---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 40-F

[   ] REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF
THE SECURITIES EXCHANGE ACT OF 1934

OR

[X] ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31,
2016

Commission File Number: 001-32210

NORTHERN DYNASTY MINERALS
LTD.(Exact name of Registrant as specified in its charter)

|British Columbia Canada            | 1040                         | Not Applicable     
|---------------------------------- | ---------------------------- | -------------------
|(Province or Other Jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer   
|Incorporation or Organization)     | Classification Code)         | Identification No.)

15th Floor, 1040 West Georgia
StreetVancouver, British ColumbiaCanada V6E 4H1(604) 684-6365(Address and telephone number of
Registrants principal executive offices)

Corporation Service CompanySuite 400, 2711
Centerville RoadWilmington, Delaware 19808(800)
927-9800(Name, address (including zip code) and telephone number
(includingarea code) of agent for service in the United States)

Securities registered or to be registered pursuant to section
12(b) of the Act:

|Title Of Each Class         | Name Of Each Exchange On Which Registered
|--------------------------- | -----------------------------------------
|Common Shares, no par value | NYSE MKT                                 

Securities registered or to be registered pursuant to Section
12(g) of the Act: None

Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information
filed with this Form:

|[X] Annual Information Form | [X] Audited Annual Financial Statements
|--------------------------- | ---------------------------------------

Indicate the number of outstanding shares of each of the
Registrants classes of capital or common stock as of the close of the period
covered by the annual report:270,869,561 Common Shares

Indicate by check mark whether the Registrant by filing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934 (the Exchange Act). If yes is marked, indicate the file number assigned
to the Registrant in connection with such Rule. Yes [ 
 ]        No [X]

Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes
[X]        No [   ]

---

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the Registrant was required to submit and post such
files).Yes [   ]        No [X]

---

INTRODUCTORY INFORMATION

In this annual report, references to "we", "our", "us", the
"Company" or "Northern Dynasty", mean Northern Dynasty Minerals Ltd. its
subsidiaries and consolidated interests, unless the context suggests
otherwise.

Northern Dynasty is a Canadian issuer eligible to file its
annual report pursuant to Section 13 of the Securities Exchange Act of 1934, as
amended (the "Exchange Act") on Form 40-F pursuant to the
multi-jurisdictional disclosure system (the "MJDS") adopted by the United
States Securities and Exchange Commission (the "SEC"). The equity
securities of the Company are further exempt from Sections 14(a), 14(b), 14(c),
14(f) and 16 of the Exchange Act pursuant to Rule 3a12-3 of the Exchange Act.

Unless otherwise indicated, all amounts in this annual report
are in Canadian dollars and all references to "$" mean Canadian dollars.

PRINCIPAL DOCUMENTS

The following documents that are filed as exhibits to this
annual report are incorporated by reference herein:

Document
    Exhibit No.Annual Information Form of the Company for the year ended
      December 31, 2016 (the "AIF")
    99.7Audited consolidated financial statements of the Company
      for the years ended December 31, 2016 and 2015, including the reports of
      the Independent Registered Public Accounting Firm with respect thereto
    99.5Managements Discussion and Analysis of the Company for the
      year ended December 31, 2016 (the "MD&A")
    99.6


FORWARD-LOOKING STATEMENTS

This annual report includes or incorporates by reference
certain statements that constitute "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of
1995. These statements appear in a number of places in this annual report
and documents incorporated by reference herein and include statements regarding
our intent, belief or current expectation and that of our officers and
directors. These forward-looking statements involve known and unknown risks and
uncertainties that may cause our actual results, performance or achievements to
be materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. When used in this
annual report or in documents incorporated by reference in this annual report,
words such as believe", "anticipate", "estimate", "project", "intend",
"expect", "may", "will", "plan", "should", "would", "contemplate", "possible",
"attempts", "seeks" and similar expressions are intended to identify these
forward-looking statements. All statements in documents incorporated herein,
other than statements of historical facts that address future production,
permitting, reserve potential, exploration drilling, exploitation activities and
events or developments that the Company expects are forward-looking statements.
These forward-looking statements are based on various factors and were derived
utilizing numerous assumptions that could cause our actual results to differ
materially from those in the forward-looking statements. Accordingly, you are
cautioned not to put undue reliance on these forward-looking statements. Other
forward-looking statements include, among others, statements regarding:

---

| | the outcome of our multi-dimensional strategy to address
      the United States Environmental Protection Agencys (the "EPA")
      pre-emptive regulatory process under Section 404(c) of the Clean Water
      Act (the "CWA") and our plans to prepare the Pebble Project (as
      hereinafter defined) to initiate federal and state permitting under the
      National Environmental Policy Act (the "NEPA") (the "Multi- dimensional
      Strategy");
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | the outcome of the legal and direct discussion, including
      possible mediation proceedings that we are engaged in with the EPA and any
      future actions that may or may not be taken by the EPA;                                                                                                                                                                                                                                                       
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | the outcome of any other legal proceedings in which we
      may be engaged;                                                                                                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | the impact of any change in the administration of the EPA
  resulting from the new federal administration in Washington, DC;                                                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our ability to proceed with applications for federal and
      state permitting under the CWA and the NEPA;                                                                                                                                                                                                                                                                                                                                                    
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our expectations regarding the potential for securing the
      necessary permitting of a mine at the Pebble Project;                                                                                                                                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our expected financial performance in future periods;                                                                                                                                                                                                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our plan of operations, including our plans to carry out
      and finance the Multi-dimensional Strategy activities, exploration and
      development activities;                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our ability to raise capital for the Multi-dimensional
      Strategy activities, exploration and development activities;                                                                                                                                                                                                                                                                                                                                      
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | our expectations regarding the exploration and
      development potential of the Pebble Project; and                                                                                                                                                                                                                                                                                                                                                          
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | factors relating to our investment decisions.                                                                                                                                                                                                                                                                                                                                                                                                                  

Certain of the assumptions we have made include assumptions
regarding, among other things:

| | that we will be able to secure sufficient capital
      necessary for the Multi-dimensional Strategy activities, environmental
      assessment and permitting activities and engineering work which must be
      completed prior to any potential development of the Pebble Project which
      would then require engineering and financing in order to advance to
      ultimate construction;     
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | the outcome of litigation and discussions, including
      possible mediation with the EPA;                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | we will ultimately have the opportunity to proceed with
      permit application preparations under the CWA and NEPA for the Pebble
      Project;                                                                                                                                                                                                                                                     
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | that the Company will ultimately be able to demonstrate
      that a mine at the Pebble Project can be developed and operated in an
      environmentally sound and socially responsible manner, meeting all
      relevant federal, state and local regulatory requirements so that we will
      be ultimately able to obtain permits authorizing construction of a mine at
      the Pebble Project;
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | that the market prices of copper, gold, molybdenum and
      silver will not decline significantly or stay depressed for a lengthy
      period of time;                                                                                                                                                                                                                                               
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | that key personnel will continue their employment with
      us; and                                                                                                                                                                                                                                                                                                                                   
|  |                                                                                                                                                                                                                                                                                                                                                                                                        
| | that we will continue to be able to secure minimum
      adequate financing on acceptable terms.                                                                                                                                                                                                                                                                                                       

Some of the risks and uncertainties that could cause our actual
results to differ materially from those expressed in our forward-looking
statements include:

| | a negative outcome of the Multi-dimensional Strategy,
      including legal and political challenges with which we are engaged
      regarding the Pebble Project, which would have a material adverse effect
      on us;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                           
| | an inability to ultimately obtain
      permitting for a mine at the Pebble Project;                                                                                                                                      

---

| | an inability to continue to fund the Multi-dimensional
      Strategy, exploration and development activities and other operating
      costs;                                                                    
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                   
| | the highly cyclical and speculative nature of the mineral
      resource exploration business;                                                                                                                    
|  |                                                                                                                                                                                                                   
| | the pre-development stage economic viability and
      technical uncertainties of the Pebble Project and the lack of known
      reserves on our Pebble Project;                                                  
|  |                                                                                                                                                                                                                   
| | an inability to recover even the financial statement
      carrying values of the Pebble Project if we cease to continue on a going
      concern basis;                                                          
|  |                                                                                                                                                                                                                   
| | the potential for loss of the services of key executive
      officers;                                                                                                                                           
|  |                                                                                                                                                                                                                   
| | history of, and expectation of further, financial losses
      from operations impacting our ability to continue on a going concern
      basis;                                                                  
|  |                                                                                                                                                                                                                   
| | inability to establish that the Pebble Project contains
      commercially viable deposits of ore;                                                                                                                
|  |                                                                                                                                                                                                                   
| | the volatility of gold, copper and molybdenum an silver
      prices;                                                                                                                                             
|  |                                                                                                                                                                                                                   
| | the inherent risk involved in the exploration,
      development and production of minerals and the presence of unknown
      geological and other physical and environmental hazards at the Pebble
      Project;
|  |                                                                                                                                                                                                                   
| | the potential for changes in, or the introduction of new,
      government regulations relating to mining, including laws and regulations
      relating to the protection of the environment                     
|  |                                                                                                                                                                                                                   
| | potential claims by third parties to titles or rights
      involving the Pebble Project;                                                                                                                         
|  |                                                                                                                                                                                                                   
| | the unpredictability of the outcome of litigation;                                                                                                                                                                
|  |                                                                                                                                                                                                                   
| | the possible inability to insure our operations against
      all risks;                                                                                                                                          
|  |                                                                                                                                                                                                                   
| | the highly competitive nature of the mining business;                                                                                                                                                             
|  |                                                                                                                                                                                                                   
| | the potential dilution to current shareholders due to any
      future equity financings;                                                                                                                         
|  |                                                                                                                                                                                                                   
| | the potential dilution to current shareholders from the
      exercise of share purchase options to purchase the Companys shares; and                                                                            
|  |                                                                                                                                                                                                                   
| | that we have never paid dividends and will not do so in
      the foreseeable future.                                                                                                                             

We refer you to the section entitled "Risk Factors" under Item
5 in our AIF for more detailed discussion of such risks and other important
factors that could cause our actual results to differ materially from those in
such forward-looking statements. Except as required by law, we assume no
obligation to update or to publicly announce the results of any change to any of
the forward-looking statements contained or incorporated by reference herein to
reflect actual results, future events or developments, changes in assumptions or
changes in other factors affecting the forward-looking statements.

---

CAUTIONARY NOTE TO UNITED STATES INVESTORS
CONCERNINGESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

The disclosure in this annual report, including the documents
incorporated by reference herein, uses terms that comply with reporting
standards in Canada and certain estimates are made in accordance with Canadian
National Instrument 43-101 Standards of Disclosure for Mineral Projects
("NI 43-101"). NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure an issuer
makes of scientific and technical information concerning mineral projects.
Unless otherwise indicated, all resource estimates contained in or incorporated
by reference in this annual report have been prepared in accordance with NI
43-101. These standards differ significantly from the requirements of the SEC,
and resource information contained herein and incorporated by reference herein
may not be comparable to similar information disclosed by companies in the
United States ("US companies").

In addition, this annual report uses the terms "measured
mineral resources", "indicated mineral resources" and "inferred mineral
resources" to comply with the reporting standards in Canada. We advise United
States investors that while those terms are recognized and required by Canadian
regulations, the SEC does not recognize them. United States investors are
cautioned not to assume that any part or all of the mineral deposits in these
categories will ever be converted into mineral reserves. These terms have a
great amount of uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility.

Further, "inferred resources" have a great amount of
uncertainty as to their existence and as to whether they can be mined legally or
economically. Therefore, United States investors are also cautioned not to
assume that all or any part of the inferred resources exist. In accordance with
Canadian rules, estimates of "inferred mineral resources" cannot form the basis
of feasibility or other economic studies, except in limited circumstances where
permitted under NI 43-101.

It cannot be assumed that all or any part of "measured mineral
resources", "indicated mineral resources", or "inferred mineral resources" will
ever be upgraded to a higher category. Investors are cautioned not to assume
that any part of the reported "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" in this annual report is
economically or legally mineable.

In addition, disclosure of "contained ounces" is permitted
disclosure under Canadian regulations; however, the SEC only permits issuers to
report mineralization as in place tonnage and grade without reference to unit
measures.

For the above reasons, information contained in this annual
report and the documents incorporated by reference herein containing
descriptions of our mineral deposits may not be comparable to similar
information made public by US companies subject to the reporting and disclosure
requirements under the United States federal securities laws and the rules and
regulations thereunder.

NOTE TO UNITED STATES READERS REGARDING
DIFFERENCESBETWEEN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Company is permitted to prepare this annual report in
accordance with Canadian disclosure requirements, which are different from those
of the United States. Canadian public companies are required to prepare
financial statements in accordance with International Financial Reporting
Standards ("IFRS"), as issued by the International Accounting Standards Board.
Consequently, the Companys audited financial statements for the years ended
December 31, 2016 and 2015 have been prepared in accordance with IFRS as issued
by the International Accounting Standards Board and are subject to Canadian
auditing and auditor independence standards, each of which differ in some
respects to United States generally accepted accounting principles ("US GAAP")
and from practices prescribed by the SEC. Therefore, the Companys financial
statements incorporated by reference in this annual report may not be comparable
to financial statements prepared in accordance with US GAAP.

---

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are defined in Rule
13a-15(e) and 15d-15(e) under the Exchange Act to mean controls and other
procedures of an issuer that are designed to ensure that information required to
be disclosed by the issuer in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the SECs rules and forms and includes, without limitation,
controls and procedures designed to ensure that such information is accumulated
and communicated to the issuers management, including its principal executive
and principal financial officers, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosure.

As of the end of the period covered by this report, our
management carried out an evaluation, with the participation of our Chief
Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the
effectiveness of our disclosure controls and procedures. Based upon that
evaluation, our CEO and CFO concluded that, as of the end of the period covered
by this report, our disclosure controls and procedures, as defined in Rule
13a-15(e), were effective to give a reasonable assurance that the information
required to be disclosed by us in reports that we file or submit to the SEC
under the Exchange Act is:.

- recorded, processed, summarized and reported within the time periods
  specified in the SECs rules and forms, and
- accumulated and communicated to our management, including our CEO and CFO,
  as appropriate, to allow timely decisions regarding required disclosure.

It should be noted that while our CEO and our CFO believe that
our disclosure controls and procedures provide a reasonable level of assurance
that they are effective, they do not expect that our disclosure controls and
procedures or internal control over financial reporting will prevent all errors
and fraud. A control system, no matter how well conceived or operated, can
provide only reasonable, not absolute, assurance that the objectives of the
control system will be met.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal Control over Financial Reporting

The Company's management, including the CEO and the CFO, is
responsible for establishing and maintaining adequate internal control over
financial reporting. Internal control over financial reporting ("ICFR"), as
defined by Rule 13a-15(f) and 15d-15(f) of the Exchange Act, is a process
designed by, or under the supervision of the Company's principal executive and
principal financial officers and effected by the Company's Board of Directors,
management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with IFRS. The Company's ICFR includes those
policies and procedures that:

- pertain to the maintenance of records that, in reasonable detail,
  accurately and fairly reflect the transactions and dispositions of the assets
  of the Company;
- provide reasonable assurance that transactions are recorded as necessary to
  permit preparation of financial statements in accordance with IFRS, and that
  receipts and expenditures of the Company are being made only in accordance
  with authorizations of management and directors of the company; and
- provide reasonable assurance regarding prevention or timely detection of
  unauthorized acquisition, use or disposition of the Company's assets that
  could have a material effect on the financial statements.

---

The Companys management, including its CEO and CFO, believe
that any system of internal control over financial reporting, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met. Furthermore, the design of a
control system must reflect the fact that there are resource constraints and the
benefits of controls must be considered relative to their costs. Because of the
inherent limitations in all control systems, they cannot provide absolute
assurance that all control issues and instances of fraud, if any, within the
Company have been prevented or detected. These inherent limitations include the
realities that judgments in decision-making can be faulty and breakdowns can
occur because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion of two or more
people, or by unauthorized override of control. The design of any system of
controls is also based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions. Accordingly,
because of the inherent limitations in a cost effective control system,
misstatements due to error or fraud may occur and not be detected.

Managements Report on Internal Control over Financial
Reporting

The Companys management is responsible for establishing and
maintaining adequate internal control over financial reporting (as such term is
defined in Rule 13a-15(f) of the Exchange Act) for the Company.

The Companys management, with the participation of the CEO and
CFO, assessed the effectiveness of the Companys ICFR as of December 31, 2016.
In making the assessment, it used the criteria set forth in the Internal
Control-Integrated Framework 2013 published by the Committee of Sponsoring
Organizations of the Treadway Commission ("COSO"). Based on its assessment,
management has concluded that the Companys ICFR was effective as of December
31, 2016.

Auditors Attestation Report

The Company is presently an "emerging growth company" as
defined in section 3(a) of the Exchange Act, and the Company will continue to
qualify as an "emerging growth company" until the earliest of:

|(a) | the last day of the fiscal year during which the Company
      has total annual gross revenues of US$1,000,000,000 (as such amount is
      indexed for inflation every 5 years by the SEC) or more;                           
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                
|(b) | the last day of the Company's fiscal year following the
      fifth anniversary of the date of the first sale of common equity
      securities pursuant to an effective registration statement under the
      Securities Act;
|    |                                                                                                                                                                                                                                
|(c) | the date on which the Company has, during the previous
      3-year period, issued more than US$1,000,000,000 in non-convertible debt;
      or                                                                                
|    |                                                                                                                                                                                                                                
|(d) | the date on which the Company is deemed to be a "large
      accelerated filer", as defined in Exchange Act Rule
  12b2.                                                                                                      

Northern Dynasty expects to continue to be an emerging growth
company until December 31, 2020.

Generally, a registrant that registers any class of its
securities under section 12 of the Exchange Act is required to include in the
second and all subsequent annual reports filed by it under the Exchange Act, a
management report on internal control over financial reporting and, subject to
an exemption available to registrants that are neither an "accelerated filer" or
a "larger accelerated filer" (as those terms are defined in Exchange Act Rule
12b-2), an auditor attestation report on management's assessment of internal
control over financial reporting. However, for so long as the Company continues
to qualify as an emerging growth company, the Company will be exempt from the
requirement to include an auditor attestation report in its annual reports filed
under the Exchange Act, even if it were to qualify as an "accelerated filer" or
a "larger accelerated filer". The Company was neither an "accelerated filer" nor
a "larger accelerated filer" for fiscal 2016 (as determined on
June 30, 2016, being the last day of the Companys second fiscal quarter). Based
on the Companys current status as an emerging growth company and a
"non-accelerated filer", managements report was not subject to attestation by
the Companys registered public accounting firm and, accordingly, this Annual
Report does not include an attestation report of the Companys registered public
accounting firm regarding internal control over financial reporting.

---

No Changes in Internal Control over Financial Reporting

Management, including the CEO and CFO, has evaluated the
Companys ICFR to determine whether any changes occurred during the period
covered by this annual report on Form 40-F that have materially affected, or are
reasonably likely to materially affect, the Companys ICFR. There have been no
changes that occurred during the Companys fiscal year ended December 31, 2016
that have materially affected, or are reasonably likely to materially affect,
the Companys ICFR.

AUDIT COMMITTEE

Our Board of Directors (the "Board") has established a
separately-designated independent Audit and Risk Committee (the "Audit
Committee") of the Board in accordance with Section 3(a)(58)(A) of the Exchange
Act for the purpose of overseeing our accounting and financial reporting
processes and the audits of our annual financial statements. As at the date of
this annual report, the Audit Committee was comprised of Steven Decker,
Christian Milau and Ken Pickering. The Board has determined that each of the
members of the Audit Committee is independent as determined under Rule 10A-3 of
the Exchange Act and Section 803 of the NYSE MKT LLC Company Guide.

AUDIT COMMITTEE FINANCIAL EXPERT

Our Board has determined that Mr. Christian Milau is an audit
committee financial expert (as that term is defined in Item 407 of Regulation
S-K under the Exchange Act) and is an independent director under applicable
securities laws and the listing requirements of the NYSE MKT LLC.

PRINCIPAL ACCOUNTING FEES AND SERVICES

The following table sets forth information regarding amounts
billed to us by our independent auditor for each of our last two fiscal years
ended December 31:

|                     |   | 2016    |  |   | 2015    | 
|-------------------- | - | ------- |  | - | ------- | 
|Audit Fees           | $ | 122,000 |  | $ | 167,000 | 
|Audit-Related Fees   |   | 182,000 |  |   | 70,000  | 
|Tax Fees             |   |        |  |   |        | 
|All
      Other Fees |   |        |  |   |        | 
|Total                | $ | 304,000 |  | $ | 237,000 | 

Audit Fees

Audit fees are the aggregate fees billed by our independent
auditor for the audit of our annual consolidated financial statements, reviews
of interim consolidated financial statements and attestation services that are
provided in connection with statutory and regulatory filings or engagements.

Audit-Related Fees

AuditRelated Fees include services that are traditionally
performed by the auditor. These audit-related services include employee benefit
audits, due diligence assistance, accounting consultations on proposed
transactions, internal control reviews and audit or attest services not required
by legislation or regulation.

---

Tax Fees

Tax fees are fees for tax compliance and tax advice on actual
or contemplated transactions.

All Other Fees

All other fees relate to services other than the audit fees,
audit-related fees and tax fees described above.

Audit Committee Pre-Approval Policies

From time to time, management of the Company recommends to and
requests approval from the audit committee for audit and non-audit services to
be provided by the Company's auditor. The audit committee routinely considers
such requests at committee meetings, and if acceptable to a majority of the
audit committee members, pre-approves such audit and non-audit services by a
resolution authorizing management to engage the Company's auditor for such
non-audit services, with set maximum dollar amounts for each itemized service.
During such deliberations, the audit committee assesses, among other factors,
whether the non-audit services requested would be considered "prohibited
services" as contemplated by the SEC, and whether the non-audit services
requested and the fees related to such services could impair the independence of
the auditor.

OFF-BALANCE SHEET ARRANGEMENTS

Other than the contingent fee arrangement with the Companys
legal counsel (discussed below), we have not entered into any other off-balance
sheet arrangements that have or are reasonably likely to have a current or
future effect on our financial condition, changes in financial condition,
revenues, expenses, results of operations, liquidity, capital expenditures or
capital resources that is material to investors.

CONTRACTUAL OBLIGATIONS

The following table lists information as of December 31, 2016
with respect to our known contractual obligations:

Contractual obligation
    Total (000)
    Payments due by periodLess than 1 Year
    1  3 years
    3  5 yearsLong term debt obligations
    $nil
    $nil
    $nil
    $nilCapital (finance) lease obligation
    $nil
    $nil
    $nil
    $nilOperating lease obligations 1
    $695
    $193
    $379
    $123Purchase obligations
    $nil
    $nil
    $nil
    $nilOther long term liabilities
    $nil
    $nil
    $nil
    $nilTotal
    $695
    $193
    $379
    $123


Notes

|1. | Amounts are to be paid by the Company in US dollars. The
      conversion rate employed in the table was the year end rate of $1.3427 CDN
      / US dollar.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|2. | The Company, through the Pebble Partnership, is advancing
      its Multi-dimensional Strategy to address the EPAs pre-emptive regulatory
      action under Section 404(c) of the CWA, including through litigation
      against the EPA, contesting the EPAs statutory authority to act
      pre-emptively under the CWA, and alleging violation of FACA and the
      unlawful withholding of documentation under FOIA. The Company has a
contingent liability for additional legal fees and costs that may be due to the
Companys counsel should there be a successful outcome or settlement. However,
the Company is unable to estimate or determine the length of time that each of
the legal initiatives mentioned above will take to advance to specific milestone
events or final conclusion. As at December 31, 2016, if there was a favourable
outcome or settlement, the Company estimates there would potentially be
additional legal fees of approximately $20.2 million (US$15.1 million at closing
Bank of Canada rate on December 31, 2016, of $1.3427 CDN / US dollar) payable by
the Company which would be payable in three equal tranches over three years.

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The term purchase obligation means an agreement to purchase
goods or services that is enforceable and legally binding on the registrant that
specifies all significant terms, including: fixed or minimum quantities to be
purchased; fixed, minimum or variable price provisions; and the approximate
timing of the transaction.

CODE OF ETHICS

We have adopted a Code of Ethics that applies to our officers,
employees and directors and promotes, among other things, honest and ethical
conduct. The Code of Ethics meets the requirements for a "code of ethics" within
the meaning of that term in Form 40-F. The Code of Ethics was updated in 2007,
2009, 2012 and again in 2013 and is contained in the the Corporate Governance
Policies and Procedures Manual in Appendix 4 which is available for download
from the Companys website under Corporate at www.northerndynastyminerals.com.

No substantive amendments were made to the Companys Code of
Ethics during the fiscal year ended December 31, 2016, and no waivers of the
Companys Code of Ethics were granted to any principal officer of the Company or
any person performing similar functions during the fiscal year ended December
31, 2016.

NYSE MKT EQUITIES CORPORATE GOVERNANCE

The Companys common shares are listed for trading on the NYSE
MKT Exchange ("NYSE MKT"). Section 110 of the NYSE MKT LLC Company Guide permits
NYSE MKT to consider the laws, customs and practices of their home country in
relaxing certain NYSE MKT listing criteria otherwise applicable to foreign
issuers, and grants exemptions from NYSE MKT listing criteria based on these
considerations. A company seeking relief under these provisions is required to
provide written certification from independent local counsel that the
non-complying practice is not prohibited by home country law. A description of
the significant ways in which the Companys governance practices differ from
those followed by United States domestic companies pursuant to NYSE MKT
standards is contained on the Companys website at www.northerndynastyminerals.com.

MINE SAFETY DISCLOSURE

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act of 2010 ("Dodd-Frank Act"), issuers
that are operators, or that have a subsidiary that is an operator, of a coal or
other mine in the United States are required to disclose in their periodic
reports filed with the SEC information regarding specified health and safety
violations, orders and citations, related assessments and legal actions, and
mining-related fatalities under the regulation of the Federal Mine safety and
Health Administration under the Federal Mine Safety and Health Act of 1977. The
Company was not the operator of a mine in the United States during the fiscal
year ended December 31, 2016.

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UNDERTAKING

The Registrant undertakes to make available, in person or by
telephone, representatives to respond to inquiries made by the Commission staff,
and to furnish promptly, when requested to do so by the Commission staff,
information relating to: the securities registered pursuant to Form 40-F; the
securities in relation to which the obligation to file an annual report on Form
40-F arises; or transactions in said securities.

CONSENT TO SERVICE OF PROCESS

The Company previously filed an Appointment of Agent for
Service of Process and Undertaking on Form F-X signed by the Company and its
agent for service of process with respect to the class of securities in relation
to which the obligation to file this annual report arises, which Form F-X is
incorporated herein by reference. Any change to the name or address of the
Companys agent for service shall be communicated promptly to the Commission by
amendment to Form F-X referencing the file number of the Company.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the Company
certifies that it meets all of the requirements for filing on Form 40-F and has
duly caused this annual report to be signed on its behalf by the undersigned,
thereunto duly authorized.

|Date: March 30, 2017. | NORTHERN DYNASTY MINERALS LTD.
|--------------------- | ------------------------------
|                      |                               
|                      | By: /s/ Ronald W. Thiessen    
|                      |                               
|                      | Ronald W. Thiessen            
|                      | Chief Executive Officer       

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EXHIBIT INDEX

|Exhibit |                                                                                                                                                                                                                                               
|------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Exhibit Description                                                                                                                                                                                                                           
|        |                                                                                                                                                                                                                                               
|99.1    | Certification of Chief Executive Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
  Sarbanes-Oxley Act of 2002                                                                         
|        |                                                                                                                                                                                                                                               
|99.2    | Certification of Chief Financial Officer pursuant to Rule
      13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the
      Sarbanes-Oxley Act of 2002                                                                     
|        |                                                                                                                                                                                                                                               
|99.3    | Certification of Chief Executive Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                          
|        |                                                                                                                                                                                                                                               
|99.4    | Certification of Chief Financial Officer pursuant to Rule
      13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted
      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                          
|        |                                                                                                                                                                                                                                               
|99.5    | Audited consolidated financial statements of the Company
      and notes thereto as at and for the years ended December 31, 2016, and
      2015, together with the reports of the Independent Registered Public
      Accounting Firm thereon
|        |                                                                                                                                                                                                                                               
|99.6    | Managements Discussion and Analysis for the year ended
      December 31, 2016                                                                                                                                                               
|        |                                                                                                                                                                                                                                               
|99.7    | Annual Information Form of the Company for the year ended
      December 31, 2016                                                                                                                                                             
|        |                                                                                                                                                                                                                                               
|99.8    | Consent of Deloitte LLP, Independent Registered Public
      Accounting Firm                                                                                                                                                                  
|        |                                                                                                                                                                                                                                               
|99.9    | Consent of J. David Gaunt, P.Geo.                                                                                                                                                                                                             
|        |                                                                                                                                                                                                                                               
|99.10   | Consent of Stephen Hodgson, P.Eng.                                                                                                                                                                                                            
|        |                                                                                                                                                                                                                                               
|99.11   | Consent of James Lang, P.Geo.                                                                                                                                                                                                                 
|        |                                                                                                                                                                                                                                               
|99.12   | Consent of Ting Lu, P.Eng.                                                                                                                                                                                                                    
|        |                                                                                                                                                                                                                                               
|99.13   | Consent of Eric Titley, P.Geo.                                                                                                                                                                                                                

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