Mr. Mark Smith reports

NIOCORP JOINS WITH MAJOR AUTOMOTIVE MANUFACTURERS, MINING COMPANIES AND ELECTRIC VEHICLE BATTERY COMPANIES TO URGE ACTION BY BIDEN ADMINISTRATION ON MINING TAX INCENTIVE

Niocorp Developments Ltd. has joined with major automotive manufacturers, mining companies and electric vehicle battery companies to urge the Biden Administration to allow a 10-per-cent tax credit to apply to both mineral extraction and mineral processing in the United States.

In a joint letter this week to U.S. Treasury Secretary Janet Yellen, Niocorp and 45 other companies and associations, including Tesla, General Motors and the Zero Emission Transportation Association, urged the Internal Revenue Service not to limit the Section 45X advanced manufacturing product tax credit only to the cost of processing critical minerals needed for electric vehicles and other clean energy technologies, but to extend the 45X tax credit to the cost of mining the minerals as well. The 45X tax credit was enacted with support from both political parties as part of the Inflation Reduction Act of 2022.

In the letter, Niocorp and other signatories explained their concerns as follows: "Section 45X creates a new tax credit that provides $35 per kilowatt-hour for each battery cell, $10 per kilowatt-hour for each battery module and covers 10 per cent of the costs of production of the applicable critical materials, which will significantly drive down the costs of domestic clean energy manufacturing. Unlike other eligible components, applicable critical minerals are not subject to a credit phaseout after 2029, underscoring congressional intent that the IRA incentivizes the onshoring of the critical minerals supply chain.

"If implemented thoughtfully, the 45X credit will ensure the success of current American industrial policy over the next decade by facilitating the deployment of domestically produced clean energy technologies -- particularly electric vehicles. However, the proposed guidance states that the only critical mineral production costs eligible to be counted toward the production tax credit are the downstream value-added activities that include chemical conversion and purification (i.e. processing). This concept would not provide a tax credit for the costs of domestic extraction of critical minerals, a key part of onshoring the supply chain.

"Congress intended the 45X tax credit to work in tandem with the clean vehicle credit's sourcing requirements to stimulate domestic production of critical minerals and reduce the United States' reliance on imported minerals," the coalition wrote. "To stimulate greater security of our domestic critical mineral supply chains and unlock the intended impact of the statute, the undersigned organizations urge the Department of the Treasury and the IRS to consider that direct and indirect material costs and costs related to the domestic extraction of raw materials are value-added activities and should be eligible to claim the 45X credit."

Following the letter's transmittal, Niocorp's executive chairman and chief executive officer, Mark A. Smith, said the following: "If we want to reduce America's dangerous over-reliance on foreign nations for the critical minerals that enable our clean energy future and bolster our national defence, we need to promote both the mining and downstream processing of critical minerals here in America. That is how we re-establish fully integrated domestic supply chains and create a new generation of high-skill jobs. Without mining here at home to feed American value-added processing, these domestic supply chains can evaporate very quickly by the whims of foreign governments that want to undercut America's global leadership and weaken our national defences."

In addition to Niocorp, the companies and industry trade associations signing the letter included the following: Alaska Miners Association, American Critical Minerals Association, American Exploration & Mining Association, American Lithium Corp., American Rare Earths Ltd., Arizona Mining Association, Battery Materials & Technology Coalition (BMTC), Coeur Mining, Colorado Mining Association, First Mode, General Motors, GraphiteOne, Hecla Mining, Idaho Mining Association, Ioneer USA, Jervois, Liebherr, Lithium Americas, Lundin Mining -- Eagle mine, Materion Natural Resources, Metallic Minerals Corp., Mining Minnesota, Montana Mining Association, MP Materials, National Mining Association (NMA), Nevada Battery Coalition, Nevada Mining Association, NewRange Copper Nickel, Nyrstar, Perpetua Resources, Piedmont Lithium, Ramaco Resources, Rio Tinto, Sibanye Stillwater, Society for Mining, Metallurgy and Exploration, South32, Talon Metals, Teck Resources, TerraVolta, Tesla, The Women's Mining Coalition, U.S. Battery Machine Builders Coalition, USA Rare Earth LLC, Utah Mining Association, and Zero Emission Transportation Association (ZETA).

About Niocorp Developments Ltd.

Niocorp is developing a critical mineral 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.

We seek Safe Harbor.