NOVAGOLD Reports Second Quarter 2022 Financial Results Donlin Gold’s Largest Drill Program in Over 10 Years Advancing in Preparation for Feasibility Work Strong Treasury of $142 Million in Cash and Term Deposits; $25 Million of Receivables in 2023
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 1
NOVAGOLD Reports Second Quarter 2022 Financial Results
Donlin Gold’s Largest Drill Program in Over 10 Years
Advancing in Preparation for Feasibility Work
Strong Treasury of $142 Million in Cash and Term Deposits;
$25 Million of Receivables in 2023
Building on the success of the 2021 drill program, drilling commenced in February 2022 with four drill rigs
operating for 34,000 meters of planned drilling. As of mid-June, more than 70% of planned drilling is
complete. The first set of assay results for this year’s program are expected to be published this summer.
The 2022 drill program continues to yield encouraging results. In 2022, under the largest budget in over a
decade, geologic modelling and interpretation work to update the resource model is underway, including
engineering activities for use in an updated feasibility study that, subject to Donlin Gold LLC Board
approval, is expected to commence in the second half of 2022.
NOVAGOLD’s robust balance sheet of $142 million in cash and term deposits as of May 31 , 2022, with
additional funds of $25 million due in July 2023 from Newmont Corporation, should be sufficient to advance
Donlin Gold to a construction decision.
June 2 9, 2022 - Vancouver, British Columbia – NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the
Company”) (NYSE American, TSX: NG) today released its 2022 second quarter financial results and an update on
its Tier One 1 gold development project , Donlin Gold, which NOVAGOLD owns equally with Barrick Gold
Corporation (“Barrick”).
Details of the financial results for the quarter ended May 31, 2022 are presented in the consolidated financial
statements and quarterly report filed on Form 10-Q on June 29, 2022 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 second quarter 2022, the following milestones were achieved at Donlin Gold:
The drill program is progressing ahead of schedule with 24,000 meters completed to date of the planned
34,000-meter drill program.
The site crew (150 employees, contractors and student interns), a majority of which are local hires from 24
Yukon-Kuskokwim (Y-K) communities in Alaska, are working on a two-week rotation schedule and
continue to advance project activities at a good pace.
In May, the Alaska Department of Environmental Conservation (ADEC)’s Division of Water upheld the 401
Certification of the Clean Water Act (CWA) which had been remanded to the ADEC on December 29, 2021,
for consideration of additional information provided by Donlin Gold.
Donlin Gold participated in and sponsored statewide events and, together with its Native Corporation
partners, Calista Corporation and The Kuskokwim Corporation (TKC), carried out a wide range of critical
support and engagement activities throughout the Y-K region. These included:
Finalizing a Shared Value Statement with Stony River, a village from the Y -K region for a total of
nine Shared Value Statements to date (Akiak, Sleetmute, Kalskag, Napaimute, Crooked Creek,
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
Napaskiak, Nikolai, Tuluksak , and Stony River ). These agreements include educational,
environmental, and social initiatives to help support villages;
Serving as a principal partner in the 50th Iditarod Race in March with mushers and their teams from
around the world participating in the 1,000-mile-long sled-dog race in Alaska, also called “The Last
Great Race”;
Holding the Lower Kuskokwim School District’s annual College and Career fair with 30 vendors and
89 students attending the virtual event;
Working with TKC to charter flights with drinking water to Red Devil, one of the local communities
on the Kuskokwim River, fo llowing a flood due to ice break -up in May that temporarily
contaminated the local water wells; and
Sponsoring multiple Y-K community events and gatherings as well as statewide events, including
the Skwentna 200 snowm obile race, the Native Youth Olympics and the Arctic Encounter
Symposium – the largest annual Arctic policy event held in the United States.
President’s Message
Donlin Gold’s Largest Drill Program in More Than 10 Years Progressing Ahead of
Schedule
The prime focus of our activities this year is to undertake a 34,000-meter drill program with tight-spaced grid
drilling as well as in-pit and ex-pit exploration; and to input the results from this drilling into the geologic
modelling and interpretation work that is being used for updated resource models. In addition to the
engineering studies being undertaken, this program will as a whole enable commencement of an updated
feasibility study. The Donlin Gold total 2022 expenditures are anticipated to be $60 million (of which
NOVAGOLD’s portion is 50%). The budget also supports the advancement of environmental activities, and
finances community and external affairs efforts.
Following the excellent results of 2021, we are encouraged by the significant drill program for 2022, with
drilling also focused on upside prospects in the ACMA and Lewis pits where drilling so far has been limited. In
the second quarter 2022, the team of 150 people at Donlin Gold are advancing drilling activities at a good
pace, with more than 70% of the planned drilling completed to date. We expect the first set of assay results
from the 2022 drill program to be issued this summer.
The health and safety of our workforce, both at NOVAGOLD and at Donlin Gold, is a priority. Both NOVAGOLD
and Donlin Gold have implemented strict safety protocols, and COVID-19 mitigation measures are still in place
at Donlin Gold to ensure the staff rotations in and out of the camp are conducted in both an efficient and safe
manner.
The 2021 drill program results are being incorporated into updated geologic and resource models as well as
mining schedules and life of mine business plans ahead of the update to the feasibility study, which is
expected to commence in 2022, subject to a formal decision by the Donlin Gold LLC Board.
Onwards and Upwards
Donlin Gold is fortunate to enjoy time-tested partnerships with Calista and TKC, owners of the mineral and
surface rights, respectively. The project’s location on private land specially designated for mining activities
through the 1971 Alaska Native Claims Settlement Act (ANCSA) constitutes a key attribute that distinguishes it
from most other mining assets in Alaska. Our longstanding commitment to meaningful tribal consultation
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 3
throughout project development and permitting has been demonstrated over decades of reliable and
dependable engagement with the community.
And it shows. Donlin Gold received its federal permits in 2018 and most of the key State permits are also in
place. This represents a tremendous achievement and the product of a substantial undertaking, over many
years, to ensure a diligent, thorough, transparent, and inclusive process for all involved – including
stakeholders from the Y-K region.
On May 16, 2022, ADEC’s Division of Water upheld the 401 Certification of the CWA which had been
remanded to the ADEC on December 29, 2021. On June 13th, 2022, Earthjustice and Orutsararmiut Native
Council (ONC) requested that the ADEC Commissioner conduct an additional adjudicatory hearing on the part
of the Division of Water’s decision related to potential water temperature effects in Crooked Creek.
In 2021, 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). On April 25, 2022, the ADNR
Commissioner denied the appeal; however, Earthjustice, ONC and five villages appealed the Commissioner’s
decision in Alaska Superior Court on May 25, 2022. A briefing schedule has not yet been set by the Court .
Donlin Gold and the owners will continue to support the State in its defense of their thorough and diligent
permitting process.
On September 20, 2021, ADNR’s issuance of the Right-of-Way (ROW) lease for the portions of the natural gas
pipeline on State lands was separately appealed in Alaska Superior Court by two parties : (1) Earthjustice
representing ONC, the native villages of Eek, Chevak, and Kwigillingok, and Cook Inletkeeper; and (2) Robert
Fithian, an adventure business owner who operates near the ROW. On April 5, 2022, Earthjustice filed its
opening brief, ADNR and Donlin Gold then filed their response briefs on June 16, 2022. Mr. Fithian filed his
opening brief on June 8, 2022, ADNR and Donlin Gold are working on their response briefs.
Donlin Gold has applied for a new air quality permit from ADEC to be in place when the extension of the
current permit expires in mid-2023. We anticipate that ADEC will issue a draft of the new permit for public
comment in the second half of 2022. We are also working with the ADNR, the U.S. Bureau of Land
Management, and our Alaska Native Corporation partners on re-locating certain public easements and ROWs
in the mine and transportation facility areas for public safety purposes. Alternate routes will be constructed
and available before any existing planned routes are closed (some of which are not passable during much of
the year). We anticipate that the proposed re-locations will be issued for public comment sometime in 2022.
Donlin Gold, working with its Native Corporation partners, continues to support the State of Alaska to advance
other permits and certificates for the project. The field work related to the issuance of the Alaska Dam Safety
certificates is expected to recommence during the second half of 2022 or the first half of 2023.
Native Corporation Participation and Consistent Community Engagement
NOVAGOLD prides itself on having been a longstanding leader in ESG. We are committed to delivering long-
term value to all our stakeholders through responsible mining, the protection of human life, good stewardship
of the environment, and adding value to the local communities in which we operate. Donlin Gold’s Native
Corporation partners, Calista and TKC, provide valuable insight about their region, way of life, culture, and
ANCSA mandate, under which the Donlin Gold lands were selected and set aside for mining activities to
promote the economic prosperity of their shareholders. As private landowners, Calista and TKC are committed
to developing a mining operation that is consistent with the Elders’ vision of responsible development – one
that creates jobs and economic benefits for the communities while mitigating impacts to the environment and
protecting local culture.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 4
In the second quarter, Donlin Gold participated in and sponsored multiple local events with Calista and TKC,
providing a wide range of critical support and engagement activities throughout the Y-K region. This
encompassed a broad array of projects including the signing of a new Shared Value Statement with Stony
River, a village in the Y-K region, for a total of nine Shared Value Statements to date (Akiak, Sleetmute,
Kalskag, Napaimute, Crooked Creek, Napaskiak, Nikolai, Tuluksak, and Stony River). In addition, we undertook
numerous educational, environmental, and social initiatives to help support villages, such as working with TKC
to charter flights with drinking water to Red Devil, one of the local communities on the Kuskokwim River,
following a flood in May as a result of the ice breakup that temporarily contaminated local water wells,
supporting the Skwentna 200 snowmobile race, and sponsoring the Lower Kuskokwim School District’s annual
College and Career fair with 30 vendors and 89 students attending the virtual event.
Additionally, Donlin Gold sponsored statewide events including the Native Youth Olympics and the Arctic
Encounter Symposium – the largest annual Arctic policy event in the United States. Donlin Gold was also the
principal sponsor of the 50th anniversary of the Iditarod, the 1,000-mile sled-dog race, often referred to as “The
Last Great Race”. This event holds a special connection with the gold rush days in Alaska and is a
reconstruction of the freight route to Nome through which much needed supplies as well as news from afar
were once delivered. In March 2022, 49 mushers and their dogs participated in the race, with numerous
volunteers and veterinarians to support and care for the mushers and dogs along the various checkpoints.
A Rare High-Quality Gold Asset in a Jurisdiction that Welcomes Responsible
Development
In our view, Donlin Gold is a rare gold development asset. The reason for such a unique status, beyond
providing investors with pure leverage to gold, lies in the project’s key attributes – namely: Size (no gold mine
ever began production with 39 million ounces in Measured and Indicated Resources, inclusive of Proven and
Probable Mineral Reserves); Scale (expected to be a million-ounce-per-year producer with a projected mine
life of at least 27 years); Low Cost (anticipated to be one of the lowest cost producers due to the high-grade
large-scale open-pit, grading 2.24 grams per tonne2 or twice the industry average for an open-pit project3);
Growth (excellent exploration potential beyond the planned 27 years of production with defined resources
located on only three kilometers of an eight-kilometer mineralized belt, which itself represents less than 5% of
the total land package); and Jurisdiction (having the good fortune of being located in Alaska, one of the
safest jurisdictions in the world, on private land specifically designated for mining by our partners Calista and
TKC).
It is our belief that Donlin Gold is poised to become the greatest gold story in the development space. We
have protected these resources, substantially de-risked Donlin Gold over many years, committed to
responsible mining, dedicated to building trust and transparency, and continuing to work to find ways to
improve and enhance the project as well as building a legacy.
2 Donlin Gold data as per the 2 021 Technical Report and S -K 1300 Report (both as defined herein). 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 2 49 Mt of Probable Reserves is attributable to NOVAGOLD. Mineral Resources and Reserves have been estimated in
accordance with NI 43-101 and S-K 1300.
3 2020 average grade of open pit and underground deposits with gold as primary commodity and over 1 Moz in measured and indicated
resources is 1.12 g/t, sourced from S&P Global Market Intelligence.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 5
Strong Balance Sheet to Undertake Donlin Gold Activities and Studies
In looking back at our successive milestones over the past decade, we are grateful to all who contributed to
our progress to date in advancing the Donlin Gold project. Having a solid treasury for more than 10 years has
afforded us the opportunity to advance our corporate strategy without going back to the market to raise
funds. With $142 million in cash and term deposits as of May 31, 2022, with $25 million due in July 2023 from
Newmont Corporation, and an additional payment of $75 million contingent upon the owners of Galore Creek
making a construction decision, we believe we have resources that are more than sufficient to advance Donlin
Gold activities up to a construction decision.
Our staunch shareholders – some of whom have provided support for well over a decade – together form an
important part of the equation. Our largest institutional investors such as Paulson & Co., Fidelity Investments,
BlackRock, the Saudi Public Investment Fund, First Eagle, and EXOR see the investment opportunity in
NOVAGOLD and clearly understand how the extraordinary gold development asset that is Donlin Gold can
provide true octane to their portfolios as the increasingly strong case for gold unfolds and gathers
momentum. The Company is very appreciative of their continued interest and commitment.
It is because of the teams of dedicated professionals at NOVAGOLD, Donlin Gold, Barrick, Native Corporation
partners Calista and TKC, contractors, and representatives from the federal and state agencies who adhere to
best practices that we can responsibly advance this important, high-quality gold asset up the value chain. We
are grateful to them all.
NOVAGOLD’s valued leadership team and Board of Directors go above and beyond in providing strategic
guidance and upholding the highest standards in environmental, financial, corporate governance and ethical
business practices, and I am so thankful for their solidarity and steadfast dedication. Together we mourned the
recent and tragic passing of our dear colleague and long-term Board member, Igor Levental, with whom I had
the great pleasure of working for well over 30 years – including at Homestake Mining Company and
International Corona Capital Corporation. He will be sorely missed, as will be his exceptional counsel,
characteristic sense of humor, and singular love of life. In many respects, our collective success has been and
shall remain one of Igor’s greatest legacies as we look forward to the future with confidence and optimism. As
our Chairman, Dr. Thomas Kaplan, wrote in a heartfelt Tribute here: “Onwards and Upwards: A Tribute to a
Cherished Friend, Igor Levental”, invoking a sentiment with which Igor would wholeheartedly agree, “Onwards
and Upwards”.
Sincerely,
Gregory A. Lang
President & CEO
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 6
Financial Results
in thousands of U.S. dollars, except for per share amounts
Three months
ended
May 31, 2022
$
Three months
ended
May 31, 2021
$
Six months
ended
May 31, 2022
$
Six months
ended
May 31, 2021
$
General and administrative expense (1) 5,371 4,992 10,548 10,321
Share of losses – Donlin Gold 8,441 4,198 12,481 6,166
Total operating expenses 13,812 9,190 23,029 16,487
Loss from operations (13,812) (9,190) (23,029) (16,487)
Interest expense on promissory note (1,684) (1,480) (3,196) (2,914)
Accretion of notes receivable 209 854 419 1,708
Other income 317 (705) 841 (784)
Net loss (14,970) (10,521) (24,965) (18,477)
Loss per share, basic and diluted (0.04) (0.03) (0.07) (0.06)
At At
May 31, 2021
$
Nov 30, 2021
$
Cash and term deposits 142,292 169,124
Total assets 178,514 198,852
Total liabilities 122,859 120,570
(1) Includes share-based compensation expense of $2,105 and $2,095 in the second quarter of 2022 and 2021, respectively, and $4,196
and $4,137 in the first six months of 2022 and 2021, respectively.
In the second quarter of 2022, Net loss increased by $4 .4 million from 2021, primarily due to the expanded
Donlin Gold work program. Lower accretion income due to the maturity of the $75 million Newmont note in
July 2021 and higher interest expense on the Barrick promis sory note was offset by foreign exchange
movements.
In the first six months of 2022, Net loss increased by $6 .5 million from 2021, primarily due to the expanded
Donlin Gold work program. Lower accretion income and higher interest expense on the Barrick promissory note
was offset by an increase in the fair market value of marketable securities and foreign exchange movements.
Liquidity and Capital Resources
In the second quarter of 2022 cash and cash equivalents decreased by $4 .8 million, primarily to fund our share
of Donlin Gold and for corporate administrative expenses, partially offset by a net $8 million received from term
deposits. The decrease in cash used in the second quarter of 2022 compared to 2021 was due to the net increase
in net proceeds received from term deposits, partially offset by the expanded Donlin Gold work program.
In the first six months of 2022 cash and cash equivalents decreased by $18.8 million, primarily to fund our share
of Donlin Gold, for corporate administrative expenses, and for withholding taxes on share -based payments ,
partially offset by a net $8 million received from term deposits. The increase in cash used in the first six months
of 2022 compared to 2021 was due to the expanded Donlin Gold work program, the timing of corporate liability
insurance payments, increased withholding tax on share -based compensation in 2022 (no cash was used for
CEO and CFO withholdings in 2021), partially offset by a net increase in net proceeds received from term
deposits.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 7
At the end of the second quarter, cash and term deposits were $142.3 million (cash $72.3 million, term
deposits $70 million). An additional payment from Newmont of $25 million comes due in 2023 related to the
sale of NOVAGOLD’s 50% interest in the Galore Creek project in 2018, along with a note receivable for $75
million contingent upon approval of a Galore Creek project construction plan by the owner(s) . At present, we
believe we have sufficient working capital available to cover anticipated funding of the Donlin Gold project
and corporate general and administrative costs until a decision to commence engineering and construction is
reached by the Donlin Gold board for the Donlin Gold project, at which point substantial additional cap ital will
be required.
2022 Outlook
We anticipate spending approximately $46 million in 2022, which includes $13 million for corporate general
and administrative costs; $3 million for withholding taxes on PSUs and other working capital; and $30 million
to fund our share of expenditures at the Donlin Gold project, including:
• $17 million for the 2022 drill program (approximately 34,000 meters of core drilling)
o Grid drilling (mineralization continuity and geologic structural controls in three areas of the
deposit)
o In-pit and ex-pit exploration
o Platform mapping to confirm mineralization continuity and key geological controls in
representative areas of the deposit
• $9 million for external affairs, permitting, environmental, land and legal activities, and
• $4 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 2022 are to continue to advance the Donlin Gold project toward a construction
decision; maintain or increase support for Donlin Gold among the project’s stakeholders; promote a strong
safety, sustainability, and environmental culture; maintain a peer-leading reputation for NOVAGOLD, its
governance practices and its project among shareholders; and manage the Company treasury effectively and
efficiently. 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, commencement of 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 July 6, 2022, at
8:00 am PT (11:00 am ET). The webcast and conference call-in details are provided below.
Video Webcast: 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 2022 will be as
follows:
Q2 2022 – Wednesday, July 6, 2022; A conference call and webcast will be held to discuss the second
quarter results at 11 a.m. ET.
Q3 2022 – Tuesday, October 4, 2022; 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 5, 2022 at
11 a.m. ET.
NYSE AMERICAN, TSX: NG
NEWS RELEASE
www.novagold.com
Page | 8
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 of gold in the Measured and Indicated Mineral Resource categories, inclusive of Proven and
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),4 Donlin Gold 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, once in production, Donlin Gold is expected
to produce an average of more than one million ounces per year over a 27-year mine life on a 100 percent
basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint which
currently covers three kilometers of an approximately eight-kilometer-long gold-bearing trend. Current
activities at Donlin Gold are focused on State permitting, optimization work, community outreach, and
workforce development in preparation for the eventual construction and operation of this project. With a
strong balance sheet, NOVAGOLD is well-positioned to fund its share of permitting and optimization
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 Report5. Henry Kim, P.Geo., Senior Resource Geologist,
Wood Canada Limited; 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, has approved and verified the scientific and technical information related to the 202 2 Donlin Gold
project drill program, the 2021 Technical Report and the S-K 1300 Report contained in this media release.
4 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 Resources
and Reserves have been estimated in accordance with NI 43-101 and S-K 1300.
5 The Company retained Wood Canada Limited (“Wood”) in 2021 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 Jun e
1, 2021 (the “2021 Technical Report”) and was filed on August 31, 2021. The Company is a registrant with the SEC and is repor ting 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, A laska,
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.