EDITOR: | February 25th, 2013

Underwritten Share Rights Issue to Raise $26.6m and Provide Funding Security for Browns Range HRE Project

| February 25, 2013 | No Comments
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Northern-MineralsFebruary 25, 2013 (Source: Northen Minerals) — Northern Minerals (ASX: NTU) has today launched a fully underwritten Share Rights Issue to raise $26.6 million to help fund the development of the Browns Range Heavy Rare Earth (HRE) project in northern Australia.

The Rights Issue is part of a four-stage funding initiative announced by Northern Minerals earlier this month, which on completion will deliver a total of $58 million, and fund the Browns Range project for the next two years through to completion of a Feasibility Study.

The rights issue component launched today will include:  One new Share for every two Shares held at a price of 20 cents (133,180,226 Shares); and  One Option for every two new Shares issued as part of the Rights Issue, with an option exercise price of 30 cents and an option expiry date of 31 March 2015 (66,590,113 Options).

The Rights Issue has been fully underwritten by Northern Mineral’s largest shareholder Conglin Yue, and his investments Company, Australia Conglin International Investment Group (ACIIG).

The Company has today released a Prospectus outlining full details of the Offer at the Australian Securities and Investment Commission, and this will also be mailed to each eligible shareholder. To be eligible to accept the Offer, shareholders must have a registered shareholding in Northern Minerals on the record date of 6 March 2013.

Funds raised by the Rights Issue will be used to continue exploration and project development activities at Browns Range. This will include exploration aimed at increasing the Total Rare Earth Oxide (TREO) resource, and ongoing metallurgical test-work and flow-sheet development. Funding will also be allocated to a range of additional studies including geotechnical and mine planning, environmental studies and approvals, Aboriginal heritage and access agreements, and feasibility studies including engineering and infrastructure.

Northern Minerals Managing Director George Bauk said; “The share rights issue provides the opportunity for all shareholders to take part in the funding of the next phase our development, and to further participate in the Company’s long term growth,” Mr Bauk said.

“This funding will provide a high level of certainty and security for Northern Minerals and will allow us to build upon the success we have achieved at Browns Range in the past twelve months. “In the past two months in particular, we have delivered a number of key milestones – our maiden JORC resource, a significant off-take MOU and confirmation of our ability to produce a higher value, mixed Rare Earth oxide via hydrometallurgical processing.

“Each of these milestones has significantly de-risked the Browns Range project, and further increases our confidence in our pathway to production by 2016,” Mr Bauk said.

The Prospectus outlining details of the Offer will be mailed to each Eligible Shareholder on 12 March 2013. Each Shareholder’s entitlement will be set out in the Entitlement and Acceptance Form that will accompany the Prospectus. An indicative timetable of events in relation to the Rights Issue has been included below. Shareholders are encouraged to read and consider the documentation sent to them carefully, and consult independent and professional financial advice.

Rights Issue – Indicative Timetable Event

NM

The above dates may change. The company will announce any change to the ASX.

Northern Minerals Limited (ASX: NTU) is focused on development of rare earth elements (REE), with a large and prospective landholding in Western Australia and the Northern Territory.

The Company’s flagship project is Browns Range, where it has a number of prospects with high value, Heavy Rare Earth Elements (HREE), in xenotime mineralisation. In particular, the mineralisation includes high levels of dysprosium and yttrium, which are in short supply globally. Following outstanding results from its drilling and metallurgical programs, the Company has delivered its maiden JORC resource at the end of 2012, advancing Browns Range toward production, using a relatively simple and low cost processing flow sheet to produce a high grade mixed Rare Earth oxide. Northern Minerals also has a HREE exploration program underway at the geologically similar John Galt project.

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