Mr. Mark Smith reports

NIOCORP DEMONSTRATES HIGHER NIOBIUM RECOVERY RATES

Niocorp Developments Ltd. has successfully demonstrated the ability to recover greater amounts of the critical mineral niobium from each tonne of ore the company expects to mine at its Elk Creek critical minerals project, located in southeast Nebraska, once sufficient financing is obtained and the project is constructed.

Final results from Niocorp's metallurgical demonstration plant in Trois Rivieres, Que., show that Niocorp's new and improved recovery process can achieve a 90.7-per-cent rate of niobium recovery through the hydrometallurgical process. Overall recovery through the pyrometallurgical production of the commercial product ferroniobium is expected to be 86.7 per cent. Niocorp's previous approach to niobium production was able to achieve recovery rates through the hydrometallurgical and pyrometallurtical processes of 86.8 per cent and 82.4 per cent, respectively.

The higher rates of niobium recovery from Niocorp's new process point to the likelihood of higher niobium production levels from Niocorp from the same mining tonnage, although a final determination of planned niobium production can be made only after work related to a mineral reserve update, additional engineering, updated project capital and operating cost estimates and other required information is produced for publication in a new feasibility study.

Potential new forms of niobium products and potential markets

Niocorp's new process approach, which incorporates a chlorination step to improve niobium and titanium separation and purification, also has demonstrated Niocorp's ability to potentially produce three different niobium products: (1) ferroniobium; (2) niobium chloride; and (3) niobium oxide.

• Niocorp had previously planned to make ferroniobium, which is used by the steel industry to produce high-strength low-alloy steel alloys. Those alloys are used in the construction, automotive and transport, aerospace and defence, oil and gas, and other industries. Niobium is a $3.3-billion-per-year global market but is currently served by only three major niobium producers in two countries.
• Niobium chloride would likely be converted by Niocorp into niobium oxide, but niobium chloride is also used in glass and ceramic manufacturing.
• Niobium oxide is critical to multiple applications, including niobium-lithium-ion batteries, superalloys, superconducting applications, capacitors, specialized optics and many others. Its use in niobium-lithium-ion batteries is considered by current niobium producers as one of the fastest-growing prospective global niobium markets.

More streamlined production process demonstrated

Niocorp's new process has been demonstrated to be more efficient than the previous design, is expected to require fewer processing steps and may allow the elimination of entire processes in Niocorp's planned processing plant in Nebraska, such as acid regeneration.

"I am very pleased with the results shown in our demonstration plant for niobium recovery," said Mark A. Smith, chief executive officer and executive chairman of Niocorp. "These results point strongly to the likelihood of Niocorp producing more niobium from each tonne of Elk Creek project ore, which could have positive impacts on our project's anticipated overall financial returns. These results also point to the prospect of our project producing more forms of niobium for a greater range of global markets."

"These are very exciting results and they point to potentially greater production levels and additional optionality in terms of where we can sell niobium and the prices these products command," said Scott Honan, Niocorp chief operating officer. "While the demonstration plant has performed well, the pace of operations has gone at a slower rate than any of us would have liked. That is often the case with demonstration plants, which by their nature are designed to investigate innovate pathways for producing commercial products as well as stress testing those processes. Our top priority in this project has always been to maintain a very high standard for technical feasibility and testing, and to conduct the work safely and efficiently. Adhering to high standards is critical to the project's success, including being able to attract necessary financing to bring projects such as ours to commercial reality."

Qualified persons

Eric Larochelle, BEng, co-owner, L3 Process Development, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information, and verified the data, contained in this news release.

Scott Honan, MSc, SME-RM, chief operating officer of Niocorp Developments, a qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in the news release.

About Niocorp Developments Ltd.

Niocorp is developing a critical minerals project in southeast Nebraska that is expected to produce niobium, scandium and titanium, subject to the receipt of sufficient project financing. The company also is evaluating the potential to produce several rare earths from the Elk Creek project. Niobium is used to produce specialty alloys as well as high-strength, low-alloy steel, which is a lighter, stronger steel used in automotive, structural and pipeline applications. Scandium is a specialty metal that can be combined with aluminum to make alloys with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is used in various lightweight alloys, and is a key component of pigments used in paper, paint and plastics, and is also used for aerospace applications, armour and medical implants. Magnetic rare earths, such as neodymium, praseodymium, terbium and dysprosium, are critical to the making of neodymium-iron-boron magnets, which are used across a wide variety of defence and civilian applications.

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