Mr. Ronald Thiessen reports

NORTHERN DYNASTY RECEIVES INITIAL ADVANCE UNDER SECOND TRANCHE OF AMENDED ROYALTY AGREEMENT

Northern Dynasty Minerals Ltd. has received an initial $2-million royalty investment under the second tranche investment of the company's royalty agreement dated July 26, 2022. The company and the royalty investor have also agreed to amend the terms of the royalty agreement to increase flexibility of payment instalments and to extend the original July 25, 2024, expiration date. All currency figures are in U.S. dollars.

Under the revised agreement, the royalty holder receives the right to finance the second $12-million tranche in six equal instalments of $2-million each, with the right to receive approximately 0.33 per cent of the payable gold production and 1 per cent of the payable silver production from the Pebble project per additional payment instalment made (representing one-sixth of the aggregate royalty under the second tranche). The company received the first $2-million upon execution of the amendment.

In the event the royalty holder completes all six instalments (for a total of $12-million) on or before July 26, 2024, the expiration date of the royalty agreement will be extended until July 26, 2025. The remaining three tranches of $12-million each, as described in the company's July 27, 2022, news release, have not been similarly subdivided, and the aggregate total purchase price of $60-million and maximum royalty rates (10 per cent of payable gold production and 30 per cent of payable silver production) remain unchanged from the original royalty agreement.

"We are working with the royalty holder to ensure this funding vehicle is structured in the most effective way for both parties," said Ron Thiessen, president and chief executive officer of Northern Dynasty. "We have agreed with the royalty holder to provide flexibility by dividing the $12-million second tranche into six $2-million payments. The first of these $2-million payments has been made. In addition, we have agreed that if the royalty holder completes the full $12-million second tranche by July 26, 2024, we will extend the expiration date for one year.

"Our objective remains to receive the full $60-million, which, when completed, increases our financial liquidity. It also allows us to continue the pursuit of the responsible development of the Pebble project, one of if not the most important critical minerals and metals deposits for the United States of America and the state of Alaska. This project will only be developed with standards that assure the participation of people in the region, Alaska as a whole, and with assurances, the environment and subsistence and commercial fisheries are safeguarded at all times," Mr. Thiessen continued.

As reported on July 27, 2022, the first tranche of $12-million was received by the company in return for the right of the royalty holder to receive 2 per cent of the payable gold production and 6 per cent of the payable silver production from the Pebble project, in each case after accounting for a notional payment by the royalty holder of $1,500 per ounce of gold and $10 per ounce of silver, respectively, for the life of the mine. If, in the future, spot prices exceed $4,000 per ounce of gold or $50 per ounce of silver, then the company will share in 20 per cent of the excess price for either metal. Additionally, the company will retain a portion of the metal produced for recovery rates in excess of 60 per cent for gold and 65 per cent for silver, and so is incentivized to continually improve operations over the life of the mine.

About Northern Dynasty Minerals Ltd.

Northern Dynasty is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a 100-per-cent interest in a contiguous block of 1,840 mineral claims in southwest Alaska, including the Pebble deposit, located 200 miles from Anchorage and 125 miles from Bristol Bay. The Pebble partnership is the proponent of the Pebble project.

We seek Safe Harbor.