Published on September 21, 2015
1. novagold.com GOLD DEVELOPMENT COMPANY for the 21st Century NYSE-MKT, TSX: NG | September 2015
2. CAUTIONARY STATEMENTS 2 All dollar amounts quoted in this report are in U.S. currency unless otherwise noted. REGARDING FORWARD-LOOKING STATEMENTS This presentation includes certain “forward-looking statements” within the meaning of applicable securities laws, including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein including, without limitation, statements relating to Donlin Gold’s future operating or financial 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 pertaining to the implementation of the Galore Creek Pre-Feasibility Study, the factors that may influence future gold price performance, and the potential future value of gold, and may include statements regarding perceived merit of properties; exploration results and budgets; mineral reserves and resource estimates; work programs; capital expenditures; timelines; strategic plans; completion of transactions; market price of precious or 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 differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations include the uncertainties involving the need 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 results and 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 the Donlin Gold property; the need for continued cooperation between NOVAGOLD and Teck Resources Ltd. in the exploration and development of the Galore Creek property; the need for cooperation of government agencies 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 as accidents, equipment breakdowns, bad weather, non-compliance with environmental and permit requirements, unanticipated variation in geological structures, ore grades or recovery rates; unexpected cost increases; fluctuations in metal prices and currency exchange rates; and other risks and uncertainties disclosed in reports and documents filed by NOVAGOLD with applicable securities regulatory authorities from time to time. The forward-looking statements made herein reflect our beliefs, opinions and projections on the date the statements are made. Except as required by law, we assume no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change. REGARDING SCIENTIFIC AND TECHNICAL INFORMATION Unless otherwise indicated, all reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (“CIM Definition Standards”). Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (“SEC”), and reserve 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 the foregoing, 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 been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. At this time, both of Donlin Gold and Galore Creek projects are without known reserves, as defined under SEC Industry Guide 7. The SEC’s disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization 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 mineral resources” 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-feasibility studies 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 as those 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 set forth herein may not be comparable to information made public by companies that report in accordance with United States standards.
3. WHAT MAKES NOVAGOLD UNIQUE? A DEVELOPMENT-STAGE COMPANY WITH TWO PROJECTS OF EXCEPTIONAL SCALE, QUALITY, AND JURISDICTIONAL SAFETY 3 DONLIN GOLD 50/50 with Barrick Poised to become one of the largest gold producers in the world GALORE CREEK 50/50 with Teck Expected to be the largest and lowest cost copper mine in Canada
4. DONLIN GOLD: THE RIGHT PROJECT ARGUABLY THE MOST IMPORTANT GOLD PROJECT IN THE WORLD TODAY 4 Size Among the largest present and/or future gold mines in the world Partnerships Strong partnerships with local stakeholders Longevity 27-year mine life; strong leverage to gold price Growth Substantial exploration potential Grade High-grade open-pit mine Jurisdiction Located in Alaska, one of the truly safe mining jurisdictions Donlin Gold
5. Notes: 1) Shown on 100% project basis, of which NOVAGOLD holds a 50% interest 2) Measured and indicated resources inclusive of proven and probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix. RESERVES1 34Moz Proven & Probable Grade: 2.09 g/t RESOURCES1,2 39Moz Measured & Indicated Grade: 2.24 g/t 6 Moz Inferred Grade: 2.02 g/t (inclusive of P&P reserves) AMONG THE WORLD’S MOST SIGNIFICANT AND HIGHEST-GRADE GOLD DEPOSITS 5 DONLIN GOLD: A LARGE HIGH-GRADE GOLD PROJECT
6. A REMARKABLE RESOURCE AMONG EMERGING OPEN-PIT GOLD DEPOSITS DONLIN GOLD: THE EMERGING TOP-TIER PRODUCER IN THE SAFEST JURISDICTION 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 Donlin Gold Metates Pascua Lama Livengood Blackwater Courageous Lake Mt. Todd Merian Morelos Stibnite Rainy River Cerro Maricunga Dublin Gulch Haile 1.102 0.66 0.64 0.58 0.41 0.39 0.37 0.35 0.34 0.34 0.23 0.23 0.21 0.13 1.501 ProjectedAnnualGoldProduction (millionsofounces) Notes: • Peer group data as per latest company documents, public filings and websites. Comparison group based on large (M&I+P&P 4Moz cut off), North/South American and Oceanian gold-focused development projects where the majority of the M&I resource is open-pit. • Donlin Gold data as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012. Represents 100% of measured and indicated resources of which NOVAGOLD’s share represents 50%. Measured and indicated resources inclusive of proven and probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix. (1) Projected annual gold production during first five full years of mine life; (2) Projected annual gold production during full life of mine. 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 Donlin Gold Pascua Lama Metates Livengood Blackwater Courageous Lake Mt. Todd Rainy River Stibnite Merian Cerro Maricunga Morelos Dublin Gulch Haile 39.0 21.8 19.0 15.7 9.2 8.0 7.8 6.4 5.5 5.5 5.2 5.0 4.9 4.0 M&IGoldResource (millionsofounces) 6 > Donlin Gold’s size and production profile clearly distinguish it from its peers
7. Notes: Donlin Gold projected annual production represents 100% of which NOVAGOLD’s share is 50%. All other production estimates, with the exception of Goldstrike and Pueblo Viejo, are based on published 2014 annual gold production sourced from SNL Metals & Mining. Muruntau 2014 production sourced from Mineweb, Metals Focus. Excludes Newmont’s Nevada Operations and Kloof/Diefontein Complex that consist of multiple mines. Analysis includes life of mine data for Donlin Gold. 1) If put into production as contemplated by the second updated feasibility study effective November 18, 2011, as amended January 20, 2012 2) Goldstrike and Pueblo Viejo published guidance for gold production in 2015. 151 Mines 100 Koz to 500koz 21 Mines 500 Koz to 1Moz 5 Mines/Projects >1 Moz GOLDSTRIKE2 USA GRASBERG Indonesia DONLIN GOLD USA MINES THE SIZE OF DONLIN GOLD ARE SCARCE 7 PUEBLO VIEJO2 Dominican Republic MURUNTAU Uzbekistan ONLY FIVE MINES/PROJECTS IN THE WORLD ARE SLATED TO PRODUCE >1 MOZ/YEAR ▸ 1.5 Moz/year in first five full years1 ▸ 1.1 Moz/year LOM1 Only undeveloped asset in this category in North America
8. Notes: See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix. 1) 2014 average grade of open-pit and underground deposits with gold as primary commodity and over 1 Moz in measured and indicated resources, sourced from SNL Metals & Mining. 2) Donlin Gold data as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012. Represents 100% of measured and indicated resources of which NOVAGOLD’s share is 50%. Measured and indicated resources are inclusive of proven and probable reserves. World Average Grade1: 1.12 g/t Donlin Gold Average Grade2: 2.24 g/t Average grades in the industry have been declining and sources for emerging production to replace mined-out capacity have become increasingly scarce DONLIN GOLD’S HIGH GRADE ENDOWMENT PROVIDES RESILIENCE TO GOLD PRICE CYCLES DONLIN GOLD: IS DOUBLE THE GRADE OF THE AVERAGE GOLD DEPOSIT IN THE WORLD 8
9. DONLIN GOLD: RESERVE & RESOURCE GROWTH Notes: Donlin Gold data as per NOVAGOLD public documents. Represents 100% of measured and indicated resources of which NOVAGOLD’s share represents 50%. 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. 2006 ~17 Moz 2011 39 Moz Expansion Potential OVER FIVE YEARS RESOURCES INCREASED 135% 9
10. MULTIPLE DRILL PROSPECTS AND TARGETS EXIST ALONG 8KM TREND DONLIN GOLD: EXCELLENT EXPLORATION POTENTIAL 10 The next big gold discovery? > Potential to expand current open-pit resources along strike and at depth > Good prospects to discover meaningful deposits outside current mine footprint • Reserves and resources are contained within just 3 km of an 8 km long trend > Inferred mineral resource: 6 Moz of gold mainly inside the reserve pit • Upside potential to project economics > In-pit area covers 1,600 acres (~2%) of the 80,000 acres comprising the entire land package
11. 2012 highest year on record for exploration spending and first year in over two decades with no discoveries 0 2 4 6 8 10 12 14 16 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 1997 1999 2001 2003 2005 2007 2009 2011 2013 Notes: Data as per SNL MEG’s MineSearch database, Company reports, SNL MEG estimates. Thomson Reuters. A gold discovery of 5 Moz or more is considered substantial. Number of discoveries data not yet available for 2014. NumberofGoldDiscoveries Gold Discovered Exploration Budget (US$ in millions) DESPITE RECORD HIGH EXPLORATION SPENDING LEVELS THE GOLD INDUSTRY HAS EXPERIENCED A RECENT DROP IN DISCOVERIES WHY DONLIN GOLD? NO NEW SUBSTANTIAL DISCOVERIES 11
12. 0 5,000 10,000 15,000 20,000 25,000 30,000 1,200 1,300 1,500 1,700 2,000 2,500 6.2B 8.2B 11.6B 14.6B 19.2B 27.0B Gold Price (US$) NPV (US$ in millions) NPV INCREASES ~20X WITH ~2X INCREASE IN GOLD PRICE DONLIN GOLD: SIGNIFICANT VALUE UPSIDE WITH HIGHER GOLD PRICES 12 Notes: Donlin Gold estimates as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012 . 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; $1,465m @ $1,300 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 to 1/1/2014 are treated as sunk costs. 27year mine life NPV at 0%NPV at 5% > Project has a positive return that increases substantially with higher gold prices > Good payback at a broad range of gold prices > Significant exploration upside on the mineralized trend > Long mine life offers high likelihood of enjoying one or more cyclical bull markets over the period of the mine’s operation
13. COLLABORATING WITH OUR PARTNER TO COMPLETE THE EIS PROCESS DONLIN GOLD: COMMITTED PARTNERS ADVANCING THE PROJECT > Project activities continue to progress as planned > Focused on advancing Donlin Gold through permitting to a record of decision > Neither partner has a build at any gold price mentality “Both companies are happy to take a sober and constructive view. We don't want to subsidize the world's consumption of gold by squandering the treasures that Mother Nature has given us and we're happy to wait for the higher gold prices that will make the project's economics sing.” – Thomas S. Kaplan, Chairman of NOVAGOLD Barrick and NOVAGOLD are jointly committed to working together to create shareholder value from Donlin Gold’s unique optionality 13
14. LOCATION, LOCATION, LOCATION DONLIN GOLD: LEVERAGE IN A PLACE WHERE YOU CAN KEEP THE REWARDS > Alaska’s jurisdictional appeal is comprised of five cornerstones: • Mineral potential • Established mining industry • Political and social stability • Excellent local partnerships • A full embrace of the rule of law 14 Donlin Gold is one of only a handful of large projects located in a safe jurisdiction
15. ALASKA NATIVE CORPORATIONS: LEADERS OF REGIONAL ECONOMIC DEVELOPMENT DONLIN GOLD: STRONG PARTNERSHIPS WITH LOCAL STAKEHOLDERS 15 > ANCSA established 40 years ago; resolved legal issues related to Native land claims > Lands valuable for resource potential selected by Regional Corporations under ANCSA > Native corporations have an owners’ interest in the development of the selected lands to support the economic prosperity of their shareholders > Donlin Gold is located on private land specifically selected for its resource development potential > Enhancing awareness among our broader stakeholder base through active outreach and engagement with communities as well as various organizations in Alaska • Workforce development • Education (mine tours, village visits, Yup’ik language materials, documentary video and newsletters) • Safety • Environmental initiatives > A unique partnership with the National Fish and Wildlife Foundation that supports regional solutions driven by locals in Alaska to enhance and protect wildlife habitat
16. STRONG AND TIME-HONORED RELATIONSHIPS WITH STAKEHOLDERS DONLIN GOLD: LIFE OF MINE AGREEMENTS WITH THE NATIVE CORPORATIONS 16 Donlin Gold has the support of the land owners through a 20+ year relationship “Calista and TKC are not only stakeholders, but are the legislatively mandated landowners charged with the responsibility of seeing the project to fruition in an environmentally responsible manner.” June MacAtee, Vice President, Calista Corporation (mineral owner) “Since 1995, Donlin Gold has worked constructively in our region and I know our partnership will benefit our shareholders for many generations. Today's agreement sets the basis for a long and productive relationship that with construction of the mine will provide jobs and financial value to the shareholders in our 10 villages.” Maver Carey, President & CEO The Kuskokwim Corporation (surface owner)
17. DEVELOPMENT & ENVIRONMENTAL IMPACT STATEMENT/PERMITTING TIMELINE DONLIN GOLD: PROJECT PERMITTING IS ON TRACK 16 years ̴ 4 27+ years EXPLORATION& ENVIRONMENTALSTUDIES PERMITTING ENGINEERING& CONSTRUCTION OPERATION 1.5 Moz/year first five full years1 1.1 Moz/year life of mine1 ̴ 5 Notes: 1) Donlin Gold data as per the second updated feasibility study. Projected average annual production represents 100% of which NOVAGOLD’s share is 50%. 17 Public Scoping Ended 03/13 Draft EIS Year-end 2015 Final EIS Record of Decision Permit Issuance Preliminary Draft EIS Completed 06/15 Public Comment Period Notice of Intent Submitted 12/12 August 2012 2017 Permit Applications Submitted 08/12
18. Notes: Data sourced from SNL Metals & Mining. 1) Based on announced mining startup dates. Expansions and mine redevelopments are not included as they are not comparable with new mine developments. 27 mines ~8 years discovery to production 57 mines 111 mines ~11 years discovery to production ~18 years discovery to production > Donlin Gold is more than halfway through permitting & will be ready for a construction decision when sentiment returns DEVELOPMENT TIMELINE OF NEW GOLD PROJECTS HAS MORE THAN DOUBLED KEEPING TO OUR TIMETABLE: PROJECT PROGRESSING AS FORECASTED 18 0 5 10 15 20 25 30 35 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 AverageNumberofYearsfromDiscoverytoProduction Startup Year
19. AGENCY COORDINATION AND PUBLIC INVOLVEMENT DONLIN GOLD: DISCIPLINED & TRANSPARENT ENVIRONMENTAL IMPACT STATEMENT > US Army Corps of Engineers, lead agency for Environmental Impact Statement (EIS) > Coordinating with 11 cooperating agencies, working together at each stage of the NEPA process • 5 Federal/State agencies ensuring EIS meets their project permitting/approval needs • 6 Native groups, providing local input/knowledge > At start of EIS, scoping meetings held in 13 Y-K villages and Anchorage (in Yup’ik and English) > The Corps has continued emphasis on public involvement • www.donlingoldeis.com, newsletters, radio/TV, village visits, workshops, conferences > Next Step: Draft EIS release for public comment in Q4 15 > Constructive, informed dialogue and no organized opposition to the project to date > Continuing to advance major project permit applications (e.g., air quality, water and waste management) Newsletter #4 – April 2015 How to Get the Most from the Draft EIS 19
20. DONLIN GOLD: EXPECTED TO PROVIDE THREE DECADES OF LOW COST PRODUCTION LOW OPERATING CASH COSTS AND ALL-IN SUSTAINING COSTS Open-pit mining2 270 Processing 257 G&A, royalties, land & other3 108 Total $635 Open-pit mining2 133 Processing 208 G&A, royalties, land & other3 70 Total $411 Cash Costs1 Per Ounce First Five Years Notes: Donlin Gold estimates as per the second updated feasibility study effective November 18, 2011, as amended January 20, 2012. 1) US GAAP cost of sales, excluding depreciation and reclamation. 2) Net of deferred costs 3) Based on $1,200/oz gold price All-in Sustaining Costs Per Ounce Cash costs1 635 Sustaining capex 50 Corporate administration 28 Reclamation 22 Total $735 Cash costs1 411 Sustaining capex 83 Corporate administration 21 Reclamation 17 Total $532 Life of Mine Cash Costs1 Per Ounce All-in Sustaining Costs Per Ounce 20
21. WELL POSITIONED TO SHARE UPFRONT COSTS WITH THIRD PARTIES DONLIN GOLD: CAPITAL EXPENDITURES Areas US$M1 Opportunities1 Mining 345 Leasing equipment ~$170M of $345M Site preparation/roads 236 Process facilities 1,326 Oxygen plant could be built by third party ~$130M of $1,326M Tailings 120 Utilities 1,302 Ancillary buildings 304 Off-site facilities 243 Total Direct Costs 3,876 Owners’ cost 414 Indirect Costs 1,405 Contingency 984 Total Owner’s & Indirect Costs, and Contingency 2,803 Total Project Cost 6,679 >$1B potential owners initial capital reductions Pipeline could be built by third party $834M of $1,302M 21 Notes: 1) Donlin Gold data as per the second updated feasibility study. Represent 100% of projected capital costs of which NOVAGOLD’s share is 50%.
22. THE KIND OF ASSET YOU CAN BUILD A COMPANY AROUND GALORE CREEK: A SIGNIFICANT COPPER-GOLD-SILVER ASSET IN CANADA Notes: 1) Represents 100% of measured and indicated resources of which NOVAGOLD’s share is 50%. Measured and indicated resources inclusive of proven and probable reserves. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve & Resource Base” with footnotes in the appendix. 9Blbs Grade: 0.50% 8Moz Grade: 0.31 g/t 136Moz Grade: 5.21 g/t copper gold silver M&I RESOURCES1 22
23. 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 Galore Creek Pebble Copper Mountain Red Chris Berg Schaft Creek New Prosperity KSM Mount Milligan Casino 0.50 0.40 0.33 0.33 0.30 0.26 0.24 0.21 0.19 0.19 AMONG HIGHEST COPPER GRADE COMPARED TO NORTH AMERICAN ASSETS GALORE CREEK: PEER COMPARISONP&P+M&Igrade(Cu%) Notes: Peer group data as per latest company documents, public filings and websites. 23 > Advancing Galore Creek mine planning and project design > Looking at opportunities to monetize the value of the asset
24. 2015 Budget2 Donlin Gold $13M Galore Creek $2M G&A, interest & Donlin Gold joint studies $14M Repayment of outstanding convertible notes3 $16M 1) Includes $85 million in term deposits as of May 31, 2015. 2) 2015 anticipated budget expenditure disclosed on January 28, 2015. 3) The convertible notes were repaid on May 1, 2015. SUFFICIENT CASH ON HAND TO PROGRESS DONLIN GOLD THROUGH PERMITTING AND MEET FINANCIAL OBLIGATIONS CLEAR FOCUS AND STRONG FUNDING TO EXECUTE ON ALL FRONTS 24 $135M in cash and term deposits1
25. CONTINUE TO EXECUTE AND DELIVER ON OUR BUSINESS PLAN 2015 FOCUS COMMITTED TO GOLD AND WELL-POSITIONED TO EXCEL THROUGH MARKET CYCLES 25 > Advance Donlin Gold permitting to a construction decision > Maintain strong relationships with all stakeholders > Advance Galore Creek mine planning and project design > Monetize the value of Galore Creek > Safeguard our cash position
26. 26.7% 11.2% 6.8% 5.7%3.0% 47% A BLUE CHIP INSTITUTIONAL QUALITY INVESTMENT WHY INVEST IN NOVAGOLD? Held by top 5 shareholders2 53% Electrum Strategic Resources LP Paulson & Co. Inc The Baupost Group, L.L.C. Van Eck Associates Corporation Tocqueville Asset Management Other Market Cap1 $1.11B 1) Market Capitalization as of September 10, 2015 based on 317.9 million shares issued and outstanding and NG share price of $3.49. 2) Shareholder positions are based on the latest 13-F filings. NYSE-MKT, TSX: NG 26
27. SUPPLY PRESSURES > Decreasing reserve grades > Escalating production costs > Declining production growth rates > Low discovery rates > Reduced exploration budgets > Jurisdictional risk > Reduced sales of central bank reserves WHY GOLD? DESPITE RECENT PRICE TURBULENCE, FUNDAMENTAL DRIVERS REMAIN UNCHANGED DEMAND DRIVERS > Asset diversification > Historic safe haven appeal > Currency debasement protection > Central bank purchasing > Deflation/inflation protection > Emerging market demand “love trade” SUPPLY AND DEMAND PRESSURES SUPPORT GOLD’S UPWARD TRAJECTORY 27 Fundamental drivers of gold demand remain unchanged while supply is constrained by low discovery rates, rising costs, declining grades and jurisdictional risk. GOLD REVALUATION
28. NOVAGOLD focused on execution and delivery of our business plan WHY NOVAGOLD WHY NOW Safe Geo-Political Environment: Alaska and British Columbia, top-rated mining jurisdictions Accomplished Team: 185 years cumulative experience Prolific Production Profile: Donlin Gold expected to be one of industry’s top producing assets; strong leverage to gold Supportive Stakeholders: Long standing shareholders and engaged partners Strong Balance Sheet: $135m cash + term deposits as of May 31, 2015 Top Tier Assets: Donlin Gold: Large, high-grade deposit past halfway mark in permitting; great additional exploration potential 28
29. novagold.com APPENDIX
30. DONLIN GOLD SLATED TO BE A STATE-OF-THE-ART SIGNIFICANT MINE DONLIN GOLD: PROJECT HIGHLIGHTS Reserves: 33.9 Moz Au (505M tonnes ore)1 Resources: 5.1 Moz M&I (excluding P&P) and 6.0 Moz Inferred1 Mine Life: ~27 years Production: Year 1-5,1.5 Moz/year; LOM,1.1 Moz/year Operation: Open-pit, conventional truck & shovel Milling: 53.5k tonnes/day, sulfide flotation, pressure oxidation (POX), carbon-in-leach recovery (CIL) Strip ratio: 5.5 = 2.8B tonnes waste rock Tailings: Fully lined storage facility Power: 153MW average site-generated load, fueled by natural gas transported via a 315-mile pipeline Logistics: All consumables supplied by Kuskokwim River transportation system with port near Jungjuk Creek 1) See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve and Resource Base” table with footnotes. 30
31. GALORE CREEK TO BE ONE OF CANADA'S LARGEST COPPER MINES GALORE CREEK: PROJECT HIGHLIGHTS Reserves: 6.8 Blb Cu; 5.5 Moz Au; 102 Moz Ag1 Resources: 8.9 Blb Cu; 8.0 Moz Au; 136 Moz Ag (inclusive of reserves)1 Mine Life: ~18 years Production: Year 1-5, 400 Mlb/year Cu; LOM, 340 Mlb/year Cu Cash costs: LOM, $0.80/lb Cu at base case assumptions2 Operation: Open-pit, conventional truck & shovel Milling: +80k tonnes/day, conventional crush, grind, and Cu/Au/Ag flotation concentration, plant located in West More Valley Strip ratio: 2.2 = 1.1B tonnes waste rock Tailings: storage facility located in West More Valley next to plant Power: BC Hydro’s Northwest Transmission Line is now in service connecting from near Terrace, BC to Bob Quinn to promote remote industrial development, Galore Creek to tie into the NTL Logistics: Port facilities to be built near Stewart, BC Notes: 1) See “Cautionary Note Concerning Reserve & Resource Estimates” and “Reserve and Resource Base” table with footnotes. 2) Base Price Case metal prices are US$2.65/lb Cu, US$1,100/oz Au and US$18.50 Ag and foreign exchange rate of 1.11 CAD/USD. 31
32. LARGE PROJECTS HAVE BEEN SUCCESSFULLY PERMITTED DONLIN GOLD: PERMITTING IN THE U.S. Red Dog Alaska Lead/zinc ~2 years • Expansion • EIS completed in 2009 • Development started on schedule in 2010 Fort Knox Alaska Gold ~3 years • Expansion – new heap leach facility • Permitting completed in 2007 Pogo Alaska Gold ~3 years • New mine • Permitting completed in 2004 • Operations began in 2006 Arturo Nevada Gold ~4 years • Major pit expansion • New waste rock and heap leach facilities • EIS/ROD completed in May 2014 Rochester Nevada Silver ~1 year • Expansion – new heap leach & mine reopening • EA/permitting completed in 2011 Cortez Nevada Gold ~3 years • Major pit expansion • EIS/permitting completed in 2008/2009 Goldstrike Nevada Gold ~2 years • Major pit expansion • Waste rock and tailings facilities • ROD approving the project in 2009 Hycroft Nevada Gold ~2 years • Reactivation • EIS/permitting completed in 2012 Haile South Carolina Gold ~4 years • New mine on historic property • Open pits, processing and tailings facilities • Final EIS issued July 2014, ROD issued October 2014 Pan Nevada Gold ~2 years • New open pit and heap leach • EIS/permitting completed in 2013 Long Canyon Nevada Gold ~3 years • New pit, heap leach, mill and tailings facility • Final EIS and ROD in early 2015 32
33. INDUSTRY LEADERS TO BRING DONLIN GOLD THROUGH PERMITTING & BEYOND NOVAGOLD: THE MANAGEMENT TEAM Gregory Lang President & CEO > Former President of Barrick Gold North America > 35 years experience building & operating major open-pit and underground mines (Goldstrike, Cortez, Turquoise Ridge, Bald Mountain, Porgera) > In-depth knowledge of Donlin Gold David Deisley Executive Vice President and General 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 experience David Ottewell Vice President and Chief Financial 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 operations to executive corporate financial management of premier gold producers Mélanie Hennessey Vice President, Corporate Communications > Held variety of executive and senior IR & corporate communications positions with Goldcorp, New Gold, and Hecla Mining Company > Leading NOVAGOLD’s internal and external communications functions Ron Rimelman Vice President, Environment, Health, Safety & Sustainability > 25+ years of environmental experience, managing environmental impact assessments and permitting activities world-wide > Leadership role on mine permitting and NEPA evaluations for mine projects in Alaska since 1993 Richard Williams Vice President, Engineering and Development > Led the design and construction of the Pueblo Viejo project in the Dominican Republic > 30 years of experience developing and operating major mines (Goldstrike and Mercur) > Highly knowledgeable and experienced leader in autoclave technology > Bachelor of Science in Chemical Engineering from Trinity University in San Antonio, Texas > Member of the American Institute of Mining, Metallurgical, and Petroleum Engineers 33
34. NOVAGOLD: THE BOARD OF DIRECTORS Dr. Thomas Kaplan Chairman > Chairman and CIO of The Electrum Group LLC, a privately held natural resources investment management company that controls a diversified portfolio of precious and base metals assets Sharon Dowdall > Former Chief Legal Officer and Corporate Secretary with Franco-Nevada, transforming an industry pioneer into one of the most successful precious metals enterprises in the world Dr. Marc Faber > A well-known commentator and author on global investing, publisher of The Gloom, Boom & Doom Report Greg Lang President & CEO > Former President of Barrick Gold North America, 35 years experience building & operating major mines with intimate knowledge of Donlin Gold Gil Leathley > Senior Advisor to the Company’s President and CEO, former Senior Vice President and Chief Operating Officer of the Company Igor Levental > President of The Electrum Group LLC, former VP of Homestake Mining and International Corona Corp. Kalidas Madhavpeddi > Overseas Chief Executive Officer of China Moly Corp. Former Executive with Phelps Dodge. Gerald 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 Minerals Rick Van Nieuwenhuyse > CEO of NovaCopper, founder and former CEO of NOVAGOLD Anthony Walsh > Former President and Chief Executive Officer of Miramar Mining Corporation, which in 2007 was sold to Newmont Mining Corporation. 34
35. NOVAGOLD: RESERVE/RESOURCE TABLE 35 Donlin Gold (100% basis)* Tonnage Grade Metal content GOLD Kt g/t Au Koz Au Reserves1 Proven 7,683 2.32 573 Probable 497,128 2.08 33,276 P&P 504,811 2.09 33,849 Resources3, inclusive of Reserves 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 Galore Creek (100% basis)* Tonnage Grade Metal content COPPER Mt % Cu Blb Cu Reserves2 Proven 69.0 0.606 0.9 Probable 459.1 0.582 5.9 P&P 528.0 0.585 6.8 Resources4, exclusive of Reserves Measured 39.5 0.25 0.22 Indicated 247.2 0.34 1.85 M&I 286.7 0.33 2.07 Inferred 346.6 0.42 3.23 GOLD Mt g/t Au Moz Au Reserves2 Proven 69.0 0.520 1.15 Probable 459.1 0.291 4.30 P&P 528.0 0.321 5.45 Resources4, exclusive of Reserves Measured 39.5 0.39 0.50 Indicated 247.2 0.26 2.04 M&I 286.7 0.27 2.53 Inferred 346.6 0.24 2.70 SILVER Mt g/t Ag Moz Ag Reserves2 Proven 69.0 4.94 11.0 Probable 459.1 6.18 91.2 P&P 528.0 6.02 102.1 Resources4, exclusive of Reserves Measured 39.5 2.58 3.27 Indicated 247.2 3.81 30.26 M&I 286.7 3.64 33.54 Inferred 346.6 4.28 47.73 * Mineral reserves are reported on a 100% basis. NOVAGOLD and Barrick each own 50% of the Donlin Gold project. NOVAGOLD and Teck each own 50% of the Galore Creek project. t = metric tonne oz = ounce lb = pound K = thousand M = million B = billion g/t = grams/tonne Approximate cut-off grades (see Resource Footnotes): Donlin Gold Reserves1: 0.57 g/t gold Resources3: 0.46 g/t gold Galore Creek Reserves2: C$10.08 NSR Resources4: C$10.08 NSR
36. 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 content d. Tonnage and grade measurements are in metric units. Contained gold and silver ounces are reported as troy ounces, contained copper pounds as imperial pounds Resource Footnotes: 1) 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 for gold 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/t processed; 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 pit slope 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. Assuming an 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. 2) 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$16.85/oz, respectively. Appropriate mining costs, processing costs, metal recoveries and inter ramp pit slope angles varying from 42º to 55º were used to generate the pit phase designs. Mineral Reserves have been calculated using a 'cashflow grade' ($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 = Net Smelter 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 of CDN$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 and throughput in t/hr. The life of mine strip ratio is 2.16. 3) 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) of US$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 Return was 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 have demonstrated 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 ever be upgraded to a higher category. See "Cautionary Note Concerning Reserve & Resource Estimates". 4) 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 been assigned 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 and Refining 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 processing in 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 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". Cautionary Note Concerning Reserve & Resource Estimates This 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 not recognize 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 reserves do 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 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. 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 release may 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 in accordance with NI 43-101 and the CIM Definition Standards. Technical Reports and Qualified Persons The documents referenced below provide supporting technical information for each of NOVAGOLD's projects. Project Qualified Person(s) Most Recent Disclosure & Filing Date Donlin Gold Gordon Seibel R.M. SME, AMEC “Donlin Creek Gold Project Alaska, USA, NI 43-101 Technical Report on Second Updated Feasibility Study” effective November 18, 2011, amended January 20, 2012. Kirk Hanson P.E., AMEC Galore Creek Jay Melnyk, P.Eng., AMEC “Galore Creek Copper-Gold Project NI 43-101 Technical Report on Pre-Feasibility Study, British Columbia – Canada” effective July 27, 2011. Greg Kulla, P.Geo., AMEC NOVAGOLD: RESERVE/RESOURCE TABLE (CON’T) 36
37. NOVAGOLD RESOURCES INC. Suite 720 – 789 West Pender Street Vancouver, BC Canada V6C 1H2 T 604 669 6227 TF 1 866 669 6227 F 604 669 6272 www.novagold.com firstname.lastname@example.org Mélanie Hennessey VP, Corporate Communications email@example.com Erin O’Toole Analyst, Investor Relations firstname.lastname@example.org CONTACT US 37
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