Large Integrated U.S.-Based Steel Producer Signs Non-Binding Letter of Intent with NioCorp to Purchase 25% of NioCorp's Planned Ferroniobium Production From its Elk Creek, Nebraska Project

13 April 2020

NioCorp Developments Ltd. is pleased to announce that it has signed a non-binding letter of intent with a large, integrated U.S.-based steel producer outlining the steel producer's interest in purchasing up to 25% of NioCorp's production of ferroniobium over the first 10 years of production from the Company's Elk Creek Superalloy Materials Project (the "Elk Creek Project") in southeast Nebraska.

The non-binding letter of intent does not obligate either NioCorp or the steel producer until a binding commercial sales offtake agreement is finalized.  However, if such a binding sales offtake agreement is reached, it would effectively sell out NioCorp's Elk Creek Project for its ferroniobium production over the first decade of its estimated 36-year mine life.

NioCorp previously entered into an offtake agreement with ThyssenKrupp Metallurgical Products GmbH ("Thyssen") for roughly fifty percent of NioCorp's planned ferroniobium production over 10 years, and a separate offtake agreement with New Jersey-based CMC Cometals for roughly 25 percent of the Project's ferroniobium production over 10 years.  Both the Thyssen and CMC Cometals contracts provide an option to extend ferroniobium purchases beyond the 10-year periods in each contract upon mutual agreement of the parties.  The offtake agreements with Thyssen and CMC Cometals, as well as any offtake agreement with the U.S.-based steel producer referenced above, will be subject to achieving planned production levels at the Project once NioCorp is able to secure project financing necessary to move the Project to construction and operation.

"We are very pleased to have reached this non-binding letter of intent with a very large U.S.-based steel producer, whom we cannot name because of our confidentiality agreement with them.  But we much look forward to executing a commercial sales offtake agreement at the right time and to supplying this steel producer with Nebraska-produced ferroniobium," said Mark A. Smith, CEO and Executive Chairman of NioCorp.

The entry into a binding agreement is subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, and the negotiation of definitive documentation. There can be no assurance that an offtake will be completed on the terms as described above or at all.

NioCorp $NB $NIOBF $X #Niobium #Ferroniobium #Scandium #ElkCreek

For More Information

Jim Sims
VP of External Affairs
NioCorp Developments Ltd.

About NioCorp

NioCorp is developing a superalloy materials project in Southeast Nebraska that will produce Niobium, Scandium, and Titanium. Niobium is used to produce superalloys as well as High Strength, Low Alloy ("HSLA") steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications.  Scandium is a superalloy material that can be combined with Aluminum to make alloys with increased strength and improved corrosion resistance.  Scandium also is a critical component of advanced solid oxide fuel cells.  Titanium is used in various superalloys and is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this news release may constitute forward-looking statements, including statements regarding if and when a binding commercial sales agreement is finalized with the steel producer mentioned in this news release.  Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp's plans or prospects to change include risks related to the unnamed steel producer not moving beyond the due diligence stage; the parties being unable to agree to the final terms of the transaction; the risk that the conditions to completion of the transaction will not be satisfied; an event, change or other circumstance that could give rise to the termination of the transaction will occur; receipt of required regulatory approvals for the transaction, the Company's ability to operate as a going concern; risks related to the Company's requirement of significant additional capital; changes in demand for and price of commodities (such as fuel and electricity) and currencies; changes in economic valuations of the Project, such as Net Present Value calculations, changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp's projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business and the risks set forth in the Company's filings with Canadian securities regulators at and the SEC at NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.