NOVAGOLD Reports Fiscal Year 2021 Financial Results Multiple High-Grade Intercepts Recorded at Donlin Gold’s Successful 2021 Drilling Program Additional State Permits Received Strong Cash Position Maintained The Donlin Gold project (“Donlin Gold” or the “project”) safely and successfully completed a
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 1
NOVAGOLD Reports Fiscal Year 2021 Financial Results
Multiple High-Grade Intercepts Recorded at Donlin Gold’s
Successful 2021 Drilling Program
Additional State Permits Received
Strong Cash Position Maintained
The Donlin Gold project (“Donlin Gold” or the “project”) safely and successfully completed a comprehensive
79-hole, 24,264-meter drill program in 2021 that produced multiple significant gold intercepts. The results
to date have served to support the existing global resource estimate , and the recent modelling concepts
and strategic mine planning work. To date, Donlin Gold has reported assays from approximately 15,700
meters or 65 percent of the length drilled with the balance expected in the coming months.
Donlin Gold continues to enforce strict COVID-19 protocols with established contingency plans in place to
keep employees, their families, and members of the community safe and healthy.
In November 2021, the Alaska Department of Fish and Game (ADF&G) issued two Special Area Permits
required for pipeline facilities . In December 2021, the Alaska Department of Environmental Conservation
(ADEC) approved a third extension of the air quality permit.
In July 2021, NOVAGOLD’s treasury increased following the receipt of $75 million from Newmont
Corporation (“Newmont”) in connection with the sale of NOVAGOLD’s 50 percent interest in the Galore
Creek project. The Company had $169.1 million in cash and term deposits as of November 30, 202 1, with
another $25 million due in July 2023 from Newmont.
January 26, 2022 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its 2021 year-end financial results and an update on its
Tier One1 gold development project, Donlin Gold, which NOVAGOLD owns equally with Barrick.
Details of the financial results for the year ended November 30, 2021 are presented in the consolidated
financial statements and annual report on Form 10-K filed January 26, 2022 with the SEC 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 and all mineral resource and mineral reserve estimates
are shown on a 100 percent project basis.
In 2021, NOVAGOLD achieved the following milestones:
NOVAGOLD and Barrick successfully completed the 2021 drilling at Donlin Gold:
79 core holes, upsized from the original work plan, were drilled in the ACMA and Lewis pit areas.
The total drill program encompassed 24,264 meters.
With extensive communication and the application of health and safety protocols, COVID-19 cases
at site were minimal and there were no Lost-Time Incidents.
To date, Donlin Gold has reported assays for 36 complete and 22 partial holes from the 2021 drill
program, encompassing approximately 65 percent or 15,700 meters of length drilled. Assays
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.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 2
continue to support the global resource estimate, recent modelling concepts, and strategic mine
planning work.
Donlin Gold strives to aid local communities with support and resources, particularly when health and
safety are of concern, along with other areas, such as environmental management, training and education,
as well as cultural initiatives in the Yukon-Kuskokwim (Y-K) region. Specifically, Donlin Gold worked with its
Alaska Native partners, Calista Corporation (“Calista”) and The Kuskokwim Corporation (TKC), as well as
other key representatives of Y-K communities to:
Sponsor the Calricaraq team from the Yukon-Kuskokwim Health Corporation to travel to area
villages to support residents and families who have lost loved ones to suicide – a heightened
challenge in remote villages, especially during the COVID-19 pandemic.
Partner with KSKO Radio to purchase hand-held radios for five middle Kuskokwim villages. This
initiative expands the reach of public radio to communities where internet connectivity is lacking.
Enter into a sponsorship agreement with the Alaska School Activities Association to underwrite
statewide sports.
With key Federal and State permits in hand, Donlin Gold advanced additional State permits:
In November 2021, the ADF&G issued two Special Area Permits required for pipeline facilities
located within the Susitna Flats State Game Refuge.
In December 2021, the ADEC approved a third extension of the air quality permit to June 30, 2023.
President’s Message
Donlin Gold: The Right Project, The Right Partners, The Right Place
As we start a new year, we can reflect on 2021 as a year of important achievements for the Donlin Gold
project. Despite the formidable challenges caused by a global pandemic that continues to affect our daily
lives, we reached and exceeded several milestones as we advanced Donlin Gold up the value chain. Our drill
campaign was successful not only because of the strong drill results, but also because we managed to conduct
our business with the utmost attention to the health and safety of our employees, their families, our
contractors, and visitors as well as members of the communities in which we operate. Donlin Gold delivered
many tremendous benefits to many people.
To further solidify our understanding of the structural controls on mineralization, a decision was made to
expand the parameters of the 2021 program mid-year. The ability to complete this expanded program within
the 2021 drill season was facilitated by our efficient and effective onsite team.
The original 2021 drill program plan was expanded by 13 drill holes to gather more closely spaced data to
assess the dominant controls and orientations of gold mineralization. This infill program has been instrumental
in supporting our updated ore domaining approach and will be expanded in 2022. Overall, the 2021 drill
program was designed to complete the work necessary to validate and increase confidence in recent geologic
modelling concepts to support future feasibility work. The drill program included confirmation and extension
drilling that focused on further testing of orebody continuity and structural controls, as well as data collection
for geotechnical and geometallurgical purposes. A total of 79 drill holes totaling approximately 24,264 meters
were completed in both the ACMA and Lewis deposit areas.
The assay results released to date have returned significant high-grade intercepts. They continue to support
the global resource estimate, recent modelling concepts and strategic mine planning work. Recent top
intervals include 57.25 m grading 6.87 g/t gold starting at 270.35 m drilled depth,
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 3
including a sub-interval of 4.05 m grading 18.13 g/t, starting at 288.95 m drilled depth (DC21-1976); and
19.15 m grading 12.57 g/t gold starting at 173.19 m drilled depth, including a sub-interval of 12.15 m grading
17.28 g/t, starting at 179.19 m drilled depth (DC21-1970), as per the December 1, 2021 Donlin Gold joint
media release2, final results from the 2021 drill program are expected to be disclosed in the coming months.
Largest Planned Budget in 2022 for Donlin Gold in Over a Decade
In September 2021, the combined executive team from NOVAGOLD and Barrick conducted management
review meetings with Donlin Gold LLC in Alaska. The objective was to chart a course toward advancing the
project up the value chain. As a result, the Donlin Gold LLC board approved additional funding in 2021 to
conduct specific studies and increase staffing in preparation for the 2022 work program. In addition, senior
executives met with local stakeholders as well as senior Alaska, Federal, and State government officials who
expressed their continued strong support for the project. With a progression plan in place, the necessary
groundwork was laid to prepare for a feasibility study update, subject to Donlin Gold LLC board approval.
In 2022, the proposed overall budget for the Donlin Gold LLC (100%) is set at $60 million (of which
NOVAGOLD’s portion is 50 percent). It is the largest project budget in more than a decade and is designed to:
1) update geologic modelling and interpretation work for an updated resource model and engineering
activities for use in an updated project feasibility study; 2) undertake approximately 34,000 meters of planned
technical and in-pit and below-pit exploration drilling; 3) support fieldwork and permitting for the Alaska Dam
Safety Certifications; 4) support environmental activities; and 5) support community and external affairs efforts.
Tremendous work by all was undertaken to plan the path forward for the Donlin Gold project, and we look
forward to the next phase with enormous enthusiasm.
Maintaining Stringent Health & Safety Protocols
NOVAGOLD is strongly committed to the health, safety, and well-being of its employees and their families as
well as contractors, visitors, and members of the multiple communities where we operate. Since the start of
the pandemic, we have implemented strict and rigorous health and safety protocols designed to mitigate the
spread of COVID-19 cases within our entire organization.
During our 2021 drill season, out of approximately 171,310 hours worked, we recorded four cases of
COVID-19 at the Donlin Gold project site. The affected individuals fully recovered and ultimately returned to
work. Our procedures were especially important at the time when COVID-19 cases began to rise in Alaska.
Credit must go to all our dedicated partners, in particular Calista and TKC, as well as other Tribal groups in the
Y-K region who share the objective of protecting health and safety.
Critical to Responsible Resource Development in Alaska, ANCSA Celebrates 50 Years
The Alaska Native Claims Settlement Act (ANCSA) of 1971 constituted a new approach in U.S. federal policy
toward Native people. The creation of ANCSA extinguished aboriginal land title in Alaska. It divided the State
into 12 regions and mandated the creation of 12 private, for-profit Alaska Native regional corporations and
more than 200 private, for-profit Alaska Native village corporations (ANCs). Through ANCSA, the Federal
government transferred 44 million acres, and funds to compensate for land taken, to corporate ownership by
Alaska Native shareholders under Alaska Native regional and village corporations defined by common
heritage and shared interests of the indigenous people within each geographic area.
2 Drill intercepts originally disclosed in the December 1, 2021 media release “Barrick and NOVAGOLD Agree on Next Steps Toward
Advancement of Donlin Gold; Drill Assay Results Continue to Yield High-Grade Intercepts and Demonstrate Important Grade Continuity;
With Clear Improvement in Definition of Controls of Mineralization, the Project is Advancing Towards Feasibility Study Update”
https://www.novagold.com/_resources/news/2021-12-01.pdf. Significant intervals represent drilled intervals and not necessarily true
thickness of mineralization. Mineralized intervals meet or exceed 3 meters in length above 1 g/t. A maximum of 4 meters of continuous
dilution (< 1 g/t) is permitted. g/t = grams per tonne; m = meters.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 4
The 50th anniversary of ANCSA recognizes the profound difference, over the past half century, that ANCSA
has made in creating the first socially responsible, for-profit corporations tasked with promoting social,
cultural, and economic advancement of Alaska Native shareholders, their descendants and communities, and
all of Alaska, in perpetuity. This important milestone is also an opportune time to celebrate Donlin Gold’s
Alaska Native corporation partners and the many Calista and TKC Shareholders who have worked at or are
currently working at Donlin Gold.
In September 2021, the Board of Directors of the ANCSA Regional Association – an association of the 12
Alaska Native Claims Settlement Act Regional corporations – unanimously passed a resolution in support of
the Donlin Gold project. While some of the obvious benefits of the Donlin Gold project will be to create jobs,
education, and training opportunities for Calista and TKC shareholders and their families, the resolution also
acknowledges the economic benefit to all Alaska Native Corporation shareholders. It highlights that these
gains will not just benefit the Y-K region but, pursuant to provisions under ANCSA Section 7(i) and 7(j),
“distributions from the Donlin Gold project will benefit the shareholders and families of the twelve ANCSA
regional corporations and more than 200 village corporations throughout the State of Alaska.”3.
“The early Y-K region leaders who founded Calista chose the Donlin Creek area lands under ANCSA so that
future generations of Alaska Native shareholders would own the land and use their influence to protect water,
fish, and the subsistence way of life while sustainably developing resources – all for the benefit of additional
future generations of Alaska Natives. Strict environmental oversight is the top priority of the Donlin Gold
project and is the legacy of the first Alaska Native leaders who founded Calista and chose the Donlin Creek
lands for their resource-development potential”3.
As representatives of key stakeholders in the State, the support of the ANCSA Regional Association is greatly
appreciated.
NOVAGOLD and Barrick are committed to preserving the traditional lifestyles of, and providing support to, the
Y-K communities, as well as the sustainable and responsible development of the Donlin Gold project for the
benefit of all stakeholders.
Technical Execution and Permitting with a Focus on Getting the Details Right
As reported in the third quarter, the Company retained Wood Canada Limited (“Wood”) 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 voluntarily 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 (“NI 43-101”) 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.
3 ANCSA Regional Association Resolution 21-01 “Support for Donlin Gold Mine Project” dated September 16, 2021.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 5
In late 2021, the Donlin Gold project was successful in securing a third extension of the air quality permit
issued by the State of Alaska. In addition, three permits held by Donlin Gold came under appeal. Specifically,
the State’s Clean Water Act (CWA) Section 401 certification, the 12 water rights permits, and the State Right-
of-Way (ROW) agreement for the natural gas pipeline. All the permits remain in effect during the appeal
process.
Consistent Engagement with Stakeholders
We are truly fortunate to have long-term Alaska Native partners in the Y-K region. The Donlin Gold project is
unlike most other mining assets in Alaska, or indeed, globally. The reason lies in its location on private land
that was designated for mining activities five decades ago. Alaska Native Elders realized that the land and
resources at Donlin Gold should benefit the Y-K region. Donlin Gold is a party to life-of-mine and surface use
agreements with Calista, which owns the subsurface mineral rights and some surface rights, and TKC, which
owns the surface rights. During the 2021 drill program season, 70 percent of Donlin Gold direct hires were
Alaska Natives from 20 Y-K communities. With each year that passes, the parties work more and more closely
together.
Donlin Gold sponsored the Calricaraq (“to practice good health”) team from the Yukon Kuskokwim Health
Corporation to travel to area villages to support residents and families who have lost loved ones to suicide – a
heightened challenge in remote villages, especially during the COVID-19 pandemic. This program helps
communities deal with generational trauma and find healthy ways to grieve.
In April, Donlin Gold was the primary sponsor for the Lower Kuskokwim School District’s annual College and
Career fair – a virtual event which more than 42 vendors and 100 students attended. In the fall, Donlin Gold
entered into a sponsorship agreement with Alaska School Activities Association to underwrite statewide
sports, music programs, and other activities in the Y-K region and across Alaska.
In March 2021, the Thomas Lodge in Crooked Creek near the project site suffered a major fire. The Company
provided support to repair the damage caused by the fire. The Thomas Lodge is the only lodging facility in the
village and in proximity to the project site.
Donlin Gold partnered with KSKO Radio to purchase hand-held radios for five middle Kuskokwim villages. This
initiative expands the reach of public radio to communities where internet connectivity is lacking. Every home
will now have an information source for important updates from the Y-K region, including local news and
weather updates.
Donlin Gold is a sponsor of the RurAL CAP Elder Mentor Program that connects youth with Elders in Alaska to
share their values and knowledge with younger generations and support academic engagement and school
readiness statewide.
Donlin Gold’s environment, health and safety commitment is embodied in its support of the 2021 Clean-up
Green-up program that ran throughout the summer and reached a record 50-plus Tribes and municipalities
who participated in the event. Donlin Gold held the fourth and most successful “In It For The Long Haul”
backhaul project last summer that removed approximately 180,000 pounds of hazardous and electronic waste
from 26 villages throughout the Y-K region. Over the last five years, along with community and Tribal partners,
nearly 400,000 pounds of waste were collected and removed that would otherwise end up in landfills, in
waterways, or in other areas that could be harmful to local communities.
While many initiatives are rightfully focused on the Donlin Gold project and the greater Y-K region and State
of Alaska, NOVAGOLD actively supports organizations in its local communities and in Alaska. In May,
NOVAGOLD sponsored and participated in the Mining for Miracles Pie Throw, an annual fundraising event in
support of the British Columbia (“BC”) Children’s Hospital. As CEO, I was happy to participate in this event and
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 6
help raise funds for the hospital charity. In 2021, NOVAGOLD was recognized for its outstanding contribution
to the Lotus Light COVID-19 Community Caring campaign which helped distribute over 1.25 million pounds of
hand sanitizers and wipes to thousands of organizations in BC, Ontario and overseas, as well as its financial
support of the Lotus Light Emergency Kitchen, providing care packages, disposable masks, and weekly hot
meals to Vancouver’s downtown eastside impoverished community. In December, the Company was again a
significant co-sponsor of the Homes for the Holidays fundraising event for Kids Help Phone – an initiative that
offers free, 24/7 e-mental health services to young people in Canada.
In January 2022, NOVAGOLD established the NOVAGOLD Mining and Geological Engineering Scholarship at
the University of Alaska (at UA Fairbanks and UA Anchorage) to help support and encourage undergraduate
students to seek bachelor’s degrees in Mining or Geological Engineering, with a focus on supporting
underrepresented students. This scholarship is one way NOVAGOLD is taking action to foster diversity.
Leverage in a Place where You Can Keep the Rewards
The NOVAGOLD story is refreshingly straightforward with an established senior partner in Barrick, advancing
what we view as one of the industry’s best development opportunities, Donlin Gold, in a great jurisdiction,
Alaska.
With approximately 39,000,000 ounces of gold in measured and indicated mineral resources grading
2.24 grams per tonne4 (twice the industry average for an open-pit project5), Donlin Gold is a unique pure gold
play. Already considered one of the industry’s top open-pit high-grade deposits with a mine life measured in
decades – and positioning itself to be one of the world's largest new gold mines – among Donlin Gold’s key
differentiators is its safe location on private land owned by Alaska Native Corporations in Alaska, a Tier One
jurisdiction6 where the rule of law is respected. Clean, simple, stable leverage in a place where one can keep
the rewards of that leverage.
Donlin Gold is also blessed with enormous exploration upside potential. Its current mineral reserves and
mineral resources are contained within only three kilometers of an eight-kilometer mineralized belt – itself
representing a mere five percent of the property package. In an environment characterized by few new
discoveries greater than five million ounces, decreasing average gold grades, and few late-stage projects of
scale, particularly in safe geo-political jurisdictions, we believe that Donlin Gold is truly “best in breed”.
That is why, with its 50 percent ownership in Donlin Gold, NOVAGOLD stands out as a cornerstone investment
for some of the most knowledgeable investors in the sector. We are grateful to have a group of long-term
shareholders who understand the rare pure gold play opportunity that NOVAGOLD represents, including
Paulson & Co., Fidelity Investments, First Eagle, EXOR, BlackRock, VanEck, The Saudi Public Investment Fund,
and The Vanguard Group, among others.
4 Donlin Gold data as per the 2021 Technical Report (as defined herein). Donlin Gold 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
50% are attributable to NOVAGOLD through their 50% ownership interest in the joint venture that owns th e mineral rights and manages
the Donlin property. 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, each of which 50% are attribut able to NOVAGOLD. Mineral resources have
been estimated in accordance with NI 43-101.
5 2020 average grade of open pit and underground deposits with gold as primary commodity and over 1 Moz in measured and indicat ed
resources is 1.12 g/t, sourced from S&P Global Market Intelligence.
6 NOVAGOLD considers Tier One jurisdictions to be any in the top 10 rank by the Investment Attractiveness Index in the Fraser I nstitute
Annual Survey of Mining Companies, 2020. Alaska is ranked number 5.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 7
Prudent Fiscal Management
For the past decade, NOVAGOLD has been disciplined about its committed stewardship of fiduciary
responsibilities toward shareholders. The Company has been well-financed and hasn’t needed to fundraise in
the markets since it last raised equity in January 2012. The intent was then, as it is now, to ensure that
NOVAGOLD is well-financed to be advanced up the value chain. The Company’s strong financial position of
$169 million in cash and term deposits as of November 30, 2021, emanates from this well-executed strategy
aimed at enhancing the value of Donlin Gold for our shareholders with minimal share dilution.
In July 2021, the Company received $75 million from Newmont in connection with the sale of NOVAGOLD’s
50 percent interest in the Galore Creek project in British Columbia. NOVAGOLD received $100 million upon
closing, another $75 million July 2021, and another $25 million is due in July 2023. Total consideration for the
transaction is up to $275 million, with an additional payment of $75 million contingent upon the owners of
Galore Creek making a construction decision.
A patient, methodical, and value-building approach – together with strength in partnerships – have been a
hallmark of NOVAGOLD and its management, a group that has been working together as a cohesive team for
the past decade. Looking back on the major achievements and milestones of 2021, I wish to thank the
experienced team of professionals at NOVAGOLD, Barrick, and Donlin Gold – as well as the drilling contractor
teams and other support service contractors – for their steadfast commitment to safety at the Donlin Gold
project while faced with the continued and ever-shifting challenge that COVID-19 presents to us all. At the
local, regional, and national level, the close and mutual support from our Native Corporation partners – Calista
and TKC – continues to reinforce and guide responsible project development and address the needs of the
landowners.
I appreciate the dedication of my colleagues on the NOVAGOLD Board for their enthusiastic support,
energized engagement, steadfast commitment to best governance practices, and the desire to constantly
improve and refine our approaches with the goal of improving outcomes. It is a pleasure to serve alongside
you. My gratitude also goes to the various State agencies for their diligent and professional work
and adherence to well-established regulatory procedures.
Despite travel restrictions and the inability to meet face-to-face for most of the year, NOVAGOLD not only
retained its largest shareholders, but many increased their shareholdings in the last quarter. We are humbled
by the trust you have placed in us and grateful for your encouragement and willingness to engage as the
teams work together to enhance the value of the Donlin Gold project.
While 2021 was an exceptional year and represents yet another positive turning point for NOVAGOLD and for
the Donlin Gold project, 2022 offers even greater milestones with the largest project budget in more than a
decade and a path forward as the owners approach the launch of an updated feasibility study. We will
continue our efforts to deliver on the strategy to increase shareholder wealth in a safe and socially responsible
manner. I wish you good health and safety.
Sincerely,
Gregory A. Lang
President & CEO
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 8
Financial Results
in thousands of U.S. dollars, except for per share amounts
Year ended
November 30, 2021
$
Year ended
November 30, 2020
$
General and administrative expense (1) 20,210 18,735
Share of losses – Donlin Gold 16,625 14,502
Total operating expenses 36,835 33,237
Loss from operations (36,835) (33,237)
Interest expense on promissory note (5,922) (6,014)
Accretion of notes receivable 2,556 3,337
Other income, net (198) 1,569
Income tax recovery (expense) (137) 781
Net loss (40,536) (33,564)
Loss per share, basic and diluted
(0.12)
(0.10)
At
November 30, 2021
$
At
November 30, 2020
$
Cash and term deposits 169,124 121,906
Total assets 198,852 224,441
Total liabilities 120,570 113,714
(1) Includes share-based compensation expense of $8,235 and $7,057 for the year-ended November 30, 2021 and 2020, respectively.
During the fourth quarter of 2021, we incurred a net loss of $10.3 million compared to a net loss of $7 million
for the comparable period in 2020. The increase in net loss primarily resulted from lower accretion income on
Newmont Corp. notes receivable in 2021; activity at Donlin Gold extended into the fourth quarter of 2021; a
provision for remediation of the former New Gold House mineral property near Nome, Alaska in 2021; and the
recovery of income taxes in 2020 due to the filing of a consolidated income tax return for U.S. subsidiaries.
Net loss increased from $33.6 million ($0.10 per share) in 2020 to $40.5 million ($0.12 per share) in 2021,
primarily due to the higher permitting and legal costs related to appeals filed on various State of Alaska
permits and completion of assays from the 2020 drill program in 2021, and higher share-based compensation
expense resulting from higher amortization of stock options and performance share units (PSUs). Interest
income decreased by $1.3 million due to lower interest rates earned on cash and term deposits, partially offset
by higher cash balances due to the receipt of $75 million from Newmont on July 27, 2021; a remediation
provision expense adjustment for the historic former New Gold House property near Nome, Alaska; lower
accretion on notes receivable due to the maturity of the $75 million note receivable; and a recovery of
deferred income taxes in 2020 resulting from the Company’s decision to file a consolidated U.S. income tax
return for its U.S. subsidiaries commencing with the fiscal year ended November 30, 2020. The increase in
expenses was partially offset by favorable foreign exchange movements and a gain on the sale of our interest
in the San Roque mineral property in Argentina.