DONLIN CREEK

Feasibility study, the Donlin Creek mine has been designed as a year-round, open-pit operation with plant start-up anticipated for 2015. With the current 29.3 million ounce gold reserve base, the anticipated life of mine of 21 years with a mill throughput of 53,500 tonnes per day. During the first five full years, production averages 1.6 million ounces with an average total cash cost of $394/oz. The lowest 25th percentile for current global industry total cash costs is approximately $400/oz. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually at an average total cash cost of $444/oz. Life of mine production is estimated at an average of 1.25 million ounces of gold annually, for total recovered gold of 26.2 million ounces. These production levels would make Donlin Creek one of the world's largest gold producing mines. It is expected that the Donlin Creek ores will be processed by crushing and milling followed by flotation, pressure oxidation and CIL recovery. Total gold recovery is expected to average 89.5 per cent, based on the combined life-of-mine average recovery of 92.6 per cent from flotation and 96.6 per cent from pressure oxidation of the concentrate. The process plant design uses the most current technology for both the process systems and equipment selection. Particular attention was paid to incorporating state-of-the-art technology for safety and environmental protection. The Donlin Creek mine is expected to draw an average of 127 megawatts of electrical power sourced from a combination of on-site combined cycle gas turbine generators and wind co-generation. In an effort to optimize energy costs and reduce environmental impact, an average of 7.5 per cent of annual energy requirements is expected to come from 14 wind turbine generators. Key infrastructure for the mine includes a port on the Kuskokwim River, an access road connecting the port to the mine site, an airstrip, camp accommodations, the mine and plant site area, the tailings facility, and supporting turbine generator and wind power facilities. Cargo and supplies would be shipped on ocean barges to a port on the Kuskokwim River, barged up river and then transported via truck along the 123-kilometer access road to the mine site. News Update

NovaGold Resources Inc. has completed a feasibility study for its Donlin Creek project. Highlights (100 per cent project basis): Proven and probable reserves estimated at 29.3 million ounces of contained gold; Twenty-one-year life of mine at 53,500 tonnes per day throughput.

NovaGold Resources completed a feasibility study for its Donlin Creek project in Alaska, USA. The Donlin Creek project is owned equally by NovaGold and Barrick Gold U.S. and operated by Donlin Creek LLC, a jointly owned limited liability company. The Donlin Creek mine, once built, is expected to be one of only a handful of gold mines worldwide that is capable of producing over one million ounces of gold annually. The mine has twenty-one-year life of mine at 53,500 tonnes per day throughput. In the first five years of production, an average of 1.6 million ounces of annual gold production is anticpated with total cash costs of $394/oz gold. At current $900/oz gold, pretax net cash flow is $5.9-billion and net present value of cumulative cash flow (NPV, 5% discount rate) is $1.5-billion with an IRR of 9.4%.