2 nd Quarter Update 2015 April 22, 2015 TSX: NB ; OTCQX: NIOBF - - PowerPoint PPT Presentation

TSX: NB; OTCQX: NIOBF & FSE: BR3

2nd Quarter Update 2015

April 22, 2015

Strengthening our World

Disclaimer

This presentation contains forward looking statements. These statements include, but are not limited to, statements with respect to the completion of an updated resource estimate, the commencement of a preliminary economic assessment study and management’s expectation that the results of these studies will confirm the potential of the Elk Creek Project. Specifically, any statements regarding the potential increase of the Company’s inferred resource at the Elk Creek Project and the goals and objectives of the Company are by their nature forward looking information. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43‐101 report on the Elk Creek Project. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve known and unknown risks and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, including but not limited to, general economic factors. Other factors may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements Specific risk factors include risks associated with the ability to obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company’s properties, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; tax consequences; and other risks and uncertainties. The business of exploring for minerals involves a high degree of risk. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

NioCorp at a Glance

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• TSX mineral exploration and development company
• Focused on the Elk Creek Nb/Sc/Ti project (“Elk Creek”)

in southeastern Nebraska

• In August 2015 NioCorp announced the completion of

a Second Preliminary Economic Assessment (“PEA2”):

• 2,700 tonne per day mine production rate
• 32-year operating life
• Grades of 0.80% Nb2O5 , 73ppm Sc and 2.84% TiO2
• Pre-tax NPV of US$3.07 billion
• Share Performance in 2014:
• #1 for overall market cap growth among all TSX.V

mining firms (>$5M market cap) – 547% increase

• #1 in share price performance among TSX.V mining

firms (>$30M market cap at year end) – 420% increase

• #1 in stock performance post transaction for all

brokered TSX.V mining transactions – 42% increase

(< $100M market cap, excludes transactions under $2.5M)

Company Description Enterprise Value Calculation One Year Share Price Performance Elk Creek is the highest grade Niobium resource in North America and would prospectively be the largest Scandium producer in the world

(CAD$, figures in 000’s, except per share data) Share Price as of 14‐Aug‐2015 $0.82 Basic Shares Outstanding 157,920 Equity Value $129,494 Cash and Equivalents(1) $939 Total Debt(1) $1,846 Enterprise Value(2) $130, 401

(1) Pro forma for loan from Mark Smith on 17-Jun-2015 (2) Enterprise Value refers to equity value less cash plus total debt

We’ve Assembled a Strong Management Team

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Mark A. Smith – Executive Chairman, President and Chief Executive Officer

• Former President and CEO of Molycorp and Chevron Mining Inc.
• Served on the board of Companhia Brasileira de Metalurgia e Mineracao Ltda. (“CBMM”), the largest niobium producer in

the world

• Currently serves as President and Chief Executive Officer of Largo Resources Ltd., along with his role at NioCorp
• 34 years of experience as a mining executive

Neal Shah – Interim Chief Financial Officer

• 20 years of experience with Molycorp, Intel, Boeing and IBM
• Previously served as Senior Manager of Corporate Development and M&A and Director of Strategy and Business Planning

at Molycorp

John F. Ashburn, Jr. – Vice President, General Counsel and Corporate Secretary

• Former Executive Vice President and General Counsel of Molycorp with prior senior legal positions at Chevron and

Unocal

• 35 years of legal experience (25 years for companies in extractive industries)

Scott Honan – Vice President of Business Development

• 22 years of experience in base metals, gold, niobium, and rare earth mining projects
• 13 years with Molycorp as General Manager and Environmental Manager at the Mountain Pass, CA facility, as well as Vice

President of Health, Environment, Safety and Sustainability

We Have a Compelling Investment Thesis

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Elk Creek is the Premier Niobium Project

• Elk Creek is the highest grade primary niobium resource in North America, one of the largest in the

world, and the only niobium deposit under development in the U.S.

• The project includes valuable co‐product scandium trioxide and by‐product titanium dioxide

Stable Niobium Pricing

• Approximately 85% of global supply is produced by one company leading to stable pricing at an

attractive level

• Prices are negotiated between buyers and sellers (no spot pricing or speculation)

Strong Global Demand for Niobium

• Niobium has a US$2‐US$3 billion per year market, growing at a 4%‐6% compound annual growth

rate

• Demand from a diverse array of end‐users reduces exposure to downturns in any specific sector
• Chinese demand continues to grow

Favorable Competitive Dynamics

• Currently only three producers of niobium worldwide
• No new producers since 1976

Strong Infrastructure and Local Support

• Elk Creek is located on privately owned lands with extensive nearby infrastructure (roads, rail,

water supply, electricity and natural gas)

• The project has strong community support as well as state and local government support

Proven Management Team and Board

• CEO Mark Smith led the development of a US$1.6 billion rare earths company in a difficult

jurisdiction and volatile market.

• NioCorp is led by an experienced group of individuals from the mining and resources sectors as

well as those with local Nebraska connections

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

Niobium Makes Steel Stronger & Lighter

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• HSLA steel is stronger than traditionally manufactured steel, resulting in the same strength for a lower weight
• Ferro‐vanadium is the closest potential substitute, but requires double the amount for the same strength performance

and does not provide the other positive properties that ferro‐niobium does.

• Stronger and lighter – improved fuel efficiency due to weight

reductions and improved safety for passengers

High Strength Low Alloy Steel (“HSLA”) Construction and Steel Mega Projects: 45% Automotive Industry: 23%

• HSLA for lightweight structures that require additional

strength and corrosion resistance

• High strength reinforcing bars require high yield strength and

weldability

• Significant weight savings in volume of steel needed for
• megaprojects. Reduced weight means reduced shipping and

related costs

The Millau Viaduct in France was built using steel with .025% niobium. This reduced the weight of the steel and concrete by 60%

Source: CBMM.

Niobium Makes Steel Stronger & Lighter

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• Superior ability to withstand increased pressure and volumes over

greater distances

Oil and Gas Pipelines: 16% Shipbuilding: 6%

• HSLA allows for lighter ships with lower fuel consumption
• Adds strength and weldability

Superalloys and High Strength Q&T plate: 3%

• Niobium containing alloys make up 35% of the weight of typical

jet engine

• MRI machines contain superconducting niobium‐titanium

magnets

Stainless Steel: 3%

• Niobium reduces corrosion and improves high temperature

behavior

NioCorp Will Increase the Diversity of Global Niobium Supply

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85% 8% 6% CBMM Niobec Anglo Brazil

• 70% privately held company / 30% owned by various

investors via purchases in 2012

• US$13.3 billion implied enterprise value in 2012

CBMM Niobec Inc. (“Niobec”)

• Reported mine production of 5,200 tonnes in 2013
• Acquired by private equity‐backed Magris in early‐2015 for

US$530 million

Anglo American Brasil Ltda (“Anglo Brazil”)

• Six years of production remaining at current deposit
• Capital committed to expand production to new deposit

Niobium Market Share by Producer

Ferroniobium Product Pricing is Stable

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In early 2012, 30% Interest in CBMM sold in 2 transactions to Japanese/South Korean and Chinese consortiums for a combined sale price of USD $3.95 billion. Market prices for FeNb have been stable since that time.

Scandium: Enables High Reliability Solid Oxide Fuel Cells

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The electrolyte is the key to fuel cell performance Scandium‐doped zirconia electrolyte operates at c. 700C versus yttrium doped zirconia at 1000C

• Simplifies materials of construction
• Better matching of thermal stresses
• Means much longer life (decade+ for scandium versus

1‐2 years for yttrium fuel cells) Scandium‐doped zirconia has greater oxygen transport

• Higher cell efficiencies
• High levels of power output

Upshot: scandium based solid oxide fuel cells offer highest efficiency, and near‐perfect (4N+) uptime

Source: Bloom Energy

Scandium based fuel cells offer unmatched reliability in mission-critical power supply markets

Scandium Alloys Can Reduce Passenger Jet Weights 20%

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Scandium Allows Welding And Eliminates Need For Rivets

Scandium acts as a powerful grain refiner in aluminum (pure metal on left with scandium alloy

• n right)
• Fine grain size increases strength of aluminum

alloys

• Fine grain size increases flexibility of aluminum

alloys Scandium stabilizes grain size and permits aluminum to be welded

• Fine grain size means welds are strong
• Eliminate rivets in aerospace markets

Source: Metallica Minerals

Aluminum alloys with < 1% scandium can eliminate the need for rivets, for a welded air frame and simpler, lower cost manufacturing. Up to 20% weight reduction with comparable benefit in reduced fuel burn Huge value for air frame manufacturers

Scandium Alloys Eliminate Corrosion In Harsh Environments

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Conventional aluminum alloys suffer surface pitting, inter‐granular corrosion, and failure in salt‐rich conditions

• Limits application of aluminum
• Key safety issue in range of markets
• Factor in Aloha Airlines accident 1988

Scandium aluminum alloy is inert under saline corrosion conditions that would attack conventional alloys

• Opens door to deployment in naval markets
• Opens door to deployment in corrosive aerospace

markets

• Opens door to replace titanium in corrosive

environments such as desalination plants

Images: Airbus 2008

15 Scandium substantially broadens range of markets for aluminum

Scandium Trioxide Pricing Models

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Chart Courtesy of OnG Commodities LLC Estimates and Analysis

Scandium Trioxide Pricing Outlook (US$/kg) 2015 - 2023

Our Products are Strategic & Critically Important

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• Niobium is an essential element for the steel industry

and used in super alloys for military and aerospace applications

• U.S. import dependency for niobium is 100%
• USGS reports niobium as one of four metals in the top

supply risk tier (manganese, tantalum and tin)

• National Defense Stockpile Report to Congress

(2009)

• Of 53 materials studied, niobium is included in

13 materials recommended by the Department

• f Defense for Reserves
• Numerous sources of niobium demand growth
• Growth in overall steel market
• Shift toward higher grade alloys
• Development of specialty steels containing

niobium

• Increased intensity of niobium in existing steel

production Global demand for our products implies an Nb market of US$2B–US$3B Ferroniobium

• Scandium could be an essential element for the

aluminum industry and used in aluminum alloys and aerospace applications

• Potential aerospace demand for Sc2O3is 300

tonnes per year

• Potential transportation demand for Sc2O3could

be as high as 2,400 tonnes per year

• Current sources for scandium are few, unreliable, and

insufficient to meet current and future demand

• Once new supply sources are established
• utside Russia and China, aerospace demand

will begin to grow Scandium Trioxide

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

Resource Development Successes

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• Integrated drilling program completed

between May 2014 and July 2015:

• Resource: 12,710 meters
• Metallurgy: 2,673 meters
• Hydrogeology: 2,532 meters
• Geotechnical: 821 meters
• Resource Impacts (using 0.35% Nb2O5

cutoff):

• 275% increase in Indicated

Resource Tonnes (73,700 kt vs. 19,632 kt)

• 14% increase in Indicated Resource

grade (0.75% vs 0.66% Nb2O5)

• 325% increase in Indicated

Resource contained Nb2O5 (554 kt

• vs. 130 kt)
• Addition of Sc and Ti values to the

resource Development Overview

Rail

2014/2015 Drilling: 18,736 meters

Approximate outline

• f deposit known to

date, open to NW, SE and at depth

We’re Increasing the Value of our Resource

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Classification Tonnage (‘000 Tonnes) Grade (Nb2O5%) Contained Nb2O5 (‘000 kg) Grade (TiO2%) Contained TiO2 (‘000 kg) Grade (Sc g/t) Contained Sc2O3 (‘000 kg)

NI 43‐101 Indicated 80,500 0.71 572,000 2.68 2,160,000 72 8,900 NI 43‐101 Inferred 99,600 0.56 558,000 2.13 2,300,000 63 9,600 PEA 1 Mine Plan 48,400 0.82 378,000 2.90 1,339,000 68 4,900 PEA 2 Mine Plan 31,100 0.80 248,800 2.84 883,240 73 3,500

SRK Consulting (U.S.), Inc. NI 43-101 Technical Report on Resources – Elk Creek Niobium Project Source: SRK, February, 2015

• Technical report dated September 9, 2014, titled “NI 43-101 Technical Report on Resources – Elk Creek Niobium Project - Nebraska”, prepared by

SRK, as required under National Instrument 43-101 Standards of Disclosure for Mineral Projects, filed on SEDAR on November 6, 2014.

• Technical report dated March 10, 2015, titled “NI 43-101 Technical Report Updated Mineral Resource Estimate – Elk Creek Niobium Project -

Nebraska”, prepared by SRK, as required under National Instrument 43-101 Standards of Disclosure for Mineral Projects, filed on SEDAR on March 11, 2015.

• Technical report dated May 15, 2015, titled “NI 43-101 Technical Report Preliminary Economic Assessment – Elk Creek Niobium Project -

Nebraska”, prepared by SRK, as required under National Instrument 43-101 Standards of Disclosure for Mineral Projects, filed on SEDAR on May 15, 2015.

Resource Wireframe Model

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3D Views Looking Northeast of Selected Grade Shells

Metallurgical Development

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Niobium Precipitation Test at SGS Lakefield, 2014 Solvent Extraction Pilot Plant at SGS Lakefield, 2015 FeNb XPS Labs 2015

6 Labs >1,000 bench tests 8 Pilot Plants

Creating Value: PEA2 Flowsheet

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Crushing and Grinding HCl Leach Scandium SX (HCl) Acid Regeneration Acid Bake and Water Leach Iron Reduction Scandium SX (H2SO4) Sc2O3 Production Niobium Precipitation Phosphorous Removal Pyromet Titanium Precipitation Neutralization

Ore Slag

Ferroniobium

Residue

TiO2 Sc2O3

HCl Gypsum and Fe

• xides

Salt and H2SO4 H2SO4 Iron Tails Lime KEY: Products Process Inputs Waste Streams NaOH

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

PEA2 Economic Model Results

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391 177 188 57 166

979

• PEA2 results were announced on August 4, 2015

and the PEA2 report was issued September 4, 2015:

• Pre‐tax NPV of US$3.07 billion
• After‐tax NPV of US$2.30 billion
• Average pre‐tax cash flow of US$438

million per year

• Total upfront capital costs of US$979

million

(Economics calculated using an 8% discount rate)

• PEA2 production metrics:
• 7,490 tonnes of Ferroniobium per year
• 97 tonnes of Scandium Trioxide per year
• 23,960 tonnes of Titanium Dioxide per year

Economic Results Scandium Pricing - Sensitivity Analysis Capital Cost Estimate

(US$ in millions)

Processing Tailings and Infrastructure Owner’s Costs Contingency

Sc Base Case (US$ M) Sc Slow Aerospace Uptake (US$ M) Initial Capital $979 $979 Before Tax NPV $3,073 $2,633 Before Tax IRR 31.7% 29.0% After Tax NPV $2,302 $1,959 After Tax IRR 27.6% 25.3%

Mining

Economic Improvements: PEA2 vs. PEA1

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Nb Ti Sc PEA1 PEA2 1 10 100 1,000 10,000 100,000 FeNb TiO2 Sc2O3 PEA1 PEA2

Metallurgical Recovery Annual Production

Metric PEA1 PEA2 Initial Capital $919 $979 Total Capital $1,168 $1,387 Annual Cash Flow $178 $438 Mine Production 3,700 tpd 2,700 tpd

We’re Making Good Progress Against Goals

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• Complete hydrometallurgical mini‐pilot
• Complete preliminary pyrometallurgical test and produce ferroniobium
• Initiate full flotation pilot
• Initiate full hydrometallurgical pilot
• Issue formal PEA report

Q1 – Q2 2015 Q2 – Q4 2015 Q4 2015 – Q1 2016

• Complete pilot plants
• Complete PEA2 Economic Model
• Issue formal PEA2 Report
• Complete feasibility level plant design
• Complete feasibility study
• Complete financing for project
• Start construction of mine / processing facility

Status      In Process  

Agenda

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Executive Summary Resource Overview Resource Development Path for Growth Investment Thesis

Our Project Has Robust Economic Merit

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• Growing end use demand across diversified markets: HSLA, Aerospace, and SOFCs
• Favorable competitive landscape, with only three Niobium producers and no stable Scandium production
• Excellent location in Elk Creek, Nebraska, with strong local support, existing infrastructure, and close proximity to NioCorp

headquarters

• Skilled, capable, and proven Management Team and Board of Directors
• Excellent growth opportunity, undervalued by the financial markets
• High return on investment potential of 27.6%, after tax
• Annual cash flow of $438 million will allow us to pay down debt and continue to invest in growth opportunities or return

cash to shareholders

• Strong support from customers through FeNb off‐take agreement already in‐place

Growing Demand, Favorable Competitive Landscape, and Strong Local Support Make NioCorp Standout Healthy Growth, High IRR Potential, and Strong Cash Flow Make NioCorp a Great Investment