Mr. Ronald Thiessen reports

NORTHERN DYNASTY: SECOND TRANCHE OF AMENDED ROYALTY AGREEMENT COMPLETED WITH RECEIPT OF US $10 MILLION

Northern Dynasty Minerals Ltd. has received the remaining $10-million royalty payment under the second tranche of the company's royalty agreement dated July 26, 2022 (the royalty agreement), and the amended royalty agreement dated Nov. 13, 2023. All currency figures are in United States dollars.

Under the amendment, the royalty investor (the royalty holder) received the right to finance the second $12-million tranche in six equal instalments of $2-million in exchange for the right to receive approximately 0.33 per cent of the payable gold production and 1 per cent of the payable silver production from the Pebble project per each additional payment instalment made (representing one-sixth of the aggregate royalty under the second tranche). Northern Dynasty received the first $2-million upon execution of the amendment, as reported in the company's Nov. 13, 2023, news release.

As the royalty holder has now completed all six instalments (for a total of $12-million) of the second tranche on or before July 26, 2024, the balance of the completion of the royalty agreement has been extended until July 26, 2025, as agreed to under the amendment. The remaining three tranches of $12-million each, as described in the company's July 27, 2022, news release and its recent Q1 2024 MD&A (management's discussion and analysis), have not been similarly subdivided, and the aggregate total purchase price of $60-million and maximum royalty rates (10 per cent of payable gold production and 30 per cent of payable silver production) remain unchanged from the original royalty agreement.

"We are pleased that the investor has completed the second of five $12-million tranches," said Ron Thiessen, president and chief executive officer of Northern Dynasty Minerals. "As a result, the expiration date has been extended for one year, by which time we could receive the additional $36-million investment from the remaining three tranches contemplated in the original royalty agreement. Meanwhile we will continue to advance responsibly and reasonably the Pebble project, one of the most important minerals and metals deposits in the world, with standards that assure the environment and regional fisheries are safeguarded as detailed in the USACE's Final Environmental Impact Statement and Remand Order."

The company received the first tranche of $12-million in return for the right of the royalty holder to receive 2 per cent of the payable gold production and 6 per cent of the payable silver production from the Pebble project, after accounting for a notional payment by the royalty holder of $1,500 per ounce of gold and $10 per ounce of silver, respectively, for the life of the mine (see Northern Dynasty news release July 27, 2022). Completion of the second tranche of $12-million increases the investor's right to an aggregate of 4 per cent of the payable gold production and 12 per cent of the aggregate silver production. If, in the future, spot prices exceed $4,000 per ounce of gold or $50 per ounce of silver, then the company will share 20 per cent of the excess price for either metal. Additionally, the company will retain a portion of the metal produced at recovery rates in excess of 60 per cent for gold and 65 per cent for silver, and so is incentivized to continually improve operations over the life of the mine.

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 United States subsidiary, Pebble LP, is a 100-per-cent interest in a contiguous block of 1,840 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.

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