Mr. Ronald Thiessen reports

NORTHERN DYNASTY ANNOUNCES US$25 MILLION BOUGHT DEAL

Northern Dynasty Minerals Ltd. has entered into an agreement dated Jan. 11, 2017, with Cantor Fitzgerald Canada Corp., TD Securities Inc. and BMO Capital Markets as co-lead underwriters and joint bookrunners, on behalf of themselves and a syndicate of underwriters, to purchase on a bought deal basis 13.52 million common shares of the company at the price of $1.85 (U.S.) per offered share for aggregate gross proceeds of approximately $25-million (U.S.).

In addition, the company has agreed to grant to the underwriters an overallotment 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 proceeds to the company of up to approximately $3.75-million (U.S.). The company has agreed to pay the underwriters a cash commission equal to 5 per cent of the gross proceeds of the offering, including proceeds received from the exercise of the overallotment 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 pursuant to a prospectus filed as part of a registration statement under the Canada/U.S. multijurisdictional disclosure system. A registration statement on Form F-10 relating to these securities has been filed with the U.S. 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 U.S. prior to the time the registration statement becomes effective.

The offering is expected to close on or about Jan. 26, 2017, and is subject to certain conditions, including but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the NYSE MKT. Proceeds of the offering are anticipated to be used for:

1. Advancement of the company's multidimensional strategy to address the pre-emptive regulatory action of the U.S. Environmental Protection Agency under Section 404 (c) of the Clean Water Act;
2. To prepare the Pebble project for the initiation of federal and state permitting under the U.S. National Environmental Policy Act;
3. Environmental monitoring, engineering and environmental studies, field investigations, and related technical studies to finalize a proposed development plan for the Pebble project;
4. 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 regional and state-wide stakeholder groups;
5. Alaskan corporate, tenure and site maintenance;
6. General corporate purposes;
7. Working capital requirements.

The preliminary short form prospectus is available on SEDAR. The registration statement on Form F-10, including the U.S. form of the preliminary short form prospectus, is available on the SEC's website. Alternatively, a written prospectus relating to the offering may be obtained upon request by contacting the company or Cantor Fitzgerald Canada Corp. in Canada, Cantor Fitzgerald & Co. in the U.S., TD Securities Inc. in Canada, TD Securities (USA) LLC in the U.S., BMO Capital Markets in Canada or BMO Capital Markets Corp. in the U.S.

We seek Safe Harbor.