GALORE CREEK

NovaGold Resources announced that it has entered into an agreement with Teck Cominco to amend certain provisions of the Partnership Agreement relating to the Galore Creek project. The agreement confirms that NovaGold and Teck each continue to hold a 50% interest in the Galore Creek Partnership. Under the amended agreement Teck will now fund 100% of Galore Creek costs until the aggregate amount contributed by Teck after November 1, 2008, together with approximately C$15.8 million previously contributed by Teck on optimization studies equals C$60 million.

Reported during the fourth quarter of 2008 the optimization study for the Galore Creek project was completed. Due to the present economic situation the decision was made not to proceed with updating the final feasibility based upon the results of the optimization study, but rather place the Galore Creek site on care and maintenance. Continued road work during 2008 connected portions of the access road to kilometer 40 to allow surplus equipment to be driven out. Eventual completion of the road to kilometer 90 will improve access to the project and reduce construction costs when the project can be restarted, largely eliminating the need for helicopter support. Galore Creek will continue to maintain and improve the infrastructure at site until a new construction decision is made.

Teck Cominco Ltd. (TSX:TCK.B) said it will decide later this year if it will go ahead with the Galore Creek gold-silver project in British Columbia, halted after costs more than doubled to about $5 billion.
(See Canadian Press: Teck says decision on continuation of Galore Creek to be made this fall )