Pebble History

Cominco, a predecessor of Teck Cominco, discovered the Pebble West deposit in 1988 and explored the property to 1997.

In November 2001, Northern Dynasty entered into agreements to purchase the property and by 2005 had completed the exercise of its options, acquiring 100% of the property.

Northern Dynasty carried out property-wide exploration programs in 2002. Drilling in 2003-2004 expanded the Pebble West deposit to 4.1 billion tonnes and upgraded 75% of its resources to Measured and Indicated classifications. Based on the Pebble West open pit style resources, the project made the transition to mine planning in 2004, with the commencement of comprehensive engineering, environmental and socioeconomic studies.

In late 2005, the world-class Pebble East deposit was discovered. Pebble East is a substantial, high volume, underground mine opportunity. In 2006, delineation drilling and numerous engineering, environmental and socioeconomic studies were initiated and are ongoing in 2008. These studies are designed to provide the information necessary for an optimum development plan, which integrates the extensive mineral resources in Pebble East and Pebble West.

In January 2007, an affiliate of Rio Tinto plc endorsed the Pebble Project by acquiring a 19.8% threshold shareholding in Northern Dynasty. In July 2007, a Northern Dynasty affiliate and a subsidiary of Anglo American plc established a 50:50 partnership, operated by the Pebble Partnership, to advance the Pebble Project to production.

Exploration and Resources

Northern Dynasty expanded the Pebble Property, and carried out extensive exploration programs since commencing its exploration and development activities in 2001.

Estimated mineral resources for the Pebble West and Pebble East deposits as a result of programs to the end of 2007 are tabulated below. Drilling is continuing in 2008, and is designed to upgrade a significant portion of Pebble East to a higher resource category and to test for further expansions of the deposit.

¹ The resource estimates for Pebble West were prepared by independent consultants at Scott Wilson Roscoe Postle Associates Inc.
Qualified Persons are D.W. Rennie, P.Eng. and R. M. Srivastava, P.Geo.

² Copper equivalent calculations use metal prices of US$1.00/lb for copper, US$400/oz for gold, and US$6.00/lb for molybdenum.
Metallurgical recoveries assumed to be 100%. CuEQ = Cu % + (Au g/t x 12.86/22.05) + (Mo% x 132.28/22.05).

³ By prescribed definition, "Mineral Resources" do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.

⁴ A 0.30% CuEQ cut-off is considered to be comparable to that used for porphyry deposit open pit mining operations in the Americas. For bulk underground mining higher cut-offs, such as 0.60% CuEQ, are typically used. All cut-offs are subject to a feasibility study.

⁵ Estimated by Qualified Person David Gaunt, P.Geo., Hunter Dickinson Inc

⁶ Metallurgical recoveries assumed to be 100%.

Cautionary Note to US Investors -- The United States Securities and Exchange Commission limits disclosure to US reporting purposes to mineral deposit that a company can economically and legally extract or produce. We use certain terms on this website such as "resources", "measured", "indicated", and "inferred", which may not be consistent with the reserve definitions established by the SEC. US Investors are urged to consider, closely, the disclosure in Northern Dynasty's Form on 40-F, File No. 001-32210. You can review and obtain copies of these filing from the SEC's website at www.sec.gov.edgar.shtml.

Project Development

The Pebble Partnership has hired leading engineering, environmental and socioeconomic specialists to evaluate and design the most environmentally sound development option for the Pebble resources. All aspects of the development are being assessed, including underground and open pit mineral resources and road, power and port options. The comprehensive studies that are underway are designed to collect the data necessary to complete pre-feasibility and feasibility studies.

The Pebble Partnership is committed to maintaining an ongoing dialogue with a broad cross section of local residents and stakeholders to ensure that their input is received and incorporated into project planning.

When the Pebble Project is fully planned, Pebble Mines expects to make an application for an Environmental Impact Statement (EIS) -- a requirement under the National Environmental Policy Act -- which will serves as a central document for an open, transparent, public and government review of the project. The EIS will comprehensively and rigorously define the environmental and social aspects of the project.

Following development of the EIS, the Pebble Partnership will apply for permits from relevant Federal and State government agencies to build and operate a mine a Pebble. Assuming a 30-month construction phase, operations could begin as soon as 2015.

The Pebble Partnership is working to maximize the benefits to local communities through local purchase, local hire, and workforce training and development programs as well as other community initiatives.

The Pebble Project is expected to provide Alaskans with at least 2,000 new jobs during the construction phase and 1000 long term jobs during operations that could continue for 50 or more years. Currently, over 50 different consulting firms are providing experts; over 80% are Alaskan.