Northern Minerals provides December quarter report

HIGHLIGHTS:

• Review of the strategic direction of the Company to be led by new Chairman Nick Curtis
• Pause and review of Feasibility Study (FS) while strategic review is undertaken
• Northern Minerals successfully completed 8,751 metres of RC drilling and 2,047 metres of diamond drilling at Browns Range during the quarter
• For the full year ending 2021, a total of 17,500 RC metres were drilled and 4,876 m of diamond drilling were completed
• The first batch of assays received in December demonstrate the prospectivity at Cyclops, Banshee and Rockslider
• Best results from Rockslider of 103 metres at 0.32% TREO from 15 metres (BRR0560)
• Best assay results from Cyclops of 15.65m @ 1.83% TREO from 24.35m downhole including 5.40m @ 4.48% TREO (BRCD0001)
• Initial results at Banshee warrant further investigation and follow-up resource definition drilling in 2022

Following the appointment of a new Chairman during the quarter, the Company will undertake a review of the Company’s strategy which will be led by the new Chairman, Nick Curtis. Nick has an extensive background in mining and finance over more than 30 years, with a particular knowledge of the rare earths industry through his leadership at Lynas Corporation for 14 years.

Dysprosium (Dy) is a critical metal in a low carbon future where rare earth based permanent magnet electric motors are going to power the way the world works, from vehicles, to homes, and to industry. Demand for this metal will be on the rise for years to come. The work done over the last ten years by the Company means that it is in a great position to prosper from this important strategic asset. The Board believes the Company is ready to build a broad business that positions itself as a leading supply chain provider for the growing magnet industry.

As a result of the initiation of this strategic review, a pause and review of the FS for a full-scale beneficiation plant at Browns Range has been implemented. Work programs will be slowed down to ensure the Company’s resources are focussed on supporting the right strategy. This will be revisited at the completion of the strategic review which is anticipated to take three months.

The Company will be completing the three year test program on the Pilot Plant at Browns Range during the March 2022 quarter. The results of these test programs including results from the ore sorter will be utilised and updated when the FS is restarted. The Pilot Plant will be put on care and maintenance.

During the quarter the Company expended approximately $4.8 million on production and development activities.

During the quarter there have been some encouraging results from the drilling program at Browns Range. Northern Minerals completed 17,500 metres of reverse circulation (RC) drilling and 3,200 metres of diamond drilling.

The first batch of assay results have been received from drilling at the Banshee, Cyclops and Rockslider prospects. Assay turn around has been particularly slow from the 2021 program with the remainder expected to be returned over the course of the next few months.

Encouraging drill results were received from the Rockslider, Cyclops and Banshee prospects. Best results from Rockslider was 103m @ 0.32% TREO from 15m in BRR0560, while at Cyclops was 15.65m @ 1.83% TREO from 24.35m in BRCD0001, and at Banshee the best intercept of 14m @ 0.50% TREO from 44m was returned (BRBR0105).

Northern Minerals will follow-up these initial results in the second phase of drilling being planned at Browns Range in 2022, following the end of the wet season in the Kimberley region.