD in 2018 and is currently

advancing through state permitting; and, several promising mineral prospects in northwest Alaska’s Upper

Kobuk mining district, held in joint venture by Trilogy Metals and South32, to be served by the proposed

Ambler Road currently being permitted by the Alaska Industrial Development & Export Authority (AIDEA).

“As these and other development projects advance and come on line, the billions of dollars in capital and

operating expenditures they generate and thousands of high -paying Alaska jobs they support will make

mining an even larger contributor to the state’s ec onomy than it is today,” Thiessen said, noting Alaska

already benefits from five hardrock mines and one coal mining operation.

“Alaska truly has one of the world’s greatest mineral endowments . When you combine that with a skilled

workforce, strong and expe rienced regulatory agencies, and a political leadership and citizenry that

understands and values the important contributions that responsible resource development can make to a

modern society, I believe Alaska has a unique opportunity to emerge in the next decade as one of the world’s

premier destinations for mining and mineral development.”

Thiessen said all of Alaska’s hardrock mines are modern, long -life operations with exemplary records of

environmental, social and financial performance , including high -levels of in -state employment and

procurement. He cited the Red Dog mine, in particular – the largest zinc producer in the world, operated by

Teck Resources on NANA Regio nal Corporation lands – as a project that generates hundreds of millions of

dollars each year for distribution to the state’s Native corporations, wh ile drawing more than 55% of its

workers from NANA’s shareholder base.

Thiessen said the Pebble Project is expected to support as many as 1,000 full-time, direct jobs during mine

operations, with average compensation in excess of $100,000/year, and up to 2,000 indirect jobs in the

broader Alaska economy. Every year, an operating Pebble mine would generate more than $400 million in

in-state expenditures, and contribute some $66 million annually to state government coffers – including

contributions to Alaska’s Permanent Fund.

During mine operations, the Pebble Project would also contribute an estimated $21 million each year in tax

revenues to the Lake & Peninsula Borough, the regional jurisdiction in which the project resides. These funds,

totaling some $420 million over 20 years of mining, would increase the borough’s existing tax base and

budget by 2 - 3x, and provide an opportunity for local government to vastly expand the health, education and

other public services it provides in 17 rural villages in southwest Alaska.

Given the significance of these benefits to the region and the state, and the long-term economic implications

of COVID-19, Alaska’s State government recently wrote to the US Army Corps’ of Engineers urging the lead

federal agency to continue its steady advancement of a Final EIS and ROD for the Pebble Project. The Draft

EIS released last year, and a preliminary Final EIS circulated to cooperating agenc ies earlier this year, make

clear that Pebble is a project of merit that will fully co -exist with clean water and healthy fisheries in

southwest Alaska.

The April 15, 2020 letter f rom Alaska Department of Natural Resources (DNR) Commissioner Corri Feige to

US Army Corps of Engineers Alaska District Engineer Colonel Phillip Borders recognizes the new economic

realities facing the state. It reads in part:

“We strongly encourage you to adhere to your defined NEPA (National Environmental Policy Act) schedule.

With economic impacts felt at the federal, state, and local levels from COVID-19 and the current oil prices,

we should be doing everything in our authority and ability to keep projects of statewide importance moving

forward.

“The proposed Pebble Mine Project is important to Alaskans, as it will provide jobs, infrastructure, and

revenues critical for local, regional, and statewide economies that are being significantly impacted by

COVID-19. Keeping the Pebble Mine FEIS, Record of Decision, and associated required consultations, on their

defined timelines will enhance the applicant’s ability to initiate the state permitting process sooner.”

“I would like to reiterate that it is precisely due to our current situation why it is imperative for us to stay on

task and on schedule, perhaps now more than ever. When we make it through this pandemic, we will need

to be prepared to reenergize our economy, job force, and revenue streams. Keeping the Pebble Mine Project

on time will be a huge step in that direction, benefitting our statewide economy. As a Cooperating Agency

assisting the USACE with the FEIS, we look forward to continuing to work with you towards a timely

completion.”

About Northern Dynasty Minerals Ltd.

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 (“PLP”), is a 100% interest in a contiguous block of 2,402 mineral claims in southwest Alaska, including

the Pebble deposit. PLP is the proponent of the Pebble Project, an initiative 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.

Ronald W. Thiessen

President & CEO

US Media Contact:

Dan Gagnier

Gagnier Communications

(646) 569-5897

Forward Looking Information and other Cautionary 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 exploration drilling, exploitation activities and events or developments that the Company

expects are forward -looking statements. Although the Company believes the expectations expressed in i ts forward -looking

statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of the ultimate

size, quality or commercial feasibility of the Pebble Project, that the Pebble Project will secure all requi red government permits, or

of the Company's future performance.

Assumptions used by NDM to develop forward-looking statements include the assumptions 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 positive, (iii) NDM will be able to establish the commercial feasibility of the Pebble Project, and (iv) 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 objectives, including (i)

obtaining necessary mining and cons truction permits, licenses and approvals without undue delay, including without delay due to

third party opposition or changes in government policies, (ii) the completion of feasibility studies demonstrating the Pebble Project

mineral reserves that can be economically mined, (iii) completion of all necessary engineering for mining and processing facilities,

and (iv) receipt by NDM of significant additional financing to fund these objectives as well as funding mine construction, wh ich

financing may not be available to NDM on acceptable terms or on any terms at all. The Company is also subject to the specific risks

inherent in the mining business as well as general economic and business conditions, as well as risks relating to the uncertainties with

respect to the effects of COVID-19.

The National Environment Policy Act EIS process requires a comprehensive “alternatives assessment” be undertaken to consider a

broad range of development alternatives, the final project design and operating parameters for the Pebb le Project and associated

infrastructure may vary significantly from that currently being advanced. As a result, the Company will continue to consider various

development options and no final project design has been selected at this time.

For more information on the Company, Investors should review the Company's filings with the United States Securities and Exchange

Commission and its home jurisdiction filings that are available at www.sedar.com.