NOVAGOLD Reports First Quarter 2023 Financial Results Donlin Gold Commenced Fieldwork, Advanced Resource Modelling and Trade-Off Studies in Preparation for Updated Feasibility Study Strong $116-Million Treasury with $25-Million Receivable due in July 2023
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 1
NOVAGOLD Reports First Quarter 2023 Financial Results
Donlin Gold Commenced Fieldwork, Advanced Resource Modelling and Trade-Off
Studies in Preparation for Updated Feasibility Study
Strong $116-Million Treasury with $25-Million Receivable due in July 2023
The 2023 field program commenced early in the year to complete the necessary fieldwork and
geotechnical drilling for the Alaska Dam Safety certificates applications.
With the successful completion of the largest drill program in over 15 years, the owners are focused on
finalizing the resource model and trade-off studies capping off the preparatory work toward proceeding
with an updated feasibility study.
NOVAGOLD’s treasury remained strong with $116 million in cash and term deposits as of February 28,
2023, with an additional $25 million due in July 2023 from Newmont Corporation (“Newmont”),
keeping NOVAGOLD in a healthy financial position to advance the Donlin Gold project up t he value
chain.
April 4, 2023 – Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company” (NYSE American, TSX: NG) today released its 2023 first quarter financial results and an update on its
Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick Gold
Corporation (“Barrick”).
Details of the financial results for the quarter ended February 28, 2023 are presented in the consolidated
financial statements and quarterly report filed on Form 10-Q on April 4, 2023 that is available on the Company’s
website at www.novagold.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov. All amounts are in
U.S. dollars unless otherwise stated.
In the first quarter of 2023, the following milestones were achieved at Donlin Gold:
The Donlin Gold project camp re-opened in February 2023 to prepare for the field program with a
total workforce of 44 direct hire employees, 63% being from the Yukon-Kuskokwim (Y-K) region.
To support mine planning and mine design, Donlin Gold also advanced onsite hydrological drilling to
further define the depth and flow of groundwater in the areas of the planned Donlin Gold project pit
and surrounding infrastructure.
As a federally permitted project on private Alaska Native Corporation land designated by law for
mining and with key State permits in hand, several activities continued to keep our current permits in
good standing and to advance the remaining permits needed, including the following highlights:
▶ Commencement of additional fieldwork and geotechnical drilling to collect data required to
advance the Alaska Dam Safety certificates for water diversion and water retention structures
including the proposed tailings storage facility. All necessary fieldwork for the certificates is
planned to be completed this year;
▶ Application for a new air quality permit from the Alaska Department of Environmental
Conservation (ADEC). A draft permit was issued for public comment in December 2022;
1 NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 years, annual projected production of at least 500,000 ounces of gold,
and average projected cash costs over the production life that are in the lower half of the industry cost curve.
www.novagold.com
Page | 2
NYSE AMERICAN, TSX: NG
NEWS RELEASE
▶ Submission to ADEC of the application for the regularly scheduled re-issuance of the project’s
Alaska Pollutant Discharge Elimination System permit (APDES); ADEC extended the permit to
remain in effect until the State completes the re-issuance.
Following the easing of COVID-19 restrictions, community engagement efforts increased significantly,
which allowed the project team to participate in more in-person events. Critical assistance was provided
to local communities through the funding of, and participation in, initiatives related to health and safety,
infrastructure development, environmental management, training and education, and support of the
indigenous culture in the Y-K region. Notable outcomes include:
▶ Supported intensive academic, career and educational workshops for rural youth and young
adults of the Y-K region in partnership with Alaska EXCEL;
▶ Partnered with Covenant House Alaska and Bethel Community Services to address chronic
food insecurity and homelessness in the Y-K region;
▶ Collaborated with the Bethel Community Services Foundation and the Aruqutet Project to
address ongoing food distribution challenges throughout Bethel;
▶ Provided continued financial assistance to construct and maintain the 300-mile-long ice road
that connects remote Kuskokwim River communities;
▶ Supported Alaska Safe Riders program by sponsoring the McGrath Iron Dog Race, in which
residents participated in All-Terrain Vehicle and Off-Road Vehicle safety presentations.
Calista Corporation (“Calista”) and Donlin Gold continued their proactive, bipartisan outreach to Alaska
Governor Dunleavy’s Administration and the new legislature in Alaska, as well as with the Biden
Administration and United States Congress in Washington, D.C., to highlight the thoroughness of the
project’s environmental review and permitting processes, in addition to the considerable benefits it
would deliver to all Alaska Natives.
President’s Message
Steadily and Surely Advancing Up the Value Chain the Donlin Gold Project – the leading
Tier 1 Gold Development Project in Alaska, One of the Only Remaining Tier 1
Jurisdictions
All of us at NOVAGOLD take great pride in the fact that we have been laser-focused – as well as highly
successful – in executing the explicit strategy that was set forth by our Chairman and me more than a decade
ago: namely, to unlock the value of NOVAGOLD’s high-quality assets for our shareholders and to dedicate our
entire energy toward creating the maximum leverage from a pure play on the singularly brilliant endowment
that is the Donlin Gold project. And to accomplish all this while safeguarding the Company’s robust treasury to
allow us to accomplish our work without needing to go back to the financial markets.
As we have stated on numerous occasions, our Board and management believe that the Donlin Gold project is
truly best-in-class in its combination of attributes and hence that NOVAGOLD constitutes the most perfectly
suited “go-to” equity to benefit from the next wave in the bull market in gold. Possessing the unique
combination of industry-leading size, grade, and excellent exploration upside with which to move the needle in
the gold industry, our project’s location in Alaska – a safe and time-tested jurisdiction in which to develop, build
and operate a mine for generations to come – makes it the ultimate company-maker. For our part, we believe to
have been responsible stewards of this remarkable asset in its progression up the value chain. Yet our greatest
accomplishments have been reached by providing wide-ranging support to the Donlin Gold project team in
advancing its various activities in the areas of permitting, engineering, as well as environmental, social and
www.novagold.com
Page | 3
NYSE AMERICAN, TSX: NG
NEWS RELEASE
governmental engagement, in addition to our pivotal collaboration with Calista and The Kuskokwim Corporation
(TKC) – the Alaska Native Corporation partners and landowners.
The value enhancement work continues apace. The Donlin Gold project camp re-opened in the first quarter of
2023 to continue fieldwork to collect geotechnical and hydrological information needed to advance the design
documentation required for the Alaska Dam Safety certificates applications, with formal issuance of the
certificates of approval to construct expected in 2026.
The safety program currently in effect at the Donlin Gold project site is well advanced for a project at this stage
of development – with experienced safety coordinators on-site 24/7, an established and widely shared culture of
awareness, and team spirit characterized by employees looking out for one another. With the latest field
program, Donlin Gold’s project site seasoned environmental team, including field staff, ensures that all permit
requirements are met and daily procedures are followed. All project staff are properly trained to ensure they
recognize that the protection of water, land, and biological resources is of the highest priority in Donlin Gold’s
operations.
Off-site, our current focus at Donlin Gold lies in updating the geologic and resource models with the data
derived from the extensive drill programs that took place over the last three years; reviewing key project
assumptions, inputs, and design components for optimization (mine engineering , metallurgy, hydrology, and
infrastructure); advancing remaining permits through the regulatory process and supporting the State in
maintaining the existing permits; and, through continued engagement, sustaining and expanding project
support in the Y-K region.
Ultimately, subject to a formal decision by the Donlin Gold LLC board, the comprehensive work we are
completing should lead to the update of the Donlin Gold project feasibility study which, in turn, would initiate
the detailed engineering work necessary to advance the project design before reaching a construction decision.
Diligently Maintaining Permits in Good Standing and Working to Secure the
Remaining State-Level Permits
Donlin Gold, its owners, and its partners Calista and TKC are intimately familiar with the permitting and
regulatory processes applicable to the project and will continue to support the State in this important work.
Together, we pursue our efforts to secure the various remaining state-level permits and certificates required for
the project. This includes the current fieldwork related to the issuance of the Alaska Dam Safety certificates –
which is targeted for completion in 2023, with formal issuance of the certificates of approval to construct
expected in 2026.
In 2022, Donlin Gold applied for a new air quality permit based on updated air quality modeling and emissions
controls information, and the regularly scheduled re-issuance of its APDES permit from ADEC. The new air
quality permit is expected to be issued by June 30, 2023, which corresponds to the expiration date of the current
permit. ADEC has extended the existing APDES permit indefinitely until a new permit is finalized. Donlin Gold
continues to support ADEC in its due diligence regarding the State’s Clean Water Act (CWA) Section 401
certification (the “401 Certification”) of the Federal CWA Section 404 permit. On July 14, 2022, the ADEC
Commissioner granted the request for an adjudicatory hearing review related to potential water temperature
effects in Crooked Creek. The briefing process in this administrative appeal of the 401 Certification has now
been completed and a decision is expected in the first half of 2023.
Owning a federally permitted project on private land already designated by law for mining has tremendous
inherent value in today’s world. We have always prepared and organized ourselves for potential challenges to
the Federal and State permitting processes. Our project leadership and litigation teams bring longstanding
experience with the processes that need to be followed. Donlin Gold and its owners, alongside the steadfast
www.novagold.com
Page | 4
NYSE AMERICAN, TSX: NG
NEWS RELEASE
advocacy of Calista and TKC, continue to support the State and Federal government in the defense of these
permits which reflect a diligent, thorough, transparent, and inclusive process for all involved – including
stakeholders from the Y-K region.
It is also worth noting that all appeals challenging Donlin Gold’s permits to date have proved unsuccessful, often
multiple times. Nevertheless, objections to mining activity are common. The Alaska Superior Court briefings on
the Right-of-Way (ROW) lease for the portions of the natural gas pipeline on State lands were completed with
oral arguments held in January 2023. We anticipate decisions to be issued by the end of 2023. The State of
Alaska’s issuance of water rights for the mine and transportation facilities was appealed to the Commissioner of
the Alaska Department of Natural Resources (ADNR). ADNR and Donlin Gold submitted their response briefs on
March 8, 2023, and the appellants are preparing their final brief. A decision is expected within the next year .
Actively Engaging with Community Stakeholders and Government
At Donlin Gold, we are extremely fortunate to enjoy time-tested partnerships with our Alaska Native Corporation
partners Calista and TKC. The Donlin Gold team continues to closely collaborate with them in all aspects of our
considerable outreach and engagement activities throughout the Y-K region. An extension of these efforts are
the newly-established community liaison positions that were recently filled by former project site employees
residing in five Y-K villages.
Crooked Creek, the village closest to the Donlin Gold project site in the Y-K region, wrote a letter in support of
the Donlin Gold project in December 2022. The village has been struggling with access to reliable power and
water in recent months, which also led to the shutdown of its school, clinic, and post office. In response, Donlin
Gold, Calista and TKC provided support to Crooked Creek by purchasing and delivering a generator, alerting the
State of Alaska’s emergency response team for additional assistance, and helping the local authorities identify a
longer-term solution for their infrastructure needs as well as assisting with access to available government
funding.
Alaska’s U.S. Senators and Governor have consistently expressed their long-term support of the Donlin Gold
project – votes of confidence for which we are enormously grateful. In close coordination with NOVAGOLD and
Barrick, Calista and Donlin Gold co-lead our government relations work, which over time has represented an
important part of advancing the Donlin Gold project through permitting and beyond. In 2023, Calista and Donlin
Gold will carry on their proactive, bipartisan outreach to the State Administration and the new legislature in
Alaska, as well as with the Biden Administration and the United States Congress in Washington, D.C., to highlight
the thoroughness of the project’s environmental review and permitting processes, in addition to the
considerable benefits that the project would deliver to all Alaska Natives through the revenue sharing provisions
of the Alaska Native Claims Settlement Act of 1971.
Consistent Investment in Environmental and Social Initiatives
Assisting and partnering with local communities of the Y-K region has been a constant focus for NOVAGOLD. To
that end, Donlin Gold works in close concert with Calista and TKC, as well as other key representatives of local
communities, to provide critical support to the Y-K region today and ultimately ensure the sustainable and
profitable development of the Donlin Gold project in the years to come.
Donlin Gold was the premier sponsor of the McGrath Iron Dog Race community safety presentation promoting
safety in operating snowmachines, all-terrain vehicles and recreational off-road vehicles, as part of the Alaska
Safe Riders program – a non-profit organization dedicated to reducing deaths and injuries from tragic accidents.
In addition, Donlin Gold, in collaboration with Covenant House Alaska and Bethel Community Services, is
developing an action plan to help address chronic and ongoing youth food insecurity in the Y-K region. To date,
the three entities have successfully leased space from Bethel Winter House toward establishing a housing and
www.novagold.com
Page | 5
NYSE AMERICAN, TSX: NG
NEWS RELEASE
service hub for youth aged 18 to 24. Furthermore, Donlin Gold partnered with the Bethel Community Services
Foundation and the Aruqutet Project on a regional program to address food insecurity throughout the Bethel
community. Over 550 local households are enrolled in the program to date, with approximately 200 of them
receiving food during any given month. As with all of our other initiatives, employing local staff and committed
volunteers has proven critical to the program’s success.
In partnership with the Alaska Native Tribal Health Consortium, Donlin Gold is advancing efforts to improve the
overall health and safety standards of water and sewer services in the Middle Kuskokwim area communities
through the TKC Fishwheel initiative. Furthermore, in collaboration with TKC, the village of Crooked Creek, the
Akiak Native Community and the Napaimute Tribe, Donlin Gold provided financial support for the construction
and maintenance of the ice roads that allow for winter travel between the remote Kuskokwim River communities
– which, in turn, led to increased participation in community events, cultural activities, sports, and provided
access for emergency services, law enforcement and travel. On average, a total of 300 miles of ice road is
constructed and maintained annually thanks to this program.
Advancing educational opportunities in Alaska constitutes yet another high priority for the Company.
NOVAGOLD recently awarded its first University of Alaska scholarship to an undergraduate student in mining or
geological engineering. In addition, Donlin Gold supports the Alaska EXCEL program – a non-profit providing
supplemental academic, career and technical education for rural youth and young adults across the Y-K region.
Numerous student interview preparation sessions took place in the first quarter, with four more planned over
the next two quarters. Through this rigorous process, the students receive high school credits toward graduation
as well as concurrent college credits.
Strong Treasury to Advance Donlin Gold and Create Value
It is quite remarkable that, ever since the last fundraising round of January 2012, there has been no need to
issue further equity to execute our strategy. And yet, NOVAGOLD’s treasury remains robust with $116.2 million
in cash and term deposits as of February 28, 2023. Moreover, with $25 million due in July 2023 from Newmont
and an additional contingent payment of $75 million upon approval of the Galore Creek project construction
plan by its owners, the Company enjoys a healthy financial position.
In closing, I wish to extend my sincere gratitude to the experienced team of professionals at NOVAGOLD, Donlin
Gold and Barrick, as well as to the entire project site workforce and community engagement teams. We pride
ourselves in our steadfast commitment to health and safety and are profoundly grateful for the extraordinary
mutual respect that characterizes relations with our Alaska Native Corporation partners. Indeed, working in
Alaska is a distinct pleasure and we are thankful for the State agencies’ diligent approach and adherence to
established regulatory procedures.
In terms of governance, our management team has the privilege of working with an incredible Board whose
members provide exceptional strategic guidance and are committed to best practices in all aspects of the
business. Their unwavering dedication and engagement are greatly appreciated.
Of paramount importance, NOVAGOLD has been blessed with long-term and supportive shareholders –
comprising many of the most honored names in the investment world – whose presence and counsel simply
have been invaluable. We are grateful for their decision to invest in our Company and for their continued
interest and engagement. We reaffirm to all of them that, as stewards of the Company, we continue to be
focused on delivering on our strategy and enhancing the value of the Donlin Gold project increasing both
shareholder and stakeholder wealth in a safe and socially responsible manner.
As we position the Company to enjoy the fruits of its unique leverage on what we believe constitutes the best
positioned gold development story in the marketplace, I look forward to continuing to deliver on our promises
and to keeping an open line of communication between us as we reach even more milestones together in 2023.
www.novagold.com
Page | 6
NYSE AMERICAN, TSX: NG
NEWS RELEASE
Sincerely,
Gregory A. Lang
President & CEO
Financial Results
in thousands of U.S. dollars, except for per share amounts
Three months ended
February 28, 2023
$
Three months ended
February 28, 2022
$
General and administrative expense (1) 5,607 5,177
Share of losses – Donlin Gold 4,475 4,040
Total operating expenses 10,082 9,217
Loss from operations (10,082) (9,217)
Interest expense on promissory note (2,944) (1,512)
Accretion of notes receivable 217 210
Other income (expense), net 2,225 524
Loss before income taxes
Income tax expense
(10,584)
(75)
(9,995)
Net Loss
Net loss per common share, basic and diluted
(10,659)
(0.03)
(9,995)
(0.03)
At
February 28, 2023
$
At
November 30, 2022
$
Cash and term deposits 116,161 125,882
Total assets 151,361 159,189
Total liabilities 130,057 129,286
(1) Includes share-based compensation expense of $2,161 and $2,091 for the first quarter-ended February 28, 2023, and quarter
ended February 28, 2022, respectively.
During the first quarter of 2023, we incurred a net loss of $10.7 million compared to a net loss of $10.0 million
for the comparable period in 2022. The increase in net loss is primarily due to an increase in interest expense on
the promissory note, increased permitting costs at the Donlin Gold project and higher corporate legal expenses,
partially offset by increased interest income and other income related to the 2021 sale of the Company’s interest
in the San Roque mineral property.
Liquidity and Capital Resources
In the first quarter of 2023, cash and cash equivalents decreased by $9.7 million, primarily to fund our share of
the Donlin Gold project and for corporate administrative expenses. The $4.3 million decrease in cash used in the
first quarter of 2023 compared to 2022 was due to the timing of corporate liability insurance payments in 2022,
withholding tax paid on share-based compensation in 2022 (no Performance Share Units vested in 2023) and
proceeds received from the sale of the San Roque mineral property.
At the end of the first quarter, cash and term deposits were $116.2 million (cash $54.2 million, term deposits
$62.0 million). An additional payment from Newmont of $25 million comes due in July 2023 related to the sale
www.novagold.com
Page | 7
NYSE AMERICAN, TSX: NG
NEWS RELEASE
of NOVAGOLD’s 50% interest in the Galore Creek project in 2018, along with a note for $75 million contingent
upon approval of a Galore Creek project construction plan by its owners. At present, we believe the Company
has sufficient working capital available to cover anticipated funding of the Donlin Gold project and corporate
general and administrative costs through completion of an updated Donlin Gold project feasibility study.
Further, we believe we have sufficient working capital available to cover anticipated costs and expenses for at
least the next three years. Substantial additional capital will be required once a decision to commence
engineering and construction is reached by the Donlin Gold board for the Donlin Gold project.
2023 Outlook
We anticipate spending approximately $31 million, which includes, $13 million for corporate general and
administrative costs, $1 million for working capital and $17 million to fund our share of expenditures at the
Donlin Gold project, including:
▶ $8 million for external affairs, permitting, environmental, land, and legal activities, and
▶ $9 million for project planning and fieldwork (dam and water structures, metallurgical testing, mining
studies, hydrogeology and geochemistry, and infrastructure planning).
NOVAGOLD’s primary goals in 2023 are to continue to advance the Donlin Gold project toward a construction
decision; maintaining support for Donlin Gold among the project’s stakeholders; promoting a strong safety,
sustainability, and environmental culture; maintaining a favorable reputation of NOVAGOLD; and preserving a
healthy balance sheet. Our operations primarily relate to the delivery of project milestones, including the
achievement of various technical, environmental, sustainable development, economic and legal objectives,
obtaining necessary permits, completion of pre-feasibility and feasibility studies, preparation of engineering
designs and the financing to fund these objectives.
Conference Call & Webcast Details
NOVAGOLD’s conference call and webcast to discuss these results will take place on April 5, 2023, at 8:00 am PT
(11:00 am ET). The webcast and conference call-in details are provided below.
Video Webcast: http://www.novagold.com/investors/events
North American callers: 1- 800-319-4610
International callers: 1-604-638-5340
NOVAGOLD’s quarterly reporting schedule for the remainder of 2023 will be as follows:
▶ Q1 2023 – A conference call and webcast will be held on Wednesday, April 5, 2023 at 11 a.m. ET / 8
a.m. PT to discuss Q1 2023 financial results.
▶ Annual Meeting of Shareholders – Thursday, May 18, 2023; the meeting will be held at 4 p.m. ET / 1
p.m. PT
▶ Q2 2023 – Tuesday, June 27, 2023; financial statements and a Donlin Gold project update will be
released after market close. A conference call and webcast will be held on Wednesday, June 28, 2023
at 11 a.m. ET / 8 a.m. PT to discuss Q2 financial results.
▶ Q3 2023 – Tuesday, October 3, 2023; financial statements and a Donlin Gold project update will be
released after market close. A conference call and webcast will be held on Wednesday, October 4,
2023 at 11 a.m. ET / 8 a.m. ET to discuss Q3 financial results.
About NOVAGOLD
NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin
Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces
www.novagold.com
Page | 8
NYSE AMERICAN, TSX: NG
NEWS RELEASE
of gold in the Measured and Indicated Mineral Resource categories, inclusive of Proven an d Probable Mineral
Reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne , in the Measured and
Indicated Resource categories on a 100% basis) 2, the Donlin Gold project is regarded to be one of the largest,
highest-grade, and most prospective known open-pit gold deposits in the world. According to the 2021
Technical Report and the S-K 1300 Report (both as defined below), once in production, the Donlin Gold project
is expected to produce an average of more than one million ounces per year over a 27 -year mine life on a 100%
basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint of the open
pit which currently covers three kilometers of an approximately eight-kilometer-long gold-bearing trend.
Current activities at the Donlin Gold project are focused on State permitting, engineering studies, community
outreach, and workforce development in preparation for the eventual construction a nd operation of this project.
With a strong balance sheet, NOVAGOLD is well-positioned to fund its share of permitting and advancement
efforts at the Donlin Gold project.
Scientific and Technical Information
Certain scientific and technical information contained herein with respect to the Donlin Gold project is derived
from the 2021 Technical Report and the S-K 1300 Report3. Henry Kim, P.Geo., Senior Resource Geologist, Wood
Canada Limited (“Wood”); Mike Woloschuk, P.Eng., VP Global Business Development & Consulting, Wood Group
USA, Inc.; and Kirk Hanson, MBA, P.E., Technical Director, Open Pit Mining, Wood Group USA, Inc. are the
Qualified Persons responsible for the preparation of the 2021 Technical Report, and each is an independent
Qualified Person as defined by National Instrument 43-101 (“NI 43-101”). Wood prepared the S-K 1300 Report.
Paul Chilson, P.E., who is the Manager, Mine Engineering for NOVAGOLD and a Qualified Person under NI 43 -
101 and under S-K 1300, has approved and verified the scientific and technical information related to the 2022
Donlin Gold project drill program, the 2021 Technical Report and the S-K 1300 Report contained in this media
release.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This media release includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning
of applicable securities legislation, including the United States Private Securities Litigatio n Reform Act of 1995. Forward-looking statements are frequently, but not
always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, an d similar expressions, or statements that
events, conditions, or results “will”, “may”, “could”, “would” or “should” occur or be achieved. Forward -looking statements are necessarily based on several opinions,
estimates and assumptions that management of NOVAGOLD considered appropriate and reasonable as of the dat e such statements are made, are subject to known
and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, activity, performance, or achievements to be materially different
from those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, included herein are forward -looking
statements. These forward-looking statements include statements regarding the anticipated timing of certain judicial and/or administrat ive decisions; the 2023
2 Donlin Gold data as per the 2021 Technical Report and the S-K 1300 Report, as defined below. Donlin Gold possesses Measured Resources of approximately 8 Mt grading 2.52 g/t
and Indicated Resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of Mineral Reserves, of which approximately 4 Mt of Measured Resources and
approximately 267 Mt of Indicated Resources inclusive of Reserves is attributable to NOVAGOLD through its 50% ownership interest in Donlin Gold LLC. Exclusive of Mineral Reserves,
Donlin Gold possesses Measured Resources of approximately 1 Mt grading 2.23 g/t and Indicated Resources of approximately 69 Mt grading 2.44 g/t, of which approximately 0.5 Mt of
Measured Resources and approximately 35 Mt of Indicated Resources exclusive of Mineral Reserves is attributable to NOVAGOLD. Donlin Gold possesses Proven Reserves of
approximately 8 Mt grading 2.32 g/t and Probable Reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis, of which approximately 4 Mt of Proven Reserves and
approximately 249 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Reserves and Resources have been estimated in accordance with NI 43-101 and S-K 1300.
3 The Company retained Wood Canada Limited (“Wood”) in 2020 to update content in its previously filed “Donlin Creek Gold Project, Alaska, USA, NI 43-101 Technical Report on the
Second Updated Feasibility Study,” effective November 18, 2011, and amended January 20, 2012. This update resulted in a report titled “NI 43-101 Technical Report on the Donlin Gold
Project, Alaska, USA” with an effective date of June 1, 2021 (the “2021 Technical Report”) and was filed on August 31, 2021. The Company is a registrant with the SEC and is reporting its
exploration results, Mineral Resources, and Mineral Reserves in accordance with Subpart 229.1300 of Regulation S-K – Disclosure by Registrants Engaged in Mining Operations (“S-K
1300”) as of November 30, 2021. While the S-K 1300 rules are similar to National Instrument 43-101 Standards of Disclosure for Mineral Projects rules in Canada, they are not identical
and therefore two reports have been produced for the Donlin Gold project. The Company requested that Wood prepare a Technical Report Summary of the Donlin Gold project, Alaska,
USA using the standards of S-K 1300 and it is titled “S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA” (“S-K 1300 Report”), current as of November 30, 2021.
Wood incorporated 2020 costs and new gold price guidance to meet the Company’s reporting requirements. The resultant 2021 Technical Report and S-K 1300 Report showed no
material change to the previously reported mineral resources or mineral reserves.