JAMES BAY NIOBIUM PROJECT - Niobay Metalsniobaymetals.com/wp/wp-content/uploads/2016/10/Niobay_Corporate... · JAMES BAY NIOBIUM PROJECT ‘’developing a most critical metal’’

JAMES BAY NIOBIUM PROJECT

‘’developing a most critical metal’’

October 2016

Forward Looking Statements

This presentation contains certain “forward-looking statements”, including, but not limited to, the statements regarding the Company’s strategic plans, its anticipated benefits and the use of proceeds resulting thereof, in particular, future financial results, production targets and timetables, the evolution of mineral reserves and resources, mine operating costs, capital expenditures, work programs, development plans, exploration programs, objectives and budgets, the possible determination of additional reserves, and the Company's eventual success to execute its strategy to focus on building its portfolio of properties. Forward looking statements express, at this date, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks and uncertainties, and there can be no assurance that such statements will prove to be accurate. Therefore, actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties that could cause results or future events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to, factors associated with fluctuations in the market price of metals, mining industry risks, exploration risks, risks associated with foreign operations, environmental risks and hazards, uncertainty as to calculation of mineral reserves, requirement of additional financing or additional permits, authorizations or licenses, risks of delays in construction and production and other risks referred to in the Company’s Annual Information Form.

Claude Dufresne, P. Eng, acted as the qualified person as defined in National Instrument 43-101. He reviewed and approved the technical and scientific content of this presentation.

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Claude Dufresne, P. Eng – President & CEO Mr. Dufresne is recognized worldwide for his expertise in the niobium market. He was responsible for the sales and marketing of ferro-niobium produced by the Niobec mine for 13 years. He founded Camet Metallurgy Inc. in 2007, a sales and marketing company involved in various mining project development, consulting on a number of niobium projects and raw material sourcing for the steel industry. Mr. Dufresne holds a Mining Engineering degree from Laval University.

Alain Krushnisky, CPA, CA – CFO Alain Krushnisky graduated from the University of Ottawa in 1983 with a bachelor’s degree in commerce and is a member of the Chartered Professional Accountants of Canada. Mr. Krushnisky has over 25 years of experience in the mining sector including ten years with a mid-tier producer in various capacities, including Vice-President and Controller. Since 2004, Mr. Krushnisky has been doing consulting work for various publicly traded exploration companies.

Serge Savard – Chairman of the Board

Former NHL star, he played in eight winning Stanley Cup with the Montreal Canadiens and was inducted into the Hockey Hall of Fame in 1986. Mr. Savard has been a Partner with Thibault, Messier, Savard & Associates since 1993 and is also involved in numerous fundraisers.

Jacques Bonneau – Director

Mr. Bonneau graduated as a geological engineer from Laval University and holds an MSc degree from the same institution. He has more than thirty years’ experience in the mining industry and has been an officer of Soquem, Falconbridge Copper Corporation, Groupe Vior-Mazarin, Minéraux Sequoia Inc (former co-owner of Niobec mine) and Azimut Exploration Inc.

Jean-Sébastien David – Director Mr. David is currently COO of Arianne Phosphate Inc. a company developing the Lac à Paul mining project. Before joining Arianne Phosphate Inc., Mr. David was Vice President, Sustainable Development for Osisko Mining Corporation (2007-2012).

Raymond Legault – Director

From 1997 to 2005, Mr. Legault was an investment executive at ScotiaMcLeod. He was also president and general manager of his own publishing company for 14 years and, prior to that, he held different senior management positions for a major telecommunications company.

Jean Rainville – Director

Mr. Rainville has over 35 years of experience in the mining industry and financial markets. He is one of the founding members of BlackRock Metals Inc. where he holds the position of President and Chief Executive Officer since 2008. Jean Rainville has worked as an engineer, fund manager and corporate financing manager, and also served as Director of several private and public companies. He holds a Bachelor of Mining Engineering and Metallurgy as well as a Bachelor of Administration from McGill University.

Management & Board of Directors 3

Company profile

Mineral exploration company listed on TSX-V : NBY

Developing one of the world’s most critical metals: Niobium

Recently acquired the James Bay Niobium Project located in Ontario, Canada

Capital Structure:

4

Shares outstanding 31,141,501

Warrants 500,000

Options 1,126,800

Shares fully diluted 32,768,301

FERRO-NIOBIUM MARKET

Critical alloy for added value steel

End-Uses 6

Source: Camet Metallurgy Inc & AngloAmerican

Pipeline

Automobile

Structure

Stainless

Advantages Intensity of use

g FeNb / t acier

g Nb / t capita

Low intensity of use in China and India indicates a strong growth potential.

Improves energy efficiency and security; Reduces CO2 emissions

Superior performance to withstand higher pressure and bigger volumes and longer distances

Larger and lighter structures at lower cost and smaller environmental footprint

9 $ Nb / Auto

100 kg

+ 5% km/l

0.02% Nb ØRESUN

15 000 t

= 25 M$

Applications

Global Supply 7

Araxa 80%

Key end-markets rely 100% on imports

Asian companies are taking position to secure supply

Artisanal mining, by-product mining and recycling ~ +2%

3 Producers Sharing the World Demand for Over 40 Years

Niobec

Catalao 11%

8%

Source: Camet Metallurgy Inc

Global Supply 8

CBMM Catalao Niobec

Ownership CBMM (70%)

Japanese & Korean Consortium (15%) Chinese Consortium (15%)

Anglo American Magris Resources

Location Brazil Brazil Quebec

Deposit Type Carbonatite Carbonatite Carbonatite

Resource (Mt) +800 38 1051

Resource Grade (%Nb2O5) 2.50% 0.93% 0.53%

Production Capacity (t FeNb)

110,000 10,000 8,300

Mine Life (years) +400 +20 +20

Recoverable Unit

(Nb2O5 kg/t) 15.0 3.91 3.17

Value Note Sold 30% for $US3.9B Recently Sold for $US1.5B Sold for $US500M in 2015

1. December 2010 Reserves & Resources up to 2400’

3 Producers Sharing World Demand for Over 40 Years

Source: Roskill / Company Reports

$10

$15

$20

$25

$30

$35

$40

$45

$50

Historical FeNb Price 9

Between 2006 and 2008, the price of ferroniobium increased to address what appeared to be a structural under-valuing of niobium. Up to that point, the strong growth in demand for ferroniobium had not been reflected in its price.

FeNb Prices Remained Stable in Local Currencies over the Last 2 Years while the Strong USD Pushed the Overall Price (labelled in USD) Down

USD

/kg

Nb

US dollar strength towards the Yen, Euro and Renminbi caused the reported price in USD to decline.

Source: Camet Metallurgy Inc

Demand by Region 10

North America

South America

Europe & CIS

Africa & Middle East

India

China South Korea

Japan

2016 projected : 83 500 t FeNb

2020 projected : 103 000 t FeNb

Note: About 2,000 t are not including in the picture (other Asia & Australia)

Source: Camet Metallurgy Inc

Recent M&A Activities

$US 1.5B ; 10.3 x EBITDA

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$US 500M ; 5.6 x EBITDA

2014 :

2016 :

2011-2012 :

30% for $US 3,9B

Niobec mine

Catalao + Phosphate mine

Source: Bloomberg

JAMES BAY NIOBIUM PROJECT

Development of a dormant niobium resource

James Bay Niobium Acquisition 13

Closed on June 22, 2016

Sellers

Barrick Inc (60%)

James Bay Columbium (32%) – private Co

Goldcorp (8%)

Terms of Acquisition

Acquisition of 100% of the property (includes a mining lease)

Payment of 5,000,000 shares (valued at 350,000 CAD).

Payment of 25,000 CAD

Net Smelter Return of 2%, right to buy back 1% for 2,000,000 CAD (2016 dollar)

Back-In right if a NI 43-101 indicates the presence of > 2Moz of GOLD equivalent (niobium not part of the Back-In right)

James Bay Niobium’s History 14

Discovered in 1966 by Consolidated Morrison Explorations Geophysics, geochemistry and drilling.

47,800 feet of drilling at an average depth of 170m in 85 holes

Historical estimate of 62Mt @ 0.52% Nb2O5

Major exploration work carried in 1968 & 1969 Exploration shaft (~130’ ) & a 250’ cross-cut.

225 tonnes extracted for metallurgical testing (pilot plant).

Lakefield Research carried out metallurgical tests Development of a flow sheet and validated recovery via pilot plant.

Overall recovery of 78%, very low impurities & no presence of Uranium & Thorium.

Feasibility study completed by Bechtel Canada and updated in 1979 The project couldn’t meet the targeted ROI because of lower Niobium price at that time.

Niobay Metals has not yet undertaken the work necessary to verify or classify those historical estimates. Economic studies completed in the 1960s do not mean the James Bay Niobium deposit would be found to be economic today. Niobay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.

Location 15

James Bay Niobium

Rail (ONR)

Winter road

20 km

Renison station

James Bay Lowlands, Ontario, Canada

James Bay Niobium

Detour Gold

Approx. 40 km from: Moosonee Power station

Rail Winter road

James Bay Niobium Deposit 16

Niobium-bearing carbonatite

Niobium-bearing mineral is pyrochlore; about 1% of the rock

700 m long by 180m wide

14,000m drilling at maximum depth of 275m in 85 holes.

Overlay of 32m of till & flat-lying Paleozoic sandstone-mudstone

Historical Estimate of 62Mt @ 0.52% Nb2O5 at depth of 250m

High grade section near surface

Open at depth

Niobay Metals has not yet undertaken the work necessary to verify or classify those historical estimates. Economic studies completed in the 1960s do not mean the James Bay Niobium deposit would be found to be economic today. Niobay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.

Surface Plan 17

0.3-0.5% Nb2O5

0.5-0.9% Nb2O5

Inside red dash line: 62 M tonnes @ 0.52% Nb2O5

Unit 6 (red): High-grade zone 0.5-0.9% Nb2O5 Unit 5 (orange): Medium-grade zone 0.3-0.5% Nb2O5

*Historical resources estimate are not 43-101 compliant and are based on data obtained by previous operators in the 60's. MDN is not treating the historical

resources as NI 43-101 compliant nor as having been verified by a qualified person, and they should not be relied upon.

SEC

TIO

N 0

0

SEC

TIO

N 8

N

Niobay Metals has not yet undertaken the work necessary to verify or classify those historical estimates. Economic studies completed in the 1960s do not mean the James Bay Niobium deposit would be found to be economic today. Niobay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.

Historical Drill Holes 18

Section 00 19

0.3-0.5% Nb2O5

0.5-0.9% Nb2O5

Niobay Metals has not yet undertaken the work necessary to verify or classify those historical estimates. Economic studies completed in the 1960s do not mean the James Bay Niobium deposit would be found to be economic today. Niobay Metals is not treating the historical results as a current mineral resource nor as having been verified by a qualified person.

Logistics 20

Golder & Associates

Proposed 4 road scenarios

South Roads

Cost of the 180km road to be shared.

North Roads

#1 – 28 km

#2 – 35 km

Powerline 38 km of 25kVA from Renison sub-station

2016-2017 Work Program

Initiate relations with First Nations

Resource Estimation

Collect and review historical data

Relog and analyse historical drilling data

Core shack cleaning (located in Moosonee)

Establish new drilling needs considering the 14,000m historical drilling

Drilling campaign

Preliminary Economic Assessment

Baseline studies

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Estimated costs

≈ 5 M$

≈ 3 M$

≈ 1 M$

1693 St-Patrick Street, Suite 106,

Montreal (Quebec), Canada, H3K 3G9

Tel: (514) 866-6500

www.niobaymetals.com

Claude Dufresne President & CEO

‘’developing a most critical metal’’