RDCCONFERENCE
TSX,NYSEAmerican:NG|novagold.com|Nov14-15,2018
CAUTIONARYSTATEMENTS
2AlldollaramountsquotedinthisreportareinU.S.currencyunlessotherwisenoted.
REGARDINGFORWARD-LOOKINGSTATEMENTSThispresentationincludescertain“forward-lookinginformation”and“forward-lookingstatements”(collectively“forward-lookingstatements”)withinthemeaningofapplicablesecuritieslegislation,includingtheUnitedStatesPrivateSecuritiesLitigationReformActof1995.Allstatements,otherthanstatementsofhistoricalfact,includedherein,including,withoutlimitation,statementsregardingthepermitting,potentialdevelopment,exploration,constructionandoperationofDonlinGoldandstatementsrelatingtoNOVAGOLD’sfutureoperatingandfinancialperformanceandproductionestimatesareforward-lookingstatements.Forward-lookingstatementsarefrequently,butnotalways,identifiedbywordssuchas“expects”,“anticipates”,“believes”,“intends”,“estimates”,“potential”,“possible”,“poised”,andsimilarexpressions,orstatementsthatevents,conditions,orresults“will”,“may”,“could”,“would”or“should”occurorbeachieved.Theseforward-lookingstatementsmayalsoincludestatementsregarding;explorationpotentialofDonlinGold;anticipatedminelife;perceivedmeritofproperties;anticipatedpermittingtimeframes;explorationanddrillingresultsandbudgets;mineralreserveandresourceestimates;workprograms;capitalexpenditures;timelines;strategicplans;benefitsoftheproject;marketpricesforpreciousmetals;orotherstatementsthatarenotstatementsoffact.Forward-lookingstatementsinvolvevariousrisksanduncertainties.Therecanbenoassurancethatsuchstatementswillprovetobeaccurate,andactualresultsandfutureeventscoulddiffermateriallyfromthoseanticipatedinsuchstatements.
ImportantfactorsthatcouldcauseactualresultstodiffermateriallyfromNOVAGOLD’sexpectationsincludetheuncertaintiesinvolvingunexpectedcostincreases,whichcouldincludesignificantincreasesinestimatedcapitalandoperatingcosts;theneedforadditionalfinancingtoexploreanddeveloppropertiesandavailabilityoffinancinginthedebtandcapitalmarkets;uncertaintiesinvolvedintheinterpretationofdrillingresultsandgeologicaltestsandtheestimationofreservesandresources;theneedforcontinuedcooperationwithBarrickGoldCorporationforthecontinuedexplorationanddevelopmentoftheDonlinGoldproperty;theneedforcooperationofgovernmentagenciesandnativegroupsinthedevelopmentandoperationofproperties;risksofconstructionandminingprojectssuchasaccidents,equipmentbreakdowns,badweather,non-compliancewithenvironmentalandpermitrequirements;unanticipatedvariationingeologicalstructures,oregradesorrecoveryrates;theneedtoobtainpermitsandgovernmentalapprovals;fluctuationsinmetalpricesandcurrencyexchangerates;andotherrisksanduncertaintiesdisclosedinNOVAGOLD’sannualreportfiledonForm10-Kfortheyear-endedNovember30,2017withtheUnitedStatesSecuritiesandExchangeCommission,Canadiansecuritiesregulators,andinotherNOVAGOLDreportsanddocumentsfiledwithapplicablesecuritiesregulatoryauthoritiesfromtimetotime.NOVAGOLD’sforward-lookingstatementsreflectthebeliefs,opinionsandprojectionsofmanagementonthedatethestatementsaremade.NOVAGOLDassumesnoobligationtoupdatetheforward-lookingstatementsofbeliefs,opinions,projections,orotherfactors,shouldtheychange,exceptasrequiredbylaw.
Forward-lookingstatementsarebasedonanumberofmaterialassumptions,includingbutnotlimitedtothefollowing,whichcouldprovetobesignificantlyincorrect:ourabilitytoachieveproductionatanyofourmineralexplorationanddevelopmentproperties;estimatedcapitalcosts,operatingcosts,productionandeconomicreturns;estimatedmetalpricing,metallurgy,mineability,marketabilityandoperatingandcapitalcosts,togetherwithotherassumptionsunderlyingourresourceandreserveestimates;ourexpectedabilitytodevelopadequateinfrastructureandthatthecostofdoingsowillbereasonable;assumptionsthatallnecessarypermitsandgovernmentalapprovalswillbeobtainedandthetimingofsuchapprovals;assumptionsmadeintheinterpretationofdrillresults,thegeology,gradeandcontinuityofourmineraldeposits;ourexpectationsregardingdemandforequipment,skilledlaborandservicesneededforexplorationanddevelopmentofmineralproperties;andouractivitieswillnotbeadverselydisruptedorimpededbydevelopment,operatingorregulatoryrisks.
Thispresentationmakesreferencetocertainnon-GAAPmeasures.ThesemeasuresarenotrecognizedmeasuresunderUSGAAPanddonothaveastandardizedmeaningprescribedbyUSGAAPandarethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies.Rather,thesemeasuresareprovidedasadditionalinformationtocomplementthoseUSGAAPmeasuresbyprovidingfurtherunderstandingofourresultsofoperationsfrommanagement’sperspectiveandshouldnotbeconsideredinisolationorasasubstituteformeasuresofperformancepreparedinaccordancewithUSGAAP.
NOVAGOLDbelievesthatthesemeasures,inadditiontoconventionalmeasurespreparedinaccordancewithUSGAAP,provideinvestorsanimprovedabilitytoevaluatetheunderlyingperformanceofNOVAGOLD.
REGARDINGSCIENTIFICANDTECHNICALINFORMATIONUnlessotherwiseindicated,allresourceandreserveestimatesincludedinthispresentationhavebeenpreparedinaccordancewithCanadianNationalInstrument43-101StandardsofDisclosureforMineralProjects(“NI43-101”)andtheCanadianInstituteofMining,MetallurgyandPetroleum(CIM)—CIMDefinitionStandardsonMineralResourcesandMineralReserves,adoptedbytheCIMCouncil,asamended(“CIMDefinitionStandards”).NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorswhichestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects.Canadianstandards,includingNI43-101,differsignificantlyfromtherequirementsoftheUnitedStatesSecuritiesandExchangeCommission("SEC”),andresourceandreserveinformationcontainedhereinmaynotbecomparabletosimilarinformationdisclosedbyU.S.companies.Inparticular,andwithoutlimitingthegeneralityoftheforegoing,theterm"resource”doesnotequatetotheterm"reserves”.UnderU.S.standardssetforthinSECIndustryGuide7,mineralizationmaynotbeclassifiedasa"reserve”unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyandlegallyproducedorextractedatthetimethereservedeterminationismade.TheSEC'sdisclosurestandardsnormallydonotpermittheinclusionofinformationconcerning"measuredmineralresources”,"indicatedmineralresources”or"inferredmineralresources”orotherdescriptionsoftheamountofmineralizationinmineraldepositsthatdonotconstitute"reserves”byU.S.standardsindocumentsfiledwiththeSEC.Investorsarecautionednottoassumethatalloranypartof“measured”or“indicatedresources”willeverbeconvertedinto“reserves”.Investorsshouldalsounderstandthat"inferredmineralresources”haveagreatamountofuncertaintyastotheirexistenceandgreatuncertaintyastotheireconomicandlegalfeasibility.Itcannotbeassumedthatalloranypartofthe“inferredresources”willeverbeupgradedto“indicatedresource”,“measuredresource”,or“mineralreserve”status.UnderCanadianrules,estimated"inferredmineralresources”maynotformthebasisoffeasibilityorpre-feasibilitystudiesexceptinrarecasesandinaccordancewithNI43-101.Investorsarecautionednottoassumethatalloranypartofan"inferredmineralresource”existsoriseconomicallyorlegallymineable.Disclosureof"containedounces”inaresourceispermitteddisclosureunderCanadianregulations;however,theSECnormallyonlypermitsissuerstoreportmineralizationthatdoesnotconstitute"reserves”bySECstandardsasin-placetonnageandgradewithoutreferencetounitmeasures.TherequirementsofNI43-101foridentificationof"reserves”arealsonotthesameasthoseoftheSEC,andreservesreportedbyNOVAGOLDincompliancewithNI43-101maynotqualifyas"reserves”underSECstandards.Accordingly,informationconcerningmineraldepositssetforthhereinmaynotbecomparablewithinformationmadepublicbycompaniesthatreportinaccordancewithU.S.standards.DonlinGoldiswithoutknownreservesunderSECIndustryGuide7.
TechnicalReportsandQualifiedPersons ThedocumentsreferencedbelowprovidesupportingtechnicalinformationfortheDonlinGoldproject. Project QualifiedPerson(s) MostRecentDisclosure&FilingDate DonlinGold GordonSeibelR.M.SME “DonlinCreekGoldProjectAlaska,USA,NI43-101TechnicalReportonSecondUpdatedFeasibilityStudy”preparedbyAMEC,effectiveNovember18,2011,amendedJanuary20,2012. KirkHansonP.E. CliffordKrall,P.E.,whoistheMineEngineeringManagerforNOVAGOLDanda“qualifiedperson”underNI43-101,hasapprovedthescientificandtechnicalinformationcontainedinthispresentation.
NOVAGOLD’SUNIQUELYATTRACTIVEDONLINGOLDASSET
ADEVELOPMENT-STAGEPROJECTOFEXCEPTIONALSCALE,QUALITY,ANDJURISDICTIONALSAFETY
3
DONLINGOLD50/50withBarrickPoisedtobeoneofthelargestgoldproducersintheworld Donlin Gold
ALASKA
Anchorage
Fairbanks
Juneau
DONLINGOLD:PROJECTHISTORY
o GoldwasdiscoveredatDonlinGoldintheearly1900’so DonlinGoldbegantoconductexploration,environmentalandengineeringstudiesto
assessthefeasibilityofdevelopingaminingprojectin1996o CalistaCorporation(Calista)ownsthemineralrightsandTheKuskokwimCorporation
(TKC)ownsthesurfacerights• CalistaistheregionalNativeCorporationcreatedbyANCSAin1971• TKCisthevillagecorporationfortencommunitiesthatareclosesttotheproject
o Forovertwodecades,DonlinGoldhasworkedwithCalistaandTKCineveryaspectofplanningfortheproject,includingexploration,extensiveenvironmentaldatacollectionandanalysis,aswellaspermitapplicationsandreview
o DonlinGoldcompletedthesecondupdatedfeasibilitystudyin2011andcommencedpermittingshortlyafter
o DonlinGoldreceiveditsmajorfederalpermitsandajointRecordofDecision(ROD)bytheU.S.ArmyCorpsofEngineers(the“Corps”)andtheBureauofLandManagement(BLM)inAugust2018
4
ADEVELOPMENTSTAGEPROJECTOFEXCEPTIONALSCALE,QUALITYANDJURISDICTIONALSAFETY
DONLINGOLD:PROJECTLIFECYCLE
Prospecting• Mapping• Drilling
• ResourceAssessment
• CommunityEngagement
Financing
ResourceDevelopment• Evaluations
• EngineeringDesign
• Valuation
CommunityEngagementBaselineStudies• EnvironmentalAssessment• ScopingandAlternatives• EnvironmentalImpactStatementPermits
MiningProcessing
Logistics
Monitoring
CommunityEngagement
UpdatedTechnicalStudyEngineeringDetailedDesignProjectFinancingConstructionMitigationCommunityEngagement
DecommissioningReclamationMonitoringLong-termcarePostclosurelanduseCommunityEngagement
5
Exploration Feasibility Permitting Engineering Construction Operations Closure
16years 27+years4-6years6+years
23YEARSAND+$500MILLIONINVESTEDSOFARINTHEPROJECTBYTHEOWNERS
DONLINGOLD:KEYPROJECTMILESTONEACHIEVED
6
JOINTRECORDOFDECISIONANDMAJORFEDERALPERMITSISSUED
o FirsttimethattwoFederalagenciesissuedajointRODo TheCorpsissuedacombinedCleanWaterActSection404&Riversand
HarborsActSection10permito TheBureauofLandManagement(BLM)issuedtheOffertoLeasefor
pipelinerightofway
News Release - August 13, 2018
“TheCorpsandBLMinAlaskaarepioneeringthisjointdecisiontoshowthepublicthattheirfederalgovernmentcanworktogetherandmakesounddecisionsonenvironmentalreviews”
U.S.ArmyCorpsofEngineersCommander,MichaelBrooks7
Source:“Corps,BLM’sfirstjointrecordofdecisionapprovesDonlinmineproject”,U.S.ArmyCorpswebsite-https://www.poa.usace.army.mil
“TheDonlinGoldmineprojectinAlaskaisagreatexampleofcooperationbetweentheCorpsandBLM.Weareproudtohave...thefirsteverjointfederalrecordofdecision…Itwillcreategood-payingjobstoaregionofAlaskawithhistoricallyhighunemployment,andwelookforwardtorealizingthemanyopportunitiesthattheminewillbringtothestateofAlaskaandtheAmericanpeople.”SecretaryoftheInterior,RyanZinke
ROD Signing Ceremony in Anchorage. Left to right: Donlin Gold, Barrick Gold Corporation, Calista Corporation, NOVAGOLD, The Kuskokwim Corporation, BLM, The Corps
DONLINGOLD:RECEIVEDKEYFEDERALANDSTATEPERMITS
8
NationalEnvironmentalPolicyAct(NEPA)reviewcompletedThefinalEnvironmentalImpactStatement(EIS)released,NoticeofAvailabilitypublished
JointRecordofDecision(ROD)issuedbytheCorpsand(BLM)
Section10/404(wetlands)permitandBLMOffertoLeaseforpipelineright-of-way
ThePipelineandHazardousMaterialsSafetyAdministrationspecialpermit AlaskapermittingagenciesworkedinparallelwithfederalprocessStateairqualitypermitandAPDESwaterdischargepermit
Title16fishhabitatpermits
StateCleanWaterActSection401certificationofCorpssection404permit(compliantwithstatewaterqualitystandards)
ReclamationandClosurePlanapproval(publiccommentperiodclosed) Inprogress
IntegratedWasteManagementpermit(publiccommentperiodclosed) Inprogress
Stateportionofpipelineright-of-waylease Inprogress
Statedamsafetyapprovals Inprogress
Otherwaterrightspermits Inprogress
OtherstatepermitsandapprovalsexpectedtobefinalizedbyQ12019
COMPLETEDMULTI-YEARTHOROUGH,TRANSPARENTENVIRONMENTALREVIEWPROCESS
DONLINGOLD:THERIGHTPROJECT
ONEOFTHELARGESTANDHIGHEST-GRADEOPENPITPERMITTEDUNDEVELOPEDGOLDPROJECTSINTHEWORLD
9
Size Partnership
LongevityGrowth
Grade Jurisdiction
DONLINGOLDPERMITTEDFORNEXTSTAGEOFDEVELOPMENT
39.0
[VALUE]
11.5 9.5
8.0 8.0 7.4 6.7 6.5 5.6 5.3 5.2 4.5 4.3 4.2 4.0 3.9 3.8 2.9
0.0
10.0
20.0
30.0
40.0
50.0
2
DONLINGOLD:DEVELOPMENTPROJECTSOFSIMILARSIZEARESCARCEARESOURCEFIVETIMESTHESIZEOFTHEPEERGROUPAVERAGE
10
1) DonlinGoldprojectestimatesasperthesecondupdatedfeasibilitystudyeffectiveNovember18,2011andamendedJanuary20,2012.Represents100%ofmeasuredandindicatedresources,ofwhichNOVAGOLD’ssharerepresents50%.Measuredandindicatedresourcesareinclusiveofprovenandprobablereserves.Measuredresourcestotal8Mtonnesgrading2.52g/tAu,andindicatedresourcestotal534Mtonnesgrading2.24g/tAu.Provenreservestotal8Mtonnesgrading2.32g/tAu,andprobablereservestotal497Mtonnesgrading2.08g/tAu.See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.
2) Peergroupdatabasedoncompanydocuments,publicfilingsandwebsites.Comparisongroupof18projectsbasedonlarge(2MozP&Pcutoff),North/SouthAmericangold-focuseddevelopmentprojectswith>75%projectedrevenuesfromgold.
M&IG
oldRe
source(m
illionsofo
unces) 5x
ARESOURCE
THESIZEOFTHEPEERGROUPAVERAGE
1
2018TOPTENPROJECTEDGOLDPRODUCINGMINECOMPARISON1ONLYFIVEMINESINTHEWORLDSLATEDTOPRODUCE>1MOUNCESIN2018
DONLINGOLD:ONLYUNDEVELOPEDASSETINTHISCATEGORYINNORTHAMERICA
11
1EstimatesprovidedbyS&PGlobalIntelligenceSlideshowsthelatestreportedmeasured&indicatedresources(inclusiveofreserves)ofthetop10projectedgoldproducingminesfrom2018asperSNLMetals&Mining,anofferingofS&PGlobalMarketIntelligence.DonlinGoldprojectedannualproductionrepresents100%ofwhichNOVAGOLD’sshareis50%.AnalysisincludeslifeofminedataforDonlinGold.DonlinGoldmeasured&indicatedresourcesincludes34millionouncesofproven&probablereserves.DonlinGoldisnotinproductionandaconstructiondecisionhasnotbeenmadeatthistime.Seefootnote“1”onslide10forreference.
39.0MozDonlinGold
13.1MozKibali
25.5MozPuebloViejo
48.2MozMuruntau
91.4MozGrasberg
17.4MozBoddington
22.0MozBarrickNevada
32.0MozNewmontNevada
Operations
31.6MozOlimpiada
11.7MozLoulo
46.4MozLihirIsland
Minesinblueareprojectedtoproduceover1millionouncesofgoldin2018
1) DonlinGolddataasperthesecondupdatedfeasibilitystudyeffectiveNovember18,2011,asamendedJanuary20,2012.Representsmeasuredandindicatedresourceswhichareinclusiveofprovenandprobablereserves.Measuredresourcestotal8Mtonnesgrading2.52g/tAu,andindicatedresourcestotal534Mtonnesgrading2.24g/tAu.Provenreservestotal8Mtonnesgrading2.32g/tAu,andprobablereservestotal497Mtonnesgrading2.08g/tAu.See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.
2) 2017averagegradeofopen-pitandundergrounddepositswithgoldasprimarycommodityandover1Mozinmeasuredandindicatedresources,sourcedfromS&PGlobalMarketIntelligence.
1.12g/t
2.24g/t
DONLINGOLD:HIGHQUALITYDEPOSITWITHDOUBLETHEINDUSTRYAVERAGEGRADEAMONGTHEWORLD’SHIGHEST-GRADEKNOWNOPENPITGOLDDEPOSITS
12
Whileindustryaveragegradesaredeclining,DonlinGold’sgradeprovidesresiliencethroughcommoditypricecycles
DONLINGOLDAVERAGEGRADE1
WORLDAVERAGEGRADE2
DONLINGOLD:THERIGHTPROJECT
13
1,400WASDEFINEDWITHAPPROXIMATELYDONLINGOLD’S39MOZGOLDRESOURCE
OVER
DRILL
339,000mTOTALING
HOLES
ROBUSTDRILLDATABASE
1
1) DonlinGoldprojectestimatesasperthesecondupdatedfeasibilitystudyeffectiveNovember18,2011andamendedJanuary20,2012.Represents100%ofmeasuredandindicatedresources,ofwhichNOVAGOLD’ssharerepresents50%.Measuredandindicatedresourcesareinclusiveofprovenandprobablereserves.Measuredresourcestotal8Mtonnesgrading2.52g/tAu,andindicatedresourcestotal534Mtonnesgrading2.24g/tAu.Provenreservestotal8Mtonnesgrading2.32g/tAu,andprobablereservestotal497Mtonnesgrading2.08g/tAu.See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.
ThenextbiggolddiscoverymaybeatDonlinGold:
o From2006to2011,M&Iresourcesincreased135%(16.6Mozto39.0Moz)throughawell-executedexplorationprogram
o Futurepotentialtoexpandcurrentopen-pitresourcealongstrikeandatdeptho Goodprospectstodiscovermeaningfuldepositsoutsidecurrentminefootprint–reservesand
resourcesarecontainedwithinjust3kmofan8km-longmineralizedtrend
o Inferredmineralresource:6millionouncesofgold(92Mtonnesgrading2.02g/tAu)mainlyinsidethereservepit2
DONLINGOLD:EXCELLENTEXPLORATIONPOTENTIAL
141) 0.5g/tgoldgradeshellindelineatedreservepitborderedinwhite.2) See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.
SUBSTANTIALEXPLORATIONUPSIDEALONGTHE8KM-LONGMINERALIZEDTREND
DONLINGOLD:PROJECTOPTIMIZATIONEFFORTS
15
LAYINGTHEGROUNDWORKFOR2018ANDBEYOND
Latestdrillresultsprovidevaluableinputstoadvanceoptimizationwork
Latestdrillresultsprovidevaluableinputstoadvanceoptimizationwork1
Atotalof16coreholeswerecompleted(7,040m)andcoresamplesassayed
Intercepteddistinctsignificanthigh-gradezonesinmultipleareas
Interceptedhigh-grademineralizationatdepthinACMAdepositinanareaofpreviouslysparsedrilling
Assayandgeologicdatawillbeincorporatedintothegeologicandresourcemodelandongoingoptimizationwork
1) RefertothepressreleasedatedFebruary20,2018titled“NOVAGOLD’sDonlinGoldProjectReportsExcellentResultsfrom2017DrillProgram,”forremainingsignificantintervalsandadditionalinformation.
DONLINGOLD:2017DRILLPROGRAMHIGHLIGHTS
16
TopFiveSignificantIntervals1
DC17-1821 130.5metersgrading5.93g/tgold,startingat205.0metersdepth
DC17-1821 39.0metersgrading9.34g/tgold,startingat342.0metersdepth
DC17-1827 43.9metersgrading7.60g/tgold,startingat453.2metersdepth
DC17-1832 64.0metersgrading5.09g/tgold,startingat547.0metersdepth
DC17-1824 30.4metersgrading10.30g/tgold,startingat208.6metersdepth
1) Theserepresentthetopfivesignificantintervalsfromthe2017DonlinGolddrillprogram.RefertothepressreleasedatedFebruary20,2018titled“NOVAGOLD’sDonlinGoldProjectReportsExcellentResultsfrom2017DrillProgram,”forremainingsignificantintervalsandadditionalinformation.
2) TheDonlinGoldverticalcrosssectionrepresentsthedrillholescompletedin2017andgradeintercepts.RefertothepressreleasedatedFebruary20,2018titled“NOVAGOLD’sDonlinGoldProjectReportsExcellentResultsfrom2017DrillProgram,”forremainingsignificantintervalsandadditionalinformation.
VerticalCrossSection-ProposedACMAandLewisPits-2017DrillHoleResults&GradeIntercepts2
EXCELLENTRESULTS-MINERALIZEDINTERCEPTSENCOUNTEREDHIGHERGRADESTHANPREDICTEDBYPREVIOUSMODELING
DONLINGOLD:PRIVATELANDDESIGNATEDFORMINING
17
LewisDeposit
ACMADeposit
TOPOGRAPHYAMENABLETOSITEDEVELOPMENT
Lowelevationwithon-siteterrainrangingfrom100m–450m
140m
125m
425m
Low risk Moderate to high risk Extreme risk No data
DONLINGOLD:LEVERAGEINAPLACEWHEREYOUCANKEEPTHEREWARDSATATIMEOFEXTREMEGEOPOLITICALUNCERTAINTY,ALASKAWELCOMESNEWRESPONSIBLEDEVELOPMENT
ALASKA’SJURISDICTIONALAPPEAL:• Mineralpotential• Establishedminingindustry• Politicalandsocialstability• Excellentlocalpartnerships• Afullembraceoftheruleoflaw
Donlin Gold
Fort Knox
PogoUsibelli
Red Dog
KensingtonGreens Creek
ALASKA
Arare39millionounce1golddepositlocatedinAlaska–asafejurisdictionandthesecondlargestgoldproducingU.S.State.
18
1) DonlinGoldprojectestimatesasperthesecondupdatedfeasibilitystudyeffectiveNovember18,2011andamendedJanuary20,2012.Represents100%ofmeasuredandindicatedresources,ofwhichNOVAGOLD’ssharerepresents50%.Measuredandindicatedresourcesareinclusiveofprovenandprobablereserves.Measuredresourcestotal8Mtonnesgrading2.52g/tAu,andindicatedresourcestotal534Mtonnesgrading2.24g/tAu.Provenreservestotal8Mtonnesgrading2.32g/tAu,andprobablereservestotal497Mtonnesgrading2.08g/tAu.See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.
Source:FraserInstituteAnnualSurveyofMiningCompanies2017,InvestmentAttractivenessIndex
DONLINGOLD:COMMUNITYENGAGEMENT
19
Keepingpeopleinformed• VillageMeetings• ProjectSiteTours• Newsletter• Facebook• Website
Communityinvestments• CrookedCreekCommunity
Plan• SummerSafety• ElderMentors• BackhaulProgram• CrookedCreekLandfill• CleanUpGreenUp• SearchandRescue• DonlinGoldBasketball• DogMushing• GirlScouts,Campfire• CrookedCreekChurch• St.SergiusChurch
19
DONLINGOLD:PUBLICINVOLVEMENT
PublicMeetings
400+Meetingssince2010
Newsletters
DonlinGold
~12,000
CorpsofEngineers~8,500
PublicComments
7,500Total(Scoping,DraftEIS)
10monthsCommentperiodsfor
EIS
EISHearings
Scoping35villages500ppl
DEIS45villages~1000ppl
EISParticipating
Tribes
66Tribesinvited
Multipleworkshops
20
Stony RiverGeorgetown
SleetmuteNapaimute
Crooked Creek
Aniak
Red DevilChuathbaluk
Lower KalskagUpper Kalskag
Donlin Gold
ALASKA
TIME-HONOREDRELATIONSHIPSWITHSTAKEHOLDERS
DONLINGOLD:LIFEOFMINEAGREEMENTSWITHALASKANATIVECORPORATIONS
o DonlinGoldislocatedonprivatelandspecificallyselectedforitsresourcedevelopmentpotential
• ANCSA1establishedover45yearsago;resolvedAlaskaNativelandclaims
• LandsvaluableforresourcepotentialselectedbyRegionalCorporationsunderANCSA
o Nativecorporationshaveanowner’sinterestinthedevelopmentoftheselectedlandstosupporttheeconomicprosperityoftheirshareholders
o Benefitsincluderoyalties,shareholderemploymentopportunities,scholarshipsandpreferentialcontractconsiderations
211) AlaskaNativeClaimsSettlementAct,43U.S.C.1601etseq. Calista Corporation Region
The above represents the 10 Kuskokwim Corporation villages
22
AndrewGuyPresident&CEO,CalistaCorporation
MaverCareyPresident&CEO,TheKuskokwimCorporation
“TodayisabigdayfortheDonlinMineproject.TheRODandpermitsarejustthebeginning…TheKuskokwimCorporationisnotonlythesurfaceowner,butapartnerintheenvironmentalandpermittingprocesswithDonlinGoldandthevariousgovernmentagenciesoverseeingthisproject.TogetherwehavegoneaboveandbeyondtheminimumstateandfederalrequirementstoensurethisprojectprotectsourlandswhileeconomicallybenefittingourShareholdersandregionforgenerationstocome.”
“Calistacontinuesover40yearsoftakinganactiveandhands-onapproachtotheDonlinGoldproject…theprojectrepresentsasignificantandpositiveopportunityforourregionandshareholders.OneofourdutiesasaNativeCorporationistoresponsiblydeveloptheland.TheoriginalCalistaboard,andotherearlyregionalleaders,selectedthislandaspartofANCSAtoprovideeconomicopportunitiesforourregionwhilesafeguardingourresourcesforfuturegenerations.”
DONLINGOLD:VALUABLEPARTNERSHIPS
NATIVECORPORATIONSHAVEANOWNER’SINTEREST
NOVAGOLD:CLEARFOCUSANDSTRONGFUNDINGTOEXECUTEONALLFRONTSAHEALTHYTREASURYTOADVANCEDONLINGOLDTHROUGHOPTIMIZATIONWORK&BEYOND
231) Includes$152millionintermdepositsasofAugust31,2018.2) TotalspendtodateasofAugust31,2018(GaloreCreektotalspendpriortosalewas$1.5million)3) DeferredcompensationonsaleofGaloreCreek
Cashandtermdeposits1
($MILLIONS)
NotesreceivableonthesaleofGaloreCreek$75onearlierofPFSor3years3$25onearlierofFSor5years3
$166
$100
$75 AdditionalamountreceivableonapprovalofGaloreCreekprojectconstruction3
FYspendtodate2$23.5forecastforFY2018($11DonlinGold,$11G&A,$1.5GaloreCreek)
$(17)
DONLINGOLD:UPCOMINGCATALYSTS
NEXTSTEPSINDONLINGOLD’SDEVELOPMENT
24
permitting & optimization technical studies
financing options
Final EIS
Joint Record of Decision
Major state & federal permits
Integrated drill program results into resource model
Solidified execution plan
Update Donlin Gold feasibility study to reflect optimized
development plan & current market conditions
Equity/debt
Leasing equipment
Third party owner/operators
Determine path forward based on updated feasibility study & prevailing market conditions
construction decision
1) J.P.MorganResearchReportdatedOctober4,2018.
“Inaworldwhereminersaredepletingreservesandaveragegoldminegradesarefalling,weseeDonlinasauniqueasset–waitingfortherightgoldpriceandinvestorenvironmentforitsJVownerstopressgo!”JohnBridges,J.P.Morgan1
DONLINGOLD:PROJECTOPTIMIZATIONEFFORTS
NEXTSTEPS
BarrickandNOVAGOLDarefocusedonfurtherimprovingprojecteconomics,reducingtheowners’initialcapitalexpendituresandenhancingtheproject’sexecutionplan.Thenextstepsinclude:
• Wrappingupscopingleveloptimizationwork• Evaluatinginnovativetechnologiesinlogistics&automation,modularconstructiontechniques
• Investigatingpotentialthird-partyparticipationininfrastructuredevelopment• Furtherdetailsonthepathforwardareexpectedtobeprovidedinthefourthquarter
LAYINGTHEGROUNDWORKFOR2018ANDBEYOND
25
THENOVAGOLDOPPORTUNITY
26
SAFEGEO-POLITICALENVIRONMENT
Alaska,top-ratedminingjurisdiction
ACCOMPLISHEDLEADERSHIPTEAMExtensiveexperiencewith
large-scaleoperations
PROLIFICPRODUCTIONPROFILE
DonlinGoldexpectedtobeoneofindustry’stop
producingassets;strongleveragetogoldprice
SUPPORTIVESTAKEHOLDERSLongstandingshareholdersandengagedpartners
STRONGBALANCESHEET$166Mcash+termdepositsasofAugust31,2018
TIERONEASSETLarge,high-gradegolddepositwithmajorpermitsreceived
OPTIMIZATIONCurrentoptimizationworkcreatesuniquevalueenhancingopportunity
Focusedonexecutionanddeliveryofourbusinessplan.
APPENDIX
POISEDTOBEONEOFTHELARGESTGOLDPRODUCERSINTHEWORLD
DONLINGOLD:PROJECTHIGHLIGHTS
28
Reserves: 33.9MozAu(505Mtonnesgrading2.09g/t)
Resources: 39.0MozM&I(541Mtonnesgrading2.24g/t,inclusiveofreserves)and6.0 MozInferred(92Mtonnesgrading2.02g/t)
MineLife: ~27yearsProduction: Year1-5,1.5Moz/year;LOM,1.1Moz/year
Operation: Open-pit,conventionaltruck&shovelMilling: 53.5ktonnes/day,sulfideflotation,pressure
oxidation(POX),carbon-in-leachrecovery(CIL)Stripratio: 5.5=2.8BtonneswasterockTailings: FullylinedstoragefacilityPower: 153MWaveragesite-generatedload,fueledbynaturalgas
transportedviaa315-milepipelineLogistics: AllconsumablessuppliedbyKuskokwimRivertransportation
systemwithportnearJungjukCreek
1) See“CautionaryNoteConcerningReserve&ResourceEstimates”and“Reserve/ResourceTable”withfootnotesonslides2and33.2) SomescientificandtechnicalinformationcontainedhereinwithrespecttotheDonlinGoldprojectisderivedfromthe“DonlinCreekGoldProjectAlaska,USANI43-101TechnicalReportonSecondUpdatedFeasibilityStudy”
preparedbyAMECwithaneffectivedateofNovember18,2011,asamendedJanuary20,2012(the“SecondUpdatedFeasibilityStudy”).KirkHanson,P.E.,TechnicalDirector,OpenPitMining,NorthAmerica,(AMEC,Reno),andGordonSeibel,R.M.SME,PrincipalGeologist,(AMEC,Reno)aretheQualifiedPersonsresponsibleforthepreparationoftheindependenttechnicalreport,eachofwhomareindependent“qualifiedpersons”asdefinedbyNI43-101.
Producing Mine
Advanced Exploration Project
Other Exploration Projects spendingover $500,000 in 2016
Community with MiningIndustry Employees
Bokan-Dotson Ridge
Niblack
PalmerPebble
Wishbone Hill
Livengood
Donlin Gold
Upper Kobuk Mineral Projects
Red Dog (Pb/Zn)
Fort Knox (Au)
Pogo (Au)
Usibelli (Coal)
Kensington (Au)
Greens Creek (Ag/Au/Pb/Zn)
ALASKA
ALASKA’SMININGINDUSTRY
MININGISAGROWINGFORCEINALASKA’SECONOMYWITHSIXPRODUCINGMINESANDEIGHTADVANCEDEXPLORATIONPROJECTS
29Source:AlaskaMinersAssociation,“2017EconomicBenefitsofAlaska’sMiningIndustry”.
UsibelliFamily-owned
FortKnoxKinrossGoldCorp
RedDogTeckResourcesLimited
GreensCreekHeclaMiningCompany
KensingtonCoeurMiningInc
PogoNorthernStarResources
ProducingMines:
THEGOLDDEVELOPMENTCOMPANYFORTHE21STCENTURY
NOVAGOLD:COMPANYHISTORYHIGHLIGHTS
30
1984incorporatedinNovaScotia–GeraldMcConnellasCEOleadsexplorationcompanyinitiallyfocusedongoldpropertiesinNovaScotia,laterexplorationexpandsthroughouttheAmericas
1998RickVanNieuwenhuysejoinsasPresident&CEO;focusesexplorationonNorthAmerica
2001NOVAGOLDobtainsoptiontoearna70%interestintheDonlinCreekGoldprojectbyinvesting$10Mover10years;earn-incompletedin18months
2003PlacerDomebecomesDonlinCreekGoldprojectoperator;commitstoadvanceDonlinCreekGoldprojectthroughfeasibility
2006BarrickbuysPlacerDome;makeshostileofferforNOVAGOLD;completesDonlinCreekGoldprojectfeasibilitystudy
2007BarrickandNOVAGOLDsettledisputesrelatedtoDonlinCreekandhostiletakeover;formDonlinGoldLLCwitheachowning50%
2008ElectrumbecomesNOVAGOLD’slargestshareholder
2011Updatedsecondfeasibilitystudyissued
2012NOVAGOLDcompletescorporatereorganization
• GregLangjoinsasPresident&CEO
• TrilogyMetals(formerlyNovaCopper)spun-out
• Newmanagementteamhired
ü NOVAGOLDbecomesapure-goldplayfocusedonflagshipasset–DonlinGold
• Permittingprocesscommences
2017DonlinGolddrillprogramcomplete,encounteredmorehighgradeintercepts
2018SaleofGaloreCreektoNewmont,July2018
MajormilestonesachievedatDonlinGold
• FinalEnvironmentalImpactStatementreceivedApril2018
• TheCorpsandBLMissuedajointRODinAugust2018withseveralkeystatepermits
NOVAGOLD:THEBOARDOFDIRECTORS
INDUSTRYLEADERSTOBRINGDONLINGOLDTHROUGHPERMITTING&BEYOND
31
Dr.ThomasKaplanChairman
• ChairmanandCEOofTheElectrumGroupLLC,aprivatelyheldnaturalresourcesinvestmentmanagementcompanythatcontrolsadiversifiedportfolioofpreciousandbasemetalsassets
SharonDowdall• FormerChiefLegalOfficerandCorporateSecretarywithFranco-Nevada,transforminganindustry
pioneerintooneofthemostsuccessfulpreciousmetalsenterprisesintheworld• CurrentlyservesasdirectorofOlivutResourcesandForanResources
Dr.DianeGarrett• PresidentandCEOofNickelCreekPlatinum,formerPresidentandCEOofRomarcoMineralsand
formerdirectorofOceanaGold• CurrentlyservesasdirectorofNickelCreekPlatinum,TriStarGoldandRevivalGold
GregLangPresidentandCEO
• FormerPresidentofBarrickGoldNorthAmericawithintimateknowledgeofDonlinGold• CurrentlyservesasdirectorofTrilogyMetals
IgorLevental • PresidentofTheElectrumGroupLLC,formerVPofHomestakeMiningandInternationalCoronaCorp.
KalidasMadhavpeddi • FormerChiefExecutiveOfficerofChinaMolyCorpandformerExecutivewithPhelpsDodge• CurrentlyservesasdirectorofCapstoneMiningandTrilogyMetals
ClyntonNauman • CEOofAlexcoResources,formerlywithViceroyGoldandKennecottMinerals• CurrentlyservesasdirectorofAlexcoResourceCorp
RickVanNieuwenhuyse • CEOofTrilogyMetals,formerCEOofNOVAGOLD• CurrentlyservesasdirectorofTrilogyMetals,AlexcoResourceCorpandSolidusGoldInc
AnthonyWalsh• FormerPresidentandChiefExecutiveOfficerofMiramarMiningCorporation,soldtoNewmontMining
Corporationin2007• CurrentlyservesasdirectorofSabina,TMXGroupandDundeePreciousMetals
NOVAGOLD:THEMANAGEMENTTEAM
INDUSTRYLEADERSTOBRINGDONLINGOLDTHROUGHPERMITTING&BEYOND
32
GregoryLangPresidentandCEO
• FormerPresidentofBarrickGoldNorthAmerica• 35+yearsexperiencebuilding&operatingmajoropen-pitandundergroundmines(Goldstrike,
Cortez,TurquoiseRidge,BaldMountain,Porgera)• In-depthknowledgeofDonlinGold
DavidDeisleyExecutiveVPandGeneralCounsel
• FormerEVPandGeneralCounselofGoldcorp• RegionalGeneralCounselforBarrickGoldNorthAmerica• Extensivetrackrecordinprojectpermitting,corporatesocialresponsibility,mergersand
acquisitionsandcorporatedevelopment• 30yearsofminingindustryexperience
DavidOttewellVPandChiefFinancialOfficer
• FormerVPandCorporateControllerofNewmontMiningCorporation• 25+yearsofminingindustryexperience• Diverseexperienceinallfacetsoffinancialmanagement,frommineoperationstoexecutive
corporatefinancialmanagementofpremiergoldproducers
MélanieHennesseyVP,CorporateCommunications
• HeldvarietyofexecutiveandseniorIR&corporatecommunicationspositionswithGoldcorp,NewGold,andHeclaMiningCompany
• LeadingNOVAGOLD’sinternalandexternalcommunicationsfunctions
RonRimelmanVP,Environment,Health,SafetyandSustainability
• 25+yearsofenvironmentalexperience,managingenvironmentalimpactassessmentsandpermittingactivitiesworld-wide
• LeadershiproleonminepermittingandNEPAevaluationsformineprojectsinAlaskasince1993
RichardWilliamsVP,EngineeringandDevelopment
• LedthedesignandconstructionofthePuebloViejoprojectintheDominicanRepublic• 30+yearsofexperiencedevelopingandoperatingmajormines(GoldstrikeandMercur)• Highlyknowledgeableandexperiencedleaderinautoclavetechnology• MemberoftheAmericanInstituteofMining,Metallurgical,andPetroleumEngineers;CIM
NOVAGOLD:RESERVE/RESOURCETABLE
33
DonlinGold(100%basis)* Tonnage Grade Metalcontent
GOLD kt g/tAu kozAu
Reserves(1)
Proven 7,683 2.32 573
Probable 497,128 2.08 33,276
P&P 504,811 2.09 33,849
Resources(2),inclusiveofReserves
Measured 7,731 2.52 626
Indicated 533,607 2.24 38,380
M&I 541,337 2.24 39,007
Inferred 92,216 2.02 5,993
a) ThisresourceestimatehasbeenpreparedinaccordancewithNI43-101andtheCIMDefinitionStandard,unlessotherwisenoted.b) Seenumberedfootnotesbelowonresourceinformation.c) Roundingasrequiredbyreportingguidelinesmayresultinapparentsummationdifferencesbetweentonnes,gradeandcontainedmetalcontent d) Tonnageandgrademeasurementsareinmetricunits.Containedgoldisreportedastroyounces.
*Mineralreservesandresourcesarereportedona100%basis.NOVAGOLDandBarrickeachown50%oftheDonlinGoldproject.
t=metrictonneg/t=grams/tonneoz=ouncek=thousandM=million
1) MineralReservesarecontainedwithinMeasuredandIndicatedpitdesigns,andsupportedbyamineplan,featuringvariablethroughputrates,stockpilingandcut-offoptimization.Thepitdesignsandmineplanwereoptimizedondilutedgradesusingthefollowingeconomicandtechnicalparameters:MetalpriceforgoldofUS$975/oz;referenceminingcostofUS$1.67/tincrementedUS$0.0031/t/mwithdepthfromthe220melevation(equatestoanaverageminingcostofUS$2.14/t),variableprocessingcostbasedontheformula2.1874x(S%)+10.65foreachUS$/tprocessed;generalandadministrativecostofUS$2.27/tprocessed;stockpilerehandlecostsofUS$0.19/tprocessedassumingthat45%ofmillfeedisrehandled;variablerecoveriesbyrocktype,rangingfrom86.66%inshaleto94.17%inintrusiverocksintheAkivikdomain;refiningandfreightchargesofUS$1.78/ozgold;royaltyconsiderationsof4.5%;andvariablepitslopeangles,rangingfrom23ºto43º.MineralReservesarereportedusinganoptimizednetsalesreturnvaluebasedonthefollowingequation:NetSalesReturn=Augrade*Recovery*(US$975/oz–(1.78+(US$975/oz–1.78)*0.045))–(10.65+2.1874*(S%)+2.27+0.19)andreportedinUS$/tonne.Assuminganaveragerecoveryof89.54%andanaverageS%gradeof1.07%,themarginalgoldcut-offgradewouldbeapproximately0.57g/t,orthegoldgradethatwouldequatetoa0.001NSRcut-offatthesesamevalues.Thelifeofminestripratiois5.48.Theassumedlife-of-minethroughputrateis53.5kt/d.
2) MineralResourcesarecontainedwithinaconceptualMeasured,IndicatedandInferredoptimizedpitshellusingthefollowingassumptions:goldpriceofUS$1,200/oz;variableprocesscostbasedon2.1874*(sulphurgrade)+10.6485;administrationcostofUS$2.29/t;refining,freight&marketing(sellingcosts)ofUS$1.85/ozrecovered;stockpilerehandlecostsofUS$0.20/tprocessedassumingthat45%ofmillfeedisrehandled;variableroyaltyrate,basedonroyaltyof4.5%*(Auprice–sellingcost).MineralResourceshavebeenestimatedusingaconstantNetSalesReturncut-offofUS$0.001/tmilled.TheNetSalesReturnwascalculatedusingtheformula:NetSalesReturn=Augrade*Recovery*(US$1,200/oz–(1.85+((US$1,200/oz–1.85)*0.045))–(10.65+2.1874*(S%)+2.29+0.20))andreportedinUS$/tonne.MineralResourcesareinclusiveofMineralReserves.MineralResourcesthatarenotMineralReservesdonothavedemonstratedeconomicviability.InferredResourcesareinadditiontoMeasuredandIndicatedResources.InferredResourceshaveagreatamountofuncertaintyastotheirexistenceandwhethertheycanbeminedlegallyoreconomically.ItcannotbeassumedthatalloranypartoftheInferredResourceswilleverbeupgradedtoahighercategory.See“CautionaryNoteConcerningReserve&ResourceEstimates”onslide2.
DonlinGoldapproximatecut-offgrades(seeResourcesFootnotes):Reserves1:0.57g/tgoldResources2:0.46g/tgold
NOVAGOLDRESOURCESINC.Suite720–789WestPenderStreetVancouver,BCCanadaV6C1H2T6046696227TF18666696227F6046696272www.novagold.cominfo@novagold.com
MélanieHennesseyVP,[email protected]
AllisonPettitManager,[email protected]
CONTACTUS
34