Mr. Mark Smith reports

NIOCORP PLANS TO PRODUCE MADE-IN-USA SCANDIUM MASTER ALLOY TO SUPPLY LIGHTWEIGHT PARTS TO VEHICLES

Niocorp Developments Ltd. plans to make aluminum-scandium master alloy product (Al-Sc MA) from mining and upgrade facilities to be located in the United States, subject to, among other matters, receipt of project financing and consummation of mining operations at the Elk Creek project, which could enable commercial and defence manufacturers to replace select existing aluminum parts in vehicles. Aluminum alloys containing scandium offer high-strength, corrosion-resistant, weldable alternatives to existing aluminum options and deliver significant property improvements and lightweighting opportunities, particularly in transportation applications. Military and strategic applications are expected to be significant as well.

Scandium is one of several strategic metal products that Niocorp plans to make from its Elk Creek critical minerals project in Nebraska, U.S., contingent on, among other matters, obtaining sufficient project financing. Once in commercial operation, the scandium component from this mine could potentially position Niocorp as one of the largest producers of Al-Sc MA in the world. Still, more scandium production would need to come on-line in both North America and Europe, if more than a small handful of manufacturers are to benefit from these high-performance aluminum alloy variants.

"Our planned scandium oxide and master alloy production could be large enough to enable manufacturers to supply aluminum-scandium alloy parts to electric and/or conventional vehicles. As recent forecasts from Morningstar and others predict, EV and hybrid sales are expected to grow into the tens of millions per year over the next decade and longer," according to Niocorp's chief executive officer and executive chairman, Mark Smith. "This is one of the reasons the U.S. government designated scandium as a critical mineral for the U.S. economy and national security and underscores the importance of getting multiple new, reliable sources of scandium supply for North America on-line as rapidly as possible." As an example, Mr. Smith pointed to a recent Morningstar forecast estimating that EV and hybrid vehicle sales, combined, could hit approximately 60 million units by 2030.

"Beyond the growth forecast for electric and hybrid vehicle sales, we anticipate additional demand coming from the defence sector, given scandium's ability to lightweight, strengthen and improve corrosion resistance to land-, air-, space- and sea-based systems," Mr. Smith added.

Niocorp's phased commercial development of Al-Sc master alloy production

At the recent HC Wainwright Global Investor Conference in New York, Mr. Smith discussed these trends, as well as the company's recently launched phased approach to commercial-scale production in the U.S. of Al-Sc MA.

The traditional method of introducing scandium into Al-Sc alloys is via a master alloy containing 98 per cent aluminum and 2 per cent scandium. Niocorp is now engaged in pilot-scale production of Al-Sc MA, containing up to 5 per cent or more scandium by weight, and anticipates producing the pilot-scale ingots of Al-Sc MA over the coming weeks. If and when the company is able to obtain sufficient project financing, as well as completes both pilot-scale and commercial demonstration testing operations, and validation of the technical and economic feasibility of proceeding to full-scale commercial master alloy production, Niocorp plans to construct and operate a commercial-scale master alloy facility, operating in parallel with its planned Elk Creek project. Contingent upon, among other matters, securing adequate project financing, the Elk Creek project plans to produce more than 100 tonnes of scandium oxide annually, with some or all of the oxide product to be further processed by Niocorp into an Al-Sc MA for direct sale to aluminum alloy producers and customers.

"Our pilot-scale demonstration plant has produced scandium metal and is expected to produce test aluminum-scandium master alloy ingots, with a goal of producing one-kilogram ingots at pilot scale," said Mr. Smith. "Our next step is to produce master alloy at the commercial demonstration level, scaling from 10 kg ingots to 100 kg ingots. Finally, once we secure sufficient financing to move to construction and eventual commercial operation, among other matters, we intend to move to full-scale production of master alloy."

Qualified persons

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 project. Niobium is used to produce specialty alloys as well as high-strength, low-alloy (HSLA) 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 (NdFeB) magnets, which are used across a wide variety of defence and civilian applications.

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