Northern Dynasty Minerals Ltd.

Northern Dynasty Minerals Ltd.
Homer Electric Association

January 11, 2005 10:00 ET

Northern Dynasty and Homer Electric Launch Joint Power Review for the Pebble Project





JANUARY 11, 2005 - 10:00 ET

Northern Dynasty and Homer Electric Launch Joint Power
Review for the Pebble Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - Northern
Dynasty Minerals Ltd. (TSX VENTURE:NDM)(AMEX:NAK) and Homer Electric

Brad Janorschke, General Manager of Homer Electric Association ("HEA"),
and Bruce Jenkins, Chief Operating Officer for Northern Dynasty Mines
Inc., a wholly owned subsidiary of Northern Dynasty Minerals Ltd., are
pleased to announce a joint initiative to review the feasibility of a
phased power development plan for the Pebble gold-copper-molybdenum
deposit, located in southwestern Alaska, USA. The Pebble Project is
currently the focus of a comprehensive program of drilling, engineering
and environmental/socioeconomic work designed to complete an overall
feasibility study and environmental permit applications in 2005 in
anticipation of a large-scale open pit mining operation.

HEA and NDM have agreed to jointly assess the technical, economic, and
environmental feasibility of a phased development approach to ensure the
timely delivery of electrical power to construct and operate a mine at
Pebble. A phased approach contemplates the efficient start up of a mine,
and the possibility of a subsequent production ramp up to a milling rate
in the order of 200,000 tonnes per day. The results of this joint review
will contribute to the feasibility study of the Pebble Project, which is
targeted for completion later this year.

HEA is one of the six prime electric Cooperatives, or utilities, that
service the Alaskan Railbelt transmission grid. This grid includes
Anchorage, Fairbanks, Matanuska-Susitna, and the Kenai Peninsula and
services about 75% of Alaska's population which consumes over 85% of the
State's electrical power. HEA is a member-owned electric Cooperative
that serves Alaska's western Kenai Peninsula. Its beginnings date back
to 1945 when residents in Homer, Alaska came together for the purpose of
starting a local electric Cooperative. In 1950, the system was
energized, bringing electricity to 56 members. Today, the Cooperative
consists of approximately 20,000 members and provides electricity to
about 28,000 meters in its service area. The Cooperative supplies power
to a mix of heavy industry (an oil refinery, oil and gas fields in Cook
Inlet, a liquid natural gas production plant and a nitrogen products
plant), towns, rural areas and remote villages over a territory of 3,166
square miles.

The power development plan which is being reviewed for the Pebble
Project consists of two stages. Stage One would connect the mine to the
Railbelt electrical grid, via either 210 miles of overland transmission
line, or alternatively, 45 miles of submarine cable across Cook Inlet,
followed by approximately 70 miles of overland transmission line to the
Pebble property. En route, local villages and other consumers in
proximity to the project area could likely also be connected to the new
extension. During 2005, HEA and NDM plan to expand their discussions
with local communities to determine the best approach for optimizing the
supply of power to Pebble and its neighbours in the region. It is
anticipated that HEA will position itself to provide approximately 100
megawatts of power to start-up the project. Project start-up remains
subject to completion of the overall feasibility study, permitting,
financing and detailed engineering. Stage Two would involve construction
of additional generation facilities by HEA using the best available
technology. The generation capacity would be optimized to the needs of
HEA's members, including NDM, as well as to allow for the future growth
of HEA and the remainder of the Railbelt.

Under this new NDM/HEA initiative, the timeline for the provision of
power is consistent with engineering, permitting and construction
efficiencies. This timeline should also facilitate a very effective
sequence for the potential mine development. Three mining rates were
described in an independent Preliminary Assessment of the Pebble Project
which was announced in November 2004: 100,000 tpd, 100,000 tpd ramping
up to 200,000 tpd in year 6, and 200,000 tpd. Continuing studies
indicate that the Pebble resource is large enough to potentially utilize
the largest, most cost effective and efficient grinding equipment
currently available. Consequently, one of the prime alternatives under
investigation is an ultimate production rate of up to 200,000 tonnes per
day (70 million tonnes per year).

A staged build-up of power availability and mine production could have
numerous benefits. On the power side, there would be time to optimize
technical details and economic benefits and plan for growth on the
entire Railbelt system. Benefits would accrue through the ability to
plan for grid expansions and additional power generation in a cost
effective manner that accommodates existing consumers as well as growing
demand from new consumers. The end result could be a more stable,
efficient system with lower cost electricity available to all Railbelt

No securities regulatory authority has approved or disapproved the
information contained in this news release.

The TSX Venture Exchange and the American Stock Exchange have neither
approved nor disapproved of the contents of this press release.

This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address possible future mining,
exploration and development activities are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions, such
statements should not be in any way construed as guarantees of future
performance and actual results or developments may differ materially
from those in the forward-looking statements. Factors that could cause
actual results to differ materially from those in forward-looking
statements include market prices for metals, the conclusions of detailed
feasibility and technical analyses and the lack of availability of
necessary capital which may not be available to the Company on terms
acceptable to it or at all. The Company is subject to the specific risks
inherent in the mining business as well as general economic and business
conditions. For more information on the Company, Investors should review
the Company's annual Form 20-F filing with the United States Securities
Commission and its home jurisdiction filings that are available at


Contact Information

    Homer Electric Association
    Joe Gallagher
    Public Relations Coordinator
    (907) 283-2324
    In Alaska call Toll Free: 1-800-478-8551
    Northern Dynasty Minerals Ltd.
    Bruce Jenkins
    Chief Operating Officer
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)