Northern Dynasty Minerals : Second Quarter Financial Report for the period ending June 30, 2023

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED

JUNE 30, 2023 AND 2022

(Expressed in thousands of Canadian Dollars)

(Unaudited)

Northern Dynasty Minerals Ltd.

Condensed Consolidated Interim Statements of Financial Position

(Unaudited - Expressed in thousands of Canadian Dollars)

			June 30		December 31
	Notes		2023		2022
ASSETS
Non-current assets
Restricted Cash	5(b)	$	851	$	852
Mineral property, plant and equipment	3		124,579		127,531
Total non-current assets			125,430		128,383
Current assets
Amounts receivable and prepaid expenses	4		9,845		2,662
Cash and cash equivalents	5(a)		3,424		14,173
Total current assets			13,269		16,835
Total Assets		$	138,699	$	145,218
EQUITY
Capital and reserves
Share capital	6	$	700,278	$	700,278
Reserves	6		116,263		118,369
Deficit			(689,230)		(675,962)
Total equity			127,311		142,685
LIABILITIES
Non-current liabilities
Lease liabilities	8		385		463
Total non-current liabilities			385		463
Current liabilities
Payables to related parties	7		286		237
Trade and other payables	8		10,717		1,833
Total current liabilities			11,003		2,070
Total liabilities			11,388		2,533
Total Equity and Liabilities		$	138,699	$	145,218
Nature and continuance of operations (note 1)
Commitments and contingencies (note 13)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

These condensed consolidated interim financial statements are signed on the Company's behalf by:

/s/ Ronald W. Thiessen	/s/ Christian Milau
Ronald W. Thiessen	Christian Milau
Director	Director

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Northern Dynasty Minerals Ltd.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Unaudited - Expressed in thousands of Canadian Dollars, except for share information)

			Three months ended June 30		Six months ended June 30
	Notes		2023		2022		2023		2022
Expenses
Exploration and evaluation expenses	9, 10	$	1,813	$	2,182	$	4,087	$	4,483
General and administrative expenses	9, 10		2,626		2,517		5,071		4,610
Legal, accounting and audit			1,449		1,521		3,474		1,605
Share-based compensation	6(c),(d)		403		6		816		12
Loss from operating activities			6,291		6,226		13,448		10,710
Foreign exchange income			(9)		-		(23)		(3)
Interest income			(75)		(55)		(172)		(91)
Finance expense			14		17		29		34
Other income			(13)		-		(14)		-
Net loss		$	6,208	$	6,188	$	13,268	$	10,650
Other comprehensive loss (income)
Items that may be subsequently reclassified to net loss
Foreign exchange translation difference	6(e)		2,581		(3,860)		2,922		(2,435)
Other comprehensive loss (income)		$	2,581	$	(3,860)	$	2,922	$	(2,435)
Total comprehensive loss		$	8,789	$	2,328	$	16,190	$	8,215
Basic and diluted loss per share	11	$	0.01	$	0.01	$	0.03	$	0.02

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Northern Dynasty Minerals Ltd.

Condensed Consolidated Interim Statements of Cash Flows (Unaudited - Expressed in thousands of Canadian Dollars)

			Six months ended June 30
	Notes		2023		2022
Operating activities
Net loss		$	(13,268)	$	(10,650)
Non-cash or non operating items
Depreciation	3		82		121
Interest income			(172)		(91)
Share-based compensation			816		12
Unrealized foreign exchange gain			(7)		(14)
Changes in working capital items
Amounts receivable and prepaid expenses			(7,151)		1,402
Trade and other payables			8,857		(109)
Payables to related parties			49		(55)
Net cash used in operating activities			(10,794)		(9,384)
Investing activities
Acquisition of plant and equipment			-		(21)
Disposal of plant and equipment			1		-
Interest received on cash and cash equivalents			140		71
Net cash from investing activities			141		50
Financing activities
Payments of principal portion of lease liabilities			(73)		(61)
Net cash used in financing activities			(73)		(61)
Net decrease in cash and cash equivalents			(10,726)		(9,395)
Effect of exchange rate fluctuations on cash and cash equivalents			(23)		25
Cash and cash equivalents - beginning balance			14,173		22,291
Cash and cash equivalents - ending balance	5(a)	$	3,424	$	12,921

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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Northern Dynasty Minerals Ltd.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited - Expressed in thousands of Canadian Dollars, except for share information)

		Notes	Share capital						Reserves
								Equity -		Foreign
								settled		currency				Share
			Number of				share-based		translation		Investment		Purchase
			shares			compensation		reserve	revaluation		Warrants
			(note 6(a))		Amount			reserve		(note 6(e))		reserve		(note 6(b))		Deficit	Total equity
	Balance at January 1, 2022		529,779,388	$	700,278	$	77,723	$	28,758	$	(17)	$	271	$	(651,520)	$	155,493
	Share-based compensation	6(d)	-		-			12		-		-		-		-		12
	Net loss		-		-			-		-		-		-		(10,650)		(10,650)
	Other comprehensive income net of tax		-		-			-		2,435		-		-		-		2,435
	Total comprehensive loss																	(8,215)
	Balance at June 30, 2022		529,779,388	$	700,278	$	77,735	$	31,193	$	(17)	$	271	$	(662,170)	$	147,290
	Balance at January 1, 2023		529,779,388	$	700,278	$	80,024	$	38,091	$	(17)	$	271	$	(675,962)	$	142,685
	Share-based compensation	6(c),(d)	-		-			816		-		-		-		-		816
	Net loss		-		-			-		-		-		-		(13,268)		(13,268)
	Other comprehensive loss net of tax		-		-			-		(2,922)		-		-		-		(2,922)
	Total comprehensive loss																	(16,190)
	Balance at June 30, 2023		529,779,388	$	700,278	$	80,840	$	35,169	$	(17)	$	271	$	(689,230)	$	127,311

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

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