Developing one of the most critical metal

CORPORATE PRESENTATION JANUARY 2017 Developing one of the most critical metal TSX-V: NBY 1 Forward Looking Statements This presentation contains c...
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CORPORATE PRESENTATION JANUARY 2017

Developing one of the most critical metal

TSX-V: NBY 1

Forward Looking Statements This presentation contains certain forward-looking statements under the provisions of Canadian securities laws, as well as historical information. Forward-looking statements include, but is not limited to, statements relating to the Company's strategy, goals and objectives for its James Bay Project, targets and timetable for the exploration and development of the James Bay Niobium project, resource estimates, costs estimates, the potential demand and supply of niobium, and the price of niobium. Forward looking statements express, as of the date of this presentation, the Company’s plans, estimates, forecasts, projections, expectations or beliefs as to future events and results. Forward-looking statements involve a number of risks, uncertainties and other factors beyond the Company’s ability to control or predict, 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, uncertainties and other factors 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, changes or delays in mining development and exploration plans, the timing of receipt of necessary permits or regulatory approvals for the Company’s exploration projects and other operations, uncertainty related to historical estimate of resources, uncertainty involved in interpreting geological data and future exploration results, environmental risks and hazards, uncertainty as to calculation of mineral resources, 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. The Company does not assume any obligation, to update these forward-looking statements and information, except as required by law.

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. Mr. Dufresne is the President and CEO of the Company. 2

Company Profile Listed on the TSX-V: NBY Developing one of the most critical metal: Niobium Owns 100% of the James Bay Niobium Project located in Ontario DIRECTORS & MANAGEMENT

STOCK INFORMATION

Symbol

NBY

Serge Savard

Chairman of the board

Exchange

TSX-V

Claude Dufresne

President & CEO

Market Cap

$29 M

Alain Krushnisky

CFO

Shares outstanding

32.7 M

Jean-Sébastien David

Director

52-week high

$1.25

Raymond Legault

Director

52-week low

$0.05

Jacques Bonneau

Director

Cash (Dec 31, 2016)

$2.3 M

Jean Rainville

Director

Carole Plante

Corporate Secretary

Updated January 25, 2017

3

Population is on the Rise

Billions of people

For the first time in history, half of the world’s population is living in cities Population to reach 9 billions by 2050 10 9 8

Urban

7

Rural

6 5 4 3 2 1 0

Source: UN World Urbanization Prospects

4

Urbanization is Changing the World By 2050, two-thirds of the global population will live in urban areas

Source: UN World Urbanization Prospects

5

Steel is at the Core of Urbanization Steel is the material of choice for modern development Strong Ductile

Durable 100% Recyclable Cost Effective

Safe

6

Niobium an Undeniable Ally for Steel By adding it in steelmaking process Niobium improves steel properties Stronger Tougher

Lighter More flexible Easier to weld

Reduces GHG emissions

7

Niobium is Everywhere

Automotive

Bridges

(structure, body)

(beams, rods)

Stainless steel

Tools

(Exhaust)

High-rise buildings

O&G Pipelines

Aerospace (jet engine, rivets)

Medical

Electronics

(MR, implants)

(semiconductors)

Jewelry

8

Niobium a ‘green’ metal

5% liters/km economy

$10 of Niobium Mid-size vehicule

15,000 tons

0.02% of Niobium

$25M & 15,000 tons savings

Øresun bridge

9

Niobium Demand by Region

Europe & CIS North America

China

South Korea

Japan

India Africa & Middle East South America

2021 projected world consumtion

100 000 t FeNb Note: About 3,000 t are not included in the picture (other Asia & Australia)

Source: Camet Metallurgy Inc

10

Demand is Growing

g FeNb / t Steel

The amount of Niobium used per ton of steel is rising Niobium demand could double if China catches-up Crude Steel Production vs Niobium Intensity of Use, 2016

140

Americas

120 South Korea

100

Japan

Europe & CIS

80 60 40 20

China

India

0 0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

Crude Steel Output (Mt) Note: Size is relative to total Niobium consumption

Source: Camet Metallurgy Inc

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Global Supply Only 3 producers sharing global demand for over 40 years Key end-users rely 100% on imports

Niobec

Resources (M tonnes)

8%

Grade (%Nb2O5)

Recoverable Unit (kg Nb2O5/t milled)

75

39

+800

0.53

0.93

2.50

3.2

3.9

15

Araxa

80%

Catalao

11%

Source: Camet Metallurgy Inc

12

High Value Niobium Assets Recent M&A transactions reflect the appetite from Asian entities

2011-2012 :

$US 3.9B

30% Araxa mine

2014 :

$US 500M

100%

2016 :

$US 1.7B

100%

(5.6 x EBITDA) Niobec mine

(10.3 x EBITDA) Catalao + Phosphate mine

Source: Bloomberg

13

Niobium Prices are Stable

USD/kg Nb

Niobium is one of the only commodity which price remained fairly stable in recent years $50

World average FeNb price (converted in USD)

$45 $40 $35 $30 $25

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.

US dollar strength towards the Yen, Euro and Renminbi caused the reported price in USD to decline. Real prices in local currencies remained stable.

$20 $15 $10

Source: Camet Metallurgy Inc

14

Niobium Prices are Stable FeNb prices remained stable in local currencies

50 €

¥4 000

45 €

¥3 500

40 €

¥3 000

35 € 30 €

¥2 500

25 €

¥2 000

20 €

¥1 500

15 €

¥1 000

10 € 5€

¥500

0€

¥0

EU/CIS

Japan

15

James Bay Niobium Project Moose River, Moose Factory

Project Location James Bay Lowlands, Northeast Ontario, Canada

Moosonee

James Bay Niobium Detour Gold

40 km southeast of the town of Moosonee 110 km northwest of the Detour Gold mine

17

Infrastructures James Bay

Moosonee Rail (ONR)

Renison station

< 40 km James Bay Niobium

Crown Mining Lease

Wetum road

18

James Bay Niobium History Discovered in 1966 Historical estimate of 62Mt @ 0.52% Nb2O5 established by Bechtel Canada Ltd. in 19671 Open at depth

Major exploration work carried from 1967 to 1969 14,000 meters of drilling at an average depth of 170 meters in 85 holes, in sections of 61 meters intervals along a strike of 730 meters1 Exploration shaft (~130' ) & a 250' cross-cut

225Mt extracted for metallurgical testing (pilot plant)

Lakefield Research carried out metallurgical tests Overall recovery of 78%, very low impurities, and high grade concentrate1

Feasibility study completed by Bechtel Canada Ltd. in 1969

1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed in the 1960s does 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.

19

SECTION 8N

SECTION 00

Surface Plan

0.3-0.5% Nb2O5 0.5-0.9% Nb2O5

Inside red dash line: Unit 6 (red): Unit 5 (orange):

62 M tonnes @ 0.52% Nb2O51 High-grade zone 0.5 - 0.9% Nb2O51 Medium-grade zone 0.3 - 0.5% Nb2O51

1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed *inHistorical 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 the 1960s does 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 resources as NI 43-101 compliant nor as having been verified by a qualified person, and they should not be relied upon. as having been verified by a qualified person.

20

Section 00

0.3-0.5% Nb2O5 0.5-0.9% Nb2O5

1: NioBay Metals has not yet undertaken the work necessary to verify or classify the historical estimates, the historical drilling and the metallurgical tests. Economic studies completed in the 1960s does 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.

21

Strategy and Timeline NioBay’s objective is to penetrate the market with around 5% of the market share

Acquisition

43-101 Resource

Re-log and analyse Drilling

PFS release PEA release

2016

2017

DFS release

2018

Acquisition $8 million

Start construction

2019

2020

2021 Production

~C$20 million

22

Summary

Niobium is an essential strategic and critical metal in modern urbanisation

Reduce emissions of greenhouse gases Highly sought after assets Growing demand and stable prices Well located project near key infrastructures Aims to become the second producer in North America and the fourth in the world

23

Developing one of the most critical metal

Claude Dufresne President & CEO

1693 St-Patrick Street, Suite 106, Montreal (Quebec), Canada, H3K 3G9 Tel: (514) 866-6500 www.niobaymetals.com