US $107 Million Approved To Advance Pebble Project

VANCOUVER, BC - Northern Dynasty Minerals Ltd. reported that the Board of Directors of Pebble Mines Corp., the general partner of the Pebble Limited Partnership has approved a budget of approximately US $107 million to advance the Pebble Project in 2012, with the objective of readying PLP to initiate permitting under the National Environmental Policy Act (NEPA) toward the end of the year.

"Following the completion and release of the 27,000 page Pebble Environmental Baseline Document (EBD) earlier this year, the Pebble Partnership is now focused on finalizing the other principal document required to trigger permitting under NEPA - a Project Description," said Northern Dynasty President & CEO Ronald Thiessen. "After years of methodical and intensive geological, environmental, socioeconomic and engineering study, we are now finalizing a proposed design for the Pebble Project that will meet and exceed environmental regulations and permitting requirements in Alaska and the United States, while providing significant benefits to the region, the state and the nation."

Thiessen confirmed that the Pebble Partnership plans to lead a public consultation initiative in Alaska in fall 2012 to share the status of project engineering with stakeholders. Other activities to be undertaken to advance the Pebble Project this year include: Engineering studies to complete a Project Description in 2012 and finalize a Prefeasibility Study (PFS) in 2013; Continued environmental baseline monitoring studies, with a focus on surface and groundwater hydrology, water quality and fisheries resources; Site investigations, including exploration, geotechnical and metallurgical drilling, as well as geo-hydrology testing; and Stakeholder engagement and public affairs programming, including a public consultation program outlining current plans for the proposed mine, workforce and business development initiatives, public education and community investment.

From the time that the Pebble Partnership was established in July 2007 to the end of December 2011, Anglo American plc has invested approximately US $400 million to advance engineering, environmental and socioeconomic studies.

Prior to initiating project permitting, the Pebble Partnership plans to undertake a broad-based public engagement program to consult Alaskans and other project stakeholders about the current status of project planning. This public consultation initiative is scheduled to begin in the fall of 2012.

"As part of the process of developing a proposed Project Description, the Pebble Partnership will be meeting and consulting with the people and communities of southwest Alaska and throughout the state to allow Alaskans and all interested stakeholders to gain a better understanding of how this project will be built and operated to provide significant benefits to the state and country, while protecting fish, water and other important natural resources," Thiessen said.

The company's address is 15th Floor - 1040 West Georgia Street, Vancouver, BC V6E 4H1, (604) 684-6365, fax: (604) 684-8092.