Preliminary Economic Assessment for Northern Dynasty’s Pebble Project Completed: Robust projected financial results, excellent optionality and important benefits for Alaska Evaluates a Proposed Project and three potential Expansion Scenarios for the Pebble copper-gold-molybdenum-
Preliminary Economic Assessment for Northern Dynasty’s Pebble Project Completed: Robust projected
financial results, excellent optionality and important benefits for Alaska
Evaluates a Proposed Project and three potential Expansion Scenarios for the Pebble copper-gold-molybdenum-
silver-rhenium project
Project is expected to add substantially to the Alaskan economy and provide the U.S. with an important supply of
copper and other metals to help meet its low-carbon economy goals
Pebble Performance Dividend and Right of Way payments offer additional benefits to local residents and create
economic diversification in the region
October X , 2021 Vancouver – Northern Dynasty Minerals Ltd. (TSX: NDM; NYSE American: NAK) ("Northern
Dynasty" or the "Company") announces, further to the Company’s September 9, 2021 news release, that it has
filed the “Preliminary Economic Assessment NI 43-101 Technical Report, Pebble Project, Alaska, USA” (“2021 PEA”)
at www.sedar.com. The technical report and an executive summary will also be posted on the Company’s website
at www.northerndynastyminerals.com. The PEA Technical Report will also be filed on EDGAR later this week. U.S.
dollars and U.S. standard units are used unless otherwise indicated. All results are post -tax. Unless otherwise
noted, all figures are based on forecast long-term metal prices.
The 2021 PEA provides production, financial and cost estimates for its proposed Pebble Project (the “ Proposed
Project”) in Southwest Alaska as described in the Pebble Project permit application and its amendments.
Key Projected Results for Proposed Project1
• 20 years of open pit mining with a processing rate of 180,000 tons per day (“Tpd”)
• At forecast long-term2 metal prices, Internal Rate of Return (“IRR”) of 15.7% and Net Present Value at 7%
discount rate (“NPV7”)3 of $2.3 billion
• At prevailing4 metal prices, IRR of 23.7% and NPV7 of $4.7 billion
• Life-of-mine (“LOM”) metal production for this scenario: 6.4 billion lb copper; 7.4 million oz gold; 300
million lb molybdenum; 37 million oz silver; and 230,000 kg rhenium
• Average annual metal production: 320 million lb copper; 368,000 oz gold; 15 million lb molybdenum; 1.8
million oz silver and 12,000 kg rhenium
• Average co-product C1 Copper Cost of $1.65/lb CuEq and Gold Cash Cost of $753/oz AuEq; average by-
product C1 Copper Cost of $0.69/lb and Gold Cash Cost of ($1,148)/oz
• Average annual Net Smelter Return (“NSR”) of $1.6 billion and LOM NSR of $32 billion
The 2021 PEA also examines three potential mine expansion scenarios, each with a mine life that could reach more
than 100 years, and potential scenarios for gold recovery that could form the basis for future permit applications
and review. The Project could potentially provide more than $8 billion to the Southwest Alaska region through
the Pebble Performance Dividend and the Lake and Peninsula Borough severance tax over the life of the potential
expansion scenarios. This is in addition to the b enefits that could flow from the existing and possible future
agreements with Alaska Native Village Corporations.
“The 2021 PEA forecasts strong economics for the Proposed Project and also demonstrates significant optionality
for future potential developments,” said Northern Dynasty President and CEO Ron Thiessen. “We have made a
significant investment in the design of this project to ensure it can be built and operated with industry -leading
environmental safeguards while generating significant financial returns over multiple decades. It has never been
1 Results include infrastructure outsourcing and gold streaming
2 Long-term metal prices: copper $3.50/lb; gold $1,600/oz; molybdenum $10/lb; silver $22/oz; rhenium $1,500/kg
3 Net Present Value is calculated using a 7% discount rate, given the polymetallic nature of the Pebble deposit and the large
contributions of gold to total project revenues.
4 Prevailing metal prices: copper $4.25/lb; gold $1,800/oz; molybdenum $18/lb; silver $24/oz; rhenium $1,600/kg
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about the Pebble Mine Project or the Bristol Bay Fishery; it has always been about the Bristol Bay Fishery and the
Pebble Mine Project. We look forward to more engagement, in the near future, on the expansive and financially
rewarding opportunities for the communities and the residents of Western Alaska resulting from a potential
Pebble Mine development.”
The Proposed Project detailed in the 2021 PEA is consistent with the Project Description in the Pebble EIS, as
published by the USACE in July 2020. It does not include an onsite gold plant. The Proposed Project recently
underwent a comprehensive review by the U.S. Army Corps of Engineers (“USACE”). This review culminated in
their publishing of a Final Environmental Impact Statement (“FEIS”) on July 24, 2020, which positively concluded
– among other things – that the Proposed Project would “not have measureable effects” on fisheries in Southwest
Alaska. The USACE subsequently issued a negative Record of Decision for the Project based, in part, on potential
impacts to the fishery. Pebble Limited Partnership has filed an administrative appeal of the Record of Decision,
arguing in part that the findings of potential impacts to the fishery were not adequately substantiated.
As mentioned above, the 2021 PEA also examines three potential mine expansion scenarios, each with a mine life
that could reach more than 100 years, and potential scenarios for gold recovery that could form the basis for
future permit applications and review. These potential expansion scenarios were modelled on a mine
development concept submitted by Northern Dynasty’s 100% -owned U.S. -based su bsidiary Pebble Limited
Partnership (“Pebble Partnership”) to the USACE during federal permitting in response to the federal agency’s
Request for Information (“RFI”) about future potential mine development scenarios. For the Proposed Project
and the potential expansion scenarios, the 2021 PEA also considers the impact of each on financial results of third
parties owning and financing the construction of key transportation and power infrastructure, as is commonly the
case in Alaska. It is assumed these third parties would either construct the facilities through their own resources
or they would be included in overall project construction management. The Pebble Partnership would lease,
operate and maintain the facilities as part of overall mine operations, with lease payments set to provide a market
rate of return to lessors. Details of the results for the potential expansion and gold recovery scenarios are provided
in the technical report and summarized in the Company’s September 9, 2021 news release.
With the exception of the Proposed Project, all development scenarios evaluated in the 2021 PEA are presented
to demonstrate the optionality inherent i n the polymetallic Pebble deposit by presenting a broad range of
potential pathways for future mine development. Neither Northern Dynasty nor the Pebble Partnership has
proposed or intends to propose any of these potential expansion scenarios in the near -term for regulatory
approval. Any future development options beyond the Proposed Project would require extensive federal, state
and local permitting processes and approvals before proceeding, which would be in addition to the initial permits
and approvals required for the Proposed Project and, very importantly, in consultation with the people and
communities of Western Alaska, as well as the State agencies.
“While the forecasted economics of this project are impressive, what I’m most excited about is how this is a game-
changer for the local population wh o suffer from a lack of employment and diverse economic activity, and the
opportunity to live in the region and apply advanced education , through high-paying jobs. The Project could
potentially provide more than $8 billion to the Southwest Alaska region through the Pebble Performance Dividend
and the Lake and Peninsula Borough severance tax over the life of the potential expansion scenarios. This is in
addition to the other significa nt benefits that could flow from the existing and possible future agreements with
Alaska Native Village Corporations. It also has the potential to add substantially to the Alaska economy, and might
provide the U.S. with substantial amounts of domestically-produced copper, silver and gold, which it will need to
help achieve its low carbon energy future,” Mr. Thiessen added.
The 2021 PEA has been prepared within the guidelines establis hed by National Instrument 43-101 (“NI 43-101”)
to disclose the current costs estimates and potential financial results for the Pebble Project. The Company is a
“foreign issuer” under the U.S. Exchange Act and entitled to file continuous disclosure reports with the U.S.
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Securities and Exchange Commission under the Multi-Jurisdictional Disclosure System (“MJDS”) between Canada
and the United States, and to provide disclosure on our mineral properties, in cluding the Pebble Project, in
accordance with NI 43‐101 disclosure standards and CIM Definition Standards. For this reason, information
contained in this news release in respect of the Pebble project may not be comparable to similar information made
public by United States companies subject to the reporting and disclosure requirements under the United States
federal securities laws and the rules and regulations thereunder.
The 2021 PEA is based on an August 2020 mineral resource estimate (see Northern Dyna sty news release dated
August 20, 2020). The 2021 PEA is preliminary in nature, and includes Inferred mineral resources that are
considered too speculative geologically to have economic considerations applied to them that would enable them
to be categorized as mineral reserves. There is no assurance that the 2021 PEA will be realized, or that the project
economics will be achieved. Mineral Resources that are not mineral reserves do not have demonstrated economic
viability, and there is no assurance that t he Pebble Project mineral resources will ever be upgraded to reserves .
The 2021 PEA assumes that the Proposed Project will ultimately be able to obtain the required permits from the
USACE and state of Alaska authorities to enable development of the Proposed Project. Neither the 2021 PEA, nor
the mineral resource estimates on which the 2021 PEA is based, have been adjusted for any risks that (i) the Pebble
Partnership may not be able to successfully appeal the record of decision issued by the USACE on November 25,
2020 denying the granting of the required permit under the Clean Water Act (“CWA”), or (ii) any action that may
be taken by the EPA in order to reinstate the process of a CWA Section 404(c) determination for the waters of the
Bristol Bay, each of which could adversely impact the ability of the Proposed Project to proceed. In addition, the
2021 PEA does not account for any additional capital or operating costs that may be necessary to obtain the
required federal or state permits, should adjustments to the operating or environmental mitigation plans be
required to be made in order to secure the required permits.
Stephen Hodgson, P.Eng, a qualified person who is not independent of Northern Dynasty has reviewed and
approved the scientific, technical, and economic information contained in this news release.
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, is a 100% inter est in a contiguous block of 2,402 mineral claims in Southwest Alaska, including the
Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. 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 U.S. public filings at www.sec.gov.
Ronald W. Thiessen
President & CEO
U.S. 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" under the United States Private Securities
Litigation Reform Act of 1995 and under applicable provisions of Canadian provincial securities laws. All statements in this release,
other than statements of historical facts, which address permitting, development and production for the Pebble Project are forward-
looking statements. These include statements regarding (i) the mine plan for the Pebble Project, the financial results of the 2021 PEA,
including net present value and internal rates of return, and the ability of the Pebble Partnership to secure the financing t o proceed
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with the development of the Pebble Project, including any stream financing and infrastructure outsourcing, (ii) the social integration
of the Pebble Project into the Bristol Bay region and benefits for Alaska, (iii) the political and public support for the permitting process,
(iv) the ability to successfully appeal the negative Record of Decision and secure the issuance of a positive Record of Decision by the
U.S. Army Corps of Engineers and the ability of the Pebble Project to secure all required federal and state permits, (v) the right-sizing
and de-risking of the Pebble Project, including any determination to pursue any of the expansion scenarios for the Pebble Project or
to incorporate a gold plant, (vi) the design and operating parameters for the Pebble Project mine plan, including projected c apital
and operating costs, (vii) exploration potential of the Pebble Project, (viii) future demand for copper and gold and the metals prices
assumed for the financial projections including the 2021 PEA, (ix) the potential addition of partners in the Pebble Project, and (x) the
ability and timetable of NDM to develop the Pebble Project and become a leading copper, gold and molybdenum producer. Although
NDM believes the expectations expressed in these forward -looking statements are based on reasonable assumptions, such
statements should not be in any way be construed as guarantees that the Pebble Project will secure all required government permits,
establish the commercial feasibility of the Pebble Project, achieve the required financing or develop the Pebble Project. Such forward-
looking statements or information related to this Preliminary Economic Assessment include but are not limited to statements or
information with respect to the mined and processed material estimates; the internal rate of return; the annual production; the net
present value; the life of mine; the capital costs, operating costs estimated for each of the Proposed Project and three Expansion
Scenarios for the Pebble Project; and other costs and payments for the proposed infrastructure for the Pebble Project (including how,
when, where and by whom such infrastructure will be constructed or developed); projected metallurgical recoveries; plans for further
development, and securing the required permits and licenses for further studies to consider expansion of the operation; and market
price of precious and base metals; or other statements that are not statement of fact.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by
NDM as of the date of such sta tements, are inherently subject to significant business, economic and competitive uncertainties and
contingencies. 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 , and that the EPA
will not ultimately make a CWA Section 404(c) determination that is adverse to the Pebble Project, (ii) any feasibility studies prepared
for the development of the Pebble Project will be positive, (iii) NDM’s estimates of mineral resources will not change, and NDM will
be successful in converting mineral resources to mineral reserves, (iv) NDM will be able to establish the commercial feasibility of the
Pebble Project, and (v) NDM will be able to secure the financing required to develop the Pebble Project. The likelihood of fut ure
mining at the Pebble Project is subject to a large number of risks and will require achievement of a number of technical, eco nomic
and legal objectives, including (i) obtaining necessary mining and construction permits, licenses and approvals without undue delay,
including without delay due to third party opposition or changes in government policies, (ii) finalization of the mine plan for the
Pebble Project, (iii) the completion of feasibility studies demonstrating that any Pebble Project mineral resources that can be
economically mined, (iv) completion of all necessary engineering for mining and processing facilities, (v) the inability of NDM to secure
a partner for the development of the Pebble Project, and (vi) receipt by NDM of significant additional financing to fund thes e
objectives as well as funding mine construction, which financing may not be available to NDM on acceptable terms or on any terms
at all. NDM is also subject to the specific risks inherent in the mining business as well as general economic and business co nditions,
such as the current uncertainties with regard to COVID -19. Investors should also consider the risk factors identified in its Annual
Information Form for the year ended December 31, 2020, as filed on SEDAR and included in the Company’s annual report on Form
40-F filed by the Company with the SEC on EDGAR.
The National Environment Policy Act Environmental Impact Statement process requires a comprehensive “alternatives assessment”
be undertaken to consider a broad range of development alternatives, the final project design and operating parameters for th e
Pebble Project and associated infrastructure may va ry significantly from that currently contemplated. As a result, the Company will
continue to consider various development options and no final project design has been selected at this time, and no determina tion
has been made to pursue any of the expansion options identified in the PEA.
For more information on the Company, Investors should review the Company's filings with the United States Securities and Exchange
Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedar.com.