NORTH077 Annual Report 2020 V5.2 DIGITAL

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6 NORTHERN MINERALS _ ANNUAL REPORT 2021 Skills: CEO Mark Tory addressing graduates of the Training to Work program and their families. • The Company was also able to settle all outstanding payments due to Sinosteel ($4.5 million) for the construction of the Browns Range Pilot Plant under the EPC contract. • The Company issued 50,000,000 fully paid ordinary shares to a nominee of Lind Global Macro Fund, LP as a result of the conversion into shares of $0.80 million of the face value of the replacement convertible security in July <strong>2020</strong>. The Company also issued a further 66,666,667 fully paid ordinary shares in August <strong>2020</strong> as a result of $1.2 million of the face value of the replacement convertible security being converted into shares. Following this conversion there were no amounts outstanding under the replacement convertible security. • Lind also elected to reduce the collateral shareholding number of fully paid ordinary shares of 60,000,000 shares to zero, by paying the Company $1.08 million in cash in relation to the above funding arrangement. Northern Minerals is continually striving to move towards an economic full scale operation. The learnings from the pilot plant are being used during the current financial year to complete a feasibility study for a full scale beneficiation plant. This will then be assessed by management and the Board in relation to the viability of the project and the funding requirements. Rare earths have continued to become globally significant and it continues to be an education process with governments and industry in relation to the supply chain of rare earths and the dominance of China in this area. The trade tensions continue between the US and China and this has led to ongoing media coverage in relation to heavy rare earths and increased interactions with industry and government. Rare earth prices have also increased significantly over the course of the year. At Northern Minerals, we are doing our bit, in developing alternative global supply chains, providing environmentally safe dysprosium. In the coming year, we will look to complete a feasibility study for a full scale beneficiation plant, continue studies in downstream processing, look for exploration success on the back of increased drilling to expand our resource and reserve base with the aim of being in a position at the end of 2021–22 to hopefully push the button on the full scale beneficiation plant if all of the planets align. My thanks again to members of the Board, employees, contractors, suppliers, federal, state and local governments, the Jaru and broader community. Mark Tory Chief Executive Officer
7 ENVIROMMENT, SOCIAL & GOVERNANCE Northern Minerals is proudly positioned as a world leader in ethically produced heavy rare earths. The current global supply chain for heavy rare earths is dominated by China and exposed to considerable environmental, social and governance (ESG) risks. Operating in a Tier 1 jurisdiction, Northern Minerals’ hardrock mining and conventional processing techniques are governed by a globallyaccepted regulatory framework, offering offtake partners much lower ESG risk exposure in comparison. Integrity and traceability of supply chains is a growing expectation of global consumers of technology products. As a significant part of Northern Minerals’ corporate culture, long term sustainable business practices in line with ESG principles have always been a priority, long before the Company transitioned into production at Browns Range. Not only are these practices linked to our social licence to operate, we believe that consideration of ESG factors will aid in the identification of material risk and growth opportunities, and optimise long term shareholder returns. Northern Minerals strives to make a positive contribution to the communities in which we operate. Respect is at the core of this – respect for Western Australia’s people, environment and Aboriginal heritage. We do this through employment and training programs for local communities, robust and transparent environmental management, and the provision of a safe working environment for our people and contractors. Stakeholder engagement The Company has worked hard over the reporting period to maintain regular and meaningful communication with all stakeholders, while dealing with the complications that arose from COVID-19 and the Remote Aboriginal Community Directions. Protecting local Aboriginal communities from the risk of COVID-19 has been of utmost importance while recognising that training and job opportunities are also crucial to the livelihood of many individuals in the area. No complaints were received during the reporting period. We continue to maintain a good relationship with Heytesbury Cattle Company who holds the pastoral lease that the project sits on. The Company recognises and respects that there are areas of special heritage and cultural significance and continues to honour our agreement with the Jaru community when managing land clearing, protecting heritage values, and environmental management and reporting. These values are embedded in our culture, policies and procedures and are reinforced through ongoing education and training. A new Cultural Awareness training program is being created, with all staff members expected to complete the training by the end of the calendar year. During the year, the Company completed a heritage survey with Jaru Traditional Owners to clear sites at Browns Range for further exploration drilling. We have also worked closely with the Purnululu and Malarngowem communities to arrange heritage surveys on their Native Title lands respectively. Several charitable requests from the local community have been met with the donation of materials to be used in projects, and the contribution of a grader and operator to clear an area to be used for Lore ceremonies. Retention of local Aboriginal employees over this period was very positive, with two employees moving from contract work to full time employment with Northern Minerals. Northern Minerals maintains our relationship with Djaru Contracting, who provides a front-end loader and operator for the loading of ore from the stockpile into the crusher. We have extended this relationship to include providing local staff for short term contracts on the processing plant. NORTHERN MINERALS _ ANNUAL REPORT 2021
Page 1 and 2: 2021 ANNUAL REPORT
Page 3 and 4: 1 Chairman’s Report NORTHERN MINE
Page 5 and 6: 3 CEO’S Report NORTHERN MINERALS
Page 7: 5 Ore Sorter: The ore sorting syste
Page 11 and 12: 9 field team to conduct pre-clearan
Page 13 and 14: 11 Executive Team Our executive tea
Page 15 and 16: 13 COO Report NORTHERN MINERALS _ A
Page 17 and 18: 15 Commissioned: The ore sorter cir
Page 19 and 20: 17 rare earths into groups of produ
Page 21 and 22: 19 EXPLORATION & GEOLOGY REPORT The
Page 23 and 24: 21 The high-grade mineralisation oc
Page 25 and 26: 23 Figure 5: Banshee Prospect Drill
Page 27 and 28: 25 Browns Range Northern Territory
Page 29 and 30: 27 Ore Reserve and Mineral Resource
Page 31 and 32: 29 Mineral Resource The Mineral Res
Page 33 and 34: 31 Comparison with previous years O
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Page 47 and 48: 45 4. Service agreements NORTHERN M
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59 2. Basis of Preparation (continu
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61 NORTHERN MINERALS LIMITED NOTES
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63 7. Income Tax Expense NORTHERN M
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97 19. Earnings per share NORTHERN
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99 21. Segment Information NORTHERN
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103 Auditor’s independence declar
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105 Key audit matter How our audit
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109 Project Location Tenement ID St
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111 b) Twenty largest shareholders
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113 CORPORATE DIRECTORY Northern Mi
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NORTH077 Annual Report 2020 V5.2 DIGITAL

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