Mr. Mark Smith reports

NIOCORP SUCCEEDS IN PRODUCING SCANDIUM METAL AT PILOT-SCALE AS PART OF ITS ALUMINUM-SCANDIUM MASTER ALLOY INITIATIVE

NioCorp Developments Ltd. and its development partner Nanoscale Powders LLC successfully produced scandium metal at pilot-scale at a facility owned and operated by Creative Engineers in Pennsylvania, advancing a phased program to establish United States commercial production of aluminum-scandium (Al-Sc) master alloy.

The next step in the pilot-scale program is to produce kilogram-sized ingots of Al-Sc master alloy for independent testing and commercial product samples. The first of these Al-Sc master alloy ingots is expected to be produced in the coming weeks.

NioCorp and Nanoscale are employing a proprietary process developed by Nanoscale that increases efficiency and reduces environmental impacts of Al-Sc production over traditional approaches. Nanoscale has already developed similar metallurgical processes that are being applied to the production of rare earth metals of other operators, which behave metallurgically in a fashion similar to scandium.

Al-Sc master alloy, which generally contains 2 per cent by weight scandium, is used to introduce scandium into aluminum for the purpose of producing various Al-Sc alloys, which generally contain a fraction of a per cent of scandium by weight. These alloys help to reduce weight, increase strength and corrosion resistance, and make the material weldable in automotive and mass transit, aerospace, defence, space, and other systems. NioCorp's goal is to demonstrate the ability to make Al-Sc master alloy containing from 2 per cent by weight scandium to as much as 10 per cent by weight scandium.

"This successful test demonstrates that we can make scandium metal at a high enough purity level to proceed directly to the pilot-scale production of kilogram-sized samples of aluminum-scandium master alloy," said Mark A. Smith, chief executive officer and executive chairman of NioCorp. "The progress being made in this phased commercialization effort is important given the rapidly growing interest in scandium alloys across both the commercial transportation sector and in the national defence community."

NioCorp is in commercial discussions with vehicle manufacturers that have expressed interest in potentially deploying aluminum-scandium alloys in electric and other vehicles in order to reduce vehicle weight, strengthen vehicle frames and other components, and improve performance.

NioCorp also is working closely with policymakers in Washington, D.C., and other stakeholders interested in national defence applications for scandium and aluminum-scandium alloys. The House and Senate Armed Services Committees recently approved legislation that directs the Pentagon to more actively support efforts to develop domestic production of scandium, Al-Sc master alloy, niobium, titanium, rare earths and other critical minerals.

Three-phase commercialization program

NioCorp and Nanoscale are pursuing a three-phased development plan for commercial production of Al-Sc master alloy. The goal of this program is to achieve full-scale Al-Sc master alloy production at approximately the same time as the Elk Creek critical minerals project achieves commercial operation and planned production of approximately 100 tonnes per year of scandium oxide:

1. Pilot-scale batch production of 10-kilogram master alloy ingots. Master alloy produced will be fully analyzed (metals and gases) at independent test facilities. Ingot samples will be available for third party examination and prospective customer testing/sampling.
2. Commercial demonstration production of 100 kg ingots. NioCorp expects to perform this work at a third party ingot casting facility, which is expected to significantly reduce development timelines and cost, as well as leverage existing facility permits and operator experience. The objective of this stage will be to optimize the production process and operating conditions.
3. Full-scale commercial production of master alloy. Assuming successful results at the pilot-scale and commercial-demonstration stages, and once project financing is obtained, NioCorp intends to secure an engineering, procurement and construction contractor to construct, start up and commission a full-scale production facility with the capacity to consume up to the Elk Creek project's projected scandium production of approximately 100 tonnes (Sc metal contained in master alloy) per year. NioCorp intends to co-locate the full-scale production facility with the Elk Creek project in Nebraska, in order to take advantage of the infrastructure (that is, low-cost power, water and natural gas) that will be in place for mining operations.

NioCorp and Nanoscale also plan to develop recycling approaches for scrap alloy, including work-in-process material and postproduction scrap.

Qualified person

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, and verified the data contained in this news release.

About NioCorp Developments Ltd.

Niocorp is developing a critical minerals project in southeast Nebraska that will produce niobium, scandium and titanium. 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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