----

| TABLE OF CONTENTS                   |                                                   |
|-------------------------------------|--------------------------------------------------------|
|                                |                                                   |   |
| 1.                                  | INTRODUCTORY NOTES                                     | 1 |
| 2.                                  | CORPORATE STRUCTURE                                    | 3 |
| 3.                             | GENERAL DEVELOPMENT OF THE BUSINESS                    | 3 |
| 4.                                  | **DESCRIPTION OF THE BUSINESS**                        | 6 |
| 5.                             | RISK FACTORS                                           | 39 |
| 6.                                  | DIVIDENDS                                              | 46 |
| 7.                                  | CAPITAL STRUCTURE                                      | 46 |
| 8.                                  | MARKET FOR SECURITIES                                  | 47 |
| 9.                             | SECURITIES NOT LISTED OR QUOTED                        | 47 |
| 10.                                 | **DIRECTORS AND OFFICERS**                             | 48 |
| 11.                                 | LEGAL PROCEEDINGS AND REGULATORY ACTIONS               | 50 |
| 12.                                 | INTEREST OF MANAGEMENT AND OTHER MATERIAL TRANSACTIONS | 50 |
| 13.                                 | AUDITORS, TRANSFER AGENT AND REGISTRAR                 | 50 |
| 14.                                 | MATERIAL CONTRACTS                                     | 50 |
| 15.                                 | INTEREST OF EXPERTS                                    | 52 |
| 16.                                 | CONTROLS AND PROCEDURES                                | 52 |
| 17.                                 | AUDIT COMMITTEE                                        | 53 |
| 18.                                 | ADDITIONAL INFORMATION                                 | 55 |
| SCHEDULE A. AUDIT COMMITTEE CHARTER | 56                                                     |

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| 1. | Introductory Notes |
|----|--------------------|

| · | various economic assumptions, in particular, metal price estimates, set out in this AIF and elsewhere; |
|--------|--------------------------------------------------------------------------------------------------------|

| · | certain operational assumptions set out in the AIF, including mill recovery, operating scenarios; |
|--------|---------------------------------------------------------------------------------------------------|

| · | construction schedules and timing issues; and |
|--------|-----------------------------------------------|

| · | assumptions concerning timing and certainty regarding the environmental review and permitting process. |
|--------|--------------------------------------------------------------------------------------------------------|

----

----

| · | Zachary J. Black, SME-RM, of Hard Rock Consulting, of Lakewood, CO; |
|--------|---------------------------------------------------------------------|

| · | Jennifer J. Brown, P.G., of Hard Rock Consulting, of Lakewood, CO; |
|--------|--------------------------------------------------------------------|

| · | Nicholas Dempers, Pr. Eng., SAIMM, of Senet, of South Africa; |
|--------|---------------------------------------------------------------|

| · | Thomas L. Drielick, P.E., of M3 Engineering, of Tucson, AZ. |
|--------|-------------------------------------------------------------|

| · | Art S. Ibrado, P.E., of M3 Engineering., of Tucson, AZ; and |
|--------|-------------------------------------------------------------|

| · | Erin L. Patterson, P.E., of M3 Engineering., of Tucson, AZ; |
|--------|-------------------------------------------------------------|

| · | Tom Radue, P.E., of Barr Engineering, of Minneapolis, MN; |
|--------|-----------------------------------------------------------|

| · | Jeff S. Ubl, P.E., of Barr Engineering, of Minneapolis, MN; |
|--------|-------------------------------------------------------------|

| · | Herbert E. Welhener, SME-RM, Independent Mining Consultants, of Tucson, AZ; |
|--------|-----------------------------------------------------------------------------|

| 2. | Corporate Structure |
|----|---------------------|

| 3. | General Development of the Business |
|----|-------------------------------------|

----

| · | March 2016 – MDNR determined that the Final EIS addresses the objectives defined in the EIS scoping review, meets procedural requirements and responds appropriately to public comments demonstrating the NorthMet Project can be constructed and operated in compliance with state and federal standards.  The 30-day period allowed by law to challenge the state’s decision passed without any legal challenge being filed; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | July 2016 – the Company submitted applications for water-related permits required to construct and operate NorthMet.  The Eastern Region Regional Office of the USFS issued its response to comments on the Draft ROD for the land exchange and instructed the Superior National Forest to proceed with completing the Final ROD; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | October 2016 – the Company closed the initial tranche of a private placement of 25,963,167 units for gross proceeds of $19.5 million and a second tranche of a private placement of 14,111,251 units for gross proceeds of $10.6 million pursuant to Glencore’s right to maintain its pro rata ownership; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | December 2016 – the Memorandum of Agreement of the Section 106 Consultation under the National Historic Preservation Act was signed by the statutory parties; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | January 2017 – the USFS issued its Final ROD authorizing a land exchange to transfer title to the surface rights over and around the NorthMet mineral rights to PolyMet in exchange for certain other lands owned by PolyMet; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | June 2017 - the Company also appointed Patrick Keenan as Chief Financial Officer; |
|--------|-----------------------------------------------------------------------------------|

| · | August and September 2017 - the MDNR released six draft water appropriation permits and two draft dam safety permits for 30-days of public review and comment which have all closed; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | September 2017 - the Company issued and committed to issue to Glencore secured debentures with a total principal amount of $20 million; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| · | October 2017 - the Company entered into an agreement with EIP Credit Co., LLC (“EIP Credit”) to reserve wetland bank credits for the NorthMet Project; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | November 2017 - the U.S. House of Representatives approved bipartisan legislation introduced by Rep. Rick Nolan, D-MN-8 to ratify the previously approved land exchange between PolyMet and the U.S. Forest Service.  This bill has been advanced to the US Senate for consideration; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | January 2018 - the MDNR released its draft Permit to Mine for public review and comment which has closed; |
|--------|-----------------------------------------------------------------------------------------------------------|

| · | January 2018 - the Minnesota Pollution Control Agency (“MPCA”) released its draft water quality permit, draft section 401 certification, and draft air emissions permit for public review and comment which have all closed; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | February 2018 – the final public hearings on the draft permits were completed; |
|--------|--------------------------------------------------------------------------------------|

| · | March 2018 - the Company and Glencore agreed to extend the term of outstanding debentures until March 31, 2019, reduce the interest rate on the outstanding debentures, and make available $80 million in additional debentures during 2018.  Proceeds will be used to complete pre- and post-permitting work, including detailed engineering and environmental cleanup, and to purchase wetland credits; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | March 2018 - the Company issued an Updated Technical Report under NI 43-101 incorporating process improvements, project improvements, and environmental controls described in the Final EIS and draft permits.  The update also included detailed capital costs, operating costs, and economic valuation for the mine plan being permitted as well as an assessment of potential future opportunities. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Transfer of title to the surface rights over and around the NorthMet mineral rights to PolyMet as part of the authorized land exchange; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| · | Favorable decision by the state on 401 Water Quality Certification and USACE Final ROD and 404 wetlands permit under Clean Water Act; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| · | Favorable decisions on state permits (Permit to Mine, air, water, and dam safety permits); |
|--------|--------------------------------------------------------------------------------------------|

| · | Completion of project implementation plan; and |
|--------|------------------------------------------------|

| · | Completion of construction finance plan, subject to typical conditions precedent such as receipt of key permits. |
|--------|------------------------------------------------------------------------------------------------------------------|

----

| 4. | Description of the Business |
|----|-----------------------------|

----

| · | The U.S. Steel Lease dated January 4, 1989, subsequently amended and assigned, covers 4,162 acres originally leased from U.S. Steel Corporation (U.S. Steel), which subsequently sold the underlying mineral rights to RGGS Land & Minerals Ltd., L.P. (RGGS). PolyMet has extended the lease indefinitely by making $150,000 annual lease payments on each successive anniversary date. The lease payments are advance royalty payments and will be deducted from future production royalties payable to RGGS, which range from 3% to 5% based on the net smelter return, subject to minimum payments of $150,000 per annum. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | On December 1, 2008, PolyMet entered into an agreement with LMC Minerals ("LMC") whereby PolyMet leases 120 acres that are encircled by the RGGS property. The initial term of the renewable lease is 20 years with minimum annual lease payments of $3,000 on each successive anniversary date until the earlier of NorthMet commencing commercial production or for the first four years, after which the minimum annual lease payment increases to $30,000. The initial term may be extended for up to four additional five-year periods on the same terms. The lease payments are advance royalty payments and will be deducted from future production royalties payable to LMC, which range from 3% to 5% based on the net smelter return, subject to a minimum payment of $30,000 per annum. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

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| · | 15 one-inch diameter holes for metallurgical samples (6,974 ft) drilled by Boart-Longyear of Salt Lake City (February - March 2005). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

| · | PQ sized holes (core diameter 3.3 inches) totaling 6,897 ft, to collect bulk sample material, and to improve the confidence in the known resource area (February - March 2005). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 52 NTW sized holes (2.2 inches) totaling 41,403 ft for resource definition. |
|--------|-----------------------------------------------------------------------------|

| · | 30 NQ2 sized holes (2.0 inches) totaling 21,892 ft for resource definition and geotechnical purposes.  The NTW and NQ2 size core was drilled in the spring (February-March) and fall (September-December) of 2005. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Collect detailed geostatistical data across a grid in the initial mining area, and |
|--------|------------------------------------------------------------------------------------|

| · | Develop a geologic and assay framework around the west margin of the deposit. |
|--------|-------------------------------------------------------------------------------|

----

| Unit                   | RecoveryCount | Recovery Percentage(%) | RQD Count | RQD Percent |
|------------------------|---------------|------------------------|-----------|-------------|
| 1                      | 8,906         | 99.9                   | 4,194     | 91.8        |
| 2                      | 1,879         | 99.5                   | 968       | 90.3        |
| 3                      | 4,374         | 100                    | 2,632     | 93.5        |
| 4                      | 2,160         | 100                    | 1,063     | 96.4        |
| 5                      | 1,901         | 100                    | 838       | 94.3        |
| 6                      | 2,262         | 100                    | 1,041     | 94.7        |
| 7                      | 951           | 99.3                   | 396       | 87.4        |
| Virginia Formation     | 2,095         | 99.7                   | 1,069     | 87.6        |
| Inclusions             | 62            | 98.1                   | 57        | 86.6        |
| Biwabik Iron Formation | 381           | 100                    | 60        | 79.8        |
| Duluth Complex Average |          | 99.96                  |      | 92.82       |

| · | Original U.S. Steel core sampling, by U.S. Steel, 1969-1974 |
|--------|-------------------------------------------------------------|

| · | Re-analysis of U.S. Steel pulps and rejects, selection by Fleck and NRRI, 1989-1991 |
|--------|-------------------------------------------------------------------------------------|

| · | Analysis of previously un-sampled U.S. Steel core, sample selection by Fleck and NRRI in 1989-1991, and 1999-2001 |
|--------|-------------------------------------------------------------------------------------------------------------------|

| · | Analysis of 2 of the 4 NERCO drill-holes, 1991 |
|--------|------------------------------------------------|

| · | PolyMet RC cuttings, 1998-2000 |
|--------|--------------------------------|

| · | PolyMet core, 2000, 2005, 2007, and 2010 |
|--------|------------------------------------------|

----

| · | Base metals (Cu, Co, Mo, Ni and Zn) - Four-acid digestion with ICP-AES finish, |
|--------|--------------------------------------------------------------------------------|

| · | Base metals (Ag, Cu, Co, Mo, Ni and Zn) – Aqua Regia digestion with ICP-AES finish, |
|--------|-------------------------------------------------------------------------------------------|

| · | PGEs (Au, Pt and Pd) – 30 gm fire assay with ICP-AES finish, and |
|--------|------------------------------------------------------------------------|

| · | Total Sulphur by LECO furnace. |
|--------|--------------------------------|

----

| · | Insertion of coarse blank every 40 samples; |
|--------|---------------------------------------------|

| · | Insertion of Standard Reference Material (SRM) every 40 samples; and |
|--------|----------------------------------------------------------------------|

| · | Submission of duplicate 1/4 or 1/8 of the drill core every 40 samples. |
|--------|------------------------------------------------------------------------|

| · | No overlapping intervals, |
|--------|---------------------------|

| · | Down-hole surveys at drill-hole collar, |
|--------|-----------------------------------------|

| · | Consistent drill-hole depths for all data tables, and |
|--------|-------------------------------------------------------|

| · | Gaps in the “from – to” data tables. |
|--------|--------------------------------------------------------|

----

| · | Flotation Test work conducted by SGS Lakefield (SGS) between 1998 and 2014, and |
|--------|---------------------------------------------------------------------------------|

| · | Supplementary flotation test work conducted by SGS in 2015 and interpreted by Eurus Mineral Consultants (EMC) for circuit modeling and flotation plant design. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The Bulk Copper-Nickel Flotation circuit |
|--------|------------------------------------------|

| · | The Copper-Nickel Separation Circuit |
|--------|--------------------------------------|

| · | The Pyrrhotite Flotation Circuit |
|--------|----------------------------------|

----

|      |        |   | Grades (UnDiluted) |
|-----------|-------------|--------|--------------------|
| Class     | Tonnage(Mt) |   |  Copper       |   | Nickel |   | Platinum |   | Palladium |   | Gold |   | Cobalt |   | Silver |   | NSR |   | Cu-EQ |   |
|      |        |   | (%)                |   | (%) |   | (ppb) |   | (ppb) |   | (ppb) |   | (ppm) |   | (ppm) |   | $/ton |   | (%) |   |
| Measured  |        | 237.2  |               |   | 0.270 |   |   | 0.080 |   |   | 69 |   |   | 241 |   |   | 35 |   |   | 72 |   |   | 0.97 |   |   | 19.67 |   |   | 0.541 |   |
| Indicated |        | 412.2  |               |   | 0.230 |   |   | 0.070 |   |   | 63 |   |   | 210 |   |   | 32 |   |   | 70 |   |   | 0.87 |   |   | 16.95 |   |   | 0.470 |   |
| M&I   |        | 649.3  |               |   | 0.245 |   |   | 0.074 |   |   | 65 |   |   | 221 |   |   | 33 |   |   | 71 |   |   | 0.91 |   |   | 17.94 |   |   | 0.496 |   |
| Inferred  |        | 508.9  |               |   | 0.240 |   |   | 0.070 |   |   | 72 |   |   | 234 |   |   | 37 |   |   | 66 |   |   | 0.93 |   |   | 17.66 |   |   | 0.489 |   |

| 1. | Mineral resources are not mineral reserves and do not have demonstrated economic viability. |
|----|---------------------------------------------------------------------------------------------|

| 2. | All resources are stated above a $7.35 NSR cut-off.  Cut-off is based on estimated processing and G&A costs. Metal Prices and metallurgical recoveries used for the development of cut-off grade are presented in Table 14-33 of the 2018 Technical Report. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 4. | Cu-Eq (copper equivalent grade) is based on the mill recovery to concentrates and metal prices (see Table 14-33 of the 2018 Technical Report). |
|----|------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Copper Equivalent (Cu Eq) = ((Cu head grade x recovery x Cu Price)) + (Ni head grade x recovery x Ni Price) + (Pt head grade x recovery x Pt Price) + (Pd head grade x recovery x Pd Price) +(Au head grade x recovery x Au Price) + (Co head grade x recovery x Co Price) + (Ag head grade x recovery x Ag Price)) / (Cu recovery x Cu Price). |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|          |                  |    | Grades (Diluted) |
|----------|------------------|---------|------------------|
| Class    | Tonnage(x 1,000) |    | Copper           |   | Nickel |   | Platinum |   | Palladium |   | Gold |   | Cobalt |   | Silver |   | NSR |   | Cu-Eq |   |
|     |             |    | (%)              |   | (%) |   | (ppb) |   | (ppb) |   | (ppb) |   | (ppm) |   | (ppm) |   | $/ton |   | (%) |   |
| Proven   |             | 121,849 |             |   | 0.308 |   |   | 0.087 |   |   | 82 |   |   | 282 |   |   | 41 |   |   | 74.81 |   |   | 1.11 |   |   | 19.87 |   |   | 0.612 |   |
| Probable |             | 132,820 |             |   | 0.281 |   |   | 0.081 |   |   | 78 |   |   | 256 |   |   | 37 |   |   | 74.06 |   |   | 1.02 |   |   | 18.02 |   |   | 0.559 |   |
| Total    |             | 254,669 |             |   | 0.294 |   |   | 0.084 |   |   | 80 |   |   | 268 |   |   | 39 |   |   | 74.42 |   |   | 1.06 |   |   | 18.90 |   |   | 0.584 |   |

| 1. | Mineral reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding |
|----|------------------------------------------------------------------------------------------------------------------------------------------------|

| 2. | All reserves are stated above a $7.98 NSR cutoff and bound within the final pit design. |
|----|-----------------------------------------------------------------------------------------|

| 3. | Tonnage and grade estimates are in Imperial units |
|----|---------------------------------------------------|

| 4. | Total Tonnage within the pit is 628,499 ktons; average waste: ore ratio = 1.47 |
|----|--------------------------------------------------------------------------------|

| 5. | Cu-Eq values are based on the metal prices in Table 15-2 of the 2018 Technical Repot and total mill recoveries in Table 15-3 of the 2018 Technical Report and diluted mill feed. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Copper Equivalent (CuEq) = ((Cu head grade x recovery x Cu Price) + (Ni head grade x recovery x Ni Price) + (Pt head grade x recovery x Pt Price) + (Pd head grade x recovery x Pd Price) + (Au head grade x recovery x Au Price) + (Co head grade x recovery x Co Price) + (Ag head grade x recovery x Ag Price)) / (Cu head grade x recovery x Cu Price) |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | NSR values include post property concentrate transportation, smelting and refining costs and payable metal calculations. |
|----|--------------------------------------------------------------------------------------------------------------------------|

----

----

|                              |             | Total   | Year -1 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | Year 12 | Year 13 | Year 14 | Year 15 | Year 16 | Year 17 | Year 18 | Year 19 | Year 20 |
|-----------------------------------|------------------|---------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Ore Mined                         | NSRcutoff --> |    |    | 14.00  | 14.00  | 14.00  | 13.00  | 11.00  | 11.00  | 12.00  | 11.00  | 9.00   | 9.00    | 7.98    | 7.98    | 7.98    | 7.98    | 7.98    | 7.98    | 7.98    | 7.98    |    |    |
| ktons                             |             | 198,867 |    | 7,250  | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 6,017   |    |    |
| DCu, %                            |             | 0.311   |    | 0.348  | 0.358  | 0.355  | 0.334  | 0.334  | 0.333  | 0.334  | 0.314  | 0.300  | 0.280   | 0.273   | 0.268   | 0.274   | 0.275   | 0.287   | 0.292   | 0.322   | 0.345   |    |    |
| DNi, %                            |             | 0.088   |    | 0.103  | 0.105  | 0.095  | 0.087  | 0.086  | 0.089  | 0.097  | 0.093  | 0.085  | 0.083   | 0.082   | 0.083   | 0.083   | 0.081   | 0.080   | 0.081   | 0.088   | 0.094   |    |    |
| Cu-Eq Mill, %                     |             | 0.617   |    | 0.688  | 0.712  | 0.716  | 0.674  | 0.662  | 0.664  | 0.664  | 0.619  | 0.597  | 0.555   | 0.559   | 0.562   | 0.548   | 0.540   | 0.563   | 0.564   | 0.613   | 0.650   |    |    |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Ore toStockpile(8.50/t NSRcutoff) |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| ktons                             |             | 26,133  |    | 2,364  | 4,487  | 5,254  | 3,882  | 1,512  | 1,799  | 3,170  | 2,805  | 383    | 477     |    |    |    |    |    |    |    |    |    |    |
| DCu, %                            |             | 0.171   |    | 0.182  | 0.184  | 0.182  | 0.171  | 0.153  | 0.160  | 0.164  | 0.157  | 0.137  | 0.137   |    |    |    |    |    |    |    |    |    |    |
| DNi, %                            |             | 0.058   |    | 0.064  | 0.062  | 0.057  | 0.055  | 0.052  | 0.054  | 0.059  | 0.058  | 0.052  | 0.053   |    |    |    |    |    |    |    |    |    |    |
| CuEq Mill, %                      |             | 0.348   |    | 0.364  | 0.364  | 0.370  | 0.355  | 0.324  | 0.324  | 0.335  | 0.322  | 0.293  | 0.292   |    |    |    |    |    |    |    |    |    |    |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Ore fromStockpile                 |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| ktons                             |             | 26,133  |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    | 5,583   | 11,600  | 8,950   |
| DCu, %                            |             | 0.171   |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    | 0.171   | 0.171   | 0.171   |
| DNi, %                            |             | 0.058   |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    | 0.058   | 0.058   | 0.058   |
| Cu-Eq Mill, %                     |             | 0.348   |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    | 0.348   | 0.348   | 0.348   |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Mill Feed                         |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| ktons                             |             | 225,000 |    | 7,250  | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600 | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 11,600  | 8,950   |
| DCu, %                            |             | 0.295   |    | 0.348  | 0.358  | 0.355  | 0.334  | 0.334  | 0.333  | 0.334  | 0.314  | 0.300  | 0.280   | 0.273   | 0.268   | 0.274   | 0.275   | 0.287   | 0.292   | 0.322   | 0.261   | 0.171   | 0.171   |
| DNi, %                            |             | 0.085   |    | 0.103  | 0.105  | 0.095  | 0.087  | 0.086  | 0.089  | 0.097  | 0.093  | 0.085  | 0.083   | 0.082   | 0.083   | 0.083   | 0.081   | 0.080   | 0.081   | 0.088   | 0.077   | 0.058   | 0.058   |
| CuEq Mill, %                      |             | 0.586   |    | 0.688  | 0.712  | 0.716  | 0.674  | 0.662  | 0.664  | 0.664  | 0.619  | 0.597  | 0.555   | 0.559   | 0.562   | 0.548   | 0.540   | 0.563   | 0.564   | 0.613   | 0.505   | 0.348   | 0.348   |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Waste, ktons                      | Total            | 348,823 |    | 25,868 | 23,913 | 20,204 | 24,518 | 26,888 | 26,601 | 17,142 | 16,743 | 18,379 | 19,923  | 20,400  | 17,280  | 15,509  | 16,440  | 15,085  | 16,433  | 18,030  | 9,467   | 0       |    |
| Cat 1                             |             | 212,065 |    | 16,686 | 13,409 | 13,462 | 18,810 | 20,864 | 20,088 | 10,802 | 7,235  | 10,477 | 11,283  | 12,180  | 10,462  | 8,637   | 8,939   | 7,730   | 8,177   | 9,222   | 3,602   |    |    |
| Cat 2                             |             | 95,980  |    | 4,029  | 5,191  | 4,814  | 4,740  | 4,830  | 4,978  | 4,792  | 7,307  | 5,571  | 5,740   | 5,637   | 4,591   | 4,601   | 5,425   | 6,104   | 6,838   | 6,895   | 3,897   |    |    |
| Cat 3                             |             | 23,490  |    | 1,200  | 1,713  | 821    | 810    | 979    | 1,166  | 1,094  | 1,435  | 1,710  | 2,020   | 2,023   | 1,623   | 1,576   | 1,351   | 954     | 1,143   | 851     | 1,021   |    |    |
| Cat 4                             |             | 17,288  |    | 3,953  | 3,600  | 1,107  | 158    | 215    | 369    | 454    | 766    | 621    | 880     | 560     | 604     | 695     | 725     | 297     | 275     | 1,062   | 947     |    |    |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Total ktonsmined                  | 573,823          |    |    | 35,482 | 40,000 | 37,058 | 40,000 | 40,000 | 40,000 | 31,912 | 31,148 | 30,362 | 32,000  | 32,000  | 28,880  | 27,109  | 28,040  | 26,685  | 28,033  | 29,630  | 15,484  | 0       | 0       |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Re-handle,ktons                   |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Stockpiled oreto mill             | 26,133           |    |    | 0      | 0      | 0      | 0      | 0      | 0      | 0      | 0      | 0      | 0       | 0       | 0       | 0       | 0       | 0       | 0       | 0       | 5,583   | 11,600  | 8,950   |
| Waste rock topit backfill         | 60,521           |    |    | 0      | 0      | 0      | 0      | 0      | 0      | 0      | 0      | 7,384  | 7,385   | 2,000   | 2,000   | 2,000   | 1,000   | 3,021   | 2,812   | 1,000   | 10,000  | 18,270  | 3,649   |
|                              |             |    |    |   |   |   |   |   |   |   |   |   |    |    |    |    |    |    |    |    |    |    |    |
| Total ktonsmoved                  | 660,477          |    |    | 35,482 | 40,000 | 37,058 | 40,000 | 40,000 | 40,000 | 31,912 | 31,148 | 37,746 | 39,385  | 34,000  | 30,880  | 29,109  | 29,040  | 29,706  | 30,845  | 30,630  | 31,067  | 29,870  | 12,599  |
|                              |             |    | Year -1 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | Year 12 | Year 13 | Year 14 | Year 15 | Year 16 | Year 17 | Year 18 | Year 19 | Year 20 |

----

----

| · | The existing circuit design and equipment is more than 50 years old |
|--------|---------------------------------------------------------------------|

| · | The plant has been idle for more than 15 years |
|--------|------------------------------------------------|

| · | The complex’s operational and maintenance requirements associated with running a tertiary and quaternary crushing circuit as well as 12 milling streams |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The large number of transfer points associated with the above |
|--------|---------------------------------------------------------------|

| · | Tertiary and quaternary crushing would no longer be required. This eliminates a large portion of the current circuit which is highly maintenance intensive, and also requires significant dust control measures and building heating requirements. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The ore storage bin operating and discharge methodology would be changed to allow a greater volume of the bin to be used, while also reducing the number of operating transfer points. This would significantly reduce the dust emissions within the concentrator building. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | The new milling circuit would have variable speed control on both mills allowing for greater process control and adaptability to cater to any potential variability in the upstream and downstream process characteristics. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | New larger mills have greater operating efficiencies and less maintenance requirements, therefore reducing operating costs. |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | Simplified milling control system as a result of reduced service requirements to the mills. These include process water addition points, lubrication systems monitoring, discharge density and grind size control and ore feed. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Phase I: The Beneficiation Plant consisting of crushing, grinding, flotation, concentrate thickening and concentrate filtration.  The Beneficiation Plant will produce and market concentrates containing copper, nickel, cobalt and precious metals. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Phase II: In mine year 2, a hydrometallurgical plant is expected to be commissioned to process nickel sulfide and pyrrhotite concentrates, with processing starting in mine year 3. This concentrate stream will be processed through a single autoclave to recover high-grade copper concentrate, and recover the nickel-cobalt hydroxide and precious metals precipitates as by-products. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 138 kV incoming HV power supply from the Minnesota Power grid |
|--------|---------------------------------------------------------------|

| · | Power distribution to the existing facilities |
|--------|-----------------------------------------------|

| · | Process plant buildings complete with distribution services |
|--------|-------------------------------------------------------------|

| · | Administration and site offices |
|--------|---------------------------------|

| · | Site and mine access roads |
|--------|----------------------------|

| · | Rail network including locomotive services and re-fueling facilities |
|--------|----------------------------------------------------------------------|

| · | Natural gas supply |
|--------|--------------------|

| · | FTB with return water barge and pumps |
|--------|---------------------------------------|

| · | Mining and plant workshops |
|--------|----------------------------|

----

----

| Permit                         | Agency | Subject(s) Covered                                                               |
|--------------------------------|--------|----------------------------------------------------------------------------------|
| NPDES/SDS Permit               | MPCA   | Treated water discharge; groundwater and surface water monitoring; water quality |
| 401 Certification              | MPCA   | State water quality certification of federal 404 related activities              |
| Air Quality Permit             | MPCA   | Air emissions; sources and limits                                                |
| Construction Stormwater Permit | MPCA   | Addresses runoff from land-disturbing construction activities                    |
| Permit to Mine                 | MDNR   | Construction and development; financial assurance                                |
| Dam Safety Permit              | MDNR   | Construction, operation and maintenance of dams                                  |
| Public Waters Work Permit      | DNR    | Construction within a public water                                               |
| Water Appropriation Permit     | MDNR   | Water quantity and use                                                           |
| Wetland Replacement Plan       | MDNR   | Wetland impacts and mitigation                                                   |
| 404 Permit                     | USACE  | Wetland impacts and mitigation                                                   |

----

----

| · | The closed Mining Area or portion is safe, secure, and free of hazards, |
|--------|-------------------------------------------------------------------------|

| · | It is in an environmentally stable condition, and |
|--------|---------------------------------------------------|

| · | It minimizes hydrologic impacts and the release of hazardous substances that adversely affect natural resources; and it is maintenance free |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Mine CAPEX which includes cost estimates for mine site development and major mining equipment costs, |
|--------|------------------------------------------------------------------------------------------------------|

| · | Mine ore loadout and mine and plant railroad refurbishment costs, |
|--------|-------------------------------------------------------------------|

| · | Comminution, processing, utilities and plant refurbishment costs, |
|--------|-------------------------------------------------------------------|

| · | Costs to build out the existing tailings basin, and |
|--------|-----------------------------------------------------|

| · | Costs for water treatment and water management. |
|--------|-------------------------------------------------|

| · | The NorthMet Project utilizes a 20-year LOM plan. |
|--------|---------------------------------------------------|

| · | It isn’t anticipated that final operating permits will result in any material changes to mine or plant design. |
|--------|----------------------------------------------------------------------------------------------------------------------|

| · | Most of the process equipment would be procured and fabricated in the US and is transportable to site by road or rail. |
|--------|------------------------------------------------------------------------------------------------------------------------|

| Description                                    | PHASE I($000) |
|------------------------------------------------|---------------|
| ***DIRECT COST***                              |
| MINE CAPEX                                     |          |
| Mine Site                                      | 65,395        |
| Construction Material Testing                  | 1,490         |
| Mine Equipment                                 | 99,710        |
| RAILROAD AND ORE DELIVERY                      | 20,200        |
| COMMINUTION                                    | 135,013       |
| COPPER & NICKEL CONCENTRATION              | 120,609       |
| CONCENTRATES LOADOUT FACILITIES                | 49,895        |
| WATER MANAGEMENT                               | 62,651        |
| PLANT CONTROL SYSTEM (PCS)                     | 1,919         |
| FLOTATION TAILINGS BASIN                       | 39,684        |
| PLANT INFRASTRUCTURE                           | 10,879        |
| PLANT UTILITIES                                | 99,245        |
| Subtotal DIRECT COST (MINE & CONCENTRATOR) | 706,690       |

----

| · | Recent quotations (Q4 2016 and Q1 2017) were obtained for new mechanical equipment based on detailed enquiries including specifications and equipment duty sheets. The mechanical equipment was sized based on test work results, system modelling and in certain cases equipment sizing was dictated by physical layout/foot print constraints. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Preliminary designs for new structures, bins and chutes. |
|--------|----------------------------------------------------------|

| · | Preliminary civil and earthworks designs associated with the new structures, equipment and operational requirements including access and spillage containment. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Priced piping and valve MTOs developed from preliminary PFDs and General Arrangement drawings. |
|--------|------------------------------------------------------------------------------------------------|

| · | Quotations for electrical and instrumentation equipment based on recent enquiries, including installation on similar projects. |
|--------|--------------------------------------------------------------------------------------------------------------------------------|

| · | A complete instrument index including a comprehensive BOM was developed and issued for pricing. |
|--------|-------------------------------------------------------------------------------------------------|

| · | Man-hour estimations for the installation of new equipment, electrical, instrumentation, structures and associated civil works. These were based on industry standards. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ***DIRECT COST***                    | PHASE II($000) |
|--------------------------------------|----------------|
| HYDROMET                             |           |
| Site General                         | 24,152         |
| Ni-Cu Concentrate Oxidative Leaching | 68,880         |
| Au/PGM Recovery                      | 3,780          |
| Cu Concentrate                       | 3,743          |
| Cu Sulfide Precipitation             | 1,621          |
| Iron/Acid Removal                    | 5,808          |
| Mixed Hydroxide Precipitation        | 3,486          |
| Magnesium Removal                    | 736            |
| Hydromet Tailings                    | 840            |
| Hydrometallurgical Residue Facility  | 43,903         |
| Reagent Storage and Mixing           | 15,671         |
| Plant Scrubber                       | 1,591          |
| Hydromet Raw Water                   | 1,647          |
| Hydromet Process Water               | 1,241          |
| Steam Systems                        | 1,085          |
| Gas Systems                          | 784            |
| Subtotal DIRECT COST (PHASE II)      | 178,966        |

----

|                                                        |   | PHASE I($000) |                                    |   | PHASE II($000) |   |
|-------------------------------------------------------------|--------|---------------|-----------------------------------------|--------|----------------|--------|
| TOTAL DIRECT COST (Excluding Mine Equipment)                |   |          | 606,980                                 |   |           |   | 178,966 |   |
| FREIGHT - LOGISTICS                                         |   |          | 19,393                                  |   |           |   | 7,017 |   |
| MOBILIZATION, TEMPORARY FACILITIES AND POWER                |   |          |                                    |   |           |   | 4,523 |   |
| TOTAL CONSTRUCTED COST                                      |   |          | 626,373                                 |   |           | $      | 190,506 |   |
| EPCM                                                        |   |          | 90,999                                  |   |           |   | 32,196 |   |
| COMMISSIONING                                               |   |          | 7,790                                   |   |           |   | 1,394 |   |
| CAPITAL SPARES                                              |   |          |                                    |   |           |   | 929 |   |
| TOTAL CONTRACTED COST                                       |   |          | 725,162                                 |   |           |   | 225,025 |   |
| CONTINGENCY                                                 |   |          | 71,597                                  |   |           |   | 33,754 |   |
| AVERAGE CONTINGENCY                                         |   |          | 9.9                                     | %      |           |   | 15 | % |
| ADDED OWNER'S COST (including initial fills & reagents) |   |          | 24,489                                  |   |           |   |   |   |
| TOTAL CONTRACTED AND OWNER'S COST                           |   |          | 821,248                                 |   |           |   | 258,779 |   |
| Owner's Cost Mine Equipment (Initial Capital)               |   |          | 99,710                                  |   |           |   |   |   |
| Haul Truck Tire Adjustment                                  |   |          | (900                                    | )      |           |   |   |   |
| EIP Credits                                                 |   |          | 25,065                                  |   |           |   |   |   |
| TOTAL EVALUATED PROJECT COST                                |   |          | 945,124                                 |   |           |   | 258,779 |   |
| COMBINED TOTALS                                             |   |          | 1,203,903      |   |
|                    |    | % of Total  |
|-------------------------|---------|-------------|
| CATEGORY                | ($000)  | Mining Cost |
| Drilling                | 50,662  | 5.6         |
| Blasting                | 97,144  | 10.7        |
| Loading                 | 99,297  | 11.0        |
| Hauling                 | 257,502 | 28.5        |
| Auxiliary               | 147,737 | 16.3        |
| General Mine            | 32,512  | 3.6         |
| General Maintenance     | 33,888  | 3.7         |
| Mine G&A            | 98,338  | 10.9        |
| Locomotive              | 79,884  | 8.8         |
| Analytical Lab Contract | 6,000   | 0.7         |
| TOTAL MINING COST       | 904,553 | 100         |

----

|                                      |   | 32,000 STPD |         |
|-------------------------------------------|--------|-------------|--------------|
| OPEX Parameter                            | Units  | Value       | Fraction (%) |
| Tonnage Processed                         | tpa    | 11,600,000  |         |
| Labor                                     | USD/t  | 1.04        | 15.9         |
| Power                                     | USD/t  | 2.11        | 32.2         |
| Natural Gas                               | USD/t  | 0.27        | 4.1          |
| Consumables/Water Treatment               | USD/t  | 2.44        | 37.3         |
| Maintenance Supplies & Plant Vehicles | USD/t  | 0.66        | 10.1         |
| Assay Costs                               | USD/t  | 0.02        | 0.3          |
| Phase I Plant Costs                       | USD/t  | 6.55        | 100          |
|                     |   | 32,000 STPD |         |
|--------------------------|--------|-------------|--------------|
| OPEX Parameter           | Units  | Value       | Fraction (%) |
| Tonnage Processed        | tpa    | 11,600,000  |         |
| Labor                    | USD/t  | 0.21        | 9.9          |
| Power                    | USD/t  | 0.11        | 5.2          |
| Consumables and Reagents | USD/t  | 1.17        | 55.2         |
| Maintenance              | USD/t  | 0.57        | 26.9         |
| Supplies & Services  | USD/t  | 0.06        | 2.8          |
| Phase II Plant Costs     | USD/t  | 2.12        | 100          |

----

| · | Phase I: produce and market concentrates containing copper, nickel, PGMs, cobalt and precious metals. |
|--------|-------------------------------------------------------------------------------------------------------|

| · | Phase II: once processed via Phase I, continue processing the nickel concentrate through a single autoclave, resulting in production and sale of high grade copper concentrate, value added nickel-cobalt hydroxide, and precious metals precipitate products. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Cost Category                                           | UOM            |   | Phase I |   | Phase I & II |   |
|---------------------------------------------------------|----------------|--------|---------|--------|------------------|--------|
| Capital Costs                                           |           |   |    |   |             |   |
|   Initial Capital                                  | $ millions     |   |    | 945.1  |             |   | 1,203.9 |   |
|   LOM Sustaining Capital                      | $ millions     |   |    | 220.6  |             |   | 220.6 | (1)  |
| Operating Costs                                         |           |   | LOM     |   |
|   Mining & Delivery to Plant                   | $/st processed |   |    | 4.02   |             |   | 4.02 |   |
|   Processing                                       | $/st processed |   |    | 6.55   |             |   | 8.66 |   |
|   G&A                                          | $/st processed |   |    | 0.48   |             |   | 0.48 |   |
| Total                                                   | $/st processed |   |    | 11.05  |             |   | 13.16 |   |
| LOM Average Annual Payable Metal in Cons Produced       |           |   |    |   |             |   |   |   |
|   Copper                                           | 000 lbs        |   |    | 54,792 |             |   | 57,754 |   |
|   Nickel                                           | 000 lbs        |   |    | 6,646  |             |   | 8,711 |   |
|   Cobalt                                           | 000 lbs        |   |    | 281    |             |   | 311 |   |
|   Platinum                                         | koz            |   |    | 8      |             |   | 14 |   |
|   Palladium                                        | koz            |   |    | 42     |             |   | 59 |   |
|   Gold                                             | koz            |   |    | 2      |             |   | 4 |   |
|   Silver                                           | koz            |   |    | 48     |             |   | 48 |   |
| Average Annual Payable Metal in Cons Produced (Yrs 2-6) |           |   |    |   |             |   |   |   |
|   Copper                                           | 000 lbs        |   |    | 66,748 |             |   | 69,384 |   |
|   Nickel                                           | 000 lbs        |   |    | 7,867  |             |   | 9,647 |   |
|   Cobalt                                           | 000 lbs        |   |    | 333    |             |   | 352 |   |
|   Platinum                                         | koz            |   |    | 12     |             |   | 19 |   |
|   Palladium                                        | koz            |   |    | 58     |             |   | 73 |   |
|   Gold                                             | koz            |   |    | 3      |             |   | 6 |   |
|   Silver                                           | koz            |   |    | 68     |             |   | 68 |   |

| (1) | Susutaing capex for Phase II is included as an OPEX cost for replacement parts piping liners etc for Hydromet plant |
|-----|---------------------------------------------------------------------------------------------------------------------|

----

|                          | Base Case($/lb or $/oz) | Metal Recoveryto Conc. (%) | Production(million lbs or oz) | Contribution tonet revenue (%) | Cash Costper lb Cu Eq | Cash Costper lb Cu |
|-------------------------------|-------------------------|----------------------------|-------------------------------|--------------------------------|-----------------------|--------------------|
| Cu Eq$/lbor $/oz              | by-product $/lbor $/oz  |
| Assumptions                   | LOM                     |
| Phase I                       |
| Copper (lb)                   | 3.22                    | 91.8                       | 1,096                         | 60.5                           | 1.91                  | 1.06               |
| Nickel (lb)                   | 7.95                    | 63.5                       | 133                           | 18.1                           |                  |               |
| Cobalt (lb)                   | 20.68                   | 35.9                       | 5.6                           | 2.0                            |                  |               |
| Platinum (oz)                 | 1,128                   | 73.4                       | 170                           | 3.3                            |                  |               |
| Palladium (oz)                | 973                     | 78.1                       | 836                           | 13.9                           |                  |               |
| Gold (oz)                     | 1,308                   | 58.9                       | 45                            | 1.0                            |                  |               |
| Silver (oz)                   | 18.92                   | 56.9                       | 958                           | 0.3                            |                  |               |
| Low-grade Nickel PGM (Ktonne) | 55.00                   | N/A                        | 912                           | 0.9                            |                  |               |
|                          | Base Case($/lb or $/oz) | Metal Recoveryto Conc. (%) | Production(million lbs or oz) | Contribution tonet revenue (%) | Cash Costper lb Cu Eq | Cash Costper lb Cu |
|-------------------------------|-------------------------|----------------------------|-------------------------------|--------------------------------|-----------------------|--------------------|
| Cu Eq$/lbor $/oz              | by-product $/lbor $/oz  |
| Assumptions                   | LOM                     |
| Phase I & II              |
| Copper (lb)                   | 3.22                    | 91.8                       | 1,155                         | 54.3                           | 1.79                  | 0.59               |
| Nickel (lb)                   | 7.95                    | 63.5                       | 174                           | 20.2                           |                  |               |
| Cobalt (lb)                   | 20.68                   | 35.9                       | 6.2                           | 1.9                            |                  |               |
| Platinum (oz)                 | 1,128                   | 73.4                       | 286                           | 4.7                            |                  |               |
| Palladium (oz)                | 973                     | 78.1                       | 1,189                         | 16.9                           |                  |               |
| Gold (oz)                     | 1,308                   | 58.9                       | 86                            | 1.6                            |                  |               |
| Silver (oz)                   | 18.92                   | 56.9                       | 958                           | 0.3                            |                  |               |
| Low-grade Nickel PGM (Ktonne) | 55.00                   | N/A                        | 175                           | 0.1                            |                  |               |

----

|                                         |   |      |   | Phase I       |   |   | Phase I & II |   |
|----------------------------------------------|--------|-----------|--------|---------------|--------|--------|------------------|--------|
|                                         |   | Units     |   | First 5 Yrs 1 |   |   | LOM              |   |   | LOM 2 |   |
| Life of Mine                                 |   | Yrs       |   |          |   |   |             | 20     |   |   |   | 20 |   |
| Material Mined                               |   | Mt        |   |          | 197    |   |             |   | 574 |   |   |   | 574 |   |
| Ore Mined                                    |   | Mt        |   |          | 58     |   |             |   | 225 |   |   |   | 225 |   |
| Waste: Ore Ratio                             |   |      |   |          | 2.4    |   |             |   | 1.6 |   |   |   | 1.6 |   |
| Ore Grade                                    |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                                       |   | %         |   |          | 0.343  |   |             |   | 0.295 |   |   |   | 0.295 |   |
| Nickel                                       |   | %         |   |          | 0.092  |   |             |   | 0.085 |   |   |   | 0.085 |   |
| Cobalt                                       |   | ppm       |   |          | 76     |   |             |   | 75 |   |   |   | 75 |   |
| Palladium                                    |   | ppm       |   |          | 0.327  |   |             |   | 0.269 |   |   |   | 0.269 |   |
| Platinum                                     |   | ppm       |   |          | 0.099  |   |             |   | 0.079 |   |   |   | 0.079 |   |
| Gold                                         |   | ppm       |   |          | 0.048  |   |             |   | 0.039 |   |   |   | 0.039 |   |
| Annual Payable Metal Produced                |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                                       |   | mlb       |   |          | 66.7   |   |             |   | 54.8 |   |   |   | 57.8 |   |
| Nickel                                       |   | mlb       |   |          | 7.9    |   |             |   | 6.6 |   |   |   | 8.7 |   |
| Cobalt                                       |   | mlb       |   |          | 0.33   |   |             |   | 0.28 |   |   |   | 0.31 |   |
| Palladium                                    |   | koz       |   |          | 57.6   |   |             |   | 41.8 |   |   |   | 59.4 |   |
| Platinum                                     |   | koz       |   |          | 12.4   |   |             |   | 8.5 |   |   |   | 14.3 |   |
| Gold                                         |   | koz       |   |          | 3.4    |   |             |   | 2.2 |   |   |   | 4.3 |   |
| Copper Equivalent3                           |   | mlb       |   |          | 112.4  |   |             |   | 90.6 |   |   |   | 106.4 |   |
|                                         |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Cash Costs: by-product                       |   | $/lb Cu   |   |          | 0.67   |   |             |   | 1.06 |   |   |   | 0.59 |   |
| Cash Costs: Cu equivalent                    |   | $/lb CuEq |   |          | 1.71   |   |             |   | 1.91 |   |   |   | 1.79 |   |
|                                         |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Development Capital                          |   | $M        |   |          | 945    |   |             |   | 945 |   |   |   | 1,204 |   |
| Sustaining Capital                           |   | $M        |   |          | 99     |   |             |   | 221 |   |   |   | 221 |   |
|                                         |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Annual Revenue                               |   | $M        |   |          | 362    |   |             |   | 292 |   |   |   | 343 |   |
| Annual EBITDA                                |   | $M        |   |          | 170    |   |             |   | 118 |   |   |   | 152 |   |
| NPV7 (After Taxes)                           |   | $M        |   |          |   |   |             |   | 173 |   |   |   | 271 |   |
| IRR (After Taxes)                            |   | %         |   |          |   |   |             |   | 9.6 |   |   |   | 10.3 |   |
| Payback (after taxes, from first production) |   | Years     |   |          |   |   |             |   | 7.3 |   |   |   | 7.5 |   |

----

| · | Engineering – Basic and Detailed |
|--------|----------------------------------------|

| · | Demolition |
|--------|------------|

| · | Construction |
|--------|--------------|

----

| Operating Plan                 | Unit of Measure | 59,000 STPD |   | 118,000 STPD     |   |
|--------------------------------|-----------------|-------------|--------|------------------|--------|
|                           |       | Phase I     |   | Phase I & II |   | Phase I |   | Phase I & II |   |
| Mineralized Material Processed | Million st      |        | 293    |             |   | 293 |   |   | 730 |   |   | 730 |   |
| Operating Life                 | years           |        | 15     |             |   | 15 |   |   | 19 |   |   | 19 |   |
| LOM Strip Ratio                |            |        | 1.5    |             |   | 1.5 |   |   | 2.2 |   |   | 2.2 |   |
| Capital Costs                  |            |        |   |             |   |   |   |   |   |   |   |   |   |
| Initial Capital                | $ millions      |        | 1,095  |             |   | 1,354 |   |   | 1,614 |   |   | 1,872 |   |
| LOM Sustaining Capital         | $ millions      |        | 249    |             |   | 249 |   |   | 900 |   |   | 900 |   |
| Operating Costs                |            |        |   |             |   |   |   |   |   |   |   |   |   |
| Mining & Delivery to Plant | $/st processed  |        | 3.16   |             |   | 3.16 |   |   | 3.36 |   |   | 3.36 |   |
| Processing                     | $/st processed  |        | 5.32   |             |   | 6.94 |   |   | 5.36 |   |   | 6.34 |   |
| G&A                        | $/st processed  |        | 0.78   |             |   | 0.78 |   |   | 0.28 |   |   | 0.28 |   |
| Subtotal Operating Costs       | $/st processed  |        | 9.26   |             |   | 10.88 |   |   | 9.00 |   |   | 9.98 |   |
| Selling Costs                  | $/st processed  |        | 3.23   |             |   | 2.55 |   |   | 2.94 |   |   | 2.34 |   |
| Total Operating Costs          | $/st processed  |        | 12.49  |             |   | 13.43 |   |   | 11.94 |   |   | 12.32 |   |

----

|                            |   |      |   | Phase I       |   |   | Phase I & II |   |
|---------------------------------|--------|-----------|--------|---------------|--------|--------|------------------|--------|
|                            |   | Units     |   | First 5 Yrs 1 |   |   | LOM              |   |   | LOM 2 |   |
| Life of Mine                    |   | Yrs       |   |          |   |   |             | 15     | 4  |   |   | 15 |   |
| Material Mined                  |   | Mt        |   |          | 294    |   |             |   | 724 |   |   |   | 724 |   |
| Mill Feed Mined                 |   | Mt        |   |          | 106    |   |             |   | 293 |   |   |   | 293 |   |
| Waste: Mill Feed Ratio          |   |      |   |          | 1.8    |   |             |   | 1.5 |   |   |   | 1.5 |   |
| Mill Feed Grade                 |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                          |   | %         |   |          | 0.313  |   |             |   | 0.290 |   |   |   | 0.290 |   |
| Nickel                          |   | %         |   |          | 0.087  |   |             |   | 0.083 |   |   |   | 0.083 |   |
| Cobalt                          |   | ppm       |   |          | 75     |   |             |   | 74 |   |   |   | 74 |   |
| Palladium                       |   | ppm       |   |          | 0.293  |   |             |   | 0.264 |   |   |   | 0.264 |   |
| Platinum                        |   | ppm       |   |          | 0.087  |   |             |   | 0.079 |   |   |   | 0.079 |   |
| Gold                            |   | ppm       |   |          | 0.043  |   |             |   | 0.039 |   |   |   | 0.039 |   |
| Annual Payable Metal Produced   |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                          |   | mlb       |   |          | 110.5  |   |             |   | 93.6 |   |   |   | 98.2 |   |
| Nickel                          |   | mlb       |   |          | 13.2   |   |             |   | 11.3 |   |   |   | 14.5 |   |
| Cobalt                          |   | mlb       |   |          | 0.56   |   |             |   | 0.48 |   |   |   | 0.52 |   |
| Palladium                       |   | koz       |   |          | 90.5   |   |             |   | 71.4 |   |   |   | 99.2 |   |
| Platinum                        |   | koz       |   |          | 19.1   |   |             |   | 14.8 |   |   |   | 24.1 |   |
| Gold                            |   | koz       |   |          | 5.0    |   |             |   | 3.9 |   |   |   | 7.3 |   |
| Copper Equivalent3              |   | mlb       |   |          | 184.7  |   |             |   | 154.7 |   |   |   | 179.7 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Cash Costs: by-product          |   | $/lb Cu   |   |          | 0.45   |   |             |   | 0.72 |   |   |   | 0.23 |   |
| Cash Costs: Cu equivalent       |   | $/lb CuEq |   |          | 1.56   |   |             |   | 1.71 |   |   |   | 1.59 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Development Capital             |   | $M        |   |          | 1,095  |   |             |   | 1,095 |   |   |   | 1,354 |   |
| Sustaining Capital              |   | $M        |   |          | 128    |   |             |   | 249 |   |   |   | 249 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Annual Revenue                  |   | $M        |   |          | 595    |   |             |   | 498 |   |   |   | 579 |   |
| Annual EBITDA                   |   | $M        |   |          | 307    |   |             |   | 234 |   |   |   | 294 |   |
| NPV7                            |   | $M        |   |          |   |   |             |   | 751 |   |   |   | 963 |   |
| IRR                             |   | %         |   |          |   |   |             |   | 17.5 |   |   |   | 18.5 |   |
| Payback (from first production) |   | Years     |   |          |   |   |             |   | 4.6 |   |   |   | 4.8 |   |

----

|                            |   |      |   | Phase I       |   |   | Phase I & II |   |
|---------------------------------|--------|-----------|--------|---------------|--------|--------|------------------|--------|
|                            |   | Units     |   | First 5 Yrs 1 |   |   | LOM              |   |   | LOM 2 |   |
| Life of Mine                    |   | Yrs       |   |          | 5      |   |             |   | 19 | 4  |   |   | 19 | 4  |
| Material Mined                  |   | Mt        |   |          | 767    |   |             |   | 2,366 |   |   |   | 2,366 |   |
| Mill Feed Mined                 |   | Mt        |   |          | 212    |   |             |   | 730 |   |   |   | 730 |   |
| Waste: Mill Feed Ratio          |   |      |   |          | 2.6    |   |             |   | 2.2 |   |   |   | 2.2 |   |
| Mill Feed Grade                 |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                          |   | %         |   |          | 0.292  |   |             |   | 0.268 |   |   |   | 0.268 |   |
| Nickel                          |   | %         |   |          | 0.084  |   |             |   | 0.076 |   |   |   | 0.076 |   |
| Cobalt                          |   | ppm       |   |          | 74     |   |             |   | 70 |   |   |   | 70 |   |
| Palladium                       |   | ppm       |   |          | 0.281  |   |             |   | 0.247 |   |   |   | 0.247 |   |
| Platinum                        |   | ppm       |   |          | 0.074  |   |             |   | 0.073 |   |   |   | 0.073 |   |
| Gold                            |   | ppm       |   |          | 0.038  |   |             |   | 0.037 |   |   |   | 0.037 |   |
| Annual Payable Metal Produced   |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Copper                          |   | mlb       |   |          | 203.5  |   |             |   | 167.8 |   |   |   | 172.4 |   |
| Nickel                          |   | mlb       |   |          | 23.8   |   |             |   | 19.0 |   |   |   | 23.3 |   |
| Cobalt                          |   | mlb       |   |          | 1.01   |   |             |   | 0.80 |   |   |   | 0.83 |   |
| Palladium                       |   | koz       |   |          | 163.5  |   |             |   | 129.7 |   |   |   | 170.9 |   |
| Platinum                        |   | koz       |   |          | 28.0   |   |             |   | 26.0 |   |   |   | 38.5 |   |
| Gold                            |   | koz       |   |          | 7.8    |   |             |   | 7.6 |   |   |   | 11.6 |   |
| Copper Equivalent3              |   | mlb       |   |          | 336.9  |   |             |   | 275.6 |   |   |   | 309.5 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Cash Costs: by-product          |   | $/lb Cu   |   |          | 0.56   |   |             |   | 0.85 |   |   |   | 0.39 |   |
| Cash Costs: Cu equivalent       |   | $/lb CuEq |   |          | 1.61   |   |             |   | 1.78 |   |   |   | 1.64 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Development Capital             |   | $M        |   |          | 1,614  |   |             |   | 1,614 |   |   |   | 1,872 |   |
| Sustaining Capital              |   | $M        |   |          | 226    |   |             |   | 900 |   |   |   | 900 |   |
|                            |   |      |   |          |   |   |             |   |   |   |   |   |   |   |
| Annual Revenue                  |   | $M        |   |          | 1085   |   |             |   | 887 |   |   |   | 997 |   |
| Annual EBITDA                   |   | $M        |   |          | 542    |   |             |   | 397 |   |   |   | 488 |   |
| NPV7                            |   | $M        |   |          |   |   |             |   | 1737 |   |   |   | 2243 |   |
| IRR                             |   | %         |   |          |   |   |             |   | 21.9 |   |   |   | 23.6 |   |
| Payback (from first production) |   | Years     |   |          |   |   |             |   | 4.1 |   |   |   | 4.1 |   |

----

| · | Review and update the scope of the NorthMet Project design to reflect changes resulting from the permitting process, if any, and other Project enhancements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Select a water treatment plant design and supply provider once the final permits are in place. |
|--------|------------------------------------------------------------------------------------------------|

| · | Complete basic engineering on all designs, and initiate detailed design. |
|--------|--------------------------------------------------------------------------|

| · | Establish construction contracts formats. |
|--------|-------------------------------------------|

| · | Establish documents that will be used for all equipment purchases. |
|--------|--------------------------------------------------------------------|

| · | Finalize permitting activities. |
|--------|---------------------------------|

| · | Commence a NI-43-101 Pre-feasibility study to increase the level of accuracy of the capital and operating estimates presented in Section 24.2 of the 2018 Technical Report. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Design general arrangement drawings of the plant area to develop more accurate material take-offs for both the maximum and ramp-up throughput capital cost estimates. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Update the financial model based on any changes to the current capital and operating cost estimates and to reflect current metal prices.  Metal prices and terms for mine planning purposes may not be reflective of the prices presented in the 2018 Technical Report at the commencement of mining. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | M3 recommends reviewing the design of the WWTS with respect to the building costs and construction schedule. |
|--------|--------------------------------------------------------------------------------------------------------------|

| · | Design an infill drilling program on inferred resources in an attempt to move inferred into the measured and indicated classification. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

----

| 5. | Risk Factors |
|----|--------------|

| · | delays in the issuance of permits; |
|--------|------------------------------------|

| · | delays or higher than expected costs in obtaining the necessary equipment or services to build and operate the Project; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------|

| · | adverse mining conditions may delay and hamper PolyMet’s ability to produce the expected quantities of minerals. |
|--------|------------------------------------------------------------------------------------------------------------------------|

| · | protect the environment, including the quality of the air and water in the vicinity of exploration, development, and mining operations; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

| · | remediate the environmental impacts of those exploration, development, and mining operations; |
|--------|-----------------------------------------------------------------------------------------------|

| · | protect and preserve wetlands and endangered species; and |
|--------|-----------------------------------------------------------|

| · | mitigate negative impacts on certain archaeological and cultural sites. |
|--------|-------------------------------------------------------------------------|

----

----

| · | global and regional supply and demand; |
|--------|----------------------------------------|

| · | political and economic conditions and production costs in major metal producing regions; |
|--------|------------------------------------------------------------------------------------------|

| · | the strength of the United States dollar; and |
|--------|-----------------------------------------------|

| · | expectations for inflation. |
|--------|-----------------------------|

----

| · | Success in discovering and developing commercially viable quantities of minerals is the result of a number of factors, including the quality of management, the interpretation of geological data, the level of geological and technical expertise and the quality of land available for exploration; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Operations are subject to a variety of existing laws and regulations relating to exploration and development, permitting procedures, safety precautions, property reclamation, employee health and safety, air and water quality standards, pollution and other environmental protection controls, all of which are subject to change and are becoming more stringent and costly to comply with; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | A large number of factors beyond PolyMet’s control, including fluctuations in metal prices and production costs, inflation, the proximity and liquidity of precious metals and energy fuels markets and processing equipment, government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection, and other economic conditions, will affect the economic feasibility of mining; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Substantial expenditures are required to construct mining and processing facilities; |
|--------|--------------------------------------------------------------------------------------|

| · | Title to mining properties may be subject to other claims; and |
|--------|----------------------------------------------------------------|

| · | In the development stage of a mining operation, PolyMet’s mining activities could be subject to substantial operating risks and hazards, including metal bullion losses, environmental hazards, industrial accidents, labor disputes, encountering unusual or unexpected geologic formations or other geological or grade problems, encountering unanticipated ground or water conditions, cave-ins, pit-wall failures, flooding, rock falls, periodic interruptions due to inclement weather conditions or other unfavorable operating conditions and other acts of God. Some of these risks and hazards are not insurable or may be subject to exclusion or limitation in any coverage which the Company obtains or may not be insured due to economic considerations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| · | industrial accidents; |
|--------|-----------------------|

| · | railroad accidents; |
|--------|---------------------|

| · | labor disputes; |
|--------|-----------------|

| · | environmental hazards; |
|--------|------------------------|

| · | electricity stoppages; |
|--------|------------------------|

| · | equipment failures; and |
|--------|-------------------------|

| · | severe weather and other natural phenomena. |
|--------|---------------------------------------------|

----

----

| 6. | Dividends |
|----|-----------|

| 7. | Capital Structure |
|----|-------------------|

----

| 8. | Market for Securities |
|----|-----------------------|

|           | TSX       | NYSE American |
|----------------|-----------|---------------|
| Month          | High (C$) | Low (C$)      | Volume | High (US$) | Low (US$) | Volume |
| February 2017  | 1.15      | 1.04          | 417,300 | 0.88 | 0.78 | 3,620,500 |
| March 2017     | 1.06      | 0.98          | 474,400 | 0.80 | 0.74 | 5,370,900 |
| April 2017     | 1.03      | 0.94          | 319,300 | 0.77 | 0.70 | 4,738,300 |
| May 2017       | 0.98      | 0.85          | 220,800 | 0.72 | 0.66 | 4,398,900 |
| June 2017      | 0.88      | 0.77          | 409,300 | 0.67 | 0.58 | 2,878,800 |
| July 2017      | 0.90      | 0.75          | 231,200 | 0.70 | 0.59 | 2,988,100 |
| August 2017    | 0.85      | 0.74          | 343,000 | 0.69 | 0.58 | 2,980,500 |
| September 2017 | 0.78      | 0.74          | 569,800 | 0.64 | 0.59 | 3,768,300 |
| October 2017   | 0.88      | 0.73          | 934,600 | 0.69 | 0.59 | 6,622,000 |
| November 2017  | 0.84      | 0.75          | 444,600 | 0.66 | 0.60 | 4,635,600 |
| December 2017  | 1.07      | 0.80          | 611,500 | 0.86 | 0.63 | 9,520,100 |

| 9. | Securities Not Listed or Quoted |
|----|---------------------------------|

| Date of Issuance | Number of Stock Options Issued | Exercise Price (US$) |
|------------------|--------------------------------|----------------------|
| June 15, 2017    | 1,892,000                      | 0.61                 |
| July 20, 2017    | 250,000                        | 0.66                 |
| Date of Issuance | Number of Restricted Share Units Issued | Exercise Price (US$) |
|------------------|-----------------------------------------|----------------------|
| June 15, 2017    | 1,077,869                               | N/A                  |
|  Designation of Class | Number of Securitiesheld in Escrow |  Percentage of Class |
|----------------------------|------------------------------------|---------------------------|
| Common shares (1)          | 191,000                            | 0.01%                     |

| (1) | Common shares are held by Farris, Vaughan, Wills & Murphy LLP and were issued as restricted shares to certain United States employees.  Contractual restrictions on transfer ends on receipt of permits to commence construction (95,500 common shares) and commencement of commercial production (95,500 common shares). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 10. | Directors and Officers |
|-----|------------------------|

| Name & Residence                                      | Position(s) with the Company                                      | Principal Occupation duringpast five years                                                                    | Director since   |
|-----------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|------------------|
| Dennis Bartlett (4,5) Arizona, United States         | Director                                                          | Chief Executive Officer & Director, Cupric Canyon Capital                                                 | July 19, 2017    |
| Jonathan Cherry (4,5) Minnesota, United States       | Director, President & Chief Executive Officer                 | Same                                                                                                          | July 16, 2012    |
| Mike Ciricillo (4,5) Arizona, United States          | Director                                                          | Head of Copper & Smelting and Refining, Glencore                                                          | July 19, 2017    |
| David Dreisinger (2,3,4,5) British Columbia, Canada  | Director                                                          | Professor and Chairholder of the Industrial Research and Chairin Hydrometallurgy, University British Columbia | October 3, 2003  |
| W. Ian L. Forrest (1,2,3)Vaud, Switzerland           | Director, Chairman                                                | Chartered Accountant                                                                                          | October 3, 2003  |
| Helen Harper (2,3,4,5)Ontario, Canada                | Director                                                          | Asset Manager for North America Copper Operations, Glencore                                                   | July 13, 2016    |
| Alan R. Hodnik (1,3,4)Minnesota, United States       | Director                                                          | Chairman, President and Chief Executive Officer, Allete Inc.                                                  | March 9, 2011    |
| Stephen Rowland (1,3) Connecticut, United States     | Director                                                          | Executive, Glencore                                                                                           | October 30, 2008 |
| Michael M. Sill (1,2)Minnesota, United States        | Director                                                          | Chief Executive Officer, Road Machinery & Supplies Co.                                                    | March 9, 2011    |
| Patrick Keenan Minnesota, United States              | Chief Financial Officer                                           | Same, and previously Senior Vice President of Finance andTreasurer, Newmont Mining Corporation                | N/A              |
| Bradley Moore Minnesota, United States               | Executive Vice President, Environmental &Governmental Affairs | Same                                                                                                          | N/A              |

|        | Notes: | (1)           | Member of the Compensation Committee.                                                                                      |
|--------|--------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
|   |   | (2)                                                             | Member of the Audit Committee. Helen Harper is a non-voting participant.                                                   |
|   |   | (3)                                                             | Member of the Nominating and Corporate Governance Committee. Helen Harper and Stephen Rowland are non-voting participants. |
|   |   | (4)                                                             | Member of the Health, Safety, Environment and Communities Committee.                                                       |
|   |   | (5)                                                             | Member of the Technical Steering Committee.                                                                                |

----

----

| 11. | Legal Proceedings and Regulatory Actions |
|-----|------------------------------------------|

| 12. | Interest of Management and Other Material Transactions |
|-----|--------------------------------------------------------|

| 13. | Transfer Agent and Registrar |
|-----|------------------------------|

| 14. | Material Contracts |
|-----|--------------------|

| · | Acquisition of the mine site lease, see Item 4 for a complete description; |
|--------|----------------------------------------------------------------------------|

| · | Acquisition of the Erie Plant and associated infrastructure acquired in the Asset Purchase Agreements I and II, see Item 4 for a complete description; and |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Financing agreements entered into with Glencore, see below for a complete description. |
|--------|----------------------------------------------------------------------------------------|

----

| · | Equity – five separate agreements comprising $25.0 million placement of PolyMet common shares in calendar 2009 in two tranches; a $30.0 million placement of PolyMet common shares in calendar 2010 in three tranches; a $20.0 million placement of PolyMet common shares in calendar 2011 in one tranche; a $20.960 million purchase of PolyMet common shares in the 2013 Rights Offering; and a $10.583 million purchase of PolyMet common shares in the 2016 Private Placement; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Convertible debt (“Glencore Convertible Debt”) – agreement comprising $25.0 million initial principal secured convertible debentures drawn in four tranches; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Non-convertible debt (“Glencore Non-Convertible Debt”) – four separate agreements comprising $30.0 million initial principal secured debentures in calendar 2015 drawn in four tranches; an $11.0 million initial principal secured debenture in calendar 2016 drawn in one tranche; a $14.0 million initial principal secured debenture in calendar 2016 drawn in four tranches; and a $20.0 million initial principal secured debenture in calendar 2017 drawn in two tranches.  Subsequent to December 31, 2017, a fifth separate agreement was entered into comprising up to $80.0 million initial principal secured debentures in calendar 2018 to be drawn in five tranches at the Company’s option; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Marketing Agreement whereby Glencore committed to purchase all of the Company’s production of concentrates, metal, or intermediate products on market terms at the time of delivery for at least the first five years of production; and |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Corporate Governance Agreement whereby from January 1, 2014 as long as Glencore holds 10% or more of PolyMet's shares (on a fully diluted basis), Glencore has the right, but not obligation, to nominate at least one director and not more than the number of directors proportionate to Glencore's fully diluted ownership of PolyMet, rounded down to the nearest whole number, such number to not exceed 49% of the total board.   |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | 92,836,072 shares representing 29.1% of PolyMet's issued shares; |
|--------|------------------------------------------------------------------|

| · | Glencore Convertible Debt exchangeable through the exercise of an exchange warrant (“Exchange Warrant”) at $1.2696 per share into 38,660,854 common shares of PolyMet (including capitalized and accrued interest as at December 31, 2017), and where the exercise price and the number of shares issuable are subject to conventional anti-dilution provisions; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Warrants to purchase 7,055,626 common shares at $1.00 per share at any time until October 28, 2021, subject to acceleration on the earlier of receipt of permits necessary to construct NorthMet or the twelve month anniversary of the issue date provided the 20-day VWAP of PolyMet common shares is equal to or greater than $1.50 (“Acceleration Triggering Event”), and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions; and |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Warrants to purchase 625,000 common shares at $0.7797 per share at any time until October 28, 2021, and where the exercise price and the number of warrants are subject to conventional anti-dilution provisions. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | Interest of Experts |
|-----|---------------------|

| 16. | Controls and Procedures |
|-----|-------------------------|

----

| 17. | Audit Committee |
|-----|-----------------|

----

| Fiscal Year Ending | Audit Fees   | Audit Related Fees | Tax Fees    | All Other Fees |
|--------------------|--------------|--------------------|-------------|----------------|
| December 31, 2017  | CDN $139,000 | CDN $54,000        | CDN $35,451 | CDN $Nil       |
| January 31, 2017   | CDN $199,000 | CDN $54,000        | CDN $21,060 | CDN $Nil       |

----

| 18. | Additional Information |
|-----|------------------------|

----

----

|  | 1. | To assist the Board of Directors in fulfilling its fiduciary responsibilities’ relating to the Company's quality and integrity of accounting, auditing, and reporting practices and the integrity of the Company's internal accounting controls and management information systems; |
|--|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | To review with the auditors, internal accountants and management of the Company: |
|--|----|----------------------------------------------------------------------------------|

|  | a. | any audited financial statement of the Company, including any such statement that is to be presented to an annual general meeting or provided to shareholders or filed with regulatory authorities and including any audited financial statement contained in a prospectus, registration statement or other similar document, and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | the financial disclosure in each Annual Report and Management Discussion and Analysis of the Company which accompanies such audited financial statement and in each such filing, prospectus, registration statement or other similar document; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | To review with the internal accountants and management of the Company: |
|--|----|------------------------------------------------------------------------|

|  | a. | any unaudited financial statement of the Company, including any such statement that is to be presented to an annual general meeting or provided to shareholders or filed with regulatory authorities and including any unaudited financial statement contained in a prospectus, registration statement, Quarterly Report or other similar document, |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | b. | the financial disclosure in each Quarterly Report and when applicable, Management Discussion and Analysis of the Company accompanying such unaudited financial statement and in each such filing, prospectus, registration statement or other similar document which accompanies such unaudited financial statement, and |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | c. | in connection with the Form 40-F of the Company, review (i) Management's disclosure to the Committee and the independent auditor under Section 302 of the Sarbanes-Oxley Act, including identified changes in internal control over financial reporting; and (ii) the contents of the Chief Executive Officer and the Chief Financial Officer certificates to be filed under Sections 302 and 906 of the Sarbanes-Oxley Act and the process conducted to support the certifications; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 4. | To otherwise review as required and report to the Board of Directors with respect to the adequacy of internal accounting and audit procedures and the adequacy of the Company’s management information systems; |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | To otherwise ensure that no restrictions are placed by Management on the scope of the auditors review and examination of the Company’s accounts; |
|--|----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 6. | To appoint or replace the independent auditor and approve the terms on which the independent auditor is engaged for the ensuing fiscal year; |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | 7. | At least annually, evaluate the independent auditor's qualifications, performance, and independence, including that of the lead partner. The evaluation will include obtaining a written report from the independent auditor describing the firm's internal quality control procedures; any material issues raised by the most recent Public Company Accounting Oversight Board inspection, internal quality control review, or PCAOB review, of the firm or by any inquiry or investigation by governmental or professional authorities within the past five years, concerning an independent audit or audits carried out by the firm, and any steps taken to deal with those issues; and all relationships between the independent auditor and the Company; |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  | 8. | Resolve any disagreements between Management and the independent auditor about financial reporting; |
|--|----|-----------------------------------------------------------------------------------------------------|

|  | 9. | Establish and oversee a policy designating permissible services that the independent auditor may perform for the Company, providing for preapproval of those services by the Committee subject to the de minimis exceptions permitted under applicable rules, and quarterly review of any services approved by the designated member under the policy and the firm's non-audit services and related fees; |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 10. | Ensure receipt from the independent auditor of a formal written statement delineating all relationships between the auditor and the Company, consistent with applicable requirements of the PCAOB regarding the independent auditor’s communications with the Committee concerning independence, actively engage in a dialogue with the auditor about any disclosed relationships or services that may impact the objectivity and independence of the auditor, and take appropriate action to oversee the independence of the independent auditor; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 11. | Advise the Board about the Committee's determination whether the Committee consists of three or more members who are Financially Literate, including at least one member who has financial sophistication and is a financial expert; |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 12. | Inquire of Management and the independent auditor about significant risks or exposures, review the Company's policies for risk assessment and risk management, and assess the steps Management has taken to control such risk to the Company, except as to those risks for which oversight has been assigned to other committees of the Board or retained by the Board; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 13. | Review with Management and the independent auditor: |
|--|-----|-----------------------------------------------------|

|  | a. | The Company's annual assessment of the effectiveness of its internal controls and the independent auditor's attestation, |
|--|----|--------------------------------------------------------------------------------------------------------------------------|

|  | b. | The adequacy of the Company's internal controls, including computerized information system controls and security, |
|--|----|-------------------------------------------------------------------------------------------------------------------|

|  | c. | Any "material weakness" or "significant deficiency" in the design or operation of internal control over financial reporting, and any steps taken to resolve the issue, and |
|--|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | d. | Any related significant findings and recommendations of the independent auditor and internal audit together with Management's responses; |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------|

|  | 14. | Develop, review, and oversee procedures for (i) receipt, retention, and treatment of complaints received by the Company regarding accounting, internal accounting controls, and auditing matters and (ii) the confidential, anonymous submission of employee concerns regarding accounting or auditing matters; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 15. | Review policies and procedures with respect to transactions between the Company and officers and directors, or affiliates of officers or directors, or transactions that are not a normal part of the Company’s business, and review and approve those related-party transactions that would be disclosed pursuant to SEC Regulation S-K, Item 404; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 16. | Review with Management and the independent auditor at least annually the Company's critical accounting policies and significant judgments and estimates, including any significant changes in the Company's selection or application of accounting principles and the effect of regulatory and accounting initiatives on the financial statements of the Company; |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 17. | To ensure that the Company disseminates information concerning its financial position and results of operations to the public in a timely fashion; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 18. | Complete an annual evaluation of the Committee’s performance; |
|--|-----|---------------------------------------------------------------------|

|  | 19. | Include a copy of the Committee charter as an appendix to the proxy statement at least once every three years, or disclose annually in the proxy statement where the charter can be found on the Company's website; |
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|  | 20. | Set clear hiring policies for the Company's hiring of employees or former employees of the independent auditor who were engaged in the Company's account, and ensure the policies comply with any regulations applicable to the Company; and |
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|  | 21. | Review with Management the Company’s policies and processes for tax planning and compliance. |
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