What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-05-02 compared with 2024-02-13 · 561 added, 472 removed, 68 unchanged (94% of the section changed)

DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our historical interim condensed consolidated financial statements

and related notes included elsewhere in this Form 10-Q and the Annual Report on Form 10-K filed with the Securities and Exchange

Commission for the year ended June 30, 2023, which have been prepared in accordance with generally

accepted accounting principles in the United States (“U.S.

This discussion and analysis contains forward-looking

statements and forward-looking information that involve risks, uncertainties, and assumptions.

Our actual results may differ materially

from those anticipated in these forward-looking statements and information as a result of many factors, including, but not limited

to, those set forth elsewhere in this Quarterly Report on Form 10-Q.

See “Note Regarding Forward-Looking Statements”

currency amounts are stated in U.S.

The following discussion and analysis

should be read in conjunction with our historical interim condensed consolidated financial statements and related notes included

elsewhere in this Quarterly Report on Form 10-Q and the Annual Report on Form 10-K filed with the Securities and Exchange Commission

(the “SEC”) for the year ended June 30, 2023, which have been prepared in accordance with generally accepted accounting

principles in the United States (“U.S.

This discussion and analysis contains forward-looking statements

and forward-looking information that involve risks, uncertainties, and assumptions.

Our actual results may differ materially from

those anticipated in these forward-looking statements and information as a result of many factors, including, but not limited to,

those set forth elsewhere in this Quarterly Report on Form 10-Q.

See “Note Regarding Forward-Looking Statements” below.

All currency amounts are stated in U.S.

dollars unless noted otherwise.

used in this report, unless the context otherwise indicates, references to “we,” “our,” the “Company,”

“NioCorp,” and “us” refer to NioCorp Developments Ltd.

As used in this report, unless the context

otherwise indicates, references to “we,” “our,” the “Company,” “NioCorp,” and “us”

refer to NioCorp Developments Ltd.

and its subsidiaries, collectively.

Regarding Forward-Looking Statements

Quarterly Report on Form 10-Q and the exhibits attached hereto contain “forward-looking statements” within the meaning

of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities

Exchange Act of 1934, as amended (the “Exchange Act”), and “forward-looking information” within the meaning

of applicable Canadian securities legislation (collectively, “forward-looking statements”).

Such forward-looking statements

concern our anticipated results and developments in the operations of the Company in future periods, planned exploration activities,

the adequacy of the Company’s financial resources, and other events or conditions that may occur in the future.

Forward-looking

statements have been based upon our current business and operating plans, as approved by the Company’s Board of Directors,

and may include statements regarding the anticipated benefits of the transactions (the “Transactions”) contemplated

by the previously disclosed Business Combination Agreement, dated September 25, 2022 (the “Business Combination Agreement”),

among the Company, GX Acquisition Corp.

II and Big Red Merger Sub Ltd, including NioCorp’s ability to access the full amount

of the expected net proceeds of the Standby Equity Purchase Agreement, dated January 26, 2023 (the “Yorkville Equity Facility

Financing Agreement”), between the Company and YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global,

LP (“Yorkville”), through April 1, 2026;

NioCorp’s ability to receive a final commitment of financing from the

Export-Import Bank of the United States (“EXIM”);

anticipated benefits of the listing of NioCorp’s common shares,

without par value (the “Common Shares”), on The Nasdaq Stock Market LLC (“Nasdaq”);

the financial and

business performance of NioCorp;

NioCorp’s anticipated results and developments in the operations of NioCorp in future periods;

NioCorp’s planned exploration activities;

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q and

the exhibits attached hereto contain “forward-looking statements” within the meaning of Section 27A of the Securities

Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended

(the “Exchange Act”), and “forward-looking information” within the meaning of applicable Canadian securities

legislation (collectively, “forward-looking statements”).

Such forward-looking statements concern our anticipated results

and developments in the operations of the Company in future periods, planned exploration activities, the adequacy of the Company’s

financial resources, and other events or conditions that may occur in the future.

Forward-looking statements have been based

upon our current business and operating plans, as approved by the Company’s Board of Directors, and may include statements

regarding the anticipated benefits of the transactions (the “Transactions”) contemplated by the previously disclosed

Business Combination Agreement, dated September 25, 2022 (the “Business Combination Agreement”), among the Company,

GX Acquisition Corp.

II and Big Red Merger Sub Ltd, including NioCorp’s ability to access the full amount of the expected

net proceeds of the Standby Equity Purchase Agreement, dated January 26, 2023 (the “Yorkville Equity Facility Financing Agreement”),

between the Company and YA II PN, Ltd., an investment fund managed by Yorkville Advisors Global, LP (“Yorkville”),

through April 1, 2026;

NioCorp’s ability to receive a final commitment of financing from the Export-Import Bank of the United

States (“EXIM”);

anticipated benefits of the listing of NioCorp’s common shares, without par value (the “Common

Shares”), on The Nasdaq Stock Market LLC (“Nasdaq”);

the financial and business performance of NioCorp;

anticipated results and developments in the operations of NioCorp in future periods;

NioCorp’s planned exploration and development

the adequacy of NioCorp’s financial resources;

NioCorp’s ability to

secure sufficient project financing to complete construction and commence operation of the Elk Creek Project;

expectation and ability to produce niobium, scandium, and titanium at the Elk Creek Project;

NioCorp’s plans to produce

and supply specific products and market demand for those products;

the outcome of current recovery process improvement testing,

and NioCorp’s expectation that such process improvements could lead to greater efficiencies and cost savings in the Elk

Creek Project;

NioCorp’s ability to secure sufficient project financing

to complete construction and commence operation of the Elk Creek Project;

NioCorp’s expectation and ability to produce niobium,

scandium, and titanium at the Elk Creek Project;

NioCorp’s plans to produce and supply specific products and market demand

for those products;

the outcome of current recovery process improvement testing, and NioCorp’s expectation that such process

improvements could lead to greater efficiencies and cost savings in the Elk Creek Project;

anticipated benefits of the agreement

with Brunel University London;

the Elk Creek Project’s ability to produce multiple critical metals;

the Elk Creek Project’s projected

ore production and mining operations over its expected mine life;

the completion of technical and economic analyses on the potential

addition of magnetic rare earth oxides to NioCorp’s planned product suite;

the exercise of options to purchase additional

land parcels;

the execution of contracts with engineering, procurement and construction companies;

the Elk Creek Project’s

projected ore production and mining operations over its expected mine life;

the completion and content of an updated technical

report for the Elk Creek Project;

the completion of technical and economic analyses on the potential addition of magnetic rare

earth oxides to NioCorp’s planned product suite;

anticipated benefits of the electrification of access to the Elk Creek Project

the exercise of options to purchase additional land parcels;

the execution of contracts with engineering, procurement

and construction companies;

the advancement of offtake discussions with potential customers;

NioCorp’s ongoing evaluation

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creation of full time and contract construction jobs over the construction period of the Elk Creek Project.

Forward-looking

statements are frequently, but not always, identified by words such as “expects,” “anticipates,” “believes,”

“intends,” “estimates,” “potential,” “possible,” and similar expressions, or statements

that events, conditions, or results “will,” “may,” “could,” or “should” (or the

negative and grammatical variations of any of these terms) occur or be achieved.

Any statements that express or involve discussions

with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance

(often, but not always, using words or phrases such as “expects” or “does not expect,” “is expected,”

“anticipates” or “does not

anticipate,” “plans,” “estimates,” or “intends,”

or stating that certain actions, events, or results “may,” “could,” “would,” “might,”

or “will” be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Such forward-looking statements reflect the Company’s current views with respect to future events and are subject to certain

known and unknown risks, uncertainties, and assumptions.

Many factors could cause actual results, performance, or achievements

to be materially different from any future results, performance, or achievements that may be expressed or implied by such forward-looking

statements, including, among others, risks related to the following:

NioCorp’s ability to recognize the anticipated benefits

of the Transactions, including NioCorp’s ability to access the full amount of the expected net proceeds under the Yorkville

Equity Facility Financing Agreement over the next three years;

Forward-looking statements are frequently,

but not always, identified by words such as “expects,” “anticipates,” “believes,” “intends,”

“estimates,” “potential,” “possible,” and similar expressions, or statements that events,

or results “will,” “may,” “could,” or “should” (or the negative and grammatical

variations of any of these terms) occur or be achieved.

Any statements that express or involve discussions with respect to predictions,

expectations, beliefs, plans, projections, objectives, assumptions, or future events or performance (often, but not always, using

words or phrases such as “expects” or “does not expect,” “is expected,” “anticipates”

or “does not anticipate,” “plans,” “estimates,” or “intends,” or stating that certain

actions, events, or results “may,” “could,” “would,” “might,” or “will”

be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Such forward-looking

statements reflect the Company’s current views with respect to future events and are subject to certain known and unknown

risks, uncertainties, and assumptions.

Many factors could cause actual results, performance, or achievements to be materially different

from any future results, performance, or achievements that may be expressed or implied by such forward-looking statements, including,

among others, risks related to the following:

NioCorp’s ability to recognize the anticipated benefits of the Transactions,

including NioCorp’s ability to access the full amount of the expected net proceeds under the Yorkville Equity Facility Financing

Agreement through April 1, 2026;

NioCorp’s ability to recognize the anticipated benefits of the April 2024 Private Placement;

unexpected costs related to the Transactions;

the outcome of any

legal proceedings that may be instituted against NioCorp following closing of the Transactions;

NioCorp’s ability to receive

a final commitment of financing from EXIM on the anticipated timeline, on acceptable terms, or at all;

NioCorp’s ability

to continue to meet Nasdaq listing standards;

the outcome of any legal proceedings that may be instituted against NioCorp following

closing of the Transactions;

NioCorp’s ability to receive a final commitment of financing from EXIM on the anticipated timeline,

on acceptable terms, or at all, including the timing for EXIM’s initial due diligence findings;

NioCorp’s ability to

continue to meet Nasdaq listing standards;

NioCorp’s ability to operate as a going concern;

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the extent to which NioCorp’s level of indebtedness and/or

the terms contained in agreements governing NioCorp’s indebtedness or the Yorkville Equity Facility Financing Agreement

may impair NioCorp’s ability to obtain additional financing;

covenants contained in agreements with NioCorp’s secured

creditors that may affect its assets;

the terms contained in agreements governing NioCorp’s indebtedness or the Yorkville Equity Facility Financing Agreement may

impair NioCorp’s ability to obtain additional financing, on acceptable terms, or at all;

covenants contained in agreements

with NioCorp’s secured creditors that may affect its assets;

NioCorp’s limited operating history;

NioCorp’s history of losses;

weaknesses in NioCorp’s internal control over financial reporting, NioCorp’s efforts to remediate such material weaknesses

and the timing of remediation;

the possibility that NioCorp may qualify as a PFIC under the Code;

the potential that the Transactions

could result in NioCorp becoming subject to materially adverse U.S.

federal income tax consequences as a result of the application

of Section 7874 and related sections of the Code;

cost increases for NioCorp’s exploration and, if warranted, development

a disruption in, or failure of, NioCorp’s information technology systems, including those related to cybersecurity;

NioCorp’s history

the material weaknesses in NioCorp’s internal control over financial reporting, NioCorp’s efforts to remediate

such material weaknesses and the timing of remediation;

the possibility that NioCorp may qualify as a “passive foreign investment

company” (“PFIC”) under the Internal Revenue Code of 1986, as amended (the “Code”);

the potential

that the Transactions could result in NioCorp becoming subject to materially adverse U.S.

federal income tax consequences as a

result of the application of Section 7874 and related sections of the Code;

cost increases for NioCorp’s exploration and,

if warranted, development projects;

a disruption in, or failure of, NioCorp’s information technology systems, including those

related to cybersecurity;

equipment and supply shortages;

variations in the market demand for, and prices of, niobium, scandium, titanium and rare earth

variations in the market demand for, and prices of, niobium, scandium,

titanium and rare earth products;

current and future offtake agreements, joint ventures, and partnerships;

NioCorp’s ability to attract qualified

the effects of global health crises on NioCorp’s business plans, financial condition and liquidity;

of mineral resources and reserves;

NioCorp’s ability

to attract qualified management;

the effects of global health crises on NioCorp’s business plans, financial condition and

estimates of mineral resources and reserves;

mineral exploration and production activities;

feasibility study results;

the results of metallurgical

changes in demand for and price of commodities (such as fuel and electricity) and currencies;

competition in the mining

the results of metallurgical testing;

the results of technological research;

changes in demand for and price of commodities (such

as fuel and electricity) and currencies;

competition in the mining industry;

changes or disruptions in the securities markets;

legislative, political or economic developments, including changes

in federal and/or state laws that may significantly affect the mining industry;

the impacts of climate change, as well as actions

taken or required by governments related to strengthening resilience in the face of potential impacts from climate change;

need to obtain permits and comply with laws and regulations and other regulatory requirements;

the timing and reliability of sampling

and assay data;

the possibility that actual results of work may differ from projections/expectations or may not realize the perceived

potential of NioCorp’s projects;

risks of accidents, equipment breakdowns, and labor disputes or other unanticipated difficulties

or interruptions;

the possibility of cost overruns or unanticipated expenses in development programs;

operating or technical difficulties

in connection with exploration, mining, or development activities;

the management of the water balance at the Elk Creek Project

land reclamation requirements related to the Elk Creek Project;

the speculative nature of mineral exploration and development,

including the risks of diminishing quantities of grades of reserves and resources;

legislative, political or economic developments, including changes in federal and/or state laws that may significantly affect the

mining industry;

the impacts of climate change, as well as actions taken or required by governments related to strengthening resilience

in the face of potential impacts from climate change;

the need to obtain permits and comply with laws and regulations and other

regulatory requirements;

the timing and reliability of sampling and assay data;

the possibility that actual results of work may

differ from projections/expectations or may not realize the perceived potential of NioCorp’s projects;

risks of accidents,

equipment breakdowns, and labor disputes or other unanticipated difficulties or interruptions;

the possibility of cost overruns

or unanticipated expenses in development programs;

operating or technical difficulties in connection with exploration, mining,

or development activities;

the management of the water balance at the Elk Creek Project site;

land reclamation requirements related

to the Elk Creek Project;

the speculative nature of mineral exploration and development, including the risks of diminishing quantities

of grades of reserves and resources;

claims on the title to NioCorp’s properties;

potential future litigation;

and NioCorp’s lack of insurance covering all of NioCorp’s operations.

one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may

vary materially from those described herein.

This list is not exhaustive of the factors that may affect any of the Company’s

forward-looking statements.

Forward-looking statements are statements about the future and are inherently uncertain, and actual

achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking

statements due to a variety of risks, uncertainties, and other factors, including without limitation those discussed under the

heading “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023, as well as other

factors described elsewhere in this report and the Company’s other reports filed with the Securities and Exchange Commission

Company’s forward-looking statements contained in this Quarterly Report on Form 10-Q are based on the beliefs, expectations,

and opinions of management as of the date of this report.

The Company does not assume any obligation to update forward-looking

statements if circumstances or management’s beliefs, expectations, or opinions should change, except as required by law.

For the reasons set forth above, investors should not attribute undue certainty to, or place undue reliance on, forward-looking

technical and scientific information that forms the basis for the Elk Creek Project disclosure included in this Quarterly Report

on Form 10-Q has been reviewed and approved by Scott Honan, M.Sc., SME-RM, NioCorp’s Chief Operating Officer.

is a “Qualified Person” as such term is defined in National Instrument 43-101 – Standards of Disclosure for

Mineral Projects and subpart 1300 of Regulation S-K.

is developing the Elk Creek Project, located in southeast Nebraska.

The Elk Creek Project is a development-stage property that

has disclosed niobium, scandium, and titanium mineral reserves and resources and disclosed rare earth oxide mineral resources.

The Company is continuing technical and economic studies around the rare earths contained in the Project’s Mineral Resource.

Niobium is used to produce various superalloys that are extensively used in high performance aircraft and jet turbines.

is used in High-Strength, Low-Alloy steel, a stronger steel used in automobiles, bridges, structural systems, buildings, pipelines,

and other applications that generally increases strength and/or reduces weight, which can result in environmental benefits, including

and NioCorp’s

lack of insurance covering all of NioCorp’s operations.

Should one or more of these risks or uncertainties

materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements.

Forward-looking

statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future

events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties,

and other factors, including without limitation those discussed under the heading “Risk Factors” in our Annual Report

on Form 10-K for the fiscal year ended June 30, 2023, as well as other factors described elsewhere in this report and the Company’s

other reports filed with the SEC.

The Company’s forward-looking statements

contained in this Quarterly Report on Form 10-Q are based on the beliefs, expectations, and opinions of management as of the date

of this report.

The Company does not assume any obligation to update forward-looking statements if circumstances or management’s

beliefs, expectations, or opinions should change, except as required by law.

For the reasons set forth above, investors should

not attribute undue certainty to, or place undue reliance on, forward-looking statements.

Qualified Person

All technical and scientific information

that forms the basis for the Elk Creek Project disclosure included in this Quarterly Report on Form 10-Q has been reviewed and

approved by Scott Honan, M.Sc., SME-RM, NioCorp’s Chief Operating Officer.

Honan is a “Qualified Person”

as such term is defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects and subpart 1300 of

Regulation S-K.

Company Overview

NioCorp is developing the Elk Creek Project,

located in southeast Nebraska.

The Elk Creek Project is a development-stage property that has disclosed niobium, scandium, and

titanium reserves and resources and disclosed rare earth mineral resources.

The Company is continuing technical and economic studies

around the rare earths contained in the Elk Creek Project’s mineral resources in order to determine whether extraction of

rare earth elements can be reasonably justified and economically viable after taking into account all relevant factors.

is used to produce various superalloys that are extensively used in high performance aircraft and jet turbines.

It also is used

in High-Strength, Low-Alloy steel, a stronger steel used in automobiles, bridges, structural systems, buildings, pipelines, and

other applications that generally increases strength and/or reduces weight, which can result in environmental benefits, including

reduced fuel consumption and material usage and fewer air emissions.

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and decarbonization initiatives and can be used to manufacture the strongest permanent magnets commercially available.

primary business strategy is to advance our Elk Creek Project to commercial production.

We are focused on obtaining additional

funds to carry out our near-term planned work programs associated with securing the project financing necessary to complete mine

development and construction of the Elk Creek Project.

Corporate Events

December 22, 2023, the Company closed a non-brokered private placement (the “December 2023 Private Placement”) of

413,432 units of the Company (the “December 2023 Units”).

Each December 2023 Unit consists of one Common Share and

one Warrant (“December 2023 Warrant”).

Each December 2023 Warrant entitles the holder to acquire one Common Share

at a price of $3.54 at any time until December 22, 2025.

274,587 of the December 2023 Units were issued and sold to certain accredited

investors, who are not affiliated with the Company but with whom the Company had a pre-existing relationship, at a price of $3.08

per December 2023 Unit, and 138,845 of the December 2023 Units were issued and sold to certain officers and directors of the Company

(the “Insider Investors”), at a price of $3.205 per December 2023 Unit.

The price per December 2023 Unit paid by the

Insider Investors included $0.125 per December 2023 Warrant underlying each December 2023 Unit purchased by the Insider Investors

which allowed the Insider Investors to participate in the December 2023 Private Placement in accordance with the rules of The

Nasdaq Stock Market LLC (“Nasdaq”).

The Company received aggregate gross proceeds from the December 2023 Private Placement

of approximately $1.29 million.

Proceeds of the December 2023 Private Placement will be used for continued advancement of the

Elk Creek Project and for working capital and general corporate purposes.

May 2023, we announced an aluminum-scandium (“Al-Sc”) master alloy initiative (the “Al-Sc master alloy initiative”),

in partnership with Boston-based Nanoscale Powders LLC (“Nanoscale”).

Al-Sc master alloy, which generally contains

2% by weight scandium, is used to introduce scandium into aluminum for the purpose of producing various Al-Sc alloys, which generally

contain a fraction of a percent scandium by weight.

These alloys help to reduce weight, increase strength and corrosion resistance,

and make the material weldable in automotive and mass transit, aerospace, defense, space, and other systems.

Two of the three

planned 1-kilogram ingots were manufactured at a contract metallurgical facility operated by Creative Engineers in the quarter

ended December 31, 2023.

As funds become available, the Company plans to manufacture a third ingot and pursue the scale-up of

the Nanoscale technology, with an aim towards larger sized ingots and a continuous or semi-continuous production process.

Creek Project Update

the quarter ended December 31, 2023, the Company’s demonstration scale processing plant located in Trois-Rivieres, Quebec

(the “Demonstration Plant”) also completed the production of waste materials for follow-on characterization to support

tailings impoundment and paste backfill engineering design.

Additional work at the Demonstration Plant is underway to further

explore improvements to solvent extraction operations and to produce product samples for prospective customers.

the quarter ended December 31, 2023, the Company, through a contract engineering firm (Olsson), completed a 90% engineering package

for various road improvements in the vicinity of the Elk Creek Project site, and shared the 90% engineering drawings with the

Nebraska Department of Transportation and Johnson County as part of the normal process for approving the improvements.

long-term financing efforts continued during the quarter ended December 31, 2023.

As previously disclosed, on March 6, 2023, the

Company announced the receipt of a Letter of Interest from the EXIM for potential debt financing of up to $800 million through

EXIM’s “Make More In America” initiative to fund a portion of the project costs of the Elk Creek Project.

project finance letter of interest from EXIM represents only a preliminary step in the formal EXIM application process, and the

Letter of Interest states that the communication “does not represent a financing commitment” and “is not an

explicit indication of the financial or commercial viability of a transaction.” As stated in the Letter of Interest, “Upon

receipt of NioCorp’s application for financing, EXIM will conduct all requisite due diligence necessary to determine if

a Final Commitment may be issued for this transaction.” The process from submission of an application to a final commitment

of financing by EXIM, if any, is subject to a number of risks and uncertainties.

As explained in the Letter of Interest, “Any

final commitment will be dependent on meeting EXIM’s underwriting criteria, authorization process, and finalization and

satisfaction of terms and conditions.

All Final Commitments must be in compliance with EXIM policies as well as program, legal,

and eligibility requirements.” The debt financing is subject to the satisfactory completion of due diligence, the negotiation

and settlement of final terms, and the negotiation of definitive documentation.

submitted a formal application to EXIM for a loan under EXIM’s “Make More in America” initiative on June 6,

The Company was informed that its application received approval by the first of three reviews by the EXIM Transaction Review

Committee on October 2, 2023.

EXIM has indicated that they will now devote additional resources to the processing of the Company’s

application and will require the Company to execute indemnity fee agreements with external consultants who will be tasked with

conducting detailed reviews of the financial and technical (including environmental) aspects of the Company’s application.

We are currently unable to estimate how long the application process may take, and there can be no assurances that we will be

able to successfully negotiate a final commitment of debt financing from EXIM.

funds become available through the Company’s fundraising efforts, we expect to undertake the following activities:

of the Company’s efforts to secure federal, state and local operating permits;

evaluation of the potential to produce rare earth products and sell such products under offtake agreements;

and completion of offtake agreements for the remaining uncommitted production of niobium, scandium, and titanium from the

project, including the potential sale of titanium as titanium tetrachloride;

and completion of engineering, procurement, and construction agreements;

of the final detailed engineering for the underground portion of the Elk Creek Project;

and completion of the final detailed engineering for surface project facilities;

Construction of

natural gas and electrical infrastructure under existing agreements to serve the Elk Creek

Project site;

of water supply agreements and related infrastructure to deliver fresh water to the project site;

of revised mine groundwater investigation and control activities;

of long-lead equipment procurement activities;

As a follow-on

to the Company’s Demonstration Plant operations, complete characterization and testing of waste materials to support

tailings impoundment and paste backfill plant designs;

of design and permitting efforts related to improvements to the junction of Nebraska state highways 50 and 62 and improvements

and paving of County Road 721 to the proposed entrance to the Elk Creek Project mine site.

and Operating Results

Company has no revenues from mining operations.

Operating expenses incurred related primarily to costs incurred for the advancement

of the Elk Creek Project and the activities necessary to support corporate and shareholder duties and are detailed in the following

table (in thousands of dollars).

For the Three Months Ended

For the Six Months Ended

Our primary business strategy is to advance

our Elk Creek Project to commercial production.

We are focused on obtaining additional funds to carry out our near-term planned

work programs associated with securing the project financing necessary to complete mine development and construction of the Elk

Creek Project.

Recent Corporate Events

Nanoscale Partnership

In May 2023, we announced an

aluminum-scandium (“Al-Sc”) master alloy initiative (the “Al-Sc master alloy initiative”), in partnership

with Boston-based Nanoscale Powders LLC (“Nanoscale”).

Al-Sc master alloy, which generally contains 2% by weight scandium,

is used to introduce scandium into aluminum for the purpose of producing various Al-Sc alloys, which generally contain a fraction

of a percent scandium by weight.

These alloys help to reduce weight, increase strength and corrosion resistance, and make the material

weldable in automotive and mass transit, aerospace, defense, space, and other systems.

Two of the three planned 1-kilogram ingots

were manufactured at a contract metallurgical facility operated by Creative Engineers in the quarter ended December 31, 2023.

third ingot was manufactured in the quarter ended March 31, 2024.

These trials were successful in producing an Al-Sc master alloy

with a 2% scandium content.

The technology is sensitive to the purity of the starting materials and requires isolation from oxygen

and moisture while manufacturing is conducted.

The Company is evaluating the costs and benefits associated with scaling up the

technology to larger ingots and conducting the manufacturing operations in a semi-continuous or continuous fashion.

is also evaluating other pathways for the manufacture of Al-Sc master alloy.

Brunel University London Agreement

On January 30, 2024, we announced

that the Company entered into an agreement with London-based Brunel University London, a leading research university focused on

the application of cast aluminum alloys globally, to develop innovative aluminum-scandium alloys and applications for use in the

automotive sector.

NioCorp has joined with the Brunel Centre for Advanced Solidification Technology to develop a range of innovative

aluminum alloys for the automotive sector.

These alloys will utilize scandium to enhance the performance of aluminum components

in order to facilitate:

Vehicle light weighting – developing aluminum-scandium alloys that reduce weight, increase automobile efficiencies, and reduce emissions;

Recycling – utilizing the performance-enhancing attributes of scandium to increase recyclability, creating sustainable low-carbon circular supply chains;

Cost Reduction – reducing manufacturing costs and waste through utilizing scandium to increase the strength, ductility, weldability, durability, surface finish, and corrosion resistance of critical aluminum components.

April 2024 Private Placement

On April 12, 2024, the Company entered

into the April 2024 Private Placement with the April 2024 Purchasers, pursuant to which (i) the Company issued and sold to the

April 2024 Purchasers $8.0 million aggregate principal amount April 2024 Notes and April 2024 Warrants, (ii) the April 2024 Purchasers

advanced and aggregate of $6,935 million to the Company, and (iii) the Company and the April 2024 Purchasers entered into the April

2024 Registration Rights Agreement.

See Note 11 to the Notes to the Condensed Consolidated Financial Statements for further discussion.

Elk Creek Project Update

Operations were completed at the Company’s

demonstration scale processing plant in Trois-Rivieres, Quebec (the “Demonstration Plant”) in February 2023.

to establishing metallurgical recoveries for prospective rare earth products from an improvement flowsheet, the Demonstration Plant

also established improved recoveries and higher purities for the Company’s planned niobium and titanium products.

from the Demonstration Plant are expected to be utilized in a future update to the Company’s technical report for the Elk

Creek Project, as well as to advance offtake discussions with potential customers.

Work to finalize the engineering for road

improvements in the vicinity of the Elk Creek Project site was put on hold until the Company obtains additional financing.

The Company retained a mine engineering

consultant in February 2024 to evaluate, at a scoping level, the costs and benefits of electrifying the mine and accessing it via

ramps instead of vertical shafts.

The evaluation did not include the detailed examination of geotechnical or hydrogeologic issues.

The findings of the evaluation indicated a potential savings in upfront capital cost, a shorter schedule to get the mine to full

production, and potential operating cost savings.

These findings are preliminary but encouraging, and the Company plans a more

detailed evaluation of this option for the design of the underground mine as part of a future update to the technical report for

the Elk Creek Project.

Other Activities

Our long-term financing efforts continued

during the quarter ended March 31, 2024.

As previously disclosed, on March 6, 2023, the Company announced the receipt of a Letter

of Interest from the EXIM for potential debt financing of up to $800 million through EXIM’s “Make More In America”

initiative to fund a portion of the project costs of the Elk Creek Project.

A project finance letter of interest from EXIM represents

only a preliminary step in the formal EXIM application process, and the Letter of Interest states that the communication “does

not represent a financing commitment” and “is not an explicit indication of the financial or commercial viability of

a transaction.” As stated in the Letter of Interest, “Upon receipt of NioCorp’s application for financing, EXIM

will conduct all requisite due

diligence necessary to determine if a Final Commitment may be issued for this transaction.”

The process from submission of an application to a final commitment of financing by EXIM, if any, is subject to a number of risks

and uncertainties.

As explained in the Letter of Interest, “Any final commitment will be dependent on meeting EXIM’s

underwriting criteria, authorization process, and finalization and satisfaction of terms and conditions.

All Final Commitments

must be in compliance with EXIM policies as well as program, legal, and eligibility requirements.” The debt financing is

subject to the satisfactory completion of due diligence, the negotiation and settlement of final terms, and the negotiation of

definitive documentation.

NioCorp submitted a formal application

to EXIM for a loan under EXIM’s “Make More in America” initiative on June 6, 2023.

The Company was informed that

its application received approval by the first of three reviews by the EXIM Transaction Review Committee on October 2, 2023.

deployed additional resources to the processing of the Company’s application during the quarter ended December 31, 2023 and

has retained financial and legal consultants to support EXIM’s due diligence on the Elk Creek Project.

On April 15, 2024,

the Company received the Preliminary Project Letter (the “PPL”) from EXIM.

The PPL is a summary of EXIM’s initial

due diligence findings and also includes a preliminary Indicative Term Sheet.

Management is working with EXIM to continue to advance

the project through the next stages of EXIM’s due diligence and loan application process.

We are currently unable to estimate

how long the application process may take, and there can be no assurances that we will be able to successfully negotiate a final

commitment of debt financing from EXIM.

As funds become available through the Company’s

fundraising efforts, we expect to undertake the following activities:

Continuation of the Company’s efforts to secure federal, state, and local operating permits;

Continued evaluation of the potential to produce rare earth products and sell such products under offtake agreements;

Negotiation and completion of offtake agreements for the remaining uncommitted production of niobium, scandium, and titanium from the Elk Creek Project, including the potential sale of titanium as titanium tetrachloride;

Negotiation and completion of engineering, procurement, and construction agreements;

Completion of the final detailed engineering for the underground portion of the Elk Creek Project;

Initiation and completion of the final detailed engineering for surface project facilities;

Construction of natural gas and electrical infrastructure under existing agreements to serve the Elk Creek Project site;

Completion of water supply agreements and related infrastructure to deliver fresh water to the Elk Creek Project site;

Initiation of revised mine groundwater investigation and control activities;

Initiation of long-lead equipment procurement activities;

As a follow-on to the Company’s Demonstration Plant operations, complete characterization and testing of waste materials to support tailings impoundment and paste backfill plant designs;

Completion of design and permitting efforts related to improvements to the junction of Nebraska state highways 50 and 62 and improvements and paving of County Road 721 to the proposed entrance to the Elk Creek Project mine site;

Completion of an updated technical report for the Elk Creek Project.

Financial and Operating Results

The Company has no revenues from mining

Operating expenses incurred related primarily to costs incurred for the advancement of the Elk Creek Project and the

activities necessary to support corporate and shareholder duties and are detailed in the following table (in thousands of dollars).

For the Three Months

Ended March 31,

For the Nine Months

Ended March 31,

Operating expenses

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Loss on debt extinguishment

Interest expense (income)

Interest expense

Foreign exchange loss (gain)

3 unchanged sentences

Net loss attributable to the Company

Three- and six-month periods ended December

31, 2023 compared to the three- and six-month periods ended December 31, 2022:

items affecting operating expenses are noted below:

Employee-related

costs increased for the three- and six-month periods in 2023 as compared to 2022, primarily due to the impact of board-authorized

employee salary increases, which became effective April 1, 2023.

fees increased for the six-month period in 2023 as compared to 2022, primarily due to the timing of legal services associated

with the Company’s SEC registration statements filed in October 2023, as well as increased audit and review fees associated

with the Company’s June 30, 2023 and September 30, 2023 financial statements, respectively.

These costs increased for the

three-month period ended December 31,2023 as compared to 2022, as 2023 costs included additional accounting fees associated with

quarterly financial statement review procedures as well as increased legal fees associated with the Company’s Annual General

Meeting preparation, our registration statements on Form S-1 filed in October 2023, and the change in our auditors.

expenditures decreased for the six-month period in 2023 as compared to 2022, as 2022 costs included Demonstration Plant development

and start-up costs, as well as costs related to the completion and filing of the Technical Report Summary based on the Company’s

Three- and nine-month periods ended

March 31, 2024 compared to the three- and nine-month periods ended March 31, 2023

Significant items affecting operating expenses

are noted below:

Employee-related costs increased

for the three- and nine-month periods in 2024 as compared to 2023, primarily due to an increase in the number of options issued

to employees in 2024 partially offset by a lower fair value per option as calculated under the Black Scholes pricing model, as

well as the impact of board-authorized employee salary increases which became effective April 1, 2023.

Professional fees increased

for the nine-month period in 2024 as compared to 2023, primarily due to the timing of legal services associated with the Company’s

SEC registration statements filed in October 2023, as well as increased audit fees associated with the Company’s June 30,

2023 financial statements and increased review fees in connection with the Company’s September 30, 2023, December 31, 2023

and March 31, 2024, financial statements.

These costs increased for the three-month period ended March 31, 2024 as compared to

2023,as 2024 costs included additional audit and accounting fees associated with quarterly financial statement review procedures

as well as increased legal fees.

Exploration expenditures

decreased for the nine-month period in 2024 as compared to 2023, as 2023 costs included Demonstration Plant development and start-up

costs, as well as costs related to the completion and filing of the Technical Report Summary based on the Company’s 2022

Feasibility Study for the Elk Creek Project, which was filed with the SEC on September 6, 2022.

These costs decreased for

the three-month period ended December 31, 2023 as compared to 2022, as 2022 costs included Demonstration Plant development and

costs, while overall Demonstration Plant operations were winding down during the three-month period in 2023.

operating expenses include costs related to investor relations, general office expenditures, equity offering and proxy expenditures,

board-related expenditures, and other miscellaneous costs.

These costs increased for the six-month period 2023 as compared to

2022 primarily due to the impact of increased director and officer insurance costs associated with the Company’s listing

on the Nasdaq, which began in March 2023, as well as expenditures related to our Al-Sc master alloy initiative, fair value losses

on Yorkville Equity Facility Financing Agreement transactions, and Delaware franchise fees, partially offset by reduced investor

relations expenditures.

These costs increased for the three-month period ended December 31, 2023 as compared to 2022 primarily

due to the impact of increased director and officer insurance costs associated with the Company’s listing on the Nasdaq,

which began in March 2023.

significant items impacting the change in the Company’s net loss are noted below :

in fair value of Earnout Shares liability represents the changes in fair value related to the shares of Class B common stock

of Elk Creek Resource Corporation (“ECRC”), an indirect, majority-owned subsidiary of NioCorp formerly known as GX

Acquisition Corp.

II, the rights of the holders of which to exchange such shares into Common Shares are subject to certain vesting

conditions (such shares of ECRC Class B common stock, the “Earnout Shares”) for 2023, based on the results of Monte

Carlo financial modeling.

The Company recognized this liability in connection with the Transactions, which closed in March 2023.

in fair value of warrant liability primarily represents the changes in fair value related to Lind Global Asset Management

III, LLC’s (“Lind”) right to receive additional Warrants (the “Contingent Consent Warrants”) as

consideration for entering into the previously disclosed Waiver and Consent Agreement, dated September 25, 2022 (the “Lind

Consent”), between the Company and Lind, based on the impact of a lower closing Common Share price, which increases the

probability of these Contingent Consent Warrants being issued on the 18-month anniversary.

This expense was partially offset by

a slight decrease in the valuation of the Warrants issued to GX Sponsor II LLC (the “Sponsor”) in connection with

the closing of the Transactions (the “Private Warrants”).

expense increased for both the six-month and three-month periods in 2023 as compared to 2022 due to accretion expense associated

with the unsecured convertible debentures (the “Convertible Debentures”) issued to Yorkville, which were issued in

exchange loss is primarily due to changes in the U.S.

These costs decreased for the three-month

period ended March 31, 2024 as compared to 2023, as 2023 costs included Demonstration Plant development and start-up costs, while

overall Demonstration Plant operations ended during the three-month period in 2023.

Other operating expenses

include costs related to investor relations, general office expenditures, equity offering and proxy expenditures, board-related

expenditures, and other miscellaneous costs.

These costs decreased for the three- and nine-month periods in 2024 as compared to

2023 primarily due to the impact costs and expenses related to the closing of the Transactions on March 17, 2023.

Other significant items impacting the change

in the Company’s net loss are noted below :

Change in fair value of Earnout

Shares liability represents the changes in fair value related to the shares of Class B common stock of Elk Creek Resource Corporation

(“ECRC”), an indirect, majority-owned subsidiary of NioCorp formerly known as GX Acquisition Corp.

II, the rights of

the holders of which to exchange such shares

into Common Shares are subject to certain vesting conditions (such shares of ECRC

Class B common stock, the “Earnout Shares”).

The decline in costs for all periods presented represents the impact of

the Company’s declining Common Share price on the financial modeling used to determine the period end fair values.

Change in fair value of warrant

liability for all periods presented primarily represents the changes in fair value related to Lind Global Asset Management

III, LLC’s (“Lind”) right to receive additional Warrants (the “Contingent Consent Warrants”) as consideration

for entering into the previously disclosed Waiver and Consent Agreement, dated September 25, 2022 (the “Lind Consent”),

between the Company and Lind, based on the impact of a lower closing Common Share price, which increases the probability of these

Contingent Consent Warrants being issued on the 18-month anniversary.

This expense was partially offset by a slight decrease in

the valuation of the Warrants issued to GX Sponsor II LLC (the “Sponsor”) in connection with the closing of the Transactions

(the “Private Warrants”).

Interest expense increased

for both the nine-month and three-month periods in 2024 as compared to 2023 due to accretion expense associated with the unsecured

convertible debentures (the “Convertible Debentures”) issued to Yorkville, which were issued in March 2023.

Foreign exchange loss

(gain) is primarily due to changes in the U.S.

dollar against the Canadian dollar.

During 2022, the functional currency

of the parent company was Canadian dollars, and the loss for the period was primarily due to changes in the foreign exchange rates

applied to U.S.

During 2023, the functional currency of the

parent company was Canadian dollars, and the loss for the period was primarily due to changes in the foreign exchange rates applied

dollar-denominated debt instruments.

Effective March 17, 2023, the parent company’s functional currency

became the U.S.

on debt extinguishment incurred in 2022 represents the loss incurred under Accounting Standards Codification (“ASC”)

Topic 470, Debt, related to the convertible security issued to Lind (the “Lind III Convertible Security”) pursuant

to the Convertible Security Funding Agreement, dated February 26, 2021, as amended by Amendment #1 to the Convertible Security

Funding Agreement, dated December 2, 2021, between the Company and Lind).

attributable to noncontrolling interest represents the portion of net loss in ECRC not owned by the Company.

and Capital Resources

have no revenue generating operations from which we can internally generate funds.

To date, our ongoing operations have been financed

by the sale of our equity securities by way of private placements, convertible securities issuances, the exercise of incentive

options to purchase Common Shares (“Options”) and Warrants, and related party loans.

With respect to currently outstanding

Options and Warrants, we believe that exercise of these instruments, and cash proceeds from such exercises, will not occur unless

and until the market price for our Common Shares equals or exceeds the related exercise price of each instrument.

Yorkville Equity Facility Financing Agreement is expected to provide near-term and longer-term access to capital.

Effective March 17, 2023, the parent company’s functional currency became the

Loss on debt extinguishment

incurred in 2023 represents the loss incurred under Accounting Standards Codification (“ASC”) Topic 470, Debt ,

related to the convertible security issued to Lind (the “Lind III Convertible Security”) pursuant to the Convertible

Security Funding Agreement, dated February 26, 2021, as amended by Amendment #1 to the Convertible Security Funding Agreement,

dated December 2, 2021, between the Company and Lind).

Other gains for the three

and nine months ended March 31, 2024 represents the change in fair value of Canadian dollar-denominated Options which the Company

classified as a liability effective January 1, 2024.

2023 activity represents the gain on a sale of a small parcel of Company owned

property to the State of Nebraska in connection with a highway improvement project unrelated to the development of the Elk Creek

Loss attributable to noncontrolling

interest represents the portion of net loss in ECRC not owned by the Company.

Liquidity and Capital Resources

We have no revenue generating operations

from which we can internally generate funds.

To date, our ongoing operations have been financed by the sale of our equity securities

by way of private placements, convertible securities issuances, the exercise of Options and Warrants, and related party loans.

With respect to currently outstanding Options and Warrants, we believe that exercise of these instruments, and cash proceeds from

such exercises, will not occur unless and until the market price for our Common Shares equals or exceeds the related exercise price

of each instrument.

On April 12, 2024, the Company announced

the closing of the April 2024 Private Placement.

The April 2024 Purchase Agreement is expected to provide near-term access to capital.

The Yorkville Equity Facility Financing Agreement is expected to provide near-term and longer-term access to capital.

of the Company to draw down on the Yorkville Equity Facility Financing Agreement, at its discretion, is subject to certain limitations

1 unchanged sentence

Company more closely.

Historically, cash has generally been available to the Company through private placements of equity for

which the timing did not always coincide with the Company’s cash needs.

The Company may utilize the Yorkville Equity Facility

Financing Agreement to potentially generate funds at a time when they are in need.

Alternatively, the Company can also utilize

the Yorkville Equity Facility Financing Agreement for opportunistic share sales.

of December 31, 2023, the Company had cash of $0.6 million and a working capital deficit of $10.6 million, compared to cash of

$2.3 million and working capital of $0.2 million on June 30, 2023.

expect that the Company will operate at a loss for the foreseeable future.

The Company’s current planned cash needs are

approximately $7.7 million until June 30, 2024, inclusive of repayments of principal and interest on the Yorkville Convertible

In addition to outstanding accounts payable and short-term liabilities, our average monthly planned expenditures through

June 30, 2024 are expected to be approximately $805,000 per month where approximately $660,000 is for corporate overhead and estimated

costs related to securing financing necessary for advancement of the Elk Creek Project.

Approximately $145,000 per month is planned

for expenditures relating to the advancement of the Elk Creek Project by ECRC.

The Company’s ability to continue operations

and fund our current work plan is dependent on management’s ability to secure additional financing.

Company anticipates that it does not have sufficient cash on hand to continue to fund basic operations for the next twelve months,

and additional funds totaling $10.0 million to $11.0 million are likely to be necessary to continue advancing the project in the

areas of financing, permitting, and detailed engineering.

While the Yorkville Equity Facility Financing Agreement may provide

Historically, cash has generally been available to the Company through private placements of equity for which

the timing did not always coincide with the Company’s cash needs.

The Company may utilize the Yorkville Equity Facility Financing

Agreement to potentially generate funds at a time when they are in need.

Alternatively, the Company can also utilize the Yorkville

Equity Facility Financing Agreement for opportunistic share sales.

As of March 31, 2024, the Company had cash

of $0.2 million and a working capital deficit of $8.7 million, compared to cash of $2.3 million and working capital of $0.2 million

on June 30, 2023.

We expect that the Company will operate

at a loss for the foreseeable future.

The Company’s current planned cash needs are approximately $1.1 million until June

30, 2024, inclusive of any repayments of principal and interest due on the Yorkville Convertible Debentures and April 2024 Notes.

In addition to outstanding accounts payable and short-term liabilities, our average monthly planned expenditures through June 30,

2024 are expected to be approximately $365,000 per month where approximately $320,000 is for corporate overhead and estimated costs

related to securing financing necessary for advancement of the Elk Creek Project.

Approximately $45,000 per month is planned for

expenditures relating to the advancement of the Elk Creek Project by ECRC.

The Company’s ability to continue operations and

fund our current work plan is dependent on management’s ability to secure additional financing.

The Company anticipates that it does not

have sufficient cash on hand to continue to fund basic operations for the next twelve months, and additional funds totaling $14.5

million to $15.0 million are likely to be necessary to continue advancing the Elk Creek Project in the areas of financing, permitting,

and detailed engineering.

While the Yorkville Equity Facility Financing Agreement and the April 2024 Purchase Agreement may provide

the Company with access to additional capital, the Company may require additional capital to meet its cash needs.

2 unchanged sentences

there can be no assurance it will be able to do so in the future.

Creek property lease commitments are $19,000 until June 30, 2024.

To maintain our currently held properties and fund our currently

anticipated general and administrative costs and planned exploration and development activities at the Elk Creek Project for the

fiscal year ending June 30, 2024, the Company will likely require additional financing during the current fiscal year.

such financing not be available in that timeframe, we will be required to reduce our activities and will not be able to carry

out all our presently planned activities at the Elk Creek Project.

June 6, 2023, the Company announced that it had submitted an application to EXIM for debt financing (the “EXIM Financing”)

to fund the project costs for the Elk Creek Project, under EXIM’s “Make More in America” initiative.

Financing is subject to, among other matters, the satisfactory completion of due diligence, the negotiation and settlement of

final terms, and the negotiation of definitive documentation.

There can be no assurance that the EXIM Financing will be completed

on the terms described herein or at all.

for potential funding under the Yorkville Equity Facility Financing Agreement, discussed above, and the potential exercise of

Options and Warrants, we currently have no further funding commitments or arrangements for additional financing at this time,

and there is no assurance that we will be able to obtain any such additional financing on acceptable terms, if at all.

to the Exchange Agreement, dated as of March 17, 2023 (as amended, supplemented or otherwise modified, the “Exchange Agreement”),

by and among NioCorp, ECRC and the Sponsor, NioCorp is restricted from issuing equity or equity-linked securities (other than

Common Shares) or any preferred equity or non-voting equity if such issuance would adversely impact the rights of the holders

of the shares of Class B common stock of ECRC, without the consent of the holders of a majority of the shares of Class B common

stock of ECRC.

The Yorkville Convertible Debt Financing Agreement also contains certain covenants that, among other things, limit

NioCorp’s ability to use the proceeds from the issuance of the securities pursuant to the Yorkville Convertible Debt Financing

Agreement to repay related party debt or to enter into any variable rate transaction, including issuances of equity or debt securities

that are convertible into Common Shares at variable rates and any equity line of credit, ATM agreement or other continuous offering

of Common Shares, other than with Yorkville, subject to certain exceptions.

Notwithstanding the restrictions set forth in the

Exchange Agreement and

the Yorkville Convertible Debt Financing Agreement, there is significant uncertainty that we would be able

to secure any additional financing in the current equity or debt markets.

The quantity of funds to be raised and the terms of

any proposed equity or debt financing that may be undertaken will be negotiated by management as opportunities to raise funds

Management may pursue funding sources of both debt and equity financing, including but not limited to the issuance of equity

securities in the form of Common Shares, Warrants, subscription receipts, or any combination thereof in units of the Company pursuant

to private placements to accredited investors or pursuant to public offerings in the form of underwritten/brokered offerings,

registered direct offerings, or other forms of equity financing and public or private issuances of debt securities including secured

and unsecured convertible debt instruments or secured debt project financing.

Management does not currently know the terms pursuant

to which such financings may be completed in the future, but any such financings will be negotiated at arm’s-length.

financings involving the issuance of equity securities or derivatives thereof will likely be completed at a discount to the then-current

market price of the Company’s securities and will likely be dilutive to current shareholders.

In addition, we could raise

funds through the sale of interests in our mineral properties, although current market conditions and other recent worldwide events

have substantially reduced the number of potential buyers/acquirers of any such interests.

However, we cannot provide any assurances

that we will be able to be successful in raising such funds.

on the conditions described within, management has concluded, as supported by the notes that accompany our financial statements

for the year ended June 30, 2023, that substantial doubt exists as to our ability to continue in business.

The financial statements

included in this Quarterly Report on Form 10-Q have been prepared under the assumption that we will continue as a going concern.

We are a development stage issuer and we have incurred losses since our inception.

We may not have sufficient cash to fund normal

operations and meet debt obligations for the next twelve months without deferring payment on certain current liabilities and raising

additional funds.

Recent worldwide events have created general global economic uncertainty as well as uncertainty in capital markets,

supply chain disruptions, increased interest rates and inflation, and the potential for geographic recessions.

During fiscal year

2023 and continuing into fiscal year 2024, these events continued to create uncertainty with respect to overall project funding

and timelines.

We believe that the going concern uncertainty cannot be alleviated with confidence until the Company has entered

into a business climate where funding of its planned ongoing operating activities is secured.

Therefore, these factors raise substantial

doubt as to our ability to continue as a going concern.

have no exposure to any asset-backed commercial paper.

Other than cash held by our subsidiaries for their immediate operating

needs in Colorado and Nebraska, all of our cash reserves are on deposit with major U.S.

Elk Creek property lease commitments are

$13,000 until June 30, 2024.

To maintain our currently held properties and fund our currently anticipated general and administrative

costs and planned exploration and development activities at the Elk Creek Project for the fiscal year ending June 30, 2024, the

Company will likely require additional financing during the current fiscal year.

Should such financing not be available in that

timeframe, we will be required to reduce our activities and will not be able to carry out all our presently planned activities

at the Elk Creek Project.

On June 6, 2023, the Company announced

that it had submitted an application to EXIM for debt financing (the “EXIM Financing”) to fund the project costs for

the Elk Creek Project, under EXIM’s “Make More in America” initiative.

The EXIM Financing is subject to, among

other matters, the satisfactory completion of due diligence, the negotiation and settlement of final terms, and the negotiation

of definitive documentation.

There can be no assurance that the EXIM Financing will be completed on the terms described herein

Except for the proceeds

from the April 2024 Private Placement and potential funding under the Yorkville Equity Facility Financing Agreement, discussed

above, and the potential exercise of Options and Warrants, we currently have no further funding commitments or arrangements for

additional financing at this time, and there is no assurance that we will be able to obtain any such additional financing on acceptable

terms, if at all.

Pursuant to the Exchange Agreement, dated as of March 17, 2023 (as amended, supplemented or otherwise modified,

the “Exchange Agreement”), by and among NioCorp, ECRC and the Sponsor, NioCorp is restricted from issuing equity or

equity-linked securities (other than Common Shares) or any preferred equity or non-voting equity if such issuance would adversely

impact the rights of the holders of the shares of Class B common stock of ECRC, without the consent of the holders of a majority

of the shares of Class B common stock of ECRC.

The Yorkville Convertible Debt Financing Agreement and the April 2024 Purchase Agreement

also contain certain covenants that, among other things, limit NioCorp’s ability to use the proceeds from the issuance of

the securities pursuant to the Yorkville Convertible Debt Financing Agreement or the April 2024 Purchase Agreement to repay related

party debt or to enter into any variable rate transaction, including issuances of equity or debt securities that are convertible

into Common Shares at variable rates and any equity line of credit, at-the-market agreement, or other continuous offering of Common

Shares, other than with Yorkville, subject to certain exceptions.

Notwithstanding the restrictions set forth in the Exchange Agreement,

the Yorkville Convertible Debt Financing Agreement, and the April 2024 Purchase Agreement, there is significant uncertainty that

we would be able to secure any additional financing in the current equity or debt markets.

The quantity of funds to be raised and

the terms of any proposed equity or debt financing that may be undertaken will be negotiated by management as opportunities to

raise funds arise.

Management may pursue funding sources of both debt and equity financing, including but not limited to the issuance

of equity securities in the form of Common Shares, Warrants, subscription receipts, or any combination thereof in units of the

Company pursuant to private placements to accredited investors or pursuant to public offerings in the form of underwritten/brokered

offerings, registered direct offerings, or other forms of equity financing and public or private issuances of debt securities including

secured and unsecured convertible debt instruments or secured debt project financing.

Management does not currently know the terms

pursuant to which such financings may be completed in the future, but any such financings will be negotiated at arm’s-length.

Future financings involving the issuance of equity securities or derivatives thereof will likely be completed at a discount to

the then-current market price of the Company’s securities and will likely be dilutive to current shareholders.

we could raise funds through the sale of interests in our mineral properties, although

current market conditions and other recent

worldwide events have substantially reduced the number of potential buyers/acquirers of any such interests.

However, we cannot

provide any assurances that we will be able to be successful in raising such funds.

Based on the conditions

described within, management has concluded, as supported by the notes that accompany our financial statements for the year ended

June 30, 2023, that substantial doubt exists as to our ability to continue in business.

The financial statements included in this

Quarterly Report on Form 10-Q have been prepared under the assumption that we will continue as a going concern.

We are a development

stage issuer and we have incurred losses since our inception.

We may not have sufficient cash to fund normal operations and meet

debt obligations for the next twelve months without deferring payment on certain current liabilities and raising additional funds.

Recent worldwide events have created general global economic uncertainty as well as uncertainty in capital markets, supply chain

disruptions, increased interest rates and inflation, and the potential for geographic recessions.

During fiscal year 2023 and continuing

into fiscal year 2024, these events continued to create uncertainty with respect to overall Elk Creek Project funding and timelines.

We believe that the going concern uncertainty cannot be alleviated with confidence until the Company has entered into a business

climate where funding of its planned ongoing operating activities is secured.

Therefore, these factors raise substantial doubt

as to our ability to continue as a going concern.

We have no exposure to any asset-backed

commercial paper.

Other than cash held by our subsidiaries for their immediate operating needs in Colorado and Nebraska, all of

our cash reserves are on deposit with major U.S.

and Canadian chartered banks.

believe that the credit, liquidity, or market risks with respect thereto have increased as a result of the current market conditions.

However, in order to achieve greater security for the preservation of our capital, we have, of necessity, been required to accept

lower rates of interest, which has also lowered our potential interest income.

the six months ended December 31, 2023, the Company’s operating activities consumed $4.6 million of cash (2022:

We do not believe that the credit, liquidity, or

market risks with respect thereto have increased as a result of the current market conditions.

However, in order to achieve greater

security for the preservation of our capital, we have, of necessity, been required to accept lower rates of interest, which has

also lowered our potential interest income.

Operating Activities

During the nine months ended March 31,

2024, the Company’s operating activities consumed $5.6 million of cash (2023:

$11.5 million).

The cash used in operating activities for the six months ended December 31, 2023, reflects the Company’s funding of losses

of $6.8 million and Convertible Debenture accretion, partially offset by a reduction in the Earnout Shares liability and other

non-cash transactions.

Overall, operational outflows during the six months ended December 31, 2023, increased from the corresponding

period of 2022 due to increased professional services performed in 2023.

Going forward, the Company’s working capital requirements

are expected to increase substantially in connection with the development of the Elk Creek Project.

The cash used in operating

activities for the nine months ended March 31, 2024, reflects the Company’s funding of losses of $11.0 million, share-based

compensation expense, and Convertible Debenture accretion, partially offset by a reduction in the Earnout Shares liability and

other non-cash transactions.

Overall, operational outflows during the nine months ended March 31, 2024, decreased from the corresponding

period of 2023 due to costs and expenditures incurred in connection with the Transaction.

Going forward, the Company’s working

capital requirements are expected to increase substantially in connection with the development of the Elk Creek Project.

Financing Activities

Financing inflows were $3.5 million during

the six months ended December 31, 2023 (2022:

$0.5 million outflow), with 2023 inflows reflecting the gross receipts of $1.0 million

from the September 2023 Private Placement, $1.3 million from the December 2023 Private Placement, and $0.8 million from Common

Share issuances under the Yorkville Equity Facility Financing Agreement.

Flow Considerations

Company has historically relied upon debt and equity financings to finance its activities.

Subject to the restrictions set forth

in the Exchange Agreement and the Yorkville Convertible Debt Financing Agreement, the Company may pursue additional debt and/or

equity financing in the medium term;

however, there can be no assurance the Company will be able to obtain any required financing

in the future on acceptable terms.

Company has limited financial resources compared to its proposed expenditures, no source of operating income, and no assurance

that additional funding will be available to it for current or future projects, although the Company has been successful in the

past in financing its activities through the sale of equity securities.

ability of the Company to arrange additional financing in the future will depend, in part, on the prevailing capital market conditions,

and its success in developing the Elk Creek Project.

Any quoted market for the Common Shares may be subject to market trends generally,

notwithstanding any potential success of the Company in creating revenue, cash flows, or earnings, and any depression of the trading

price of the Common Shares could impact its ability to obtain equity financing on acceptable terms.

Historically,

the Company has used net proceeds from issuances of Common Shares to provide sufficient funds to meet its near-term exploration

and development plans and other contractual obligations when due.

However, development and construction of the Elk Creek Project

will require substantial additional capital resources.

This includes near-term funding and, ultimately, funding for Elk Creek

Project construction and other costs.

See “ Liquidity and Capital Resources ” above for the Company’s discussion

of arrangements related to possible future financings.

Accounting Estimates

have been no material changes in our critical accounting estimates discussed in “Management’s Discussion and Analysis

of Financial Condition and Results of Operations” under the heading “Critical Accounting Estimates and Recent Accounting

Pronouncements” as of June 30, 2023, in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

the nine months ended March 31, 2024 (2023:

$13.6 million), with 2024 inflows reflecting the gross receipts of $1.0 million from

the September 2023 Private Placement, $1.3 million from the December 2023 Private Placement, and $1.4 million from Common Share

issuances under the Yorkville Equity Facility Financing Agreement.

Cash Flow Considerations

The Company has historically relied upon

debt and equity financings to finance its activities.

Subject to the restrictions set forth in the Exchange Agreement and the Yorkville

Convertible Debt Financing Agreement, the Company may pursue additional debt and/or equity financing in the medium term;

there can be no assurance the Company will be able to obtain any required financing in the future on acceptable terms.

The Company has limited financial resources

compared to its proposed expenditures, no source of operating income, and no assurance that additional funding will be available

to it for current or future projects, although the Company has been successful in the past in financing its activities through

the sale of equity securities.

The ability of the Company to arrange additional

financing in the future will depend, in part, on the prevailing capital market conditions, and its success in developing the Elk

Creek Project.

Any quoted market for the Common Shares may be subject to market trends generally, notwithstanding any potential

success of the Company in creating revenue,

cash flows, or earnings, and any depression of the trading price of the Common Shares

could impact its ability to obtain equity financing on acceptable terms.

Historically, the Company has used net

proceeds from issuances of Common Shares to provide sufficient funds to meet its near-term exploration and development plans and

other contractual obligations when due.

However, development and construction of the Elk Creek Project will require substantial

additional capital resources.

This includes near-term funding and, ultimately, funding for Elk Creek Project construction and other

See “ Liquidity and Capital Resources ” above for the Company’s discussion of arrangements related

to possible future financings.

Critical Accounting Estimates

There have been no material changes in

our critical accounting estimates discussed in “Management’s Discussion and Analysis of Financial Condition and Results

of Operations” under the heading “Critical Accounting Estimates and Recent Accounting Pronouncements” as of June

30, 2023, in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023.

Federal Income Tax Considerations

NioCorp (or a subsidiary) is a “passive foreign investment company” (“PFIC”) for any taxable year (or

portion thereof) that is included in the holding period of a U.S.

holder of Common Shares or other NioCorp securities (as determined

under applicable U.S.

federal income tax law), then certain significant adverse tax consequences could apply to such U.S.

including requirements to treat any gain realized upon a disposition of Common Shares (or other securities) as ordinary income,

to include certain “excess distributions” on Common Shares in income, and to pay an interest charge on a portion of

any such gain or distribution.

NioCorp believes that it was classified as a PFIC during the taxable years ended June 30, 2023

and 2022, and, based on the current composition of its income and assets, as well as current business plans and financial expectations,

that it may be classified as a PFIC for its current taxable year or in future taxable years.

No opinion of legal counsel or ruling

from the Internal Revenue Service (the “IRS”) concerning the PFIC status of NioCorp or any subsidiary has been obtained

or is currently planned to be requested.

The determination of whether any corporation was, or will be, a PFIC for a taxable year

depends, in part, on the application of complex U.S.

federal income tax rules, which are subject to differing interpretations.

In addition, whether any corporation will be a PFIC for any taxable year depends on the assets and income of such corporation

over the course of each such taxable year and, as a result, cannot be predicted with certainty as of the date of this Quarterly

Report on Form 10-Q.

In addition, even if NioCorp concluded that it or any subsidiary was not classified as a PFIC, the IRS could

challenge such determination and a court could sustain the challenge.

Accordingly, there can be no assurance that NioCorp or any

subsidiary will not be classified as a PFIC for any taxable year.

Each holder of Common Shares or other NioCorp securities should

consult its own tax advisors regarding the PFIC status of NioCorp and each subsidiary thereof and the resulting tax consequences

If NioCorp (or a subsidiary) is a PFIC

for any taxable year (or portion thereof) that is included in the holding period of a U.S.

holder of Common Shares or other NioCorp

securities (as determined under applicable U.S.

federal income tax law), then certain significant adverse tax consequences could

apply to such U.S.

holder, including requirements to treat any gain realized upon a disposition of Common Shares (or other securities)

as ordinary income, to include certain “excess distributions” on Common Shares in income, and to pay an interest charge

on a portion of any such gain or distribution.

NioCorp believes that it was classified as a PFIC during the taxable years ended

June 30, 2023 and 2022, and, based on the current composition of its income and assets, as well as current business plans and financial

expectations, that it may be classified as a PFIC for its current taxable year or in future taxable years.

No opinion of legal

counsel or ruling from the Internal Revenue Service (the “IRS”) concerning the PFIC status of NioCorp or any subsidiary

has been obtained or is currently planned to be requested.

The determination of whether any corporation was, or will be, a PFIC

for a taxable year depends, in part, on the application of complex U.S.

federal income tax rules, which are subject to differing

interpretations.

In addition, whether any corporation will be a PFIC for any taxable year depends on the assets and income of such

corporation over the course of each such taxable year and, as a result, cannot be predicted with certainty as of the date of this

Quarterly Report on Form 10-Q.

In addition, even if NioCorp concluded that it or any subsidiary was not classified as a PFIC, the

IRS could challenge such determination and a court could sustain the challenge.

Accordingly, there can be no assurance that NioCorp

or any subsidiary will not be classified as a PFIC for any taxable year.

Each holder of Common Shares or other NioCorp securities

should consult its own tax advisors regarding the PFIC status of NioCorp and each subsidiary thereof and the resulting tax consequences

to the holder, as well as any potential to mitigate such tax consequences through a “QEF” or “mark-to-market”

See the “Risk Factors” section of NioCorp’s Annual Report on Form 10-K for the fiscal year ended June

Company has one class of shares, being Common Shares.

A summary of outstanding shares, Options, Warrants, and convertible debt

as of February 13, 2024, is set out below, on a fully diluted basis.

Common Shares Outstanding

The Company has one class of shares, being

Common Shares.

A summary of outstanding shares, Options, Warrants, and convertible debt as of May 2, 2024, is set out below,

on a fully diluted basis.

Common Shares

(Fully Diluted)

3 unchanged sentences

Convertible debt (4)

exchangeable into one Common Share at any time, and from time to time, until March 17,

exercisable into one Common Share.

15,666,626 NioCorp Assumed Warrants that are each exercisable into 1.11829212 Common

Shares, and 3,216,690 Warrants that are each exercisable into one Common Share.

Common Shares issuable on conversion of Convertible Debentures with an aggregate outstanding

principal and accrued interest amount of $3.87 million as of February 13,

2024, assuming a market price per Common Share of $3.17 on that date.

(1) Each exchangeable into one Common Share at any time, and from time to time,

until March 17, 2033.

(2) Each exercisable into one Common Share.

(3) Includes 15,666,626 NioCorp Assumed Warrants that are each exercisable into

1.11829212 Common Shares, and 3,384,758 Warrants that are each exercisable into one Common Share.

(4) Represents Common Shares issuable on conversion of Convertible Debentures

and the April 2024 Notes with an aggregate outstanding principal and accrued interest amount of $9.28 million as of May 2, 2024, assuming a market price per Common Share of $2.06 on that date.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis