Northern Dynasty Announces US$25 Million Bought Deal

NORTHERN DYNASTY ANNOUNCES US$25 MILLION BOUGHT DEAL

January 11, 2017, Vancouver, BC – Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE MKT: NAK)

(“Northern Dynasty” or the “Company”) announces that it has entered into an agreement dated January

11, 2017 with Cantor Fitzgerald Canada Corporation, TD Securities Inc. and BMO Capital Markets, as co-

lead underwriters and joint bookrunners, on behalf of themselves and a syndicate of underwriters

(collectively, the “Underwriters”) to purchase, on a bought deal basis, 13,520,000 common shares of the

Company (the “ Offered Shares ”) at the price of US$1.85 per Offered Share (the “ Issue Price ”) for

aggregate gross proceeds of approximately US$25.0 million (the “Offering”).

In addition, the Company has agreed to grant to the Underwriters an over-allotment option (the “ Over-

Allotment Option”) exercisable, in whole or in part, in the sole discretion of the Underwriters to purchase

up to an additional 2,028,000 Offered Shares at the Issue Price for a period of up to 30 days after the closing

of the Offering for potential additional gross procee ds to the Company of up to approximately US$3.75

million. The Company has agreed to pay the Underwr iters a cash commission equal to 5% of the gross

proceeds of the Offering, including proceeds received from the exercise of the Over-Allotment Option.

The Offered Shares will be offered by way of a short form prospectus in all provinces in Canada, except

Quebec, and will be offered in the United States pursua nt to a prospectus filed as part of a registration

statement under the Canada/U.S. multi-jurisdictional disclosure system. A registration statement on Form

F-10 relating to these securities has been filed with the United States Securities and Exchange Commission

but has not yet become effective. The securities may not be sold nor may offers to buy be accepted in the

United States prior to the time the registration statem ent becomes effective. This news release shall not

constitute an offer to sell or the solicitation of an of fer to buy nor shall there be any sale of the Offered

Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or

qualification under the securities laws of that jurisdic tion. The Offered Shares have not been approved or

disapproved by any regulatory authority, nor has an y such authority passed upon by the accuracy or

adequacy of the prospectus or the registration statement.

The Offering is expected to close on or about January 26, 2017 and is subject to certain conditions including,

but not limited to, the receipt of all necessary appr ovals including the approval of the Toronto Stock

Exchange and the NYSE MKT. Proceeds of the Offering are anticipated to be used for (i) advancement of

the Company’s multi-dimensional strategy to addr ess the pre-emptive regulatory action of the U.S.

Environmental Protection Agency under Section 404 (c) of the Clean Water Act; (ii) to prepare the Pebble

Project for the initiation of federal and state permitting under the U.S. National Environmental Policy Act;

(iii) environmental monitoring, engineering and envi ronmental studies, field investigations and related

technical studies to finalize a proposed development pl an for the Pebble Project, (iv) enhanced outreach

and engagement with political and regulatory offices in the Alaska state and U.S. federal government and

among Alaska Native partners and broader regi onal and state-wide stakeholder groups , (v) Alaskan

corporate, tenure and site maintenance, (vi) ge neral corporate purposes, and (vii) working capital

requirements.

The preliminary short form prospectus is available on SEDAR at www.sedar.com. The registration

statement on Form F-10, including the U.S. form of th e preliminary short form prospectus, is available on

the SEC’s website at www.sec.gov. Alternatively, a written prospectus relating to the Offering may be

obtained upon request by contacting the Company or Cantor Fitzgerald Canada Corporation in Canada,

attention: Equity Capital Markets, 181 University Avenue, Suite 1500, Toronto, ON, M5H 3M7, email:

[email protected]; Cantor Fitzgerald & Co. in the United States, Attention: Equity Capital Markets,

110 East 59th Street, New York, New York, 10022, te lephone: (212) 829-7122; TD Securities Inc. in

Canada, Attention: Symcor, NPM (tel: 289-360-2009 , email: [email protected]), 1625 Tech Avenue,

Mississauga ON L4W 5P5; TD Securities (USA) LLC in the United States (tel: 212-827-7392), 31 W 52nd

Street, New York NY 10019; BMO Capital Markets in Canada by email at

[email protected]; or BMO Capital Markets Corp. in th e United States, Attn: Equity

Syndicate Department, 3 Times Square, 25th Floor, New York, NY 10036, or by telephone at (800) 414-

3627 or by email at [email protected].

About Northern Dynasty Minerals Ltd.

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

Northern Dynasty's principal asset is the Pebble Project in southwest Alaska, USA, 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.northerndynasty.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 U.S. public filings at www.sec.gov.

Ronald W. Thiessen

President & CEO

Forward Looking Information and other Cautionary Factors 

This news release contains “forward‐looking information” within the meaning of applicable Canadian securities legislation, and 

“forward‐looking  statements”  within  the  meaning  of  the  United  States  Private  Securities  Litigation  Reform  Act  of  1995 

(collectively referred to as “forward‐looking information”). The use of any of the words “expect”, “plan”, “update” and similar 

expressions are intended to identify forward‐looking information or statements.  These statements include expectations about 

the likelihood of completion of the Offering, the amount of funds to be raised, the use of proceeds of the Offering, the success 

of the Company’s multi‐dimensional strategy to address the pre‐emptive action of the EPA, the ability of the Company to proceed 

with permit applications for the development of the Pebble Project, the ability of the Company to obtain the necessary federal 

and state permits for the development of the Pebble Project and the ability of the Company to secure required Canadian and US 

regulatory  and stock  exchange  acceptances  for  the  Offering.  Though  the  Company  believes  the expectations  expressed  in  its 

forward‐looking statements are based on reasonable assumptions, such statements are subject to future events and third party 

discretion such as regulatory personnel. For more information on the Company, and the risks and uncertainties connected with 

its business, Investors should review the Company's home jurisdiction filings at www.sedar.com and its filings with the United 

States Securities and Exchange Commission at www.sec.gov.