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Novagold may13pres

  2. 2. NYSE-MKT, TSX: NG2www.novagold.comCAUTIONARY STATEMENTSREGARDING FORWARD-LOOKING STATEMENTSThis presentation includes certain “forward-looking statements” within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of1995. All statements, other than statements of historical fact, included herein including, without limitation, statements relating to Donlin Gold’s and Galore Creek’s future operating orfinancial performance, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “plans”, “expects”, “anticipates”,“believes”, “intends”, “estimates”, “potential”, “possible” and similar expressions, or statements that events, conditions or results “will”, “may”, “could”, or “should” occur or be achieved.These forward-looking statements are set forth in the slides pertaining to the implementation of the Donlin Gold second updated feasibility study and the Galore Creek Pre-FeasibilityStudy. Froward-looking statements may include statements regarding perceived merit of properties; exploration results and budgets; mineral reserves and resource estimates; workprograms; capital expenditures; timelines; strategic plans; completion of transactions; market price of precious base metals; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differmaterially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations include the uncertainties involving theneed for additional financing to explore and develop properties and availability of financing in the debt and capital markets; uncertainties involved in the interpretation of drilling resultsand geological tests and the estimation of reserves and resources; the need for continued cooperation between NOVAGOLD and Barrick Gold in the exploration and development of theDonlin Gold property; between NOVAGOLD and Teck Resources Ltd. in the exploration and development of the Galore Creek property; the need for cooperation of governmentagencies and native groups in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction and mining projects such asaccidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recoveryrates; unexpected cost increases; fluctuations in metal prices and currency exchange rates; and other risk and uncertainties disclosed in reports and documents filed by NOVAGOLDwith applicable securities regulatory authorities from time to time. The forward-looking statements made herein reflect management’s beliefs, opinions and projections on the date thestatements are made. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, shouldthey change.REGARDING SCIENTIFIC AND TECHNICAL INFORMATIONUnless otherwise indicated, all reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 Standards ofDisclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (“CIMDefinition Standards”). Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), andreserve and resource information in this presentation may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of theforegoing, the term “resource” does not equate to the term “‘reserves”. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has beenmade that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC’s disclosure standards normally do notpermit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount ofmineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. U.S. investors should also understand that “inferred mineralresources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an“inferred mineral resource” will ever be upgraded to a higher category. Under Canadian rules, estimated “inferred mineral resources” may not form the basis of feasibility or pre-feasibilitystudies except in rare cases. Investors are cautioned not to assume that all or any part of an “inferred mineral resource” exists or is economically or legally mineable. Disclosure of“contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute“reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same asthose of the SEC, and reserves reported in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits setforth herein may not be comparable to information made public by companies that report in accordance with United States standards.
  3. 3. NYSE-MKT, TSX: NG3www.novagold.comTier 1 Projects – Exceptional in Scale, Quality and Jurisdictional SafetyTHE NOVAGOLD OPPORTUNITYDonlin Gold▸ In terms of combined size, grade,exploration potential, productionprofile and jurisdictional safety,Donlin Gold is arguably the mostimportant undeveloped goldproject in the world▸ Permitting commenced in Q3/12Galore Creek▸ If placed into production, as perthe latest Pre-Feasibility Study,would be the largest and lowestcash cost copper mine in Canada▸ Pursuing divestiture to funddevelopment of Donlin Gold
  4. 4. NYSE-MKT, TSX: NG4www.novagold.com80% Institutional OwnershipTHE NOVAGOLD OPPORTUNITYTop Shareholders 1Electrum Strategic Holdings, L.L.CPaulson & Co. Inc.The Baupost Group, L.L.C.Vinik Asset Management, L.P.Fidelity Management & ResearchCompanySolid.▸ Significant High Grade Reserves▸ Excellent Exploration Potential▸ Experienced Management TeamSecure.▸ Healthy Balance Sheet▸ Jurisdictional SafetyGolden.▸ Committed to Shareholder Value▸ Superior Leverage to Gold1) Shareholder positions are based on the latest 13-F filingsInstitutional Quality Investment
  5. 5. NYSE-MKT, TSX: NG5www.novagold.com2013 GOALS AND MILESTONESFocused on Advancing Our Projects On Time and On BudgetQ2 - 13Q1 - 13Donlin Gold permitting updateQ4/13Donlin Gold cost reduction opportunities updateQ4/13Galore Creek resource updateQ3/13Reduced convertible debt by $72.8M1Q2/13 Completed public scoping for Donlin Gold EISQ2/13Appointed Richard Williams VP Engineering & Developmentstrengthening technical expertiseQ1/13Galore Creek exploration drill resultsQ1/13Received $54.0 M proceeds from in the money warrantsQ1/131) Outstanding Convertible Notes mature on May 1, 2015. The holders of the Notes had the right to require the Company to repurchase all or part of their Notes on May 1, 2013 (“put option”)
  6. 6. NYSE-MKT, TSX: NG6www.novagold.comLocated in Alaska, 2nd largest gold producing state in U.S.Poised to be world’s largest gold producer, one of only six >1Moz/yearExcellent expansion potential along strike & at depthAmong the highest grade large-scale open-pit depositsTHE RIGHT PROJECT – DONLIN GOLDArguably the World’s Most Significant Gold ProjectLargest gold project in development
  7. 7. NYSE-MKT, TSX: NG7www.novagold.com39.025.819.016.514.65.7--51015202530354045Donlin Gold Detour Lake Metates Livengood Rosia Montana Kibali (open pit)M&IAuResources(Moz)DONLIN GOLD: THE LARGEST DEVELOPMENT-STAGE GOLD DEPOSITFeasibility Study in Place and Permitting UnderwaySource: Donlin Gold data as per Donlin Creek Gold Project Alaska, USA, NI 43-101 Technical Report on Second “Updated Feasibility Study”, effective November 18, 2011, as amendedJanuary 20, 2012 (the “updated feasibility study”). Measured and Indicated resources are inclusive of Proven and Probable reserves. See “Cautionary Note Concerning Reserve & ResourceEstimates” and “Reserve & Resource Base” with footnotes in the appendix. RBC peer group data based on large, open pit, gold focused development projects.LOCATION: USA CANADA USA D.R. CONGOROMANIAMEXICO
  8. 8. NYSE-MKT, TSX: NG8www.novagold.com2.242.181.301.040.550.50--0.501.001.502.002.50Donlin Gold Kibali (open pit) Rosia Montana Detour Lake Livengood MetatesM&IAuGrade(g/t)DONLIN GOLD: AMONG HIGHEST-GRADE DEPOSITS IN THE WORLDLarge-Scale Open-Pit Gold DevelopmentSource: Donlin Gold data as per the updated feasibility study. Measured and Indicated resources are inclusive of Proven and Probable reserves. See “Cautionary Note Concerning Reserve & ResourceEstimates” and “Reserve & Resource Base” with footnotes in the appendix. RBC peer group data based on large, open pit, gold focused development projects.D.R. CONGOLOCATION: ROMANIA USAUSA CANADA MEXICO“The biggest dangerto the gold industryis that over the last10 years it has notbeen able to replaceits reserves at asimilar quality.The reserve gradehas halved over thelast 10 years.”Mark Bristow
  9. 9. NYSE-MKT, TSX: NG9www.novagold.comDONLIN GOLD: SUBSTANTIAL EXPLORATION POTENTIALMultiple Drill Prospects and Targets Exist Along 8km Trend1) See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.▸ Future mine situated in 3kmsegment of 8km mineralizedtrend▸ Over the last six years, themineral endowment has morethan doubled▸ Located largely on private land,selected by Native corporationsfor its mining potential▸ Gold-bearing drill holes alongthe 8km trend▸ Exploration upside:• In-pit resource conversion• In-pit/deep-pit exploration• Near-pit targets (East ACMA,Akivik Zone and Snow)• Area resource potential3km = 39 Moz M&I (including 34 Moz P&P), 6 Moz Inferred1
  10. 10. NYSE-MKT, TSX: NG10www.novagold.comDONLIN GOLD: ANTICIPATED TO BE TOP-TIER PRODUCERBy Far the Largest Evolving Gold Producer from Existing ProjectsSource: Donlin Gold data: updated feasibility study. Measured and Indicated resources are inclusive of Proven and Probable reserves. See “Cautionary Note Concerning Reserve & ResourceEstimates” and “Reserve & Resource Base” with footnotes in the appendix. RBC peer group data based on large, open pit, gold focused development projects.1) Projected annual gold production during first five full years of mine life2) Projected annual gold production during full life of mineLOMAverageAnnualAuProduction(Moz)LOCATION: USA CANADA USAD.R. CONGO ROMANIAMEXICO1.1020.760.660.600.560.511.5010.000.200.400.600.801.001.201.401.60Donlin Gold Metates Detour Lake Kibali (open pit) Livengood Rosia Montana
  11. 11. NYSE-MKT, TSX:“Large-Scale Quality Assets” Raising the Question “Where in the World Are You?”JURISDICTIONAL SAFETY BECOMING THE “EXISTENTIAL” INVESTMENTCRITERION▸ Accelerated industry focus on jurisdictional safety and resource nationalism inmany of the largest gold and copper-producing countries▸ Governments in Mongolia, Kyrgyzstan, Peru, Indonesia, Ghana as well asQuebec (Canada) have all stated their intentions to seek higher mining taxesand royalties▸ Civil and labor unrest in South Africa and Greece with countries looking to getan increased stake in mining companies▸ Very limited number of quality assets in low geo-political risk jurisdictions• Recently highlighted regions/countrieswith heightened geopolitical riskDONLINGOLD
  12. 12. NYSE-MKT, TSX: NG12www.novagold.comOnly Six Projects in the World are Slated to Produce >1Moz/yearMINES THE SIZE OF DONLIN GOLD ARE SCARCESource: RBC1) Based on 2012 actual production where available, excludes Newmont’s Nevada operations that consist of multiple mines. Analysis includes life of mine data for Donlin Gold2) If put into production as contemplated by the updated feasibility study156 MINES>100 Koz21 MINES>500 Koz8 MINES>800 Koz6 MINES/Projects>1 MozMURUNTAUUzbekistanCORTEZUSAYANACOCHAPeruGOLDSTRIKEUSAPUEBLO VIEJODominican RepublicDONLIN GOLDUSA▸ 1.5 Moz/year in first five full years2▸ 1.1 Moz/year LOM22 MINES & 1 PROJECT1Located in North America, a safejurisdictionDonlin Gold: only undeveloped assetin this category1
  13. 13. NYSE-MKT, TSX: NG13www.novagold.comMAJOR DISCOVERIES ARE INCREASINGLY RARESource: Metals Economics Group – Strategies for Gold Reserves Replacement 2012Note: Major gold discoveries based on a cut off of 2 M/oz of gold in total reserves, resources and past production (or atleast 1 M/oz in defined reserves)Very Few and No Easy Quality Development Assets LeftSignificantdecline in golddiscoveriessince 2006Gold reservesare being minedout at a high rate
  14. 14. NYSE-MKT, TSX: NG14www.novagold.comTHE CLIMATE OF DECLINING GRADE AND ESCALATING COSTSDonlin Gold Has Among the Highest Grade for an Open-Pit DepositSource: GFMS Mine Economics, LBMA, World Gold Council1) 2002-2004 data set includes primary gold mines only, 2005 onwards, includes porphyry copper gold mines2) Includes exceptional itemsDonlin Gold2.24 g/t averageM&I grade2Mined grade1Grade, g/t Cost US$/oz02004006008001,0001,2000. 2003 2004 2005 2006 2007 2008 2009 2010 2011Total cash cost Depreciation Exploration & sustaining capex Other and administrativeReserve grade“Reserve grade aredown 50% over 10years negativelyimpactingproduction costand capex whichhave tripled in thesame time period”Pierre Lassonde,DGF 2012Mining36%above reserve grade
  15. 15. NYSE-MKT, TSX: NG15www.novagold.comTHE PRODUCTION CLIFF – AN INEVITABLE PHENOMENONDonlin Gold Project to Come into Play at a Key Time for the IndustrySource: National Bank Financial – The Gold Production Cliff; Industry Congestion Part 3, January 31, 2013.Note: Based on Company Reports, NBF Estimates1) Projected annual gold production during first five full years of mine life as per the updated feasibility study▸ 2017 onward, material declines in gold production across the industry▸ Project queue & discovery frequency inadequate to replace production,creating a supply-demand disequilibrium in goldDonlin Gold expected to commence production 1.5M oz Au/yr1
  16. 16. NYSE-MKT, TSX: NG16www.novagold.comRESERVE BURN RATELarge depositsrapidly depletingreservesThe industryneeds largemines to sustainproduction levelsLarge Development Projects are Needed to Maintain Current Production LevelsNote: Based on public filings and websites. Annual production figures represent 2012 annual production for public peers and steady-state production estimate for Donlin Gold as per the most recentupdated feasibility study. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.2012 Attributable RecoverableP&P Reserves (Moz.)17.2 49.6 45.1 43.9 65.3 79.9 114.52012 Attributable AnnualProduction (Moz.)0.7 2.0 2.4 2.4 3.9 5.0 7.4Years26241918171615051015202530NOVAGOLD Goldfields Kinross Goldcorp Anglogold Ashanti Newmont Barrick
  17. 17. NYSE-MKT, TSX: NG17www.novagold.comDONLIN GOLD: POISED TO BE WORLD’S BIGGEST GOLD MINEExpected Production Rivals 10 Largest Existing Gold MinesSource: 2012 production figures based on public filings and websites1) Projected annual gold production during first five full years of mine life as per the updated feasibility study.2) Projected annual gold production during full life of mine as per the updated feasibility study.3) Project 2013 gold production disclosed in Barrick Gold’s press release dated 02/14/13.See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.Gold(M/oz)LOCATION:1.1021.371.351.170.9630.910.770.75 0.720.65 0.630.580.000.200.400.600.801.001.201.401.60Donlin Gold Cortez Yanacocha Goldstrike Pueblo Viejo Grasberg Mine Veladero Lagunas Norte Boddington The Super Pit West Wits Vaal River11.50USA USA PERU USA DOMINICANREPUBLICINDONESIA ARGENTINA PERU AUSTRALIA AUSTRALIA SOUTHAFRICASOUTHAFRICA
  18. 18. NYSE-MKT, TSX: NG18www.novagold.comDONLIN GOLD▸ First 5 full years of production at cash cost of US$409/oz, acceleratingpayback▸ Processing costs include power generation and natural gas delivery▸ Industry average 2012A cash cost is US$738/ozArea US$/ozOpen-pit mining1 228Processing 257G&A, royalties, land & other2 100Total $585Area US$/ozOpen-pit mining1 133Processing 208G&A, royalties, land & other2 68Total $409Life of Mine Cash CostsFirst Five Years Cash CostsSource: Donlin Gold estimates as per the most recent updated feasibility study. Global gold mining total cash operating costs1) Net of deferred costs2) Based on US$1,200/oz gold priceSource: 2012 actual global gold mining total cash operating costs as per Metals Economics Group, GFMS Mine Economics, RBC Capital MarketsProjected to be Among the Low Cost Producers
  19. 19. NYSE-MKT, TSX:$10,000)($5,000)$0$5,000$10,000$15,000$20,000$25,000$30,00020122013201420152016201720182019202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046CumulativeNetCashFlow(US$millions)$1,200/oz Au $1,500/oz Au $1,700/oz Au $2,000/oz Au $2,500/oz Au$6,025$11,459$14,444$19,075$26,803~4.5xleverageNetCashFlow(millions)DONLIN GOLD IS EXPECTED TO GENERATE SUBSTANTIAL CASH FLOWSSignificant Leverage to Gold & Fast Payback at a Broad Range of Gold PricesAll Amounts in US DollarsRich Ore Body With a 27-Year Mine Lifeand Extensive Exploration UpsideSource: updated feasibility study.
  20. 20. NYSE-MKT, TSX: NG20www.novagold.comDONLIN GOLD HAS EXCEPTIONAL LEVERAGE TO GOLDNPV Increases ~20x with ~2x Increase in Gold PriceAll amounts in US dollarsSource: updated feasibility study. All dollar figures are in USD and reflect after-tax net present value (at a 0% and 5% discount rates) of the Donlin Gold project as of 1/1/2014. At a 5% discount rate,the net present value is: $547 m @ $1,200 gold; $3,147m @ $1,500 gold; $4,581 m @ $1,700 gold; $6,722 m @ $2,000 gold; and $10,243 m @ $2,500 gold. Project development costs prior to1/1/2014 are treated as sunk costs. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.$6.2B$11.6B$14.6B$19.2B$27.0B05,00010,00015,00020,00025,00030,000$1,200 $1,500 $1,700 $2,000 $2,500NPV(US$inmillions)Gold Price (US$)NPV at 5% NPV at 0%
  21. 21. NYSE-MKT, TSX: NG21www.novagold.comRight Project, Location & Stakeholders Should Lead to Orderly PermittingTHE RIGHT LOCATION – ALASKA▸ Alaska is the second largest State▸ Five major gold producing minesand counting▸ Natural resource projects integralto the State’s economy▸ Strong commitment toresponsible mining▸ Donlin Gold has no proximity tomajor population areas; locatedon private land selected byNative corporations for its miningpotential▸ Strong and time-testedcommunity support
  22. 22. NYSE-MKT, TSX: NG22www.novagold.comTHE RIGHT STAKEHOLDERSJurisdictional Safety is More Than Geographic LocationCommitted Stakeholders▸Calista Corporation▸The Kuskokwim Corporation“Calista supports responsible resourcedevelopment…the Donlin Gold projectpresents us with an opportunity fortremendous economic potential right inour Region.”– June MacAtee, Calista Corporation VP
  23. 23. NYSE-MKT, TSX: NG23www.novagold.comCONVENTIONAL MINING AND MILLING PROCESSWell Tested and Available Technology
  24. 24. NYSE-MKT, TSX: NG24www.novagold.comDONLIN GOLD: STANDARD TECHNOLOGYWell Established Mining and Mineral Processing MethodologyDonlin Gold Pueblo ViejoCapital Expenditures US$6.7B1 ~US$4.0B2Location Alaska, US Sanchez Ramirez, Dominican RepublicMining Method Open Pit Open PitProject Status Permitting Commercial OperationTotal M&I Resources(inclusive of reserves)39.0 Moz 36.3 MozNameplateDesign Throughput (tpd)53,500 24,000M&I Grade (g/t) 2.24 2.41Expected Average Annual Production(oz)1,500,000 3 1,042,000 – 1,125,000 3Processing Method Flotation/Autoclaving/Leaching Autoclave/Leaching/Ag/Cu RecoveryNumber of Autoclaves 2 medium 4 largeKey Infrastructure Natural gas pipeline/Power plantOxygen plantPower plant and Transmission Line/Oxygen plant/Lime KilnMine Life 27 years 25 yearsSource: updated feasibility study, company documents, public filings and websites. Measured and indicated resources are inclusive of Proven and Probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates”and “Reserve & Resource Base” with footnotes in the appendix.1) Capital expenditure shown on a 100% project basis2) Capital expenditure of US$3.7B disclosed in Barrick Gold’s press release dated 01/15/13, plus a net incremental cost of approximately US$300M for the power plant3) Production expected for first full five years of operation
  25. 25. NYSE-MKT, TSX: NG25www.novagold.comDONLIN GOLD PUBLIC COMMENT PERIOD12-07-26▸ U.S. Army Corps of Engineers (the “Corps”) launched website for the EISproject:▸ Public scoping is 2nd phase of the EIS process▸ Important opportunity to ask questions, identify concerns and offer ideasrelated to the proposed project and its environmental effects▸ Helps shape the direction of the EIS analysis▸ Donlin Gold public comment period (Dec. 14/12 - March 29/13)▸ 13 public meetings in villages/communities in Western Alaska andAnchorage▸ Very well attended with knowledgeable audience and overall positivefeedback on the Project▸ The Corps received constructive comments that will be beneficial indeveloping a robust EIS▸ Public scoping summary document will be available on the EIS website▸ Principal focus is the development of an environmentally responsible Projectdesign, and spending significant time working with communities in the regionCommunication on all Levels is a Core Value
  26. 26. NYSE-MKT, TSX: NG26www.novagold.comDONLIN GOLD PERMITTING PROCESSRegulatory Process Currently Focused on Environmental Impact Statement (“EIS”)Impacts Discussed in the EIS• Hydrology• Air & Water Quality• Noise• Wetlands• Cumulative Impacts• Cultural Resources• Visual Resources• Recreation, Safety & Feasibility• Fish & Aquatic Habitat• Wildlife• Socioeconomics• Threatened & Endangered Species• Land Use and SubsistenceWhat is the Permitting Process?Concurrent with and supported by the EIS process, the Federal andState regulatory agencies will consider all of the required permits andauthorizations for the project.PublicScopingEnded03/29/13Permitting Process ~3-4yearsWhat is an EIS?A disclosure document that is partof the regulatory process and ledby the U.S. Army Corps ofEngineers that provides theagencies and the public withinformation needed to makepermitting decisions on the projectDraft EISFinalEIS/PermitIssuancePreliminaryDraft EISPublicCommentPeriodNotice ofIntentSubmitted12/14/122012 2016Record ofDecisionsubject to30-DayAppealPeriodPermitApplicationsSubmitted08/12
  27. 27. NYSE-MKT, TSX: NG27www.novagold.comDONLIN GOLDWell Positioned to Reduce Capex by Sharing Upfront Costs with Third PartiesAreas US$M Capital Reduction OpportunitiesMining 345 Leasing equipment ~$170MSite preparation/roads 236Process facilities 1,326 Oxygen plant could be built by third party ~$130MTailings 120Utilities 1,302Ancillary buildings 304Off-site facilities 243Total Direct Costs 3,876Owners’ cost 414Indirects 1,405Contingency 984 Healthy ContingencyTotal Indirect &Contingency2,803Total Project Cost 6,679 >$1B potential capital reductionsGas pipeline could be built by third party ~$700M
  28. 28. NYSE-MKT, TSX: NG28www.novagold.comPotential Capex Reduction from $6.7B1 to $5.7B (amounts in US dollars)~$1B in Contingency based on updated feasibility study1) Represents 100% of capital expenditures to be shared equally with co-owners Barrick Gold Corporation2) Utilities include process facilities (ie: oxygen plant) and utilities (ie: power plant & gas pipeline)3) Ancillary Infrastructure/Mining: site preparation, roads, tailings, ancillary buildings and off-site facilitiesDONLIN GOLDHealthy Contingency Represents 17% Total CapexCapitalExpenditures$4.7BContingency$984MCapitalExpendituresReductionOpportunities~$1.0BOpportunities Include:- Third-party built gas pipeline- Third-party built oxygen plant- Leasing mining equipmentProcess/Utilities2$2.6BAncillaryInfrastructure/Mining3 $1.2BOwners Cost$414MIndirect $1.4BContingency$984M
  29. 29. NYSE-MKT, TSX: NG29www.novagold.comGALORE CREEKProjected to be Largest Copper Mine in a Mining-Friendly Jurisdiction, CanadaLocation BC, CanadaMining Method Open PitOwners 50/50 (NG/TCK)P&PReserves 1, 2Copper 6.8 Blb 0.6%Gold 5.45 Moz 0.32 g/tSilver 102 Moz 6.0 g/tM&I Resources1, 3 Copper 8.9 Blb 0.5%Gold 8.0 Moz 0.3 g/tSilver 136 Moz 5.2 g/t1) See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.2) P&P: Proven and Probable reserves3) M&I: Measured and Indicated resources inclusive of Proven and Probable reserves▸ Once in production, as envisioned by the Pre-Feasibility Study, GaloreCreek is expected to be the largest and lowest cash cost copper minein Canada
  30. 30. NYSE-MKT, TSX: NG30www.novagold.comGALORE CREEKHigh-Grade Mineral Inventory in a Safe, Mining-Friendly Jurisdiction17. (M&I) Copper (Inf) Gold (M&I) Gold (Inf)BillionsofCuLbs.MillionsofAuOz.71.4 89.7 64.01) Represents 100% of Galore Creek, of which NOVAGOLD owns 50%, and 100% of Copper Canyon, of which NOVAGOLD owns 70%.Source: Metals Economics Group, company websites, and NOVAGOLD. Peer projects were selected on the basis of their primary copper endowment and are ranked by the size of their MI&I copper resources.Measured and Indicated resources include Proven and Probable Reserves. See “Cautionary Note Concerning Reserve and Resource Estimates” and “Reserve and Resource Table” with footnotes.Project Name Pebble KSM GaloreCreek1El Morro Prosperity Mt. MilliganGrade Cu (%) 0.41% 0.20% 0.48% 0.53% 0.24% 0.18%Grade Au (g/t) 0.35 0.51 0.31 0.56 0.41 0.32Grade Ag (g/t) N/A 2.94 5.18 N/A N/A N/AOwner(s)• N. Dynasty(50%)• Anglo-American(50%)• Seabridge(100%)• NOVAGOLD(50%)• Teck (50%)• Goldcorp(70%)• New Gold(30%)• Taseko(100%)• ThompsonCreek (100%)Location USA Canada Canada Chile Canada Canada
  31. 31. NYSE-MKT, TSX: NG31www.novagold.comGALORE CREEK2012 Drilling Program Extended Mineralization Substantially Beyond Pit Limit▸ Completed 27,873-meter drilling program▸ Significant intercepts, including 86 meters grading 1.31%Cu and 0.46g/t Au, leadto the discovery of the new Legacy zone, a 700-meter long mineralized zone,currently open in all directions and adjacent to the Central Pit▸ Results expected to increase resources and enhance the mine plan
  32. 32. NYSE-MKT, TSX: NG32www.novagold.comGALORE CREEKWell Positioned to Update Resource Model and Improve Overall Economics▸ NOVAGOLD continues to consider the potential sale of its share of Galore Creek whileenhancing its value through exploration and technical studies on a reduced budget▸ 2013 work and exploration program▸ Update resource model with 2012 drill results in Q3-2013▸ Drilling to define the extent of the Legacy mineralization, and assess its impact onfuture mine design
  33. 33. NYSE-MKT, TSX:$24$15$18$15$16$8$44$21$5$3- 2NOVAGOLD’S FUTURE FINANCIAL OBLIGATIONS HAVE DECREASEDSUBSTANTIALLYHighlights:▸ US$220M in cash and cash equivalents1▸ US$22.2M outstanding convertible debt22013:▸ Donlin Gold Q1-2013 spendingUS$2.4M (NOVAGOLD 50%-share)▸ Galore Creek Q1-2013 spendingUS$0.7M (NOVAGOLD 50%-share)▸ Administrative expenses US$3.5M andworking capital US$2.6M US$(Millions)1) Cash and cash equivalents as of May 2, 20132) The Notes mature on May 1, 2015. Interest on the remaining Notes will amount to$1,219,845 per year for the next two years.3) 2013 anticipated budget expenditure disclosed on February 12, 20134) Assumed full repayment of US$95M in convertible notesClear Focus Begins with Strong Funding to Execute on All Fronts2013 Budget3NovaCopper Galore CreekG&A and MiscellaneousDonlin GoldRock CreekInterest42012 Actual62 %Reduction
  34. 34. NYSE-MKT, TSX: NG34www.novagold.comTHE NOVAGOLD TEAMGregory A. LangPresident & CEO▸ Former President of Barrick Gold North America▸ 35 years experience building & operating major mines▸ Intimate knowledge of Donlin GoldDavid DeisleyExecutive Vice President andGeneral Counsel▸ Former EVP and General Counsel of Goldcorp▸ Regional General Counsel for Barrick Gold North America▸ Extensive track record in project permitting, corporate social responsibility,mergers and acquisitions and corporate development▸ 25 years of mining industry experienceDavid OttewellVice President and ChiefFinancial Officer▸ Former VP and Corporate Controller of Newmont Mining Corporation▸ 25 years of mining industry experience▸ Diverse experience in all facets of financial management, from mine operationsto executive corporate financial management of premier gold producersMélanie HennesseyVice President, CorporateCommunications▸ Held variety of senior IR & corporate communication positions with GoldcorpInc., New Gold Inc., and Hecla Mining Company▸ Leading NOVAGOLD’s internal and external communications functionsRon RimelmanVice President, Environment,Health, Safety & Sustainability▸ 25 years of environmental experience, managing environmental impactassessments and permitting activities world-wide▸ Leadership role on mine permitting and NEPA evaluations for mine projects inAlaska since 1993Richard WilliamsVice President, Engineeringand Development▸ Former Project Director for the Pueblo Viejo project in the Dominican Republic▸ 30 years of experience developing and operating major mines world-wide▸ Particular expertise in autoclave technologyMANAGEMENTSenior Industry Leaders to Bring Donlin Gold through Permitting and Beyond
  35. 35. NYSE-MKT, TSX: NG35www.novagold.com2013 - AN EXCITING YEAR AHEADNOVAGOLD Well Positioned to Deliver on All Corporate ObjectivesFocused on advancingDonlin Gold up thevalue chainA simplified corporate structureresulting in reduced ongoingexpendituresExperienced team andcommitted stakeholdersrepresent the right foundationto execute on all frontsStrong cash balance to takeDonlin Gold through expected3-4 years of permitting
  36. 36. NYSE-MKT, TSX: NG36www.novagold.comNOVAGOLD is well on its way to becoming the top pick for institutional goldstocks thanks to our top quality assets located in North America.We provide a near-ground-level entry into a growth-oriented pure gold playpoised to deliver superior returns for decades to come.Our share value reflects the price of gold, which gives investors greatleverage in a secular bull market in gold.We have broad community support. Native corporations and First Nationsare important stakeholders in our projects.We have a strong balance sheet and sufficient funds to take us through the3-4 year permitting process for Donlin Gold and to satisfy corporate needs.1A Well Managed, Strongly Sponsored Way to Gain Extraordinary Leverage to a Rising GoldPrice in a Safe Country Where you Can Keep the Fruits of that LeverageWHY NOVAGOLD? WHY NOW?2345
  37. 37. NYSE-MKT, TSX: NG37www.novagold.comAPPENDIX
  38. 38. NYSE-MKT, TSX: NG38www.novagold.comSHARE CAPITALIZATIONIssued andoutstanding316.6MOptions Fullydiluted116.8M 333.4MAs of February 28, 2013.1) Fully diluted number excludes convertible notes. The Convertible notes (“Notes”) - The holders of the Notes have the right to require the Company torepurchase all or part of their Notes upon certain fundamental corporate changes at a price equal to 100% of the principal amount of such Notes plus anyaccrued and unpaid interest.
  39. 39. NYSE-MKT, TSX: NG39www.novagold.comRISING GOLD DEMAND ACROSS ALL SECTORSA Once Concentrated Global Demand is Now DiversifiedSource: Bloomberg, CPM Group, LBMA, World Gold Council
  40. 40. NYSE-MKT, TSX: NG40www.novagold.com050100150200250$30080 90 95 00 01 02 03 04 05 06 07 08 09 10 11 12e 13pLoans Government Debt Securities Private Debt Securities Equity Securities Investor Gold Holdings Investor Silver HoldingsGOLD SIGNIFICANTLY UNDERINVESTEDInvestor Gold Holdings Among World Financial Assets Are NegligibleWorld Financial Assets Including Gold, May 2012Source: McKinsey & Co., IMF, CPM GroupUS$ Trillion
  41. 41. NYSE-MKT, TSX: NG41www.novagold.comUNCONVENTIONAL MONETARY POLICY DRIVE INVESTMENT INTO GOLD▸ Inflation risk:Increase in money printing could be a catalyst for higher inflation in the future, a likelypositive for gold investment▸ Weakened currency:Gold is typically transacted using its US-dollar price as a reference, gold provides ahedge against domestic currency debasement▸ Crisis and sharp market pull backs:Historically, gold has proven to be an effective diversifier acting as a hedge against fallsin equity and credit markets▸ Low interest rate environment:Households must save greater sums of money to pay obligations, causing a shift intoinvestments in real assets that will provide long-term securityFour Key Factors Why One Should Invest in GoldSource: World Gold Council
  42. 42. NYSE-MKT, TSX: NG42www.novagold.comPROJECT OVERVIEW▸ Donlin Gold LLC is the operating company▸ 50/50 ownership by NOVAGOLD and Barrick Gold▸ Board of Directors has two representatives from each company> Chairman rotates every year> Each company has the right to appoint the Donlin Gold General Manager everytwo years▸ Operates under agreements with Alaska Native Claims Settlement Act (ANCSA)landowners▸ Calista Corporation (Subsurface minerals and surface lease)▸ The Kuskokwim Corporation (Surface use agreement)▸ Project office in Anchorage> 40 full-time employees and 32 contractors▸ Strong track record for local hiringAdvancing Donlin Gold Up the Value Chain
  43. 43. NYSE-MKT, TSX: NG43www.novagold.comPROJECT HIGHLIGHTSReserves: 33.9 Moz Au (~500M tons ore)1Resources: 5.1 Moz M&I (excluding P&P) and 6.0 Moz Inferred1Mine Life: ~27 yearsProduction: Year 1-5,1.5 Moz/year; LOM,1.1 Moz/yearOperation: Open-pit, conventional truck & shovelMilling: 59k short tons/day, sulfide flotation, pressure oxidation (POX),Carbon-in-Leach recovery (CIL)Strip ratio: ~5.5:1 = ~3B tonnes waste rockTailings: Fully lined storage facilityPower: ~150MW, supplied by 313-mile, natural-gas pipelineLogistics: All consumables supplied by Kuskokwim River transportationsystem with port near Jungjuk Creek1) See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve and Resource Base” table with footnotes.Donlin Gold Slated to be a State-of-the-Art Significant Mine
  44. 44. NYSE-MKT, TSX: NG44www.novagold.comENSURING A SMOOTH PERMITTING PROCESSA Team with Strength, Knowledge, Experience and Understanding• One of the most robust environmental baseline databases• Strong support and NEPA experience from Barrick Gold and NOVAGOLD• Team in place that has “been there, done that” in Alaska and throughout the U.S.• Alaska has a rigorous and clearly defined permitting process• Good reputation and local support• Early project briefings and open communication with regulatory agencies• Consistent communication with and input from local communities throughout the region• Strive for “responsible development,” bringing benefits and positive impacts to theregion• Based in Alaska, with comprehensive understanding of State’s issues and concerns• Integration of permitting requirements in formulating project design concepts• Deep roots in the State and community with more than 16 years on the ground at DonlinGoldStrengthKnowledgeExperienceUnderstanding
  45. 45. NYSE-MKT, TSX: NG45www.novagold.comSITE LAYOUTThe Property Lends Itself Well to Compact Project Layout
  46. 46. NYSE-MKT, TSX: NG46www.novagold.comDONLIN GOLD TIMELINEKey PermittingResponsibilitiesState: Air, Water,Dam Safety,Waste Management,Reclamation PlanApproval, Rights of Way,Cultural ResourcesFederal: Wetlands,Rights of Way,Wildlife Consultations,Environmental ImpactStatementConstructionHighlights:▸ Two open pits▸ Pressure oxidation plant▸ Milling circuit▸ 27-mile road▸ 5,000-foot runway▸ Two port facilities▸ Permanent camp (600 beds)▸ Construction camp (2,500 beds)▸ ~40-million gallon diesel storageProduction~1.5 millionounces/yearfor first 5 years,followed by~1.1 millionounces/year27-year mine lifeSmall Percentage Of Time Invested Considering Mine Life Measured In Decades
  47. 47. NYSE-MKT, TSX: NG47www.novagold.comDONLIN GOLD PERMITTING PROCESSClear Steps Outlined and Good Working Relationship at State & Federal LevelsState FederalAK Department ofNatural ResourcesAK Department ofEnvironmentalUS Army Corpsof EngineersUS EnvironmentalProtection AgencyBureau of LandManagementWater DischargeReclamation Air QualityFish HabitatWasteManagement WetlandsRight of WayEssential Fish HabitatMarine Mammal ProtectionAgenciesPermits/ApprovalsPipelineUS Fish andWildlife ServiceAK Department of Fish & GamePermitting Process is Approximately 3-4 yearsNational Marine Fisheries Service
  48. 48. NYSE-MKT, TSX: NG48www.novagold.comDONLIN GOLD KEY PERFORMANCE INDICATORSGold PriceUnit $1,000/oz $1,200/ozBase Case$1,700/oz $2,000/oz $2,500/ozAverage annualafter-tax cash flow(first full five years)$M 670 950 1,500 1,785 2,185Average annualafter-tax cash flow (LOM)$M 350 500 815 990 1,275NPV (5%) after-tax1 $M (1,340) 550 4,580 6,720 10,240NPV (0%) after-tax1 $M 2,100 6,200 14,620 19,250 26,975IRR after-tax1 % 2.3 6.0 12.3 15.1 19.1Payback period Years 19.1 9.2 5.3 4.4 3.5Source: updated feasibility study. All dollar figures are in USD and reflect after-tax net present value (at a 0% and 5% discount rates) of the Donlin Gold Project as of 1/1/2014. At a 5%discount rate, the net present value is: $547 m @ $1,200 gold; $4,581 m @ $1,700 gold; $6,722 m @ $2,000 gold; and $10,243 m @ $2,500 gold. Project development costs prior to that dateare treated as sunk costs. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix.All amounts in US dollars1) NPVs and IRRs as at January 1, 2014. Project development costs prior to that date are treated as sunk costs.Robust Economics Highly Leveraged to Gold Prices
  49. 49. NYSE-MKT, TSX: NG49www.novagold.comNOVAGOLD BOARD OF DIRECTORSDr. Thomas S. KaplanChairmanChairman and CEO of The Electrum Group LLC, a privately held natural resourcesinvestor that controls a diversified portfolio of precious and base metals assetsSharon DowdallFormer Chief Legal Officer and Corporate Secretary with Franco-Nevada, transforming anindustry pioneer into one of the most successful precious metals enterprises in the worldDr. Marc FaberPublishes a monthly investment newsletter entitled The Gloom, Boom & DoomReport and is the author of several booksGreg LangPresident & CEOFormer President of Barrick Gold North America, 35 years experience building &operating major mines with intimate knowledge of Donlin GoldGil LeathleyCOO and Director of Sunward Resources, former Senior Vice President and ChiefOperating Officer of the CompanyIgor LeventalPresident of The Electrum Group LLC, former VP of Homestake Mining and InternationalCorona Corp.Kalidas Madhavpeddi Former Executive with Phelps DodgeGerald McConnell Former Chairman and CEO of NovaGold, CEO of Namibia Rare Earths Inc.Clynton Nauman CEO of Alexco Resources, formerly with Viceroy Gold and Kennecott MineralsRick Van Nieuwenhuyse CEO of NovaCopper, founder and former CEO of NovaGoldAnthony P. WalshFormer President and Chief Executive Officer of Miramar Mining Corporation, which in2007 was sold to Newmont Mining Company.
  50. 50. NYSE-MKT, TSX: NG50www.novagold.comDONLIN GOLD MANAGEMENT TEAMStanley FooPresident/GeneralManager30+ years mining industry experience in exploration, mine geology, operations management, project managementand permitting; 12 years mine operations experience in NV including superintendent roles at Cortez and Bald Mtn;15 years in Alaska in project management and permitting; Previous Project Manager roles with Donlin 1997-99,2005-2007, served on Donlin Gold LLC board 2008-2010.James FuegStudy ManagerLed Donlin Gold’s recent feasibility studies and coordinates all engineering and technical work for project;20+ years experience in mining, exploration and environmental science; 16 years in Alaska; at Donlin since 2004.Robert Nick EnosEnvironmental andPermitting ManagerLeads permitting and environmental management for project; primary contact for reg. agencies; 20 yearsexperience in Alaska in geology, environmental science and permitting management; Previous experienceincludes Greens Creek, Calista Corp., as environmental/permitting consultant; Joined Donlin in 2005.Kurt ParkanExternal AffairsManagerLeads Donlin Gold’s community affairs, communications, government relations and corporate social responsibilityfunctions; Nearly 30 years public affairs experience in Alaska; Previous roles: External Affairs Director of NatureConservancy of Alaska, Deputy Commissioner for Alaska Department of Transportation and Public Facilities,Special Assistant to the Governor, Legislative Aide and as staff for Alaska House of Representatives FinanceCommittee.Meg DayHuman ResourcesManager22 years human resources experience in the mining industry including 17 years in Alaska; Served in varioussenior management positions in Alaska, Utah and Washington and has been involved in the start up of severalmines. Serves on Alaska Miners Association HR Committee, Society of HR Management and Advisory Boardmember of University of Alaska.Jan HalsteadAdministrative andFinance Manager25+ years accounting and financial analysis experience in construction, investment, telecommunications;Responsible for growth and development of Accounting, Administration, Purchasing and Contract functions forDonlin Gold LLC.
  51. 51. NYSE-MKT, TSX: NG51www.novagold.comNOVAGOLD RESERVE/RESOURCE TABLEAt April 30, 2012Donlin Gold (NOVAGOLD 50%)Galore Creek (NOVAGOLD 50%)GOLDTonnageMtGrade*g/tMetal contentMozNOVAGOLD share**MozReserves (100%)1Proven 7.7 2.32 0.57 0.29Probable 497.1 2.08 33.28 16.64P&P 504.8 2.09 33.85 16.93Resources (100%)3 inclusive of reservesMeasured 7.7 2.52 0.63 0.31Indicated 533.6 2.24 38.38 19.19M&I 541.3 2.24 39.01 19.50Inferred 92.2 2.02 5.99 3.00COPPERTonnageMtGrade*%CuMetal contentMlbsNOVAGOLD share**MlbsReserves (100%)2Proven 69.0 0.61 900.0 450.0Probable 459.1 0.58 5,900.0 2,950.0P&P 528.0 0.59 6,800.0 3,400.0Resources (100%)4 inclusive of reservesMeasured 108.4 0.48 1,147.0 573.5Indicated 706.3 0.50 7,786.0 3,893.0M&I 814.7 0.50 8,933.0 4,466.5Inferred 346.6 0.42 3,230.0 1,615.0GOLDMt g/t Moz MozReserves (100%)2Proven 69.0 0.52 1.15 0.58Probable 459.1 0.29 4.30 2.15P&P 528.0 0.32 5.45 2.73Resources (100%)4 inclusive of reservesMeasured 108.4 0.48 1.70 0.85Indicated 706.3 0.28 6.40 3.20M&I 814.7 0.31 8.00 4.00Inferred 346.6 0.24 2.70 1.35SILVERMt g/t Moz MozReserves (100%)2Proven 69.0 4.94 11.0 5.5Probable 459.1 6.18 91.2 45.6P&P 528.0 6.02 102.2 51.1Resources (100%)4 inclusive of reservesMeasured 108.4 4.10 14.30 7.15Indicated 706.3 5.38 122.10 61.05M&I 814.7 5.21 136.40 68.20Inferred 346.6 4.28 47.73 23.87
  52. 52. NYSE-MKT, TSX: NG52www.novagold.comRESERVE/RESOURCE TABLE (CON’T)Resources (100%)5,6 Tonnage Grade* Metal content NOVAGOLD share**COPPER Mt %Cu Mlbs MlbsInferred 53.7 0.50 592.0 414.4GOLD Mt g/t Moz MozInferred 53.7 0.73 1.26 0.88SILVER Mt g/t Moz MozInferred 53.7 10.60 18.36 12.85Copper Canyon (NOVAGOLD 70%)t = metric tonneM = milliong/t = grams/tonne* Reserve grade is diluted; resourcegrade is in situ.** NOVAGOLD share net after earn-insApproximate cut-off grades (see Resource Footnotes below):Donlin Gold Reserves1: 0.57 g/t goldResources3: 0.46 g/t goldGalore Creek Reserves2: C$10.08 NSRResources4: C$10.08 NSRCopper Canyon Resources5,6: 0.6% copper equivalent
  53. 53. NYSE-MKT, TSX: NG53www.novagold.comRESERVE/RESOURCE TABLE (CON’T)Notes:a. These resource estimates have been prepared in accordance with NI43-101 and the CIM Definition Standard, unless otherwise noted.b. See numbered footnotes below on resource information.c. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal contentd. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial poundsResource Footnotes:Mineral Reserves are contained within Measured and Indicated pit designs, and supported by a mine plan, featuring variable throughput rates, stockpiling and cut-off optimization. The pit designs and mine plan were optimized on diluted grades using the following economic and technical parameters: Metal price forgold of US$975/oz; reference mining cost of US$1.67/t incremented US$0.0031/t/m with depth from the 220 m elevation (equates to an average mining cost of US$2.14/t), variable processing cost based on the formula 2.1874 x (S%) + 10.65 for each US$/t processed; general and administrative cost of US$2.27/tprocessed; stockpile rehandle costs of US$0.19/t processed assuming that 45% of mill feed is rehandled; variable recoveries by rock type, ranging from 86.66% in shale to 94.17% in intrusive rocks in the Akivik domain; refining and freight charges of US$1.78/oz gold; royalty considerations of 4.5%; and variable pitslope angles, ranging from 23º to 43º. Mineral Reserves are reported using an optimized net sales return value based on the following equation: Net Sales Return = Au grade * Recovery * (US$975/oz – (1.78 + (US$975/oz – 1.78) * 0.045)) - (10.65 + 2.1874 * (S%) + 2.27 + 0.19) and reported in US$/tonne. Assumingan average recovery of 89.54% and an average S% grade of 1.07%, the marginal gold cutoff grade would be approximately 0.57 g/t, or the gold grade that would equate to a 0.001 NSR cutoff at these same values. The life of mine strip ratio is 5.48. The assumed life-of-mine throughput rate is 53.5 kt/d.Mineral Reserves are contained within Measured and Indicated pit designs using metal prices for copper, gold and silver of US$2.50/lb, US$1,050/oz, and US$16.85/oz, respectively. Appropriate mining costs, processing costs, metal recoveries and inter ramp pit slope angles varing from 42º to 55º were used togenerate the pit phase designs. Mineral Reserves have been calculated using a cashflow grade ($NSR/SAG mill hr) cut-off which was varied from year to year to optimize NPV. The net smelter return (NSR) was calculated as follows: NSR = Recoverable Revenue – TCRC (on a per tonne basis), where: NSR = NetSmelter Return; TCRC = Transportation and Refining Costs; Recoverable Revenue = Revenue in Canadian dollars for recoverable copper, recoverable gold, and recoverable silver using metal prices of US$2.50/lb, US$1,050/oz, and US$16.85/oz for copper, gold, and silver, respectively, at an exchange rate ofCDN$1.1 to US$1.0; Cu Recovery = Recovery for copper based on mineral zone and total copper grade; for Mineral Reserves this NSR calculation includes mining dilution. SAG throughputs were modeled by correlation with alteration types. Cash flow grades were calculated as the product of NSR value in $/t andthroughput in t/hr. The life of mine strip ratio is 2.16.Mineral Resources are contained within a conceptual Measured, Indicated and Inferred optimized pit shell using the following assumptions: gold price of US$1,200/oz; variable process cost based on 2.1874 * (sulphur grade) + 10.6485; administration cost of US$2.29/t; refining, freight & marketing (selling costs) ofUS$1.85/oz recovered; stockpile rehandle costs of US$0.20/t processed assuming that 45% of mill feed is rehandled; variable royalty rate, based on royalty of 4.5% * (Au price – selling cost). Mineral Resources have been estimated using a constant Net Sales Return cut-off of US$0.001/t milled. The Net Sales Returnwas calculated using the formula: Net Sales Return = Au grade * Recovery * (US$1200/oz – (1.85 + ((US$1200/oz – 1.85) * 0.045)) - (10.65 + 2.1874 * (S%) + 2.29 + 0.20)) and reported in US$/tonne. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not havedemonstrated economic viability. Inferred Resources are in addition to Measured and Indicated Resources. Inferred Resources have a great amount of uncertainty as to their existence and whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred Resources will everbe upgraded to a higher category. See "Cautionary Note Concerning Reserve & Resource Estimates".Mineral resources are contained within a conceptual Measured, Indicated and Inferred optimized pit shell using the same economic and technical parameters as used for Mineral Reserves. Tonnages are assigned based on proportion of the block below topography. The overburden/bedrock boundary has beenassigned on a whole block basis. Mineral resources have been estimated using a constant NSR cut-off of C$10.08/t milled. The Net Smelter Return (NSR) was calculated as follows: NSR = Recoverable Revenue – TCRC (on a per tonne basis), where: NSR = Diluted Net Smelter Return; TCRC = Transportation andRefining Costs; Recoverable Revenue = Revenue in Canadian dollars for recoverable copper, recoverable gold, and recoverable silver using silver using the economic and technical parameters mentioned above. The mineral resource includes material within the conceptual M,I&I pit that is not scheduled for processingin the mine plan but is above cutoff. Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are in addition to Measured and Indicated Resources. Inferred Resources have a great amount of uncertaintyas to their existence and whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred Resources will ever be upgraded to a higher category. See "Cautionary Note Concerning Reserve & Resource Estimates".The copper-equivalent grade was calculated as follows: CuEq = Recoverable Revenue ÷ 2204.62 * 100 ÷ 1.55. Where: CuEq = Copper equivalent grade; Recoverable Revenue = Revenue in US dollars for recoverable copper, recoverable gold and recoverable silver using metal prices of US$1.55/lb, US$650/oz, andUS$11/oz for copper, gold, and silver, respectively; for the purposes of the equivalency formula, Cu Recovery is assumed to be 100%. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Inferred Resources are in addition to Measured and Indicated Resources. InferredResources have a great amount of uncertainty as to their existence and whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred Resources will ever be upgraded to a higher category. See "Cautionary Note Concerning Reserve & Resource Estimates".NOVAGOLD Canada Inc. has agreed to transfer its 60% joint venture interest in the Copper Canyon property to the Galore Creek Partnership, which is equally owned by NOVAGOLD Canada Inc. and a subsidiary of Teck Resources Limited. The remaining 40% joint venture interest in the Copper Canyon property isowned by another wholly owned subsidiary of NOVAGOLD.Cautionary Note Concerning Reserve & Resource EstimatesThis summary table uses the term “resources”, “measured resources”, “indicated resources” and “inferred resources”. United States investors are advised that, while such terms are recognized and required by Canadian securities laws, the United States Securities and Exchange Commission (the “SEC”) does notrecognize them. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Mineral resources that are not mineral reservesdo not have demonstrated economic viability. United States investors are cautioned not to assume that all or any part of measured or indicated resources will ever be converted into reserves. Further, inferred resources have a great amount of uncertainty as to their existence and as to whether they can be minedlegally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist, or that they can be mined legally or economically. Disclosure of“contained ounces” is permitted disclosure under Canadian regulations, however, the SEC normally only permits issuers to report “resources” as in place tonnage and grade without reference to unit measures. Accordingly, information concerning descriptions of mineralization and resources contained in this releasemay not be comparable to information made public by United States companies subject to the reporting and disclosure requirements of the SEC.NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this circular have been prepared inaccordance with NI 43-101 and the CIM Definition Standards.Technical Reports and Qualified PersonsThe documents referenced below provide supporting technical information for each of NOVAGOLDs projects.Project Qualified Person(s) Most Recent Disclosure & Filing DateDonlin Gold Tony Lipiec, P. Eng., AMEC Donlin Creek Gold ProjectGordon Seibel R.M. SME, AMEC Alaska, USAKirk Hanson P.E., AMEC NI 43-101 Technical Report on Second updated feasibility study amended filing on January 23, 2012Galore Creek Robert Gill, P.Eng., AMEC Galore Creek Copper–Gold Project,Jay Melnyk, P.Eng., AMEC British Columbia, NI 43-101 Technical Report on Pre-Feasibility Study,Greg Kulla, P.Geo., AMEC filed on September 12, 2011Greg Wortman, P.Eng., AMECDana Rogers, P.Eng., Lemley InternationalHeather White, B.Sc., P.Eng., who is a consultant to NOVAGOLD and a “qualified person” under NI 43-101, has approved the scientific and technical information included in this section related to: (i) Donlin Gold since the issuance of the technical report filed on January 23, 2012, and (ii) Galore Creek since theissuance of the technical report filed on September 12, 2011.
  54. 54. NYSE-MKT, TSX: NG54www.novagold.comCONTACT USNOVAGOLD RESOURCES INC.200 Granville St., Suite 2300Vancouver, BCCanada V6C 1S4T 604 669 6227 TF 1 866 669 6227 F 604 669 6272www.novagold.cominfo@novagold.comMélanie HennesseyVP, Corporate Communicationsmelanie.hennessey@novagold.comErin O’TooleAnalyst, Investor