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Northern Dynasty Announces Closing of First Tranche of Special Warrant Private Placement

Financings

Northern Dynasty Announces Closing of First Tranche of Special Warrant Private Placement

December 21, 2018 Vancouver, BC – Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE American: NAK)

("Northern Dynasty" or the "Company") reports that, further to its press release of December 11, 2018, it has

completed a first tranche closing of the fundraising through a private placement of 8,908,322 Special

Warrants at a price of C$0. 83 (US$0.62) per Special Warrant, for gross proceeds of approximately C$7.4

million (US$5.6 million). The Company expects to close the second tranche of 2,382,000 Special Warrants

imminently, for total aggregate offering proceeds of approximately C$9.4 million (US$7 million).

The Special Warrants will convert upon exercise into common shares (the “Common Shares”) on a one-for-

one basis and without payment of any additional consideration. The Company has agreed to file a prospectus

in certain Canadian provinces to qualify the conversion of the Special Warrants (the “Canadian Prospectus”).

The Company has also entered into registration rights agreements with the U.S. holders of 4,109,068 Special

Warrants.

This press release does not constitute an offer of securities for sale in the United States. Neither the issuance

of the Special Warrants nor the Common Shares have been registered under the United States Securities Act

of 1933, as amended (the “U.S. Secu rities Act”), and, unless any of such securities are registered, such

securities may only be offered or sold within the United States pursuant to applic able exemptions from the

registration requirements of the U.S. Securities Act and applicable state securities laws.

About Northern Dynasty

Northern Dynasty is a mineral exploration and development company based in Vancouver, Canada. Northern

Dynasty's pri ncipal asset, owned through its wholly -owned Alaska- based US subsidiary Pebble Limited

Partnership, is a 100% interest in a contiguous block of 2,402 mineral claims in southwest Alaska, including

the Pebble deposit. The Pebble Partnership 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 the offering of Special Warrants, closing of the financing and the use of proceeds of

the offering that the Company expects are forward-looking statements. Although the Company believes the expectations expressed

in its forward -looking statements are based on reasonable assumptions, such statements should not be in any way construed as

guarantees of the ultimate completion of the Special W arrant offering or the amount of proceeds raised of the Company's future

performance. In addition, any statements made by the Company, other than statements of historical facts, that address events or

developments that the Company expects in relation to the Pebble Project, including any potential re-partnering, are forward-looking

statements. Although the Company believes the expectations expressed in its forward -looking statements are based on reasonable

assumptions, such statements should not be in any wa y construed as guarantees. Assumptions used by the Company to develop

forward-looking statements include the following: the Pebble Project will obtain all required environmental and other permits and

all land use and other licenses, studies and development of the Pebble Project will continue to be positive, and no geological or

technical problems will occur. The likelihood of future mining at the Pebble Project is subject to a large number of risks as detailed in

its public filings. The need for compliance with extensive environmental and socio-economic rules and practices and the requirement

for the Company to obtain government permitting can cause a delay or even abandonment of a mineral project. The Company is also

subject to the specific risks inherent in the mining business as well as general economic and business conditions. The National

Environmental Policy Act EIS process requires a comprehensive “alternatives assessment” be undertaken to consider a broad range

of development alternatives. According ly, the final project design and operating parameters for the Pebble 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.