Since 2001, Northern Dynasty has invested US$160 million to discover and develop one of America's most important advanced stage copper-gold-molybdenum projects in southwestern Alaska, USA. In 2007, the Company formed a 50:50 partnership with Anglo American plc, which will invest the next US$1.425 billion to advance the Pebble project towards production

Two major deposits have been discovered within the 153 square mile property. Pebble West is a 4.1 billion tonne open pit style deposit.Pebble East is a 3.9 billion tonne underground style deposit which is still open to expansion; drilling is ongoing.

In 2004, internationally recognized consultants commenced engineering, environmental and socio-economic studies for a long life, open pit mine at Pebble West.

Then, in late 2005 Pebble East was discovered by exploration drilling.Extensive drilling in 2006 confirmed it to be a high-grade porphyry, and one of the world's great metal deposits. The current focus is to fully delineate this new deposit by ongoing drilling so that its resources can be integrated into an overall development plan for the project.

Having a long and successful mining history, Alaska offers a positive environment for modern mine development. Power sources, accessible port sites and infrastructure are available for the Pebble project, in an area of favourable terrain for mine construction.Alaska also has some of the most stringent environmental regulations and permitting requirements in the world to help ensure that the Pebble Project is developed in a way that protects fish, water and traditional ways of life.

Co-product revenues for the Pebble project are expected to be in the range of 60% copper, 30% gold and 10% molybdenum at metal prices of $1.00 per lb copper, $400/oz gold and $6/lb molybdenum.

Partnership to advance Pebble to production

In July 2007, Northern Dynasty and Anglo American established a 50:50 partnership to engineer, permit, construct and operate a modern, long-life mine at the Pebble Project. To accomplish this goal, plans are to complete a pre-feasibility study in December 2008, a feasibility study by 2011, with commencement of commercial production by 2015.Anglo American will fund all project expenditures until it has invested $1.425 billion, after which expenditures will be split 50:50.

Cynthia Carroll, CEO of Anglo American said:

"As one of the world's largest copper-gold-molybdenum deposits, Pebble has the potential to be a world-class operation. The project offers Anglo American a unique opportunity to be involved in a very long life, low operating cost mine. We are excited to be initiating operations in the State of Alaska, a jurisdiction known around the world for the responsible development of its natural resources. Like Northern Dynasty, Anglo American is committed to the highest international standards for community relations, environmental protection, and health and safety. We are very pleased to bring these skills and experience to this partnership.We also look forward to working closely with the people of Alaska and, in particular, the communities of the Bristol Bay area and Kenai Peninsula to maximize the value of these resources for all stakeholders, taking into account the positive long-term demand prospects for copper.”

Ron Thiessen, President & CEO of Northern Dynasty stated:

"Alaska's environmental standards and permitting requirements are among the most stringent in the world. Northern Dynasty's experienced, largely Alaskan based, mine development team has been undertaking thorough and balanced technical, environmental and social assessments to ensure that the Pebble project is developed in a manner that protects the environment and traditional ways of life. We have sought a partner that shares our approach to development, has the ability to finance, and is an experienced mine operator.Anglo brings commitment and depth in all of these key areas. Our shared goal is to develop a state-of-the-art operation with a high annual metal production profile that will bring direct benefits to the local communities, as well as being a catalyst for sustainable economic development in the region and across the State."