Advanced the Necessary Fieldwork, Resource Model and Trade-Off Studies to Prepare the Donlin Gold Project for the Next Phase of Development

Robust Treasury of $109 Million in Cash and Term Deposits, with $25 Million of Receivables in the Third Quarter 2023

The 2023 Donlin Gold field program which commenced in February 2023 has safely and successfully advanced ahead of schedule, with 63% of its direct hires being from the Yukon-Kuskokwim (Y-K) region.

The comprehensive fieldwork and trade-off studies will provide valuable information for the Donlin Gold LLC board and its owners to consider with respect to an updated feasibility study decision.

NOVAGOLD’s treasury remains strong with $109 million in cash and term deposits as of May 31, 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 the value chain.

VANCOUVER, British Columbia, June 27, 2023 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company”) (NYSE American, TSX: NG) today released its 2023 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, 2023, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on June 27, 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.

Second Quarter 2023 Donlin Gold Highlights:

Advanced the fieldwork and geotechnical drilling for data collection required for the Alaska Dam Safety certificates of the water retention structures (including proposed Tailings Storage Facility).
Progressed with hydrological drilling to further define the depth and flow of groundwater in the areas of the planned Donlin Gold pit and surrounding infrastructure to support mine planning and design.
Updated the resource model and advanced the trade-off studies with the data derived from recent drill programs and fieldwork at the Donlin Gold project site.
In collaboration with Calista Corporation (“Calista”) and The Kuskokwim Corporation (TKC), Donlin Gold accomplished the following in areas spanning education, health and safety, cultural traditions, and environmental initiatives:
Finalized Shared Values Statements with two villages from the Y-K region, for a total of 14;
Supported Crooked Creek, the closest village to the project site, with supplies, transportation and housing following a major flooding event caused by the Kuskokwim River during ice break-up;
Held the first informational meeting of the Subsistence Community Advisory Committee (SCAC) in Aniak with Y-K residents of varying perspectives on Donlin Gold;
Supported the annual Clean-up Green-up program for 52 Y-K villages;
Sponsored the Lower Kuskokwim School District’s annual college and career fair, which hosted 70 students and 30 vendors; and
Provided financial assistance to multiple Y-K community health and safety initiatives, including the Covenant House Alaska and Bethel Community Services, to address chronic youth shelter and food security issues.
NOVAGOLD released its third annual Sustainability Report, which features a comprehensive review of the Company’s performance in the areas of environmental stewardship, health and safety, social and community engagement, and corporate governance.
Visited Washington, D.C. with Calista and the Crooked Creek Traditional Council, to pursue bipartisan outreach to the Biden Administration and the U.S. Congress to emphasize the benefits of the project, as well as the strength of the National Environmental Policy Act and Federal permitting process undertaken for the project.
President’s Message

A Perfect Asset for an Imperfect World

With approximately 39 million ounces of gold grading 2.24 grams per tonne in the Measured and Indicated Mineral Resources, inclusive of Proven and Probable Mineral Reserves, Donlin Gold hosts one of the largest and highest-grade undeveloped open-pit gold endowments in the world. 2 As currently envisioned, the project would produce an average of 1.1 million ounces per year over its 27-year mine-life. This, in turn, enables Donlin Gold to potentially become one of the lowest-cost producers in the gold space, and we believe it possesses an extraordinary capacity to grow. Excellent exploration potential exists beyond the defined resources, which is located on only three kilometers of an eight-kilometer mineralized belt and represents less than 5% of the total land package. For all of these reasons and more, we believe that Donlin Gold is poised to become one of the greatest gold stories in the development space. Over time, and by keeping its promises to stakeholders, NOVAGOLD’s management has diligently protected these resources, substantially de-risked Donlin Gold, committed to responsible mining, dedicated both time and effort to building trust and transparency, and continuously found ways to improve and enhance the project while building a legacy.

Donlin Gold truly is among the rarest of gold development assets — a Tier 1 Asset in a Tier 1 Jurisdiction. Or, as we like to say, one that offers unique leverage to gold in a place where one can keep the fruits of that leverage. As the premier gold development project in Alaska — itself the second largest gold-producing state in one of the world’s safest jurisdictions — our project benefits from a well-established tradition of responsible mining. As such, Donlin Gold has the potential to form the cornerstone of genuine and sustainable economic development for the Y-K region for decades to come.

Steadfast Commitment to Advancing the Donlin Gold Project Up the Value Chain

Donlin Gold’s expansion of our investments and partnerships with the people and communities of the Y-K region is indicative of our commitment to advancing this exceptional project up the value chain. Indeed, the extensive and cumulative work invested into Donlin Gold to date has enhanced its value — and in the most responsible manner — to all stakeholders, Alaska residents as well as our shareholders.

In the second quarter, activities advanced in five key areas at Donlin Gold: 1) we updated the geologic and resource models with the data derived from the extensive drill programs over the last three years; 2) all key project assumptions, inputs, and design components for optimization (mine engineering, metallurgy, hydrology, and infrastructure) were subjected to extensive analysis; 3) the fieldwork and geotechnical drilling were advanced to collect the necessary data to inform the design documentation for the Alaska Dam Safety certificates required for construction, as was the hydrological drilling to further define the depth and flow of groundwater in the areas of the planned Donlin Gold pit and surrounding infrastructure to support mine planning and design; 4) the remaining permits needed for the project proceeded through the regulatory process, while existing federal and state permits are maintained and the new air quality permit is anticipated to be issued by June 30, 2023; and 5) most importantly, as social license constitutes the cornerstone of our philosophy of creating a true win-win in Alaska, we built long-term value through continued engagement with our partners and stakeholders, while sustaining and even expanding project support in the Y-K region.

The successful execution of these activities at Donlin Gold would not be possible without a dedicated team in the Anchorage office and a committed workforce at camp — of which 63% are from the Y-K region. Over the past three months, our team has safely advanced site work and maintained open and transparent communication with all the project stakeholders. Thanks to their hard work, the 2023 field program at Donlin Gold is anticipated to be completed in July.

The comprehensive work being completed will provide valuable information for the Donlin Gold LLC board and its owners to consider with respect to an updated feasibility study decision. The owners will continue to advance the Donlin Gold project in a financially disciplined manner with a particular focus on engineering excellence, environmental stewardship, a strong safety culture and continued community engagement.

Collaboration with Alaska Native Corporation Partners to Secure the Remaining State Permits

Donlin Gold continues to work closely with its Alaska Native Corporation partners, Calista and TKC, in supporting the Federal and State agencies to keep the project’s permits in good standing. Specifically, the team continues to support efforts to advance the Alaska Dam Safety certificates — with fieldwork anticipated to be completed next month.

Work on the new air quality permit based on updated air quality modeling and emissions controls information, and the regularly scheduled re-issuance of its Alaska Pollutant Discharge Elimination System (APDES) permit from the Alaska Department of Environmental Conservation (ADEC) is also underway. The new air quality permit is anticipated to be issued by June 30, 2023. ADEC has extended the existing APDES permit indefinitely until a new permit is finalized.

Two appeals of the Right-of-Way (ROW) lease for the portions of the natural gas pipeline on state lands were previously filed in Anchorage Superior Court, one by Earthjustice and Orutsararmiut Native Council (ONC) and a second by Robert Fithian, an outdoor business owner in the pipeline area. The cases have been considered by the same judge. On April 12, 2023, the Superior Court affirmed the Alaska Department of Natural Resources’ issuance of the ROW lease in the Earthjustice and ONC case. This decision has been appealed by Earthjustice to the Alaska Supreme Court. With respect to the Fithian case – a lodge owner in proximity to the proposed Donlin Gold natural gas pipeline, we anticipate a Superior Court decision by the end of the year.

On April 6, 2023, Earthjustice, together with ONC and two other Y-K villages, filed suit against the U.S. government in Anchorage federal District Court. The lawsuit asks the Court to invalidate the Joint Record of Decision, including the Clean Water Act Section 404 permit issued by the U.S. Army Corps of Engineers (“Corps”) and ROW lease for the portions of the pipeline on federal lands issued by the Bureau of Land Management of the U.S. Department of Interior. The U.S. Department of Justice (DOJ) will defend the issuance of the permits by those federal agencies. Donlin Gold and Calista have been granted intervenor status in this case.

A key distinguishing factor which sets Donlin Gold apart from many other mining assets in the United States and around the world is the project’s location on private land, specially designated for mining activities through the Alaska Native Claims Settlement Act of 1971. To date, all appeals challenging Donlin Gold permits have been unsuccessful, often on multiple occasions, and we have full confidence in the process. We do not take this for granted. Our project leadership and litigation teams have always prepared and organized accordingly for potential challenges to the federal and state permitting processes. With the steadfast advocacy of Donlin Gold and its owners, we will continue to support the agencies in the defense of what constitutes an exceptionally thorough and diligent permitting process.

Longstanding Partnerships with Regional Stakeholders are Reinforced by Ongoing Engagement

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