NovaGold Resources Annual Report 2020

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FY2020 Annual Report · NovaGold Resources

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THERE’S O N LY
ONE DONLIN.

AND ONLY ONE
NOVAGOLD.

2 0 2 0 I N T E G R A T E D
A N N U A L R E P O R T

C O V E R P H O T O S :
The Donlin Gold project (left) is located 10 miles north of

the village of Crooked Creek in the historic Kuskokwim

Gold Belt of southwest Alaska. Geologists inspect core

samples (right).

T A B L E O F

C O N T E N T S

CHAIRMAN’S MESSAGE ....................................................2

QUESTIONS AND ANSWERS .........................................11

DONLIN GOLD REGIONAL MAP ................................. 24

PRESIDENT AND CEO’S MESSAGE ............................. 25

SUSTAINABILITY SUMMARY ........................................ 30

COVID-19 RESPONSE

PEOPLE

HEALTH AND SAFETY

PARTNERSHIPS

ENVIRONMENTAL RESPONSIBILITY

COMMUNITY AND SOCIAL RESPONSIBILITY

GOVERNANCE AND CORPORATE POLICIES

MINERAL RESERVES & MINERAL RESOURCES ...... 50

CORPORATE INFORMATION ........................................... 52

FINANCIAL REPORT (SEPARATE DOCUMENT)

All scientific and technical information in the body of this annual report is qualified by – and is to be read in
conjunction with – the Mineral Reserves & Mineral Resources table and associated notes found on page 50.

All dollar amounts quoted in this report are in U.S. currency unless otherwise noted.

This annual report contains forward-looking statements or information concerning anticipated results and
developments in our operations in future periods, planned exploration activities, the adequacy of our financial
resources, and other events or conditions that may occur in the future. It may include statements regarding perceived
merit of properties, exploration results and budgets, mineral reserves and resource estimates, work programs, capital
expenditures, operating costs, cash flow estimates, production estimates and similar statements relating to the
economic viability of a project, timelines, strategic plans, including our plans and expectations relating to the Donlin
Gold project, market prices for precious metals, or other statements that are not statements of fact. These statements
relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet
determinable, and the beliefs, expectations, and opinions of management as of the date of this report. We do not
assume any obligation to update forward-looking statements if circumstances or management’s beliefs, expectations,
or opinions should change, except as required by law. Investors should therefore not place undue reliance on
forward-looking statements. See complete disclaimer on page 50.

Our employees and neighbors take pride in the work and

activities depicted in the photographs throughout this

report, most of which were taken at the Donlin Gold site

or in the surrounding communities.

With its Alaska Native partners, NOVAGOLD is

dedicated to providing economic opportunities to the

Yukon-Kuskokwim region in a culturally supportive,

respectful, and professional manner.

NOVAGOLD is a pure gold play focused on Alaska’s Donlin

Gold project in equal partnership with Barrick Gold. Donlin is

positioned to be one of the world’s largest gold mines, with

39 million ounces in measured and indicated mineral resources at

a high average grade of 2.24 grams per tonne1 on a mineralized

trend that occupies just 5 percent of its land package. We believe

it offers investors extraordinary leverage to gold.

We also believe that it’s only through a balanced development plan – one that enhances

economic growth, provides a safe and healthy workplace, and establishes strong and

collaborative working relationships – that we can bring tangible, long-lasting benefits to

our community partners. We aim to achieve that goal through openness, transparency,

constructive dialogue, and with respect for the values, the culture, and the language of the

people of the Yukon-Kuskokwim region.

1 Donlin Gold data as per the Donlin Gold Second Updated Feasibility Study (as defined herein). Donlin Gold measured resources of
approximately 8 Mt grading 2.52 g/t and indicated resources of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and
inclusive of mineral reserves. Mineral resources have been estimated in accordance with NI 43-101.

C H A I R M A N ’ S

M E S S A G E

Dr. Thomas Kaplan

Chairman, Board of Directors

MODERN MONETARY THEOLOGY
FOR A WORLD IN FLUX

reputable of their devotees are getting actual tattoos on their

exoskeletons to reinforce and further advertise their affinity as new

highs in the prices of crypto are being reached. Though such rituals

may exist in the niche that is the precious metals sector, other than

a knowing wink with my fellow travelers in the space, I for one have

never been privy to a secret handshake among gold’s proponents,

and certainly not any symbols of gang affiliation. Can one imagine

the sheer contempt that would follow a gold bull like John

Hathaway revealing he had piercings or body art applied to

celebrate his prescient early calls on the noble metal? We do live in

strange times, but, as the French would say, quand même…

I know what it is like to make 10 times my money, even 100

times and, once, 200 times. So I am not one of those people

who cries “Bubble!” when people are scoring a big win. To the

contrary, actually. So let me be really clear: I come here not to bury

the Caesar that is crypto, but rather to praise it. And of course,

in that praise, to reflect upon what the impressive ascendancy

of cryptocurrencies suggests about precious metals and thus

NOVAGOLD – the vehicle which I have come to love more and

more. Were this not to be the case, I would put NOVAGOLD into

play and pivot to something else. I won’t, because it is by far the

best gold story from my vantage point and I simply would not

know how to replace its attributes.

For decades, investors who are said to espouse a belief in

While I shall get back to some of the more philosophical

gold as a reliable and attractive store of value have had conferred

musings on the crypto/gold narrative a bit further into this letter,

upon them the epithet “goldbugs” in a nod to their supposed – and

let us begin with how the NOVAGOLD story itself only got better in

presumably flawed – ardor for the hard money thesis. Even those

like myself, who are not captured by what John Paulson and I call

2020. Much better, in fact. For some of our new investors – some of

whom are quite large – I feel compelled to repeat an inescapable

“gold feevah” and hold no more than a common-sense conviction

conclusion that guides my thinking about why I believe our

that there is room in every portfolio for a time-tested currency

company constitutes the finest way to play gold.

LEVERAGE IN A PLACE WHERE YOU CAN KEEP THE REWARDS

low risk

moderate to high risk

extreme risk

no data

that cannot be printed by fiat, have been given this label. As we of

sound mind – including those as avowedly hyper-rational as Ray

Dalio – are wont to say, being a proponent of having some gold

among one’s cash is just prudence. Nevertheless, until recently

in my experience, the emotionalism of gold’s detractors has

been more viscerally marked by intolerance than that of gold’s

adherents. After all, no other asset class is met with such wide-

ranging disdain that its advocates are referred to as, well…insects.

Until perhaps now, that is.

For if those positive on gold are somehow creepy-crawly

(a very British way of referring to bugs, worms, and the like), how

soon will it be that those bullish on cryptocurrencies – for many of

the same reasons that gold bulls promote the yellow metal – are

referred to, affectionately of course, as Bitbugs? After all, the febrile

religiosity and unbridled passion characterizing those whirling

dervishes of what I shall hereinafter refer to as “crypto” is

something that would make the merely pious goldbug blush.

The new insecta are so famously loyal to their cause that they have

developed mantras (e.g. HODL) while some of the most serious and

The jurisdictional risk map is derived from the top 10 (lower risk) and bottom 10 (extreme risk)
of 77 jurisdictions reviewed in the Fraser Institute’s Annual Survey of Mining Companies, 2020.
Alaska is ranked number 5.

2020: ROCK BEATS PAPER?

It’s apparent to me that we’re nearing an inflection point.

For when I speak about our flagship project, Donlin Gold, I often ask

this question of my audience: What other gold development-stage

asset in the industry compares in its combination of enormous

size, high grade for an open-pit (and hence the opportunity for

lower all-in sustaining costs), truly superb exploration upside, a

production profile of potentially the biggest pure-gold mine in the

world, a mine life measured in decades, excellent local and industry

partnerships, and the safety of being located in one of the world’s

premier jurisdictions? I’ve never heard pushback with that one. If

one cannot challenge the assertion, then Donlin Gold must be unique.

To my delight, needless to say, a legitimate question has now

arisen regarding one particularly sexy aspect of that uniqueness:

That is, whether Donlin will represent the largest gold mine in the

world after all. Many of you will have heard me share in the past

that there is only one serious rival for those bragging rights. I am

therefore elated to report that we have a challenger for that trophy,

the Sukhoi Log project. Or as I like to call it, the Analog. For Donlin

POSITIONED TO BE ONE OF THE
WORLD’S LARGEST GOLD MINES

Projected Annual Gold Production (millions of ounces)

1.10

0.5

0.45

0.39

0.37

0.36

Donlin Gold
USA*

Goldrush
USA†

Metates
Mexico†

Courageous Lake
Canada†

Côté Gold
Canada†

Salares Norte
Chile†

1.20

1.00

0.80

0.60

0.40

0.20

0.00

* Anticipated annual gold production during full life of mine if put into production as contemplated
in the Second Updated Feasibility Study. See “Cautionary Note Concerning Reserve & Resource
Estimates” and “Mineral Reserves & Mineral Resources” and associated information on page 50.
† Average of comparison group data of 5 projects based on large (2Moz P&P cut off ), North/South
American gold-focused development projects with >75% projected revenues from gold, as per
latest company documents, public filings and websites as of January 2021.

might turn out to be the second-largest pure gold producer if our

strategic assets. Evidently, Russians have learned to sleep with

arms race with Russia escalates to where I hope it will in terms of

one eye open for centuries – so they are not fazed. And we sure

our respective projects’ production profiles. Comparables are a

wish them uninterrupted, regenerative beauty sleep, for Polyus’

good thing for investors. They focus attention. And as we believe

greenlighting that mine will be wonderful for the owners of

that “to know Donlin is to love Donlin,” Sukhoi Log, the white swan

Donlin. Our shareholders (and, one presumes, Barrick’s) owning the

that alighted in Siberia in 2020, will likely bring deserved further

equivalent of what Sukhoi Log boasts, yet in the second-largest

attention to Donlin.

gold-producing state in the United States, is, well…kind of special.

The Donlin story has occasionally appeared to be too good

What counts most for us is that major Western investment banks are

to be true. To have another major gold mining company, Polyus,

putting valuations of $10-$15 billion on Sukhoi Log in their analyses

now developing Donlin’s analog in earnest is really exciting, as our

of Polyus. This is what I have long said Donlin should be worth at

stature is not diminished by the comparison. Indeed, it is enhanced.

today’s prices. As your company’s most enthusiastic promoter,

Think of it as being told that one dances like Gene Kelly or Fred

I therefore hereby pledge to work even harder to close that gap.

Astaire – or actually Ginger Rogers, who remarked somewhat archly

Clearly, with only one global comparable, the potential value to

that she could do everything Astaire did, just going backwards and

be unlocked as the partners move forward at Donlin is now more

wearing high heels. Who cares to whose glory one is compared,

tangible than ever.

right? If it is to any of these icons, one is an eternal star. The same

The data points that revealed themselves in 2020 only

goes for Donlin and Sukhoi Log.

reinforced this conviction, and in multiple ways. Let us start with

Being that Alaska was once a Russian colony, in many ways

the sweetest part: Namely, that we and our Native Corporation

it’s not surprising that analogies are drawn between these two

partners Calista Corporation and The Kuskokwim Corporation

major gold deposits. Both projects enjoy roughly the same amount

(TKC), and of course the project’s co-owner Barrick Gold

of ounces at a similar grade, and the same estimated ultimate

Corporation, managed to successfully execute the largest drill

production profile. It’s almost as if our Russian friends looked at

program at Donlin in 12 years under the constraints of COVID-19 – a

our last feasibility study and declared, “Let’s target that narrative!”

truly remarkable achievement. That it was accomplished on budget

in almost every metric. I am not suggesting that they wish to steal

and within schedule was a testament to a beautiful collaboration

what appears to be a compelling investment thesis. That would

by all stakeholders. That there were no cases of COVID-19 or lost-time

be rude. And in any event, I do see in their imitation the sincerest

incidents at the Donlin Gold camp was a rewarding attestation to

form of flattery. There is, however, just one itsy-bitsy difference

the professionalism, discipline, and conscientiousness of our team

between the two projects. We happen to stand on the right-hand

and subcontractors.

side of the Bering Strait, where one can sleep well at night and

not have to wonder what the Kremlin might be thinking about

the ownership of what I suspect shall be declared, in due course,

CHAIRMAN’S MESSAGEIn that regard, let me add this: Camaraderie matters. And so do

honor and fidelity. As seen from our inaugural formal sustainability

summary enclosed in this annual report, every single partner is

committed to the highest standards of sustainability. This is not

a new phenomenon. To us, environment, social, and governance

(ESG) is not a revelation. It has been a way of life for 20 years. We

never would have made it this far were that not the case. Donlin

presents one of the longest and most extensive environmental

baseline studies of any gold-mining project in history. As our Native

Corporation partners can attest, we talk the talk and we walk the

walk. Now that it is fashionable to discuss more fully one’s track

record for doing it right in sustainable development, we are raising

our hands – without fanfare but with great confidence. The truth

is, our owners can take supreme comfort in NOVAGOLD’s pedigree

in this particular area, as the board and management simply don’t

know how to do anything other than through best practices.

Our reward for this devotion to first principles, should one

wish to get a little metaphysical about it, is that the deposit itself

DOUBLE THE GOLD INDUSTRY’S AVERAGE GRADE

2.24G/T

Donlin Gold
average grade*

1.12G/T

world
average
grade†

* Represents average grade of measured and indicated mineral resources, inclusive of mineral reserves.
See “Cautionary Note Concerning Reserve & Resource Estimates” and “Mineral Reserves & Mineral
Resources” and associated information on page 50. † 2020 average grade of open-pit and
underground deposits with gold as primary commodity and over 1Moz in measured and indicated
resources, sourced from S&P Global Market Intelligence.

showed it was a gift that keeps on giving. That the drilling was

We welcome their participation in our story, as we do the two

completed (with even more holes than planned) was astonishing

additional Arabian Gulf sovereign wealth funds that already

enough; that the results themselves were better than expected was

have long-term exposure to NOVAGOLD via their holdings in The

icing on the cake. There is a reason why assay labs are referred to in

Electrum Group. Having such value-added investors cheering on

our business as “the house of heartbreak.” Yet in an industry more

Donlin is of true benefit to our shareholders, and I am grateful to

often characterized by declining grades and disappointments,

them all for wanting to see one of the largest gold mines in the

Donlin proved the contrary. Once again, it delivered higher-grade

world built when we and Barrick are ready to roll.

results than the modeled projections – a blessing that few gold-

mining projects can claim. From literally all standpoints, the mettle

and metal displayed at Donlin this past year was awesome.

GETTING BETTER AND BETTER:
THE NOVAGOLD ADVANTAGE

Not all of the year was as sweet, but we got through the

I have often been called an activist in both my for- and

bitter part really well – and then some. In terms of management’s

non-profit lives and acknowledge that being a promoter of great

resilience and integrity, we experienced what might be called

causes and even greater assets, if they are genuinely Tier One,1 is a

our finest hour when NOVAGOLD was subjected to what we

real honor. Big cats, Rembrandt, gold (and in the latter, especially

comfortably assert was a blatant manipulation of our stock price,

Donlin)…they’re all of a piece: beautiful, meaningful, uniquely

designed to blunt our momentum for the benefit of short sellers

iconic within their own specific ecosystems – and irreplaceable. If I

who conspired to carry out a short-and-distort scheme and/or

am a promoter of such things, then promoter I shall be. At least in

needed an exit when it looked like they might get squeezed as our

each instance, in addition to capital, I also contribute my passion

shares approached decade highs. I won’t dwell on that subject, as

and my most preciously held commodity: time. I have skin in the

we are currently pursuing justice through the courts against the

game, and my heart as well. For money is not my be-all and end-all.

misbenighted tip of the spear for that duplicity. Discretion is the

Death shrouds, as they say, have no pockets and my interests are

better part of valor. What is so astonishing to me about this case

effectively intertwined. Indeed, David Macdonald, the professor

is the sheer volume of the defamation that was required for it to

of zoology who founded WildCRU, Oxford University’s Wildlife

accomplish its task. Suffice it to say, the net result of the experience

Conservation Research Unit, paid me the highest compliment when

was that our shareholder support was exemplary. These investors

he said that “while many are trying to turn tigers into gold, Tom is

include the Kingdom of Saudi Arabia’s Public Investment Fund,

trying to turn gold into tigers.” If you want to know what makes me

renowned as one of the world’s savviest sovereign wealth funds.

tick, that about sums it up. With that passion driving me on, not

They liked what they saw and acted with gusto in the marketplace.

for nothing am I sometimes called “the owner who lives above the

store.” In my book, that’s more of a privilege than a responsibility.

For as I often say, “It doesn’t take a genius to buy Rembrandt; it

1 NOVAGOLD defines a Tier One gold development project as one with a projected production life
of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average
projected cash costs over the production life that are in the lower half of the industry cost curve.

I encourage any reader to peruse NOVAGOLD’s 20183 and 20194

annual reports. I do urge you to read them precisely because they

takes a genius to be Rembrandt.” At this point, I could say the same

are considered, by our investors, to represent the gold standard of

for Donlin which, simply put, to me evokes a da Vinci.

transparency and intellectual coherence in the gold development

That sense of destiny was further evoked in 2020. For if Fortune

space. As such, I am not aware of any shareholders who do not

was impressed by all the positive developments that took place at

understand our strategy and the steps we are taking to

Donlin, she certainly expressed her approbation by giving us many

implement it.

signs. Such good luck is yet another reason why I have always felt

In addition to these facts as we know them, our shareholders

the NOVAGOLD story is so special that my only regret has been

are accustomed to getting my forward-looking thoughts every year

that more people don’t know of it. This will assuredly change, and

on how the gold thesis is doing. This year’s “Thoughts” section will

possibly sooner than we think. Given the gold industry’s suffering

be a bit longer than usual. Knowing that brevity isn’t my strong

from both asset scarcity and the ravages of rising jurisdictional risk,

suit at the quietest of times, such a statement may appear quite

we believe that having equal ownership in a Tier One asset located

daunting. But if you are like me, watching the world (and not just

in a Tier One jurisdiction suggests that time is clearly on our side.

the markets) venture into uncharted waters begs for an attempt

This, in turn, will give our shareholders maximum leverage in the

at explanation. There are so many new facets to the new world

perfect jurisdiction to keep the fruits of that leverage.

disorder. Perhaps dozens. I shall dwell primarily on two of them:

For more on that particular angle, one can watch my interview

crypto as it relates to precious metals, and China.

with Dan Tapiero2 for Real Vision, in which we talk gold and, yes,

Donlin Gold. Since that interview was published, I can add that

GOLDBUGS, BITBUGS, AND SILVERBUGS

NOVAGOLD and our co-equal owner in the project, Barrick, are fully

“I have always thought there might be a lot of cash in

aligned in carefully planning out the future mine and monitoring

starting a new religion.”

developments to advance Donlin Gold toward construction – at a

George Orwell to a friend, 1938

time when both partners conclude that they can achieve maximum

Tempting as it is to veer into sex and politics and other

benefits for all stakeholders, including our shareholders.

temporal issues this year, let us stick with what now constitutes

Meanwhile, momentum is building rather fast, for NOVAGOLD

the less controversial, albeit more spiritual, subject of religion. The

is becoming a go-to stock in the space, especially as the sentiment

revelation of divine truth is a powerful thing, and it is a wondrous

in this sector improves and interest is steadily but surely finding

sight indeed to witness the birth of a new and passionate faith.

a channel into scarce and consequential North American assets.

Some might even argue that, in an era characterized by a perverse

There are myriad good reasons for this. For while I hate to say it,

alloy of cynicism and financial exultation, this spectacle is especially

there won’t be very many players left in the gold space. Collapsing

pronounced when money is involved. Real money – not this penny-

grades, the paucity of new discoveries, and the churning through

ante “a billion here, a billion there” kind of stuff, but rather a trillion

of reserves at existing mines by the majors all but confirm that

here or there.

we have already reached a tipping point. As such, assets like

The rise of cryptocurrencies in fact could be interpreted as

Donlin Gold, with metrics that are accretive on practically every

such a theological phenomenon. And George Orwell, as with

dimension, are essentially unicorns. When I survey the landscape,

many other cases in his observation of the human condition, was

I am reminded of the carnage that was visited on the tech space

likely onto something very much worth pondering here. For as

after the late 1990s bubble burst. If one had the presence of mind

JPMorgan strategists John Normand and Federico Manicardi wrote

to sift through the wreckage and have the wits to pick a winner or

in mid-January, “Whether cryptocurrencies are judged eventually

two – say, an Amazon or an Apple – one made a generational trade.

as a financial innovation or a speculative bubble, Bitcoin has already

Similarly, I believe that those few gold companies that have great

achieved the fastest-ever price appreciation of any must-have

assets in great places will constitute generational opportunities.

asset.”

I believe that NOVAGOLD will stand among those precious few.

The pious fidelity of the contemporary neo-monetary

Candidly, helping this particular scenario come along is

monotheists, a.k.a. the Bitbugs, is nonetheless all the more

our objective. As the great wit Talleyrand put it, “The art of

impressive given that the concentration of crypto wealth would

statesmanship is to foresee the inevitable and to expedite its

make even a plutocratic one-percenter blush. If what I have read

occurrence.” We’re open about it. I’m open about it. We at The

is true – admittedly, a high hurdle in this era of obfuscation and

Electrum Group consider Donlin Gold to be the holy grail and want

manipulation – approximately 2 percent of anonymous accounts

it to be valued for the category-killer Electrum and its shareholders

control some 95 percent of all Bitcoin holdings, a data point which

see it to be. Electrum will make money only to the extent that

NYU economist Nouriel Roubini also relayed.5 A further breakdown

its co-investors will. And these fine folks are exceptionally well-

educated about Donlin Gold’s narrative. For those new to the story,

2 https://www.realvision.com/the-kaplan-doctrine-conservation-preservation-and-value

alongside-prices-flipside-crypto-202011281344

3 https://www.novagold.com/_resources/NG_2018-AR.pdf
4 https://www.novagold.com/_resources/NG_2019-AR.pdf
5 https://www.fxstreet.com/cryptocurrencies/news/bitcoin-whales-ownership-concentration-rises-

CHAIRMAN’S MESSAGEwell for the old gold. History shows that, when people behave

civilly, multiple models derived from a common gene can survive in

indicates that large holders, the so-called whales, would own about

tandem – and indeed thrive.

92.4 percent of the 2 percent, with crypto exchanges accounting for
nearly 7 percent.6 What a brilliant phenomenon it is to get people

to want it despite this.

Want and need are two distinct things; the difference between

freedom and dependency. For our purposes that is to say that,

while I genuinely want crypto to succeed, I don’t actually need

A beautiful précis of the theistic aspects of cryptocurrencies7

crypto to succeed for Donlin and scarce assets in safe places to

was published by Bloomberg early in 2021. It begins thus:

become their own juggernauts. This is an excellent position in

Bitcoin is the first true religion of the 21st century.

which to find oneself. To go from the sacred to the profane, this

Sometimes people call Bitcoin a religion pejoratively,

reality actually applies to numerous asset classes. After all, Old

as a way to sneer at its disciples. Or they call it a cult. Or

Masters are reaching new highs at auction and in private sales. In

they just use “religion” to imply that the whole thing is

fact, an Old Master painting – Leonardo’s Salvator Mundi – holds the

irrational. But I mean it with no judgment one way or

record at auction for any work of art ever, despite being sold in a

another. Just that it’s literally a religion. There’s plenty of

market swirling with modernist and contemporary creations. There

evidence for it.

is a lot to be said for pedigree and scarcity.

This piece was followed up a couple of weeks later by an

I shall not, however, say much for why one should own gold –

equally riveting reinforcement.8 Like the author, Joe Weisenthal,

or crypto, for that matter. While each asset boasts some bells and

I reserve the right to be non-judgmental while analyzing

whistles that are unique to itself, their commonality of purpose

the phenomenon. And yet, I sort of enjoy watching it. Most

should form a sea change that is embraced by the gold bulls, who

religions fizzle out and become rumps or insignificant cults.

have witnessed the triumph of the essential arguments with a new

The most prosperous religions, however, are often promoted as

generation. And by now, practically all of these NMM evangelicals

continuations of a successful model, or at least an established one.

have heard their favorite asset referred to as “digital gold” or “the

One need go no further than the Judeo-Christian-Islamic narrative

new gold.” Millennials logically associate the received wisdom

to evidence this point. So long as the Bitbugs are a bit tolerant

of crypto as being the natural extension of something that has

of the gold bulls’ denial of their exclusive right to the future of

an actual multi-millennial pedigree. This rebooted applause for

hard currency, all will be well. Gold is tested by time, and, even if

gold is enormously bullish for the metal – for the zeitgeist has the

technically demonetized for the time being, it is still a recognized

potential to boost gold’s brand recognition as an aspirational asset

and safe store of value that will continue to be seen as such by

benchmark, at just the right time for an industry that cannot find

central banks. Not unlike that Old Testament/New Testament/

sufficient quantities to replace their reserves. Think about it: Every

Quran dynamic, I for one have a deepening suspicion that the

time a Bitbug refers to crypto as “the new gold” or “digital gold,”

evangelism of cryptocurrencies’ true believers may metamorphose

they are paying a compliment to gold. True, they may be saying

in a way that will reaffirm and enhance the case for gold itself as

it as a backhanded compliment. But considering that this crowd

part of a mix of alt-currencies. After all, the fundamental rationale

probably never owned – or thought of owning – any non-fiat

for ownership of cryptocurrencies is pretty much grounded in the

currency (or was even familiar with the idea that they should or

intrinsic justification for owning gold.

could) until recently, any revelation at all regarding why gold has

Crypto bulls recognize that the monotheistic principle of

worked can only be accretive to the brand of a most under-owned

“money that can’t be printed by fiat ad infinitum” began with gold

financial asset. Some, led by reputable aficionados such as Mike

(and, to be fair, silver too). Both assets hence are part of a wave

Novogratz himself, actually espouse buying gold and, as seen most

against the paganism of what began as a creeping and inchoate

quixotically but very intelligently, there is clearly a strong retail (as

irresponsibility and has now crystallized into a new creature

well as institutional) interest in silver. If, as I suspect, these fellow

altogether – namely, Modern Monetary Theory. True, this heresy

leverage lovers happen to look for a new hit of octane, they will be

remains the state religion. But with gold gaining new adherents,

pivoting to the miners with enough enthusiasm to create a new

and the hyping of cryptocurrencies’ various successor testaments

bubble in that beaten-down asset class.

and catechisms, the neo-monetary monotheists of what I am here

For those who want some practical advice, therefore, I can

and now christening “Modern Monetary Theology” are taking the

only express how I am choosing to trade the gold/Bitcoin

thesis to a new generation that many of the gold bulls, and I for

phenomenon. It is through the equities of gold and silver mining

one, would never have been able to reach on our own. Thus, I do

shares. If crypto does well, it is a very good sign that gold will do

believe that what Bitbugs refer to as the “new gold” bodes very

fine. If digital currencies are themselves disrupted by governments

6 https://www.bloomberg.com/news/articles/2020-11-18/bitcoin-whales-ownership-

concentration-is-rising-during-rally (accessed February 6, 2021)

7 https://www.bloomberg.com/news/newsletters/2021-01-04/five-things-you-need-to-know-to-

start-your-day

8 https://www.bloomberg.com/news/articles/2021-01-21/bitcoin-is-a-faith-based-asset-joe-

weisenthal

and their market deepens, crypto:gold ratios will emerge that will

be tradable. The relative illiquidity of gold and silver will cause

them to be revalued upward. And so it goes. I have always held that

gold needs a $3,000-5,000 price for an equilibrium to be reached

simply from a gold industry standpoint – with multiples of that

if macro factors play out as they can. With the market cap of the

entire precious metals sector amounting to not much more than

the daily fluctuations in any of the new Nifty Fifty, it will not take

of cryptocurrencies (and I suspect that the true winners are

much more than the flapping of a butterfly’s wings to cause the

not even named yet, other than perhaps in Chinese), there

miners to revert to their historical golden mean in valuation.

is still only one kind of gold and one kind of silver, history’s

ON TO THE BEST PART

time-tested monetary metals. And as we all know so well,

both are genuinely hard to find and exploit. For once one

Were I to be even fractionally right on my outlook for the

has bucked the roughly 1,000-10,000:1 odds against finding

metals, the surge will not be ephemeral. For it will coincide with

something new through exploration, it will then take on

that perfect storm of supply-demand fundamentals of which I am

average 15-25 years to develop, permit, and build the mine

convinced even more so now, and that ultimately argues for an

itself. As we also appreciate, the industry has not generated

epic higher revaluation of the metals – and their equitized proxies

new discoveries for years. And grade is plunging – by half

especially. Moreover, unlike crypto, the miners enjoy some highly

over just the last decade. If anything, production is slated to

favorable differentiators. Here are a few to get the juices flowing

decline for years.

and realize why I believe it’s game over for the precious

f Let me also remind the reader that gold is not like

metals bears:

hydrocarbons, with vast reservoirs or resources ready to be

f Gold is a hard business, literally and figuratively. A new

switched on quickly should prices rise, or unlocked simply

cryptocurrency essentially requires an algorithm – no small

by new technologies such as horizontal drilling or fracking.

feat, of course – but putting aside the benefits to being

The mining industry does not enjoy the luxury of 3D seismic,

a first-mover, a new and improved version of the coin

and deposits can take decades to go from prospect to mine.

can always be created if one wills it. Gold is uniform in its

Peak gold really is peak gold. Barrick recently estimated that

chemical composition, what one might call its algorithm.

gold production will decline by 5 percent a year for years

There is only one kind of Au. I do not have to imagine what

going forward. I believe that’s about right. If anything, it will

kind of regulation gold may face that can harm its thriving

likely prove to be a conservative forecast as jurisdictions once

– I already know what those scenarios are and can live with

thought investible are no longer so, and declining grades

the consequences. However, I can be quite sure that many

mean higher costs with less output. What an incredible story.

governments are looking at how to manage or even compete

That’s why I often claim that, as far as supply is concerned, the

with crypto. Suffice to say that, while there exist a multiplicity

horse has already left the barn.

DONLIN GOLD’S UPSIDE VALUE WITH HIGHER GOLD PRICES

Net Present Value (NPV) (US$ in billions)

NPV at 0%

NPV at 5%

f The future market darlings, gold miners – even the majors

– are all pretty much small caps today. Those that remain

are healthier than they have been in years. If I am remotely

right in my thinking, gold and silver companies that operate

in jurisdictions where one is allowed to keep the fruits of

27.0B

all this leverage will potentially offer the biggest dividend

Gold Price
US$/oz

$2,500

$2,000

$1,700

$1,500

$1,300

19.2B

14.6B

11.6B

8.2B

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

Donlin Gold estimates as per the Second Updated Feasibility Study, effective November 18, 2011,
amended January 20, 2012. All dollar figures are in USD, represent 100% of the project of which
NOVAGOLD’s share is 50%, and reflect after-tax net present value (at 0% and 5% discount rates) of
the Donlin Gold project using the feasibility study reference date of 1/1/2014 (start of Year -05) as
the first year of discounting. Estimated project development costs of approximately $172M to be
spent prior to the reference date are treated as sunk costs. At a 5% discount rate, the net present
value is: $1,465M @ $1,300 gold; $3,147M @ $1,500 gold; $4,581M @ $1,700 gold; $6,722M @ $2,000
gold; and $10,243M @ $2,500 gold. The project requires a gold price of approximately $902 per
ounce to break even on a cash flow basis. See “Cautionary Note Concerning Reserve & Resource
Estimates” and “Mineral Reserves & Mineral Resources” and associated information on page 50.
Wood Canada Limited (“Wood” formerly AMEC Americas Limited) is currently updating all sections
of the Second Updated Feasibility Study with updated costs, economic assessment, permitting
information, and technical information related to permitting, generated on the Donlin Gold project
since 2011, which is anticipated to be finalized and filed during 2021. Based on that cost review,
Wood determined that updating the Second Updated Feasibility Study using 2020 costs and new
gold price guidance results in no material change to the mineral resources or mineral reserves. The
economic assessment in the updated study may be materially different than in the 2011 study.

potential in the investment world. And not just for equity

investors looking at yield-generating stocks, but also for

fixed-income investors looking for alternatives to bonds in

the low-yield environment we find ourselves in – and which

is likely to remain in place for the foreseeable future. The

dividend streams from precious metals equities should attract

a huge wall of yield-seeking money from the fixed-income

market, which at the moment wouldn’t see crypto as a viable

option. As such, for those who want real leverage to the

New Monetary Theology, the miners deserve a really hard

look. The pent-up buying power of that observation is good

enough for me. As Michael Oakeshott, the late London School

of Economics political philosopher put it so elegantly, “a true

conservative is one who prefers…present laughter to

utopian bliss.”

CHAIRMAN’S MESSAGE
A RESOURCE MORE THAN FOUR TIMES THE
SIZE OF THE PEER GROUP AVERAGE

Donlin Gold*

39.0Moz

8.4 Moz

peer group
average†

* Represents 100% of measured and indicated mineral resources, inclusive of mineral reserves, of
which NOVAGOLD’s share is 50%. See “Cautionary Note Concerning Reserve & Resource Estimates”
and “Mineral Reserves & Mineral Resources” and associated information on page 50. † Peer group
data based on company documents, public filings and websites as of March 29, 2021. Comparison
group of 15 projects based on large (2Moz Proven and Probable cut off), North/South American
gold-focused development projects with >75% projected revenues from gold.

ELECTRUM’S ALGORITHM

be into that model ahead of any other. And truth be told, were

the decision Electrum’s alone, we would have multiple drill rigs

on Donlin right now. For the industry desperately needs reserve

expansion at these grades. The CEO of Wheaton Precious Metals,

Randy Smallwood, used a nice turn of phrase with Kitco to describe

the collapse in grades and the fact that “it is getting tougher and

tougher to find good solid assets and opportunities to grow”:

Geological Inflation. As he put it far more succinctly than I am ever

wont to do: “Having good long-life assets against this backdrop is

incredibly important.”9 That is indeed our philosophy as well.

WHITHER THE DOLLAR AND CHINA?

For years I argued that, in a world where all paper currencies

are toilet tissue, at least the dollar was double-ply. And as

currencies are relative instruments, of the fiat currencies the dollar

remained the best. Thus, one should own gold and the dollar

simultaneously. Of course, I am always met with a raised eyebrow

with that one because one of the most persistent myths remains

that gold somehow needs a weak dollar. It does not, as illustrated

It is true that my enlightened complacency might be

with this case in point.

influenced by the belief that I have found a formula to making

outsized returns in natural resources when one owns the right

asset in the right macro environment. Despite prospering in this

business for nearly three decades, my personal perspectives are

more qualitative – really as a historian who applies what he believes

to be some of history’s important lessons. That has proven to be a

strong comparative advantage in commodities investing, even if I

still freely admit that the extent of my knowledge of the nuts and

bolts of mining would fit generously into a thimble.

Knowing what I do not know, from the very outset of my

career I thus made it the first order of business to surround myself

with people of the greatest integrity – that is, who are not afraid

to tell me when the emperor is naked – and who are also at the

top of their games in their respective spheres: wise individuals

such as my “Doctors Nyet,” Ken Rye and fellow NOVAGOLD board

member Igor Levental, in analyzing and negotiating deals; first-

rate geologists, led by the remarkable Dr. Larry Buchanan; and

enormously successful and battle-proven mine operators and

builders, best exemplified in my experience by NOVAGOLD’s very

own Greg Lang and Richard Williams. Electrum puts serious money

into exploration. If we are really lucky, this formula can make 10x

on a discovery. And if we get the macros right, we can expect that

windfall to multiply a further 10x. Thus, should my team and I have

the choice of where to put Electrum’s risk dollars today, it still would

I distinctly remember the day I sold my energy company in

2007. Oil was well north of $100 with Goldman Sachs claiming that

a spike to $200 was possible – bless their hearts – and the dollar

stood at $1.47 against the Euro. Gold had a $600 handle. And thus

are put to rest two myths: First, that gold is a commodity like oil

and will trade with commodities in tandem; second, that the dollar

(having strengthened to its present $1.20 versus the Euro) needs

to fall for gold to rise. Myths are wonderful things. Since that day

some 13 years ago, gold has tripled during a period in which the

dollar grew even stronger. Meanwhile, oil declined to a fraction of

where it was when I had to decide in which currency I wished to

be denominated as I pounced on the gold-mining opportunities

that would present themselves. A year later, this would include

NOVAGOLD, the company that had successfully and famously

fended off a hostile takeover bid by Peter Munk’s Barrick.

While the fiat currency alternatives to the dollar are ripening

for sure, reserve currencies usually take a while to wither. After all,

in an article published in the Washington Post and appropriately

titled “How Trump made China’s currency great again,” the author

cites the Nixon-era Treasury Secretary John Connally, who quipped

– wickedly yet not incorrectly – to a group of European finance

ministers that the “dollar is our currency, but it’s your problem.”10

So I will only say this: Watch China. I think of China as Dean Martin

did of Sinatra when he said, “It’s Frank’s world; we just live in it.”

American hegemony is receding as China’s is rising – a process that

accelerated materially, in both directions simultaneously, during

the last several years.

9 March 12, 2021 Kitco interview titled “Geological inflation is here; how does this affect gold and

silver price?”

10 https://www.washingtonpost.com/opinions/2021/01/20/how-trump-made-chinas-currency-

great-again/

Then there is this: I do believe that the Chinese are firmly

dedicated to crypto in their bid to undercut one of the most

As someone who is deeply pro-American, I write this with

important pillars of American power – the take-it-or-leave-it

genuine regret. Still, the fact is that China’s was the only one of

nature of the dollar standard. Thus, to those who have learned

the world’s largest economies that did not contract last year. The

through experience the aphorism “Don’t fight the Fed,” I would

contrast between their effectiveness (and concomitant brutality) in

suggest that in the not-too-distant future it will be adjoined an

implementing their policies and the performance of most Western

important corollary: “Don’t fight the Fed and/or the People’s Bank

countries is glaring. Such rigor, combined with the notion that

of China.” While there certainly will be other countries that seek to

there are some 1.4 billion of these hard-working people, should

incorporate crypto into their strategies, I would bet on the Chinese

be considered strongly. Of course, many would point out that the

determination to perfect crypto and other aspects of the renminbi

travails of the pandemic can be traced to Chinese wet markets. This

alternative as they internationalize their currency. They will scrub

might well be accurate. But it is also irrelevant when it comes to this

their efforts internally and then expand to the Belt and Road and

discussion.

thenceforward to the rest of the world.

The Great Depression that began in 1929 was triggered by

As a more significant trading partner to more countries in the

a stock market crash that originated in the United States. That

world than the United States, the rise of China’s currency to reserve

fact was fully forgotten in the ensuing socio-economic and

status – at the expense of the dollar – is inevitable. If I had to hazard

geo-political disasters that followed. What remains is the ironic

a guess, it will also involve gold, of which the Middle Kingdom

result that a singular crisis catalyzed by American excess resulted,

is the largest producer and the largest buyer. And I believe as

within less than a generation, in both the displacement of multiple

well that it will involve Russia, which made news in 2021 when its

empires and the United States itself emerging as a global hegemon.

gold holdings surpassed U.S. Treasuries for the first time. That is

Speaking figuratively now, we know how wars begin. But to

a meaningful statement, both for how the country views gold (of

paraphrase General David Petraeus’ trenchantly insightful

which Russia has now overtaken Australia for the number two spot

question not long after the Iraq War commenced, “Tell me,

in global gold production) and what they seek to accomplish in

how does this end?”

terms of monetary autonomy. Vested interests are happy interests.

This leads us to another reason why I don’t simply call crypto

Moreover, I believe that, if the Chinese and Russians are not

by the name of its present market leader, Bitcoin. I voluntarily put

already acting in concert, they have ensured that their melodies

aside the question of which cryptocurrencies will survive, partially

are harmonious. Then of course there is Mother India, whose love

as I would like this piece to retain some reasonable shelf life. But

for gold has been requited with higher prices, thereby providing

also because governments could cut the crypto story dead in its

pretty much all Indians with positive reinforcement from holding

tracks at any time. Note to the bulls: I strongly urge the space to

gold as a store of value. So we have China, India, and Russia with

find another name for it. Governments do not like to lose control

a genuine vested interest in gold at a time when production is

of their money without a fight. And they don’t need to look very

declining and money printing has reached the “ho-hum, just pile it

far for the casus belli. In a regulatory era determined to ensure that

on” phase. In short, I can see that the long-term prognosis for gold

“know your customer” is real, that money can be traced and that it

– officially as well as unofficially – involves gold. For me personally,

is utilized transparently, the mere expression cryptocurrencies itself

I feel as the lady at the next table to Meg Ryan’s in When Harry Met

invites a crackdown. What Jim Grant calls a “digital bearer bond”

Sally…. When I watch the reaction of those three ambitious powers

should really be called “happy money.” Anything but crypto. In that

reprising her classic euphoria, my only response is, “I want what

spirit, there’s also the environmental aspect. As Grant quipped:

[they’re] having.”

“That such energy-intensive ‘mining’ makes gold mining look green

is, to the Bitcoin faithful, irrelevant.”11 But that cognitive dissonance

may not last too long.

11 “Bitcoin Goes to Wall Street,” Grant’s Interest Rate Observer, Vol. 39, No. 3, February 19, 2021.

CHAIRMAN’S MESSAGEEARLY INNINGS STILL

Obviously, I am not the only one to detect this paradigm shift

in gold. There is no doubt that consciously and subconsciously

If John is right, and if I am right, the place to be in order to

the investment climate has changed in the bulls’ favor. The gold

benefit from a legitimate revaluation (dare I say “bubble”?) remains

narrative is far more well-received now than it was a couple

the precious metals miners. The massive dividend streams to

of years ago, and the expansion and quality of gold’s list of

which I referred, coupled with the multiple expansion of those

advocates has been beautiful to behold. So it has been with the

companies with long-lived Tier One assets in Tier One jurisdictions,

crypto phenomenon mirroring this pivot, and with its passionate

could allow these companies to outshine everything else but some

adherents who are presenting precious metals with a new pool in

groundbreaking tech and biotech stocks – and yes, even crypto. We

which to wade. If crypto multiplies, precious metals will prosper for

live in a world in flux. Empires are rising, empires are declining. Gold

their own merits and for their arbitrage opportunities as people

may or may not be the biggest winner. But a winner it will be. And

seek value amidst the alt-currencies. If crypto does not do well for

that bodes well for me and the shareholders of NOVAGOLD.

whatever reason, or faces increased regulation, gold’s time-tested

reliability will let it continue to shine for all the reasons I have

ACKNOWLEDGMENTS

highlighted for years.

I have evoked Fortune quite a few times in this piece. Those

readers who know me understand it is no throwaway expression

in my book. Rather, an appreciation for the inherent fickleness of

TOP LONG-TERM SHAREHOLDERS

life constitutes part and parcel of a deep affinity for certain classical

63.5%
top 10

25.7% Electrum Strategic Resources LP & affiliates
7.5% Fidelity Management & Research Company
6.7% Paulson & Co. Inc.
6.4% BlackRock Institutional Trust & affiliates
4.9% Saudi Public Investment Fund

3.6% Van Eck Associates Corporation
3.0% First Eagle Investment Management

2.4% The Vanguard Group, Inc.

2.0% EXOR Investments (UK) LLP
1.3% State Street Global Advisors (US)

36.5%
all other

$3.0B

market cap*

* Market Capitalization based on 331.3 million shares issued and outstanding and NOVAGOLD
share price of $9.31 as of April 1, 2021. Shareholder positions are based on the latest 13-D, 13-F
or 13-G filings as of December 31, 2020.

values of acknowledgment best evoked by Cicero, who put it so

perfectly: “Gratitude is the greatest of the virtues and the mother of

all the others.” I believe with all my heart and mind in the absolute

truthfulness of this sentiment. And at no time in my adult life than

during this past year have I felt more grateful for all those that I

have around me and in my various ecosystems.

To all those who are making the Donlin Gold project advance

so gracefully and helping the NOVAGOLD story shine so brightly,

you have my deepest appreciation. The year 2020 clearly would not

have been the success it turned out to be without the wisdom and

fidelity of all our allies and collaborators: our Alaska Native partners

– Calista and TKC – and our joint-venture partner Barrick; the State

of Alaska and the federal government; our board of directors; the

management personnel in Salt Lake City, Vancouver, and at Donlin

in Alaska; and all our contractors and professional advisors. As

that owner who lives above the store, and knowing what it is to

be a long-term investor, my gratitude for our fellow shareholders

knows no bounds. From the more modest retail investors all the

It is still early days in this story, however. At this juncture, I am

way through to the most highly acclaimed fund managers and

yet again reminded of the wise words of John Hathaway, whom I

shrewdest sovereign wealth funds, we feel blessed with a trust

regard as the Dean of the Gold Bulls: “A cursory inspection of the

that NOVAGOLD holds sacred.

U.S. fiscal situation suggests that the U.S. dollar deserves to rank

Thank you all once again for that trust. Please stay safe.

high on the endangered species list. We believe that now is the time

And may you and your loved ones experience a healthy and

to start layering in gold exposure, not when the rest of the world tries

prosperous 2021.

to do so.”

Dr. Thomas Kaplan

Chairman, Board of Directors

April 7, 2021

ONE-ON-ONE WITH DR. THOMAS KAPLAN

Barrick itself was waiting in the wings to buy NOVAGOLD

1 Q + A

YOU’VE BEEN IN THE NOVAGOLD STORY FOR
12 YEARS NOW. PLEASE TELL US HOW YOUR
INVOLVEMENT HAPPENED.

out of bankruptcy. They were not the only ones. That was the

reason I didn’t try to acquire the whole company. A wise head, Igor

Levental (the guy married to Jessica and also Electrum’s president)

was whispering in my ear: Remember Caesar, thou art mortal. The

argument went as follows: If you try to take it all and right out from

under the noses of the majors that covet the company, all they have

to do is walk you up dollar for dollar and so long as the number

they pay is less than the takeover price that Barrick offered (and

We at Electrum entered the NOVAGOLD saga on December

the shareholders rejected), it is worth it for them. It was a pretty

31, 2008 as something of a white knight, purchasing the company’s

good point, so we settled for less ownership but with certainty of

shares for the very first time in order to literally save it from

transaction. There’s greedy, and there’s stupid. Nonetheless, I could

existential challenges across an extraordinarily broad front. Putting

count on the fog of war for only so long and the fuse on the rescue

aside the fact that the economic environment on that New Year’s

of this pariah was short. It was so short, in fact, that I decided to

Eve was not particularly permissive of any investment at all, our

forego our characteristically fastidious due diligence process to rely

intervention appeared – even to our closest friends – as akin to

upon NOVAGOLD’s joint disclosures with Barrick. I decided that I

catching a falling knife. But I had sold my hydrocarbon company,

didn’t have to trust NOVAGOLD’s representations about Donlin,

Leor Energy, for cash a year earlier in order to pivot to gold, and luck

just their partner’s.

as well as opportunity coalesced beautifully right where I had put

Only after we had closed our investment in NOVAGOLD were

my focus: NOVAGOLD.

we able to send our chief geologist, Dr. Larry Buchanan, to walk the

As a bit of background, I had long coveted exposure to the

property and share his impressions. Larry’s award-winning team

Donlin story. Watching at a distance from the early 2000s, I felt that

had led the discovery and exploration at San Cristobal in Bolivia,

I had missed the chance as NOVAGOLD’s shares rose from pennies

which resulted in the identification of what developed into one

into the teens on the back of drilling that produced what were

of the largest silver and zinc mines of his generation. A man of

clearly among the best exploration results in the gold industry.

enormous integrity as well as talent, much like Igor he also only

I wasn’t the only one who saw this potential; Barrick not only

“speaks truth to power” and his opinion means a great deal to me.

shared my view, but also tried to buy the company in 2006 when

“Is the deposit at Donlin what we thought it was?”, I asked upon his

NOVAGOLD’s market cap was approximately $1.2 billion. The failure

return. “Oh no,” said Larry. Mercifully, before my heart sank, he then

of their takeover attempt was to have enormous implications for

quickly added that there was, in his opinion, very much more than

both companies.

the 30 million ounces12 already identified. Moreover, with that 8km

By the end of 2008, NOVAGOLD was untouchable. Name the

strike being a mere 5 or so percent of the property package, Larry’s

crisis and the company defined it: debt coming due that would

conclusion was most emphatic when he said that “the next Donlin

have put it into bankruptcy, class-action lawsuits, environmental

could be at Donlin. Congratulations.” Within a couple of years, we

concerns with the EPA (regarding a modest gold property that was

had sorted out the various messes that were leading NOVAGOLD to

remediated and is now divested), loss of credibility with investors

collapse before 2009, and by 2010 the equity returned to the price it

and analysts, and hostility from at least one of its key partners.

had been during the Barrick takeover attempt.

I could go on. But being that we were not irrational by nature – and

that it’s much more fun to speak to what transpired afterward – we

reached the conclusion that if we could turn this disaster around it

would prove to be worth it.

12 In April 2009, Novagold reported 35.3 million ounces of gold, on a 100% basis, contained in

measured and indicated mineral resources, inclusive of proven and probable mineral reserves,
of which Novagold’s share was 50%. This is supported by a past technical report, “Novagold
Resources Inc., Donlin Creek Gold Project, Alaska, USA”, effective April 1, 2009. Measured
resources, inclusive of proven reserves, totaled 10 million tonnes grading 2.53 grams per tonne,
and indicated resources, inclusive of probable reserves, totaled 469 million tonnes grading 2.29
grams per tonne. This estimate has been superseded by the estimate contained in the Second
Updated Feasibility Study effective November 18, 2011 and amended January 20, 2012. For
current mineral reserves and resources, refer to “Cautionary Note Concerning Reserve & Resource
Estimates” and “Mineral Reserves & Mineral Resources” table on page 50.

QUESTIONS AND ANSWERS2 Q + A

NOVAGOLD IS ELECTRUM’S FLAGSHIP INVESTMENT
BECAUSE YOU SAY DONLIN IS THE “HOLY GRAIL.”
COULD YOU EXPLAIN THAT?

an accelerating rate, Donlin has continued progressing at its natural

pace. We refer to this phenomenon as “The Tortoise and the Hare.”

Thus, rather than experiencing deal fatigue of any kind, it’s quite

When we entered NOVAGOLD at the very end of 2008, as

the opposite. The passage of time has only reinforced our belief in

discussed earlier, we felt that Donlin was likely the best single

Donlin’s uniqueness and hence NOVAGOLD’s potential as a go-to

development asset in the gold space. The passage of time has not

stock in the next up-leg of the gold cycle.

only reinforced this opinion, but we now believe that industry

fundamentals are rendering it unique. Let me put it this way.

When I speak about Donlin, I often ask this simple question of

my audience: What other development-stage asset in the industry

compares in its combination of enormous size, high grade for an open-

4 Q + A

pit (and hence low all-in cash costs), truly superb exploration upside,

SO YOU SEE DONLIN AS “BEST IN BREED”?

a production profile of potentially the biggest pure-gold mine in the

Yes, completely. Certainly, the superlatives one can attach to

world, a mine life measured in decades, excellent local community and

it are quite remarkable. In one or two phases, Donlin could well

industry partnerships, and also the safety of being located in one of

represent the largest single pure gold mine in the world when

the world’s premier jurisdictions?

it begins production – and with decades of reserves. Other than

I’ve never heard pushback with that one. If one cannot

perhaps Sukhoi Log in Russia, there are no known potential pure-

challenge the assertion, then Donlin must be unique. One might

gold producers that would start with nearly 40 million ounces

call it the gold industry’s variation on a theme of Sir Arthur Conan

of contained gold in measured and indicated mineral resources

Doyle’s “Holmes Method”…the Donlin Corollary!

(inclusive of its 34 million ounces in proven and probable mineral

3 Q + A

YOU HAVE COMPARED DONLIN TO THE STORY OF “THE
TORTOISE AND THE HARE.” COULD YOU ELABORATE
ON ELECTRUM’S STRATEGY HERE?

reserves)13…and out of only the 3km portion of an explored 8km-

long mineralized belt. And with that being only 5 percent of the

land package. In other words, in an era characterized by declining

reserves and precious few new discoveries, Donlin’s size could

possibly increase along strike as well as in terms of depth – perhaps

significantly so. In addition to quantity, as evidenced by our most

recent highly successful drill campaign, this asset also offers

extraordinary quality.

Natural resources assets have been my livelihood for nearly

Let’s just consider the numbers from the 2011 Feasibility Study

three decades. And focusing on the rare “category killers” –

– which we very much look forward to refreshing together with

whether in silver, platinum group metals, or hydrocarbons – has

Barrick. Though the project was envisaged to begin by processing

rendered a rather good living. This certainly applies to Donlin

an average head grade of 2.6 grams of gold per tonne in the first

Gold, which to us represented the closest thing to a unicorn when

five full years of production,14 even the average reserve grade of

Electrum entered the NOVAGOLD story. To some, our investment

2.1 grams per tonne15 represents almost double the average grade

then may have seemed long-dated. But our modus operandi is

of other gold projects.16 Size and grade matter. The consequence

effectively to buy and hold and be patient. Now, with its federal

permits and excellent attributes as a bona fide category killer,

Donlin doesn’t look so long-dated any longer. In fact, as other less-

attractive mining projects around the world have been cancelled at

13 Donlin Gold data as per the Donlin Gold Second Updated Feasibility Study (as defined herein).

Donlin Gold measured resources of approximately 8 Mt grading 2.52 g/t and indicated resources
of approximately 534 Mt grading 2.24 g/t, each on a 100% basis and inclusive of mineral reserves.
Mineral resources have been estimated in accordance with NI 43-101. Donlin Gold proven mineral
reserves of approximately 8 Mt grading 2.32 g/t and probable mineral reserves of approximately
497 Mt grading 2.08 g/t, each on a 100% basis.

14 Donlin Gold data as per the Second Updated Feasibility Study. The average head grade processed
in the first five full years of production is 2.62 g/t. For current mineral reserves and resources, refer
to “Cautionary Note Concerning Reserve & Resource Estimates” and “Mineral Reserves & Mineral
Resources” table. Projected average annual production represents 100% of which NOVAGOLD’s
share is 50%.

15 Donlin Gold data as per the Donlin Gold Second Updated Feasibility Study (as defined herein).
Donlin Gold proven mineral reserves of approximately 8 Mt grading 2.32 g/t and probable
mineral reserves of approximately 497 Mt grading 2.08 g/t, each on a 100% basis. Mineral
reserves have been estimated in accordance with NI 43-101. See “Cautionary Note Concerning
Reserve and Resource Estimates” on page 50.

16 2020 average grade of open pit and underground deposits with gold as primary commodity

and over 1Moz in measured and indicated resources is 1.12 g/t, sourced from S&P Global Market
Intelligence.

In light of these achievements, Mark Bristow appropriately

observed: “Building on the last two decades of exploration, the

of Donlin’s sheer scale and superior grade render the economics

results continue to highlight Donlin’s world-class potential.”

unusually attractive, with the numbers then suggesting per-ounce

The highly successful and COVID-free conclusion of the 2020

life-of-mine cash costs of $585 and all-in sustaining costs of $735.17

drill program, and in particular the strong results Barrick and

And critically, the operations will be located in a safe part of the

NOVAGOLD have been sharing over the past eight months,

world where an investor can tread without fear. As such, for us

represents a major step forward in improving the geological

Donlin constitutes the optimal way to invest in the space: that is, to seek

confidence in the Donlin project, a necessary step to advancing

the maximum leverage to gold in a jurisdiction that will allow investors

Donlin up the value chain.

to keep the fruits of that leverage. My emphasis on that last bit has

led analysts to refer to it as the Kaplan Doctrine. While I enjoy the

recognition, I personally call it the “Sleeping Well Rule.” In my case,

regenerative sleep has always been directly correlated with higher

returns. Hence our strategy with Donlin: the patient man’s way to

get rich in gold while being able to sleep well at night.

5 Q + A

HOW WOULD YOU CHARACTERIZE NOVAGOLD’S
RELATIONSHIP WITH BARRICK?

6 Q + A

FROM NOVAGOLD’S STANDPOINT,
WHAT COMES NEXT?

We’re starting to see our ideal scenario unfold as we imagined

it would. At NOVAGOLD, we have always had a strategy regarding

our flagship asset’s future, which has been articulated many, many

times: namely, as gold bulls we believe that Donlin should and

will be built when we can make not just a decent return, but a

spectacular return.

The partners have never been closer…or more closely aligned.

The excellent drill results are indeed making this scenario look

Working together as a team, in 2020 we successfully completed a

better and better all the time. As declining gold grades pervade

comprehensive, 85-hole drill campaign which covered some 23,400

the industry, it has been extraordinary to be able to continuously

meters – the largest in 12 years.18 This is a big deal. Mark Bristow,

report drill results that reinforce the attractiveness of Donlin Gold

the president and CEO of Barrick, doesn’t drill something out of

– already an exceptionally impressive asset in terms of size and

academic interest – and neither do we, for that matter. And it is no

grade for a large-scale open-pit gold project. The results from the

coincidence, for instance, that Barrick and NOVAGOLD have been

2020 drill program effectively exceeded the Barrick/NOVAGOLD

reporting jointly on the program. This too is a first, and a symbol of

technical team’s modeled grade-thickness expectation.17

our deepening cooperation.

Moreover, the assay results pointed to additional high-grade gold

Both partners are obviously delighted with the outcome of the

intersections that only increased the partners’ confidence in recent

drill campaign, not only in terms of the actual results, which yielded

geologic modeling concepts and confirmed multiple high-grade

better grades and higher grade-thicknesses than predicted by

extensions in both the intrusive (igneous) and sedimentary rocks.

previous modeling, but also with the manner in which the work was

These findings not only confirmed our assumptions, but also

conducted – particularly in light of the COVID-19 pandemic. Our

provided direction for future high-grade drill targets.

two companies were especially proud of the fact that there were

The next steps are now clear. All the data are being

no cases of COVID-19 at the Donlin Gold site. Furthermore, with the

incorporated into the geologic model and will be followed by

help of dedicated community partners in Alaska and in the Yukon-

an update of the mining schedules and life of mine business

Kuskokwim (Y-K) region who share the objective of protecting the

plans. Critically, we will also make sure that everything we plan is

health of Donlin Gold’s workforce, a wide-ranging set of policies

executed with special attention to the most up-to-date standards

has been implemented to mitigate the spread of COVID-19.

of safety, environmental protection, and social responsibility. This

17 Donlin Gold estimates as per the Second Updated Feasibility Study. All dollar figures are in USD
and represent 100% of the project of which NOVAGOLD’s share is 50%. Donlin Gold estimates as
per the Second Updated Feasibility Study effective November 18, 2011, as amended January 20,
2012. “Costs applicable to sales per ounce” and “All-in sustaining costs” are non-GAAP financial
measures. See Non-GAAP Financial Measures at www.novagold.com. The project requires a gold
price of approximately $902 per ounce to break even on a cash flow basis. Wood Canada Limited
(“Wood” formerly AMEC Americas Limited) is currently updating all sections of the Second
Updated Feasibility Study with updated costs, economic assessment, permitting information,
and technical information related to permitting, generated on the Donlin Gold project since
2011, which is anticipated to be finalized and filed during 2021. Based on that cost review, Wood
determined that updating the Second Updated Feasibility Study using 2020 costs and new gold
price guidance results in no material change to the mineral resources or mineral reserves. The
economic assessment in the updated study may be materially different than in the 2011 study.
18 See media release dated March 25, 2021, “Donlin Gold Announces Assay Results From Remaining
30 Percent of the 2020 Drill Program, Consistent With Previously Reported Results of Higher Than
Predicted Grade-Thickness” here: https://www.novagold.com/_resources/news/2021-03-25.pdf

exercise will take place in preparation for the partners to embark on

updating the feasibility study, the completion of which would form

the basis of an execution plan. A construction decision ultimately

will follow when fiscal discipline and gold prices combine such that

we believe all Donlin Gold stakeholders may be expected to derive

a truly great return from this world-class project. Step by step,

tortoise-like, we’re making our way to the finish line.

QUESTIONS AND ANSWERS8 Q + A

7 Q + A

CONSIDERING THAT THE JOINT VENTURE IS A TRUE
50/50, HOW DO YOU NAVIGATE AROUND POSSIBLE
DISAGREEMENTS AND STALEMATE JOINT
VENTURE SITUATIONS?

HOW WOULD YOU CHARACTERIZE YOUR
RELATIONSHIP WITH YOUR NATIVE CORPORATION
PARTNERS, CALISTA CORPORATION AND THE
KUSKOKWIM CORPORATION?

Calista and TKC are significant stakeholders of Donlin Gold

– an important project that was designated by law for mining

activities some five decades ago. Donlin Gold is a party to life of

mine agreements with Calista, which owns the subsurface mineral

Our joint venture with Barrick is indeed a true 50/50. The

rights, and with TKC, a collection of 10 village corporations, which

board of the joint venture entity, Donlin Gold LLC, comprises two

owns the surface rights. Over the years, with the many challenges

representatives from each company. The role of chair alternates

we all had to face as well as the opportunities that were accorded

annually and the board meets quarterly to review the strategic

to us, we have become a real family – one that has been fortunate

plans and activities, together with the approval of the budget.

to share in the incredible value generated by the advancement of

Dispute resolution mechanisms are in place to ensure that the

Donlin Gold.

Donlin Gold project progresses at a healthy pace and in the best

For over 20 years, Donlin has enjoyed great relationships with

interest of its stakeholders – including Native Corporation partners

Calista and TKC. We’ve got a long history of hiring people from the

who are mandated, under the Alaska Native Claims Settlement Act

project’s region to work on-site and we’ve remained constantly

(ANCSA) of 1971, to develop the land for the economic benefit of

active in the area. Our company has long believed that this level of

their people in the region.

engagement and community support constitutes the fabric of the

Catherine Raw, Barrick’s chief operating officer, North America,

mining business and it is a core principle that we take to heart. We

served as the chair of Donlin Gold LLC in 2020. This year, Greg

have done so for more than two decades and we will continue to.

Lang, NOVAGOLD’s president & CEO, is its chair. The joint venture

I think we’ve all seen far too many projects get derailed because

has been operating in this manner for many years. In fact, it is

such relationships were not nurtured from the beginning. I could

important to note that there is a lot of Barrick DNA around the

not be prouder of the work we’ve done with our partners and we’re

table. The Barrick side is represented by a team of its most seasoned

clearly seeing the benefit of that in our successful navigation of

operating talent, while the NOVAGOLD side is represented by two

both the state and federal permitting processes.

of Barrick’s senior operating alumni – Greg Lang, former president

As we all respond to the COVID-19 crisis and help address the

of Barrick North America and Richard Williams, NOVAGOLD’s vice

impact it has had on the health of our communities, our economies,

president of engineering and development, who, among other

and even how we communicate with one another, significant

things, was previously in charge of building Pueblo Viejo, now

comfort can be derived from the longstanding relationships that

one of Barrick’s most important mines. Thus, the joint venture

unite us in the common goal of advancing the Donlin project. In

can be best characterized by a spirit of high professionalism

reaching out regularly to our stakeholders, interacting with our

enhanced by a tremendous track record of technical excellence,

investors to improve our governance practices, and engaging in

safety, environmental stewardship, and social responsibility. That

meaningful ways to promote the health and safety of our people

is the culture of Barrick and NOVAGOLD – and hence the common

onsite – and indeed throughout the region – Donlin Gold brings

currency of Donlin Gold.

much-needed assistance to the well-being of our communities.

We’re really all in this together.

In 2020, Donlin Gold continued its multi-decade collaboration

with its Native Corporation partners and, if anything, these

relationships deepened. Apart from the fact that approximately

80 percent of Donlin Gold’s direct hires for the drill program

were Alaska Natives, we endeavored to be there for our partners

in every way possible. We and our partners initiated more than

9 Q + A

320 engagement contacts with key individual stakeholders and

community organizations, significantly more than in previous

years. From engagement with tribal councils to receptions and

WHY IS JURISDICTION THE EXISTENTIAL INVESTMENT
CRITERION? CAN IT ACTUALLY GET WORSE THAN
IT IS NOW?

meetings seeking partnerships, Donlin Gold was able to stay closely

Over the last decade, jurisdictional risk has migrated from

connected – virtually for the most part – to advance key activities

being regarded as an occasional nuisance to an existential threat.

and projects throughout the region.

Were I to name the numerous jurisdictions that have been struck

Donlin Gold worked closely with its Alaska Native partners

off my personal investment-grade list, it would hurt one’s ears

Calista and TKC, along with other key representatives of the

to hear the roll call. Projects that were slated to go online won’t,

communities in the Y-K region, to effectively respond to the needs

while some that did later have been subjected to mine closure due

arising from the COVID-19 pandemic, as well as in other areas

to social disruption or political fiat. Where allowed to continue,

such as environmental management, training and education, and

some companies have been extorted (at times with the threat of

cultural initiatives.

violence) out of most, if not all, of the financial rewards due to their

A partnership with Bethel Community Services Foundation

shareholders for their risk-taking and value enhancement – what I

was established to support the Y-K Delta COVID-19 Response Fund,

call “stealth nationalization.” In an increasing number of places, the

as well as with Covenant House Alaska for homeless and at-risk

brazenness of the confiscatory policies is such that “stealth” would

youth services in Bethel. Supplies were provided to hundreds

constitute a charming euphemism.

of families and meals served to thousands of individuals in the

Because it is politically impossible for neighboring countries

Elders and Youth program. When the Donlin Gold project camp

to hold an investor-friendly line, there will assuredly be more such

temporarily closed in April 2020 due to COVID-19, Donlin Gold

offences in the future. This wave, after all, is occurring during

donated thousands of pounds of food to shelters and delivered

relatively good times. As I have come to know most of our investors

meals to every home in eight middle Kuskokwim villages.

and consider them kindred spirits, I feel compelled to share yet

On the environmental front, Donlin Gold worked with TKC,

another dire observation, here posed as a question: What are the

the State of Alaska, and the Alaska Native Tribal Health Consortium

odds that the governments of gold-producing countries – which

on an initiative to strengthen health and safety standards with

are often dependent on the price of multiple raw materials – will let

regard to water and sewer services in middle Kuskokwim-area

the precious metals miners keep the windfall that may come if we

communities. We collaborated with 28 community partners on

experience another severe economic crisis and gold powers higher

the Donlin Gold Backhaul Hazardous Waste Removal project and

while most commodities collapse? It’s not so difficult to imagine.

worked with key local groups to collect and remove some 45,000

That dichotomy actually happened during the last financial crisis.

pounds of household hazardous materials.

Gold – a currency – held its own, or went up, while much more

Donlin Gold hosted virtual education camps for students in

economically sensitive commodities fell.

the project’s region in Alaska, while Donlin Gold co-sponsored

There is no worse feeling than being right on the investment

scholarships were awarded to local students selected by Calista and

thesis and having the successful investment taken away from you.

TKC to improve access to education. Calista has awarded hundreds

I know, it’s dark. But it remains one of the most frequently asked

of scholarships co-funded by Donlin Gold, with students attending

questions of me.

schools in Alaska and out of State. Donlin Gold also provided

online activities and programs for youth and Elders. These various

engagements reflect NOVAGOLD’s and Barrick’s full commitment

to preserving the traditional lifestyles of, and providing support to,

the local communities throughout the Y-K region.

QUESTIONS AND ANSWERS10 Q + A

FROM THAT PARTICULAR STANDPOINT, WHAT KIND OF
RELATIVE ADVANTAGE DOES ALASKA BRING TO YOU?

For a mining investor, it is optimal to seek a Tier One asset19

With an asset boasting a life of mine of almost 30 years (and

in a Tier One jurisdiction.20 Sadly, as I just discussed, location in the

most likely a lot more than that), and in light of the strong bonds

mining industry is ultimately the existential factor. A company can

and mutual trust built over a 20-year period of working alongside

never take its asset elsewhere, were geo-political conditions to

our Native Corporation partners, as well as with local communities

deteriorate.

in the Y-K region, we believe that Donlin Gold should be able

Fortunately, Donlin Gold is located in Alaska, one of the

to secure a robust and enduring social license to advance its

world’s most favorable mining jurisdictions where a strong culture

project. That, of course, can never be taken for granted – hence

of support exists for responsible mine development. That fact can

our continuous engagement and daily commitment to these

never be overestimated. As we stated in our January 27, 2021

relationships.

press release:

“…we feel enormously fortunate to be located in what

is, after Nevada, the second-largest gold-producing

State in a country where the rule of law is real, and to

be partnered with the Alaska Native communities.

An incredibly favorable factor that distinguishes Donlin

Gold from most other mining assets in Alaska is the fact

11 Q + A

YOU SPEAK A LOT ABOUT VALUES AS WELL AS VALUE.
COULD YOU PLEASE EXPAND ON THIS?

that it is located on private land that was designated

We all know that reputation is hard won and easily lost. This

by law for mining activities five decades ago. Donlin

is best summed up by Electrum’s corporate motto: Intelligence is a

Gold is a party to life-of-mine agreements with Calista

commodity; Character is a currency. Character itself is fundamentally

Corporation (“Calista”), which owns the subsurface

about trying to do the right thing rather than the expedient

mineral rights, and The Kuskokwim Corporation (TKC),

thing. It’s about not losing one’s sense of honor, if one can use

a collection of ten village corporations, which owns

that elevated word these days and still get away with it, and more

the surface rights. Involving the local communities

prosaically, it’s about credibility. Doing what one says one is going

in many aspects of the project is thus core to both

to do is of course a wonderful way to maintain that credibility, both

Barrick’s and NOVAGOLD’s philosophy and culture.

personally and professionally.

The benefits – short-, medium-, and long-term – are

Speaking for Electrum and NOVAGOLD, when we say that

there for all to see. Right now, this partnership is the

we’re going to do something, we do it. Period. It makes life simpler

source of key employment opportunities, scholarships,

and it’s also good business. Quaint as that may sound in our

and preferential contract considerations. But very

increasingly transactional world, this code stems from a deep

importantly, these agreements also include a revenue-

philosophical attachment to a values-based and purpose-driven

sharing structure, established by the Alaska Native

life. It also comes from being, as the French would say, bien élevé

Claims Settlement Act (ANCSA) of 1971, which resolved

(“well brought up”) in business by partners who taught us that

Alaska Native land claims and allotted 44 million

one’s word should be one’s bond – simply because it is the right

acres for land use to Alaska Native Corporations.

thing to do. Reputation, after all, is the coin of the realm in life.

Our long-term commitment to the region’s economic

As goes the Russian proverb: “With lies you may get ahead in

development is exemplified by Donlin Gold’s support of

the world – but you can never go back.” Through leading by

TKC’s initiative to launch middle Kuskokwim energy and

example, these mentors gave us the greatest gift of all: namely,

infrastructure projects. These partnerships, activities

understanding the art of practicing integrity.

and programs are illustrative of our commitment to the

sustainable and responsible development of the Donlin

Gold project for the benefit of all stakeholders.”

19 NOVAGOLD defines a Tier One gold development project as one with a projected production life
of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average
projected cash costs over the production life that are in the lower half of the industry cost curve.

20 NOVAGOLD considers Tier One jurisdictions to be any in the top 10 rank by the Investment

Attractiveness Index in the Fraser Institute’s Annual Survey of Mining Companies, 2020. Alaska is
ranked number 5.

12 Q + A

NOVAGOLD PLACES A GREAT DEAL OF EMPHASIS
ON TRANSPARENCY AND INTEGRITY.
WHAT DO YOU MEAN BY THAT?

local stakeholders and partners, Calista and TKC, were strong

indications of widespread support. The only references to

the project in 2012, from a media standpoint, were positive.

Six years later, we received the first-ever joint federal record

of decision – delivered in a formal ceremony in the presence

of the lead agency, the U.S. Army Corps of Engineers with

the Bureau of Land Management – that included extensive

input from those who held the reasonable concerns that any

big project would bring; but not substantial opposition. For

That means telling what one is going to do openly, and

those who know the industry, this represents an amazing

then delivering on those promises. And doing so in a way that

occurrence practically anywhere in the world.

the shareholders can take pride in the outcome. In my decade of

f Then there is the building of the management team itself,

experience with the NOVAGOLD team, I can tell you that it is their

one that in truth could run a major mining company. When

nature to do things right.

the board of directors reorganized the company in early 2012

In terms of doing it right, let us start with what the team

to focus on Donlin Gold, NOVAGOLD pledged to recruit top

has not done – what I would call successes of omission. First and

talent with demonstrated track records in large-scale mine

foremost, the team has never been tempted to use NOVAGOLD’s

permitting, development, and operation, with a particular

cash or equity to do something foolish. Sadly, for the fortunes of

focus on experience in North America. Knowing that a world-

our industry, using common sense has proven to be a differentiator

class asset warrants world-class professionals, the company

in and of itself. For as Voltaire professed, “Common sense is not so

set out to attract the very best people in their respective

common.” If, by every metric, one believes one owns one of the

specialties. And it did. NOVAGOLD’s current management,

best assets on the planet, one simply does not “deworsify,” as the

which has been in place for the past nine years, is, as one

famed Peter Lynch put it so well. Deal junkies we are not.

shareholder put it, “straight out of central casting.” Starting

Then, there are the successes of commission – namely, those

with Greg Lang, NOVAGOLD’s president and CEO, who has

things Greg and his team promised to do, and then meticulously

over 35 years of diverse experience in mine operations,

delivered to the shareholders as measurable outcomes. When Greg

project development, and evaluations – including eight

and I joined NOVAGOLD in 2012, we made a series of promises:

years as president of Barrick Gold North America, a wholly-

f We promised to spin-off our Alaskan copper assets. That

owned subsidiary of Barrick Gold Corporation. Greg held

company, then called NovaCopper and now trading under the

progressively increasing operating and project development

name Trilogy Metals to reflect its polymetallic attributes, has

responsibilities over his 10-year tenure with Barrick and, prior

been a highly successful exercise in value accretion.

to that, with Homestake Mining Company and International

f In order to make NOVAGOLD the pure play on Donlin in the

Corona Corporation – both of which are now part of Barrick.

marketplace, we promised to sell Galore Creek – a beautiful

Major mines that now represent the foundation of Barrick,

asset, but a project too far for a development-stage company

such as Cortez Hills, were built under Greg’s leadership.

with a flagship as ambitious as Donlin Gold. We could have

Richard Williams, NOVAGOLD’s vice president of engineering

let Galore go in a fire sale. We didn’t. We sold it for real money

and development – responsible for all aspects related to

in a market where win-win monetization has been the

the engineering and technical advancement of Donlin

exception, not the rule. The cash position we find ourselves in,

Gold – is yet another star. Richard spent over 30 years with

with more guaranteed and potential payments to come, is to

Barrick developing and operating major mines. He is a highly

be celebrated.

knowledgeable and experienced leader in the autoclave

f We declared that, if given an opportunity to show the

technology that is planned to be used to process ores at

flexibility of the deposit, we would take it. The drill results

Donlin Gold. Importantly, he served as project director of the

Donlin Gold delivered in 2017 and most recently in 2020

Pueblo Viejo project in the Dominican Republic, now one

exceeded our own expectations. We reckon that these results

of the most successful mines in Barrick’s portfolio of assets.

stand with or above the best drill results reported by any

Richard’s seven-year tenure at Pueblo Viejo capped a career

open-pit gold project.

where he progressively held top operating roles that included

f We stated that this project would be permitted. When

the design, construction, and operation of mineral processing

anyone pushed back, assuming permitting in Alaska would

facilities of major mines, such as Goldstrike in Nevada and

be a nightmare, we just shrugged our shoulders. The facts

Mercur in Utah. David Ottewell, our vice president and chief

pointed to the opposite. All we had ever heard from our

QUESTIONS AND ANSWERSEisenhower, echoing the commentary of Cardinal Mazarin and

Napoleon, once remarked: “I’d rather have a lucky general than a

financial officer, responsible for all aspects of the company’s

smart general. They win battles and make me lucky.” The ideal of

financial management, was another great catch. Dave is a

course is to have both, and NOVAGOLD clearly does. And it shows.

highly accomplished financial executive, with more than

When I ask shareholders to name a specific mistake we made since

25 years of mining industry experience. Prior to joining

our involvement in the company some nine years ago, they shake

NOVAGOLD, he served as vice president and controller for

their heads.

Newmont. Other members of the NOVAGOLD team are

equally accomplished in their respective areas of expertise.

In order to attract this caliber of professionals, the company

has to compete to recruit and retain top talent in the industry.

And we did so successfully.

14 Q + A

Such a remarkable series of kept promises certainly goes

YOU SPEAK OF DONLIN GOLD’S LEVERAGE TO GOLD.
HOW DO YOU SEE IT PLAYING OUT IN VALUATION?

a long way in explaining why NOVAGOLD was so effective in

The “Sleeping Well Rule” comes with additional rewards. In

executing on its value-building strategy.

our case, it renders Donlin Gold something of a go-to asset that

13 Q + A

CAN WE FURTHER EXPAND ON THAT? HOW DO
YOU RATE THE IMPORTANCE OF THE NOVAGOLD
MANAGEMENT TEAM IN THIS VALUE-
MAXIMIZATION EXERCISE?

the proverbial prudent man can buy happily. This safety premium

plays out by creating an exceptional risk-to-reward ratio, based

on the leverage to higher gold prices enjoyed by Donlin Gold. The

project’s after-tax Net Present Value (NPV) at US$1,700 per-ounce

gold and a 5 percent discount rate was estimated to be US$4.6

billion ($14.6 billion if undiscounted). At US$2,000 per-ounce gold,

the projected NPV increased 50 percent further to US$6.7 billion.21

At the zero discount rate at which I personally believe exploration-

rich North American assets shall once again be rated – as they were

The luxury of therapeutic and refreshing slumber underpinned

not so long ago – that number would rise to over $19 billion. That

by our asset is accentuated mightily by the fact that, under CEO

is solely based on existing reserves. And, needless to say, I certainly

Greg Lang’s leadership, the stewards of NOVAGOLD’s fortunes are

do not believe that the $2,000 level just mentioned will prove to be

themselves best-in-breed when it comes to management. They

a real number in the next up leg in gold. Such a figure will one day

have their eye on the ball, manage the company’s money frugally,

represent gold’s support, as the next wave takes that price point

care deeply about their shareholders and their partnerships, and

out and the bull market resumes in earnest.

are not remotely tempted to do stupid stuff. That latter part may

Seen this way, NOVAGOLD to my mind constitutes the greatest

sound like a low bar, but as my kids would say…is it really? Let’s be

unexpiring call option on gold – with the potential for larger

candid. We’re talking about an industry which, until very recently,

underlying resources to revalue the optionality further as gold rises.

was characterized by suboptimal performance and some epic

Putting aside that I am obviously biased toward NOVAGOLD for

examples of value destruction. Smart and humble management is

all the reasons I have cited, the reality is nonetheless quite simple.

thus enormously important – and valuable.

Look at what I do, not just what I say. If I thought a better buy was

Simply put, as evidenced above, management has done

actually out there that I somehow could not afford to acquire with

everything right since NOVAGOLD very nearly went into

our present capital base, I would have already put NOVAGOLD

bankruptcy and Electrum and the current team stepped in to turn

into play and sold our position. But to the Electrum team and me,

the company around. Indeed, I genuinely believe that Greg and his

that theoretically superior asset and better value simply does not

team have not committed one misstep – not a single one – since

exist. By implication, we believe NOVAGOLD is an outstanding

they entered the scene. They have not made stupid decisions

combination of deep value as well as growth stock.

that impaired shareholder value, not broken one promise, not left

unchecked any box on the checklist of their business plan, and not

forsaken any partner either legally or ethically.

Truth be told, we have also been blessed with the benevolence

of La Fortuna, which constitutes a key attribute of any company.

Whatever could have gone right for NOVAGOLD has effectively

gone right – from having truly decent people as counterparts from

the various government permitting agencies, to delivering with

our partners at Barrick stellar drill results, to having fabulous and

lucky management. The latter point is not insignificant. General

21 Donlin Gold estimates as per the Second Updated Feasibility Study. All dollar figures are in USD,
represent 100% of the project of which NOVAGOLD’s share is 50%, and reflect after-tax net
present value (at 0% and 5% discount rates) of the Donlin Gold project using the feasibility study
reference date of 1/1/2014 (start of Year -05) as the first year of discounting. Estimated project
development costs of approximately $172M to be spent prior to the reference date are treated
as sunk costs. At a 5% discount rate, the net present value is: $1,465M @ $1,300 gold; $3,147M
@ $1,500 gold; $4,581M @ $1,700 gold; $6,722M @ $2,000 gold; and $10,243M @ $2,500 gold.
The project requires a gold price of approximately $902 per ounce to break even on a cash flow
basis. Wood Canada Limited (“Wood” formerly AMEC Americas Limited) is currently updating
all sections of the Second Updated Feasibility Study with updated costs, economic assessment,
permitting information, and technical information related to permitting, generated on the Donlin
Gold project since 2011, which is anticipated to be finalized and filed during 2021. Based on that
cost review, Wood determined that updating the Second Updated Feasibility Study using 2020
costs and new gold price guidance results in no material change to the mineral resources or
mineral reserves. The economic assessment in the updated study may be materially different than
in the 2011 study.

15 Q + A

WHY IS THE STATE OF THE GOLD INDUSTRY A PLUS
FOR NOVAGOLD IN WAYS THAT ARE PERHAPS EVEN
DISTINCT FROM MOST OF OUR PEERS?

– something that is quite important to our investors, who want

to know that one can grow organically and not have to do deals

to add reserves. Just to provide an “Exhibit A” to our leverage to

really low-hanging fruit, Donlin Gold effectively enjoys six million

ounces of inferred mineral resources26 – two-thirds of which are

The answer is both qualitative and quantitative. Over the last

immediately within the reserve pit. That amount of gold alone

decade, as mentioned earlier, the average grade of gold mines has

would represent a major discovery in its own right these days!

collapsed – and I suspect that it will ultimately fall below a gram

And we believe there is likely much, much more beyond.

per tonne. Donlin’s grade is multiples of that. So much for making

I happened to be in the hydrocarbons business as well as

the case for the quality (and thus also the concomitantly lower

mining. Their respective profiles could not be more different.

operating cost) side of the equation for Donlin. For a large-scale

There really is such a thing as “peak gold.” In contrast to the case

open-pit project located in a safe jurisdiction, Donlin’s grade

with peak oil, the supply/demand dynamics of the gold industry

is about as magnificent as one could ask for. Even so, the drill

suffer from none of the supply variables that have rocked the

results from both of our recent campaigns exceeded our modeled

hydrocarbon markets. Even if this were not the case, it wouldn’t

targets, delivering some of the best results we’ve ever seen for an

matter: There are simply no known vast, shale-like, trapped

open-pit deposit – and thus further accentuating Donlin’s relative

resources to be tapped with new technologies such as fracking

advantages. As we say, Donlin is a gift that keeps on giving.

or horizontal drilling. That very realization is a major reason why I

From the quantitative side of our relative advantages, our

actually sold my energy company in 2007 – when oil was over $100

superNOVA shines ever brighter. With no real discoveries of

a barrel – to pivot to gold when it still had a $600 handle.

significant size as well as the declining grades – and the years, if

Again, the gold industry can barely find the gold. Part of the

not decades, it takes to put these discoveries into reserves and

reason lies in the technology it uses, which is rather primitive. The

mine them – the majors are burning through their reserves faster

mining industry doesn’t possess exploration tools characterized

than they can be replaced. This phenomenon is unlikely to change.

by anything approaching the accuracy of 3D seismic. If a discovery

Barrick has stated that the industry’s production is likely to fall by

is to be made, it’s still more likely to be by prospectors on donkeys

5 percent annually for years to come. This is huge and yet, to my

(or, perhaps only slightly more probable now, 4-wheel drives). And

mind, maybe even optimistic. According to Citi Research, existing

if those estimated 1,000-10,000:1 odds of navigating a prospect to

mine production of 26 of the world’s largest miners is forecasted

a mine are successfully bucked, it could still take 15-20 years – let

to decline 13 percent by 2022 and 47 percent by 2027.22 In addition,

me repeat: 15-20 years – to take the project up the value chain from

according to S&P Global Market Intelligence, from 135 assets not

prospect to first pour. In effect, from a mine supply standpoint, the

yet in production, only 30 have greater than 10 million ounces of

horse has already left the barn and the barn door has been

gold in reserves and resources, and only nine of these assets have a

firmly shut.

grade of one gram per tonne or greater.23 The industry simply can’t

The next bull market in gold therefore will not be met by a

find the additional gold. Over the past 10 years, only 25 new gold

tsunami of mine supply. Quite the opposite, in fact. People will

deposits have been identified, totaling some 150 million ounces of

be shocked by how little mine supply is available. The developing

gold, which represents only 7 percent of what has been discovered

world is unlikely to fill the pipeline. For with the “go where the gold

in 30 years. Crucially, no major discoveries have been made in the

is” mentality fairly crippled, and perhaps mortally so, it is quite

last few years.24

possible that the risky jurisdictions shall prove to be uninvestable

Long-life category-killer projects such as Donlin Gold are

and unfinanceable in light of the various factors we discussed in

therefore rare and extremely valuable. When compared to the

extenso above. Hence the virtue of Donlin not just being a Tier One

existing 15 other development-stage projects in the Americas,

asset,27 but of being so in a Tier One jurisdiction.28

Donlin Gold’s resource is more than four times larger than the

peer group’s average.25 Yet we can see much more resource upside

22 Citi Research, Global Gold Project Book “$130bn capex needed to sustain production”, May 16,

2018; reserve and production profiles of the 26 companies under Citi Research coverage, which
represent ~38% of 2018 global mine production.

23 S&P Global Market Intelligence, “A decade of underperformance for gold discoveries”, May 5,
2020. Gold contained in reserves, resources and past production, as calculated by S&P Global
Market Intelligence. Grade refers to combined Reserves and Resources.

24 Ibid.
25 Peer group data based on company documents, public filings and websites as of March 29, 2021.
Comparison group of 15 projects based on large (2Moz Proven and Probable cut off ), North/
South American gold-focused development projects with >75% projected revenues from gold.

26 Donlin Gold data as per the Second Updated Feasibility Study (as defined herein). Donlin Gold

inferred mineral resources of approximately 92 Mt grading 2.02 g/t. Represents 100% of inferred
mineral resources, of which NOVAGOLD’s share is 50%. See “Cautionary Note Concerning
Reserve and Resource Estimates” and “Mineral Reserves & Mineral Resources” table on page 50.
Inferred mineral resources are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized as mineral reserves,
and there is no certainty that they will be realized.

27 NOVAGOLD defines a Tier One gold development project as one with a projected production life
of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average
projected cash costs over the production life that are in the lower half of the industry cost curve.

28 NOVAGOLD considers Tier One jurisdictions to be any in the top 10 rank by the Investment

Attractiveness Index in the Fraser Institute’s Annual Survey of Mining Companies, 2020. Alaska is
ranked number 5.

QUESTIONS AND ANSWERS16 Q + A

WHILE THERE IS A LOT OF TALK ABOUT ADVANCING
DONLIN GOLD TOWARD PRODUCTION, THE
EXPLORATION POTENTIAL MUST BE TANTALIZING
FOR INVESTORS LIKE ELECTRUM, WHO BOAST SUCH
A STRONG TRACK RECORD IN CREATING WEALTH
THROUGH THE DRILL BIT. HOW DO YOU SEE THE
POTENTIAL UPSIDE IN RESOURCE EXPANSION?

17 Q + A

YOU CALL NOVAGOLD A “PURE PLAY.” HOW SO?

NOVAGOLD is a pure play on Donlin Gold. There is no pure

play on the Barrick-Newmont joint venture in Nevada. I wish there

were. There is, however, a pure play on the Barrick-NOVAGOLD joint

venture in Alaska – which already ranks, incidentally, as the second

We would love to have drill rigs going all the time at Donlin,

largest gold-producing state in the Union, after Nevada. And that

and one day we just might. Certainly, when I talk about the next

glorious pure play is NOVAGOLD. This is great for NOVAGOLD

big Donlin-like discovery possibly being at Donlin, the message is

and great for Barrick, which, I am highly confident, will also reap

two-fold. Number one, as recalled earlier, our stated resources at

considerable rewards for its shareholders from Donlin that I do not

Donlin Gold are located within only three kilometers of what we

believe are presently reflected in Barrick’s share price.

know to be an eight-kilometer mineralized trend. Hence Electrum’s

legendary geologist Dr. Larry Buchanan assessing that Donlin’s

potential endowment could easily be more, and then some. While

one can obviously consider this to be the ultimate forward-looking

statement, I personally believe that Larry is right. More than that,

the eight-kilometer trend again only represents some 5 percent of

the total land package at Donlin Gold.

Number two, when Larry surmised that the next Donlin might

possibly be at Donlin, it’s because there is a strong possibility that

we could be dealing with a district here with the potential for more

18 Q + A

SEVERAL OF YOUR LARGEST SHAREHOLDERS, SUCH AS
FIDELITY AND PAULSON & CO., HAVE BEEN INVESTORS
FOR A VERY LONG TIME. HOW DO YOU ACHIEVE SUCH
IMPRESSIVE STAYING POWER WITH THESE IMPORTANT
AND HIGHLY SOPHISTICATED INVESTORS?

discoveries: a “New Carlin” or “New Nevada,” if you will. That’s if you

No discussion about NOVAGOLD would be complete without

dare to dream, and I do. But even if it didn’t turn out to be a district

a shout-out to our outstanding shareholder base. As any investor

and there’s no additional Donlin there, we remain in the presence

looking at our story will immediately recognize, it is populated with

of an asset that already has exceptional potential – and that sure

many extraordinary names. In addition to Electrum, the company’s

would be good enough for me.

largest shareholders include Fidelity Management and Research,

Again, I fully appreciate that this constitutes about as much of

Paulson and Co., Saudi Arabia’s Public Investment Fund, Van Eck

a forward-looking statement as anyone could make, so disregard

Associates, BlackRock, First Eagle, and Exor, along with other highly

it if you so wish. And if you want to consider it, then regard it as

regarded institutions. As the largest shareholders of NOVAGOLD,

– at best – apocryphal. That being said, the fact is, for a variety of

Electrum is very proud to be joined by these highly astute investors

reasons, the Donlin area has been under-explored beyond that

who are regularly referred to as “smart money.”

eight-kilometer belt. We know, as miners in this business, that if one

We are indeed proud of the fact that these and many other

is going out in search of elephants, one ought to look in elephant

venerable financial institutions have owned our stock for a very

country – and there simply is quite a lot of prospective land yet

long time. For they see what we see, and are not just educated

to be explored at Donlin. But I’ve been in this movie a number of

consumers – but in fact among the very best that we could hope

times in my career now, and I would not bet against such a scenario.

to have in our corner. Fidelity, for example, joined the shareholder

have since added to their holdings, as NOVAGOLD has been

consistently delivering on its promises and strategy set out in 2012

to restructure the company into a pure play on Donlin Gold while

successfully moving the project through permitting and up the

value chain. We are also proud that First Eagle, which has one of the

top mining investment teams in the business, saw the opportunity

to take a position in NOVAGOLD during low commodity prices.

NOVAGOLD was actually the first development-stage, non-

production mining company in which First Eagle made a sizable

investment. We are also enormously excited that the most recent

investor to join this stellar group is Saudi Arabia’s Public Investment

Fund. Their share interest in the company represents an investment

of nearly $150 million. Taken together with the premier sovereign

wealth funds who are investors in Electrum – namely, Mubadala

and the Kuwait Investment Authority – one can discern a strong

core of financial backing for our strategies.

The institutional support makes a great deal of sense. Owning

19 Q + A

AS YOU JUST ALLUDED TO, RECENT DISCLOSURES
SHOW THAT THE PUBLIC INVESTMENT FUND (PIF) OF
SAUDI ARABIA ACQUIRED 16+ MILLION SHARES OF
NOVAGOLD OVER THE PAST TWO QUARTERS. CAN YOU
PROVIDE FURTHER COLOR ON THE SIGNIFICANCE OF
THAT INFORMATION?

an asset which starts at approximately 39 million gold ounces in the

We are delighted by the news that last year PIF made a

measured and indicated mineral resource categories29 and could

significant investment in NOVAGOLD, and as of the latest filing

well evolve into the largest pure gold mine in the world – and at

dated December 31, 2020 is our fifth largest shareholder with

a grade that is twice the industry average at that – in and of itself

an ownership of over 16 million shares. PIF is widely considered

would be a beautiful thing for a sophisticated investor to behold.

to be one of the world’s savviest sovereign wealth funds.

Then comes the octane we provide – the leverage to higher gold

Their investment is thus very meaningful to us on many levels.

prices that we discussed earlier is very apparent in the numbers.

Although our first engagement with PIF began as a discussion

That alone could be an important reason why NOVAGOLD is so

about potentially getting the fund involved in possible future

fortunate to have such highly qualified shareholders seeking strong

project financing, it is gratifying to observe PIF’s appreciation of

leverage to escalating gold prices. If as we believe all roads lead to

the tremendous value inherent in the stock of NOVAGOLD – and

higher gold prices, I think a superhighway leads straight to Donlin –

indeed acting on it. After performing their due diligence, PIF

and that’s good for everybody involved.

clearly realized that any future equity raise would likely happen

Lastly, there is one additional factor that we believe shines

at much higher levels, much later. As such, PIF concluded that it

through when we meet with our investors. And that is our

would make sense to act now and secure the benefit of that uplift

previously mentioned emphasis on simple virtues, like not cutting

by buying shares in the open market sooner rather than later. We

any corners and doing it right. Our shared mantras that inform

hope to deepen this very promising relationship and welcome their

anything from technical work to the environmental and social

participation in our future success.

license we value so highly have served our shareholders well and

given us considerable credibility. Part of that ethos is that we all

feel deeply that honor – yes, honor – matters. Thus, the vows that

we have made to our shareholders, stakeholders, and partners

have been consistently kept and, as a result, our company has since

been enjoying a coterie of exceptionally well-informed, savvy, and

satisfied shareholders.

29 Donlin Gold data as per the Donlin Gold Second Updated Feasibility Study (as defined herein).

QUESTIONS AND ANSWERS20 Q + A

FINALLY, WITH YOUR EXTENSIVE INTERESTS OUTSIDE
OF NOVAGOLD – IN THE FIELD OF CONSERVATION
AND OTHER PASSIONS AS A HISTORIAN, SUCCESSFUL
ENTREPRENEUR, AND ART COLLECTOR – HOW DO
YOU BALANCE YOUR PERSONAL VALUES WITH YOUR
INVESTMENT THESIS IN NOVAGOLD?

generally the most charismatic megafauna in their environment.

And Rembrandt, whose work I collect and, more enjoyably, deploy

in museums with both fervor and rigor, represents one of the

There are several aspects to answering this question. The first

greatest luminaries in history – his name evoking a revolution in

is very straightforward, in that my predisposition to conservation

the conveyance of freedom to the artists that followed him. As

– be it of wildlife or the cultural heritage of our common humanity

with cats and Old Masters, much of my professional track record

– comes from a personal belief that the greatest imperative in life

over the past 25 years has been built around sublime creations that

is to give back. And conservation activism represents the most

are more often than not characterized by scarcity as well as some

impactful way in which I have expressed this creed. Indeed, it is

slew of superlatives. I am told that the passion with which I speak

a well-known fact in my circle that, had I possessed the aptitude,

about Donlin is reminiscent of the way I speak about tigers and

I would have wished to become a field zoologist and spent my

jaguars – the apex predators in their ecosystems – or in fact of my

career in wild cat conservation. But alas, my strength proved to be

describing a Vermeer or a da Vinci. So it is not inconceivable that in

in applying history, not science. Nonetheless, I rarely ever let go of

the deep recesses of my reptilian neocortex, what I consider to be

my interests and I never lost my youthful passion for the subject.

the category-killer nature of NOVAGOLD is something about which

Quite the contrary. At the first opportunity, I took advantage of

I hold a certain enthusiasm normally reserved for my extracurricular

my good fortune in the natural resources business to pivot to

activities.

creating conservation organizations – thereby enabling the very

I am sometimes asked why, if my schedule permits, I join

practitioners who did possess those talents that I lacked – with the

Greg, Mélanie, and Igor on investor roadshows. The reason is that

capabilities and freedom to save the biodiversity and ecosystems

I genuinely enjoy their company – otherwise, I definitely wouldn’t

that constitute one of our generation’s most precious endowments.

do it. Moreover, I really love to tell the Donlin story. This is especially

To the extent that wildlife conservation impacts my

so as it just gets better and better. I don’t much care to speak of

professional sensibilities, it is reflected in my team’s placing the

legacy, yet there’s no doubt that, whereas I have enjoyed more

greatest emphasis possible on selecting projects that I believe

than my fair share of hits for a best-of album, in my mind from a

can and should be built – yes, there have been those that I felt

professional standpoint Donlin surely will mark my most enduring

strongly should not be developed, for environmental and cultural

gold record. That’s saying quite a lot, as San Cristobal essentially

reasons – and, when taken up the value chain, exemplify the very

transformed Bolivian mining and the broader region of Potosí –

best practices in environmental standards. That’s a given. I take

very much for the better. But still, Donlin’s impact could be even

our social license at least as seriously. As mentioned repeatedly

more significant. As a generational gold asset, it truly stands

throughout this exchange, the support of one’s local stakeholders

unparalleled. Its unique quality and scale make it more rare than

is a gift that should not be taken for granted. Ever.

a Leonardo da Vinci. It is indeed a Carel Fabritius. I’ll leave readers

On a more subliminal level, I believe that, like many people,

to look that one up if they got this far and did not by chance read

I am most particularly attracted to the iconic. The big cats are

The Goldfinch. Suffice to say that Fabritius represents the holy grail

for lovers of Rembrandt and his school – in much the same way I

believe that Donlin represents the holy grail in the gold space.

A helicopter transporting supplies during the 2020 Donlin Gold drill

program. Photo courtesy of ROTAK Helicopter Services.

AFTER COMPLETING THE
LARGEST DRILL PROGRAM
IN 12 YEARS, WE’RE MORE
CONVINCED THAN EVER.

QUESTIONS AND ANSWERSThe Calista region is home to 56 villages spread out

along the Bering Sea coast and two of Alaska’s

mightiest rivers. The Kuskokwim Corporation was

formed by the merger of the 10 Village Corporations

represented by blue dots.

NikolaiTakotnaMcGrathStony RiverLime VillageGeorgetownSleetmuteDONLIN GOLDNapaimuteCrooked CreekAniakRed DevilChuathbalukShagelukGraylingAnvikHoly CrossLower KalskagOhogamiutPitkas PointMountain VillageMarshallSaint Mary’sRussian MissionPilot StationUpper KalskagEmmonakChuloonawickNunam Iqua (Sheldon Point)AlakanukHamiltonBill Moore’s SloughKotlikChevakPaimiutNewtokScammon BayHooper BayTununakUmkumiuteKipnukKasiglukToksook BayNightmuteChefornakMekoryukKongiganakKwigillingokTuntutuliakEekQuinhagakGoodnews BayNapaskiakOscarvilleKwethlukAkiakTuluksakBethelAtmautluakNapakiakNunapitchukAkiachakAlaskaPlatinumP R E S I D E N T A N D

C E O ’ S M E S S A G E

Gregory A. Lang

President and CEO

Kuskokwim villages. As many communities found themselves cut

off from winter transportation when the regional airline declared

bankruptcy, Donlin stepped in to help coordinate essential

deliveries to those remote communities without regular air service,

one of the primary means of transportation in Western Alaska.

The Donlin Gold 2020 drill program commenced as planned

in February and continued through March. It was temporarily

paused near the end of that month, however, when COVID-19

reached Alaska. Our most important objective was to secure the

health and safety of the workforce and partners. To minimize the

risk posed by the virus when the drill program began again in late

May, NOVAGOLD, in conjunction with its joint-venture partner

Barrick Gold Corporation, implemented strict protocols to protect

the Donlin Gold workforce, resulting in zero COVID-19 cases on site

and no lost-time incidents during 2020. In addition to regular safety

meetings conducted at camp with personal protective equipment

provided to all site employees and contractors, instructions about

good hygiene and sanitation practices were added – all in an effort

to ensure that everyone remains healthy and makes it home safely

It is impossible to review 2020 without acknowledging the

every day.

cloud of the global COVID-19 pandemic that continues to affect

We are proud of the active response in meeting urgent needs

us all. NOVAGOLD had to go beyond the call of duty to practice

in the Y-K communities during the COVID-19 pandemic. Donlin

extraordinary care, discipline, focus, and professionalism to ensure

Gold’s partnership with Calista Corporation and The Kuskokwim

the safety and well-being of its workforce and that of Donlin Gold.

Corporation (TKC) in ongoing community engagement also

We recognized very early on that extensive preventive measures

played a critical role in the implementation of environmental

had to be put in place immediately to protect employees. We also

management, safety, and educational programs, as well as health

knew that communities near the Donlin Gold project in Alaska

and cultural initiatives, in these very difficult circumstances.

needed urgent help with transportation, food, and supplies.

The majority of NOVAGOLD employees have been working

COVID-19 RESPONSE

remotely since the start of the pandemic and have not missed

a beat. To the contrary, we endeavored to stay connected and

Donlin Gold was one of the first mining companies in Alaska

increased communications with our key stakeholders, shareholders,

to respond to the pandemic. Along with its Native Corporation

and investors to maintain momentum and share progress on our

partners, the company rapidly engaged to provide much-needed

stated strategy of advancing Donlin Gold, one of the largest and

assistance to the remote and small villages in the region by

highest-grade known open-pit deposits in the world in one of the

partnering with tribal councils to coordinate food collection

safest mining jurisdictions, Alaska.

and delivery of supplies. Donlin also collaborated with tribal

administrators to produce face masks for Elders and other people

PARTNERSHIPS AND COMMITMENTS

highly susceptible to COVID-19, and shipped 1,400 mask-making

As we continue to deal with COVID-19 and its impact on the

kits to 56 Yukon-Kuskokwim (Y-K) villages. A partnership was also

health of our communities, great comfort can be derived from

established with the Bethel Community Services Foundation to

the multi-decade partnerships that unite us in the common goal

support the Y-K Delta COVID-19 Response Fund, as well as with

of advancing Donlin Gold for the benefit of its stakeholders. The

Covenant House Alaska for homeless and at-risk youth services in

project’s Native Corporation partners, Calista and TKC, as well as

Bethel. Supplies were provided to hundreds of families – and meals

Barrick, share our vision of building value for future generations.

served to thousands of individuals – through the Elders and Youth

Calista and TKC have been our partners since 1995. As the owners

program. Donlin Gold donated thousands of pounds of food to

shelters when the project camp temporarily closed in April due to

the pandemic, and delivered food to every home in eight middle

PRESIDENT AND CEO’S MESSAGEIn the summer, commitment to Y-K communities was reflected

in the Donlin Gold Backhaul Hazardous Waste Removal Partnership

of the mineral and surface rights to the land, respectively, they

– an initiative that saw 28 Y-K communities collaborate with key

have a direct interest in seeing the project move forward. In

local groups to remove approximately 45,000 pounds of household

fact, concurrent private ownership of such rights is rather rare in

hazardous materials and electronic waste, which was collected and

mining projects today. The land where Donlin Gold is located was

shipped out for proper disposal. This event built on three previous

designated for mining under the Alaska Native Claims Settlement

occasions during 2018 and 2019 when more than 140,000 pounds

Act (ANCSA) long before exploration activities commenced, and

of household hazardous materials were removed from 15 villages

the respective rights were subsequently transferred to Calista and

on the Kuskokwim River.

TKC. Donlin Gold has life-of-mine agreements with both, and we

Access to training and education is critical for youth and young

are grateful for their long-term support and commitment to the

adult students. Recognizing this need, Donlin Gold scholarships

project. We are all dedicated to supporting Calista’s and TKC’s

are awarded to students selected by Calista and TKC to benefit

mandate to help develop their land for the economic benefit of

education in the region. Calista awarded a total of 225 scholarships

the region and for all stakeholders in accordance with ANCSA.

in 2020, with 158 students attending schools in Alaska and 67 going

The partnership with Calista and TKC has strengthened

out of state. Donlin Gold also hosted two week-long virtual Alaska

over the last year. All three partners collectively focused on

Resource Education minerals camps for Y-K and Doyon students.

safety, culture, and social responsibility by maintaining regular

As part of Donlin Gold’s ongoing community engagement

communication with stakeholders and engaging in meaningful

efforts, Friendship Agreements were signed by six Y-K communities

ways to promote the health and well-being of local communities.

(Crooked Creek, Sleetmute, Nikolai, Akiak, Napaskiak, and

Donlin Gold has continued its outreach activities with both Calista

Napaimute) in 2020. These agreements build upon long-term

and TKC via Tribal council and stakeholder meetings that have

relationships and address specific community needs such as water,

shifted to phone calls and video conferences given the ongoing

sewer, and landfill projects; the ice road that connects remote

situation with COVID-19. Other important initiatives included

villages in the Y-K region during the winter months; salmon studies;

Donlin Gold scholarships, which are granted annually to students

and suicide prevention programs. These various partnerships,

selected by Calista and TKC to benefit youth education in the

activities, and programs demonstrate NOVAGOLD’s, as well as

region, and the CleanUp GreenUp program, in which 32 Y-K

Barrick’s, unwavering commitment to sustainable and responsible

villages participated in cleaning up their communities.

development for the benefit of all stakeholders in the Y-K region.

TOP 10 RESULTS FROM THE 2020 DRILL PROGRAM

DC20-1932
47.66 m at 4.8 g/t, including a
sub-interval of 4.00 m at 19.5 g/t

6880000N

DC20-1888
6.93 m at 43.1 g/t, including a
sub-interval of 3.25 m at 90.5 g/t

DC20-1877
4.17 m at 80.6 g/t, including a
sub-interval of 3.15 m at 106.2 g/t

DC20-1903
8.14 m at 45.3 g/t, including a
sub-interval of 6.84 m at 52.1 g/t

6879000N

Lewis Pit

DC20-1878
19.77 m at 11.3 g/t, including a
sub-interval of 7.00 m at 25.2 g/t

ACMA Pit

DC20-1912
37.30 m at 7.0 g/t, including a
sub-interval of 3.30 m at 24.5 g/t

DC20-1871
41.91 m at 11.6 g/t; including
sub-intervals of 4.00 m at 17.0
g/t and 6.48 m at 38.8 g/t

DC20-1866
45.91 m at 5.0 g/t; including a
sub-interval of 11.95 m at 10.4 g/t

6878000N

DC20-1930
51.15 m at 4.6 g/t, including a
sub-interval of 7.60 m at 12.4 g/t

E
0
0
0
0
4
5

DC20-1937
103.88 m at 6.1 g/t, including a
sub-interval of 22.15 m at 12.5 g/t

E
0
0
0
1
4
5

E
0
0
0
2
4
5

E
0
0
0
3
4
5

Pit outline is mineral reserve pit outline from Second Updated Feasibility Study. See “Cautionary Note Concerning Reserve & Resource Estimates” and “Mineral Reserves & Mineral Resources” and
associated information on page 50. See media release dated March 25, 2021, “Donlin Gold Announces Assay Results From Remaining 30 Percent of the 2020 Drill Program, Consistent With
Previously Reported Results of Higher Than Predicted Grade-Thickness” here: https://www.novagold.com/_resources/news/2021-03-25.pdf

2020 DRILL PROGRAM

Despite numerous challenges, Donlin Gold successfully

completed a drill program in 2020 – the largest at the site in 12

years. Initially, 80 holes totaling 22,000 meters of drilling were

planned in the ACMA and Lewis deposit areas to validate recently

developed geologic and resource modeling concepts and high-

grade mineralization controls.

Prior to re-opening the camp in late May, Donlin Gold met with

community and tribal leaders throughout the Y-K region to ensure

everyone agreed upon the new COVID-19 mitigation plan for those

2020 A C H I E V E M E N T S

f advance the Donlin Gold project toward a

construction/production decision

working at site, as approximately 80 percent of the project’s direct

(45% weighting)

hires are Alaska Natives from the Y-K region. With extensive health

f maintain/increase support for the Donlin Gold

and safety measures in place, employees were enthusiastic about

returning to work at Donlin Gold and the owners were able to re-

mobilize four drill rigs and complete the drilling in September 2020.

A total of 85 core holes were completed ahead of schedule

in 2020, encompassing 23,361 meters and exceeding our original

plan. On March 25, 2021, NOVAGOLD and Barrick reported final

project among Native entities and other

stakeholders (25%)

f promote a strong safety, sustainability, and

environmental culture (15%)

f maintain a favorable reputation of the

assay results from the program. We were pleased to see that these

company and its projects among

represent some of the best in the gold industry for a large open-pit

shareholders (10%)

deposit and have yielded higher drilled grade-thicknesses than

predicted by previous modelling, which are expected to improve

the interpretation of gold mineralization controls. The program

results should not only improve geologic interpretation, but also

provide encouragement for additional high-grade drill targets.

The work was carried out safely despite the rise of COVID-19 cases

throughout Alaska. I commend the Donlin Gold, NOVAGOLD, and

Barrick teams for completing the drilling while implementing new

and comprehensive safety protocols in response to the pandemic.

It was indeed a remarkable operational milestone for us to

complete this work ahead of schedule and without any COVID-19

cases at the Donlin Gold site.

f manage the company treasury effectively and

efficiently and streamline the corporate

structure (5%)

Specific tactical goals were set under each of these categories. Based on the level of
completion and weighting, the compensation committee recommends an overall
company performance rating ranging from 0-150% (100% as target).

Both the committee and the board determined that, overall, the 2020 goals were
achieved; the resulting rating was 109%.

and of NOVAGOLD. ESG practices have always been a fundamental

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE

part of our business, ever since the early days of exploration at the

Over the past year, NOVAGOLD has developed an intentional

Donlin Gold project site some 25 years ago. But as a development-

and methodical process in shaping how the company reports

stage company, measuring what we do and reporting it publicly

information on environmental, social, and governance (ESG)

have not been systematically organized in all areas of the business.

matters to all stakeholders. It is a daunting task – as those in the

For example, while the project enjoys longstanding exemplary

investment community know – given the hundreds of frameworks

health and safety practices – with voluminous environmental data

being used globally to report and measure ESG performance.

supporting air, waste, and water permits – we have not provided

In addition to evaluating those frameworks, our internal ESG

this information to the public annually. It is time for NOVAGOLD to

team sought input from proxy advisory firms, ESG professionals,

transition to a formal reporting process for the Donlin Gold project,

institutional investors, pension plan fund managers, and other

using ESG metrics, now that most permits are in hand and there is

peers. We also worked with Barrick on forming a compatible and

activity at the site.

synchronized approach to reporting ESG information for Donlin

We have a solid base upon which to build. Extensive external

Gold. As a result, NOVAGOLD gained insight on best practices from

affairs engagement with Donlin Gold’s Native Corporation partners

a wide range of stakeholders and businesses in this area to help

in the Y-K region has been effectively communicated over the last

strike the right balance in ESG disclosures, especially considering

two decades. Governance changes to date have been driven by

the development stage of Donlin Gold and future needs as the

the company’s adoption of best practices, and are facilitated by

project develops.

our ongoing shareholder engagement and proxy outreach with

Our timing could not have been better. ESG principles help us

input from shareholders. Not only has progress in these areas

formalize how we measure and report to the broader market on

the sustainability and societal impact of the Donlin Gold project

PRESIDENT AND CEO’S MESSAGEEXPECTED DEVELOPMENT LIFECYCLE OF ONE OF THE WORLD’S LARGEST OPEN-PIT MINING PROJECTS

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1.5

first five full years*

Moz/year

1.1

Moz/year
life of mine (27+ years)*

CURRENT STATUS

* Donlin Gold data as per the Second Updated Feasibility Study. For current mineral reserves and resources, refer to “Cautionary Note Concerning Reserve & Resource Estimates” and
“Mineral Reserves & Mineral Resources” and associated information on page 50. Projected average annual production represents 100% of which NOVAGOLD’s share is 50%.

been monitored at the project level; NOVAGOLD has also regularly

PERMITTING

communicated that progress through public filings, Management

Alongside the great achievements of the 2020 drilling

Information Circulars, media releases, corporate presentations,

program, the record of successful permitting continued in early

and our website. Environmental considerations and outreach

2020. With federal permitting complete, Donlin Gold has been

initiatives with communities in the Y-K region have represented a

working with its Native Corporation partners and continues

core focus in the technical and social components of the Donlin

to support the State of Alaska in advancing other permits and

Gold project since inception; we just needed to develop a cohesive

certifications required for the project. Several milestones were

way to communicate the work already being done. NOVAGOLD and

reached this past year with the issuance of key transportation and

Barrick collaborated to develop Donlin Gold’s environmental and

energy infrastructure approvals for the project. These include the

social reporting framework, which we hope you find useful and

final land leases, land use permits and material site authorizations

informative.

for the proposed transportation facilities on state lands, and

In the long term, enhanced ESG reporting constitutes an

the final easements for the access road and fiber optic cable.

advantageous progression for a late-stage development company

The remaining permits are not currently on the critical path for

like NOVAGOLD. First, stakeholders benefit from increased

further advancement of the project. Permitting takes tremendous

transparency in conveying not just measurements of ESG but also

leadership and attention to detail, along with transparency from

targets and projections of future developments, providing both

Donlin Gold with the support and contributions of TKC and the

a road map and more frequent interactions with all stakeholders.

communities closest to the project. We are extremely grateful

Second, increased reporting will further strengthen relationships

for the dedicated efforts of the entire team in advancing these

with communities, investors, and other stakeholders. Third, these

remaining permits and approvals for the project, and their overall

efforts will produce an integrated ESG report within our annual

commitment to environmental and governance best practices.

reporting and highlight the company’s ongoing ESG work.

We remain fully committed to transparency and engagement.

Our approach is to augment the frequency and consistency of

ESG communications with our partners, shareholders, and other

stakeholders as we embark on the production of our first annual

sustainability summary – which is integrated into this annual

report. Additional ESG and COVID-19 pandemic response-related

information can also be found in the sustainability section of

the company’s website, along with details about our people and

partnerships, health and safety, environmental responsibility,

SUFFICIENT CASH TO ADVANCE DONLIN GOLD
THROUGH TO A CONSTRUCTION DECISION

$31-35M

BUDGET*

$114M

$75M

community and social responsibility, education and training, and

TREASURY

governance and corporate policies.

Once you have had a chance to read our inaugural

sustainability summary, please let us know how we are doing. We

are invested in making meaningful improvements in every facet of

what we do as we bring Donlin Gold up the value chain.

cash and term deposit balance
on February 28, 2021

receivable from
Newmont in July 2021†

$0M

$25M

$50M

$75M

$100M

$125M

$150M

$175M

$200M

* Anticipated 2021 expenditures disclosed on January 27, 2021, which includes $18-22M to
Donlin Gold and $13M G&A. † NOVAGOLD sold its 50% ownership of the Galore Creek project to
Newmont Corp. in 2018. Deferred compensation on the sale of Galore Creek includes $100M;
$75M on earlier of Pre-Feasibility Study or July 27, 2021 and $25M on earlier of Feasibility Study
or July 27, 2023. An additional $75M is due upon construction approval.

2021 GOALS AND BUDGET

Even before the outstanding drill results received so far from

the 2020 campaign, Donlin Gold was an extraordinary project.

With approximately 39 million ounces of gold grading 2.24 grams

per tonne1 in measured and indicated mineral resources, Donlin

Gold dwarfs most comparable development projects in terms of

its size and its grade. As envisioned, it would average 1.1 million

ounces of gold production per year over its projected 27-year mine

life.2 Very few mines exist in the gold industry with that level of

production. And it’s located in one of the safest mining jurisdictions

2021 G O A L S

f continue to advance the Donlin Gold project

toward a construction decision

in the world: Alaska. Donlin Gold also enjoys incredible exploration

f maintain/increase support for Donlin Gold

potential along its eight-kilometer gold-bearing trend, which could

substantially increase the already sizable resource and further

extend the mine life of the project. Such a one-of-a-kind asset is

certainly worth all the time and attention needed to maximize

its value.

Looking ahead to 2021, NOVAGOLD and Barrick expect

to integrate the Donlin Gold 2020 drill program results into an

among the project’s stakeholders; promote a

strong safety, sustainability, and environmental

culture

f maintain a favorable reputation among

shareholders of NOVAGOLD, its governance

practices, and its project

updated geologic model and evaluate the timing to update

f manage the company treasury effectively and

the Donlin Gold feasibility study, followed by engineering work

which would form the basis of an execution plan and, ultimately, a

construction decision. To complete the model update, additional

confirmation and extension drilling are planned for 2021,

focusing on the continuity and structural controls of the higher-

grade mineralization. To minimize the risks posed by COVID-19,

efficiently, including streamlining the corporate

structure

NOVAGOLD will continue to be guided by a set of wide-ranging

at the Donlin Gold project. I would also like to thank the entire

safety policies to be applied at every company-related facility.

NOVAGOLD board and team for their commitment, hard work, and

NOVAGOLD anticipates spending approximately $31 to

dedication to the company. It is a joy to work alongside each of you.

$35 million in 2021. Between $18 and $22 million will be allocated

My appreciation also extends to the various Alaska state agencies

to fund our share of expenditures at the Donlin Gold project –

for their diligence in advancing permitting for the project.

including $11 million for the 2021 drilling program and studies;

Finally, to our shareholders who so clearly understand and

$7 million for camp improvements, community engagement,

support the NOVAGOLD investment thesis, I thank you for your

permitting, and administration; and an additional $4 million for

unwavering support through the many challenges that 2020

other studies contingent upon mid-year approval by both

brought. We value every engagement opportunity and will keep

owners – as well as $13 million for corporate general and

you informed of our progress as we work toward many more

administrative costs.

accomplishments in 2021, highlighting NOVAGOLD and this unique

NOVAGOLD believes that with approximately $114 million in

investment opportunity.

cash and term deposits as of February 28, 2021, and $75 million

The NOVAGOLD team has entered the new year extremely

due from Newmont in July 2021, it has sufficient funds to cover

excited about the recent assay results and very much looks forward

anticipated corporate general and administrative costs and funding

to further advancing the project throughout 2021.

of the Donlin Gold project through to a construction decision.

Our success in 2020 would not have been possible without the

dedicated and experienced team of professionals at NOVAGOLD,

Donlin Gold, and Barrick, as well as our top-performing drill crews

and support teams at the project site. Their commitment to the

task at hand and their timely and efficient response to the COVID-19

pandemic, while enhancing a multi-decade partnership with Calista

and TKC, have been nothing short of outstanding, all of which is

in large part responsible for the considerable achievements seen

1 Donlin Gold data as per the Donlin Gold Second Updated Feasibility Study (as defined herein).

2 As per the Donlin Gold Second Updated Feasibility Study (as defined herein).

Gregory A. Lang

President and CEO

April 7, 2021

PRESIDENT AND CEO’S MESSAGESUSTAINABILITY SUMMARY

NOVAGOLD is committed to responsible mining, protection of human life,

encouragement of good health, good stewardship of the environment, and adding

value to the communities in which we operate. We believe that mines can be developed

in collaboration with people who have the local knowledge to help minimize

environmental impacts while benefiting from economic activity. We’re committed to

the principles of sustainable development, including the conservation and preservation

of natural resources and of the environment. We strive to achieve the highest possible

standards through our workforce performance, actions, and conduct.

NOVAGOLD has thus far approached the disclosure of our environment, social, and governance (ESG) performance

pragmatically as a development-stage company, disclosing benchmarks that we believe are the most relevant

measurements of our performance.

The completion of federal permitting of the Donlin Gold project in 2018 marked a development milestone that

has led to the next phase in the evolution of NOVAGOLD’s ESG reporting against a backdrop of increasing interest from

all stakeholders. The time is appropriate to increase transparency, accountability, and enhance the suite of ESG metrics

the company discloses to stakeholders. We’re committed to providing stage-appropriate and relevant information, to

all stakeholders, about ESG performance in alignment with the Donlin Gold project partner Barrick Gold Corporation.

NOVAGOLD is working with Barrick to implement international best practice and industry standards at the Donlin Gold

project and plans to expand disclosure as the project eventually moves toward construction and into operation.

We are strong proponents of ongoing engagement and consultation with stakeholders through the entire

development process. Our commitment to enhancing and improving social capital in the communities of the Yukon-

Kuskokwim (Y-K) region has been integral to the Donlin Gold project from the outset. Additional training, hiring, and

bidders’ preference included in the life-of-mine agreements with our Native Corporation partners, Calista Corporation and

The Kuskokwim Corporation (TKC), date back to the mid-1990s and provide economic benefits to the Native Corporations

and their shareholders.

At the project level, Donlin Gold LLC has clearly defined responsibilities and commitments that align with NOVAGOLD

and Barrick policies, standards, and management systems. Donlin Gold is not only committed to social responsibility,

strong partnerships with local communities, and leaving a positive, sustainable legacy in the Y-K region; it’s also focused

on sustainable development that provides benefits over the long term through opportunities for direct and indirect

employment, local procurement, and community development projects. As we advance the Donlin Gold project toward

a construction decision, NOVAGOLD will continue to focus on ESG in all areas, but particularly on enhanced reporting of

activities and key metrics; improving crisis emergency preparedness; continuing engagement with all local, regional, and

state stakeholders with a focus on environmental improvement; launching local regional advisory committees to provide

perspective and local knowledge on issues specific to the project; and partnering with more local organizations in the

Y-K region to build on sustainable initiatives that will support environmental projects, education, and health and

safety initiatives.

The first of the regional advisory committees has been formed under the Donlin Advisory Technical Review and

Oversight Committee (DATROC). DATROC is a committee of Donlin Gold, Calista, and TKC representatives who monitor

and provide oversight to the Donlin Gold project. The committee discusses environmental protection, cultural resources,

subsistence uses, reclamation, and potential impacts on communities. Other advisory committees to be formed will include

Environment, Transportation & Infrastructure, and Social & Cultural Responsibility.

NOVAGOLD welcomes comments, questions, or suggestions about this report and related information. Please send

your feedback to info@novagold.com. ESG data tables can be seen on our Sustainability webpage at www.novagold.com/

sustainability. Additional information and details about goal-setting methodology, practices, and measurement can be

found in the 2021 Management Information Circular dated March 25, 2021 and available on www.sec.gov, www.sedar.com,

and www.novagold.com.

The Donlin Gold project is located in the Kuskokwim belt of

southwestern Alaska, just 10 miles north of Crooked Creek.

SUSTAINABILITY SUMMARYC O V I D - 1 9

R E S P O N S E

NOVAGOLD and its

partners implemented

a wide-ranging set of

protocols to ensure

the safety and well-

being of employees

and contractors.

Facing the major global threat posed by COVID-19, in March 2020

NOVAGOLD and its partners implemented a wide-ranging set of protocols at

our offices in Salt Lake City and Vancouver – and in conjunction with Barrick

at the Donlin Gold project office in Anchorage and the Donlin Gold project

site to ensure the safety and well-being of employees and contractors at

these locations. To reduce risk, corporate office employees have been asked

to continue to work remotely, avoid all non-essential travel, adhere to good

hygiene practices, and engage in physical distancing for the foreseeable future.

Among the small team at NOVAGOLD there have been no work-related cases of

COVID-19. The following procedures, consistent with the State of Alaska’s health

and safety rules, recommendations, and precautions, were designed to ensure

the safety and well-being of employees and contractors at Donlin Gold work

locations, as well as their families and local communities:

f COVID-19 testing of all employees and contractors traveling to the Donlin

Gold project site1

f charter flights used to safely transport employees to and from the project

site, avoiding unnecessary potential exposures to COVID-19

f site medical staff conducting screenings for COVID-19 symptoms

f diligent sanitization practices training and proper personal protective

equipment (PPE) provided to all site employees and contractors

f daily safety briefings before each shift reinforcing COVID-19 protocols

with increased safety communication around hygiene and sanitization

practices, physical distancing measures while at the project site, and

education and awareness regarding self-identification of symptoms

f weekly engagement with employee tribal councils to navigate project

site procedures and protocol

A history of interdependence among villages and a reliance on air and

water travel eventually led to community spread of COVID-19 in area villages

and resulted in various state and regional travel bans in the Y-K region,

exacerbating the societal impacts – including supply chain interruptions and

the need for assistance. Donlin Gold partnered with Calista and TKC, along

with other key representatives in the region, to respond to urgent community

needs. Donlin Gold support included food, PPE and cleaning supplies, diapers,

formula, sanitary wipes, and COVID-19 health and safety training, as well

as maintaining the ongoing partnership commitments in environmental

management and training, including a focus on education and health.

After a brief suspension of drilling in March, Donlin Gold safely restarted

the 2020 drill program following consultations with village tribal councils in the

Y-K region, communicating procedures to safely re-open the project site and

recommence site activities, and submission of a COVID-19 management plan to

the State of Alaska. With Donlin Gold’s extensive communication program and

application of health and safety protocols, no employees or contractors tested

positive for COVID-19 at the site in 2020, and drilling was successfully completed

in September.

Enhanced COVID-19 health protocols will remain in place for the

foreseeable future at both NOVAGOLD offices and at Donlin Gold to protect the

health of our workforce.

In-state personnel required one negative test prior to going to project site; village personnel, two negative tests
upon arrival and prior to returning to their village; out-of-state personnel, two negative tests prior to going to
project site.

56
260
1,400
4,189

YUKON AND COASTAL VILLAGES AIDED

BOXES OF FRESH PRODUCE DISTRIBUTED

FACE MASK KITS ASSEMBLED AND SHIPPED
PLUS ONE FOR EVERY STUDENT IN THE
KUSPUK SCHOOL DISTRICT

Y-K ELDERS AND YOUTH FED IN
22 COMMUNITIES

COMING TOGETHER
AT A TIME WHEN
WE NEED EACH
OTHER THE MOST.

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Donlin Gold coordinated the delivery of food and supplies

– including partnering with a local farmer to ship fresh

vegetables to 56 Yukon and coastal communities after the

regional airline went into bankruptcy and left communities

without regular air carrier service.

SUSTAINABILITY SUMMARY

P E O P L E

Our relationships, and support of each other, are at the core

Access to training and education are two of the important

of the work we do together. Empowerment of all employees to be

areas where we collaborate with our Native Corporation partners.

their best enable each of us to make a difference and give everyone

For example, scholarships are awarded to students selected

a chance to be heard. These values extend to the communities in

by Calista and TKC and funded by Donlin Gold. Calista has

which we work; our employees are encouraged and supported

awarded scholarships to 225 students, 158 of whom attended,

to give back to their communities with paid time off when

or are attending, Alaska post-secondary institutions. Among the

volunteering locally, either with their professional organizations

scholarship recipients there are 10 Y-K villages represented, with

or through non-profit community organizations.

chosen majors including business, education, engineering, health,

In January 2015, NOVAGOLD adopted a Human Rights

humanities, and Indigenous studies. Donlin Gold also hosted two

Policy accepting and embracing our responsibility to respect

week-long virtual Alaska Resource Education minerals camps in

human rights as per the Universal Declaration of Human Rights,

2020 for Y-K students.

and as articulated within the International Labor Organization’s

A Donlin Gold workforce training and development plan

Declaration on Fundamental Principles and Rights at Work, the

will be implemented prior to construction and production

United Nations Global Compact, and the United Nations Guiding

activities. In addition, Donlin Gold will continue to foster a work

Principles on Business and Human Rights.

environment that recognizes the unique nature of the region’s

In 2020, women comprised 46 percent (six of 13) of

Alaska Native culture. Important items that will be considered in the

NOVAGOLD’s employees. Selection of individuals for all positions

development of the project include the importance of subsistence

with the company is guided by our Code of Business Conduct

harvesting activities, cross-cultural training for employees and

and Ethics, a policy that prohibits discrimination in any aspect of

supervisors, the importance of family relationships, and providing

employment based on race, color, religion, ancestry, national origin,

local employment.

ethnicity, age, gender, pregnancy, genetic information (including

of a family member), marital status, parenthood, disability, veteran

status, sexual orientation, gender identity, gender expression, or

other protected status. All Donlin Gold positions, including those

hired through contractors, have a Calista and TKC shareholder

hire preference. For the 2020 drill program, 80 percent of Donlin

Gold’s direct hires were Alaska Natives. This is a continuation of the

success of Donlin Gold’s local hiring program initiated during the

exploration phase, and clearly demonstrates that the development

of a skilled local workforce is an achievable goal.

2020
80%
46%
8%
30%
20%

D I V E R S I T Y

OF DIRECT HIRES FOR DONLIN GOLD’S
DRILL PROGRAM WERE ALASKA NATIVES

OF NOVAGOLD’S EMPLOYEES
ARE WOMEN

OF NOVAGOLD’S EMPLOYEES ARE
ETHNIC MINORITIES

OF NOVAGOLD’S BOARD MEMBERS
ARE WOMEN

OF NOVAGOLD’S BOARD MEMBERS
ARE ETHNIC MINORITIES

Applicable Corporate Policies can be found at https://www.novagold.com/company/governance/
including Environmental Policy; Code of Business Conduct and Ethics; Anti-Corruption, Anti-
Bribery, Anti-Fraud; Health and Safety; Human Rights Policy; and Social License and Sustainable
Development.

All Donlin Gold positions, including those hired

through contractors, have a Calista and TKC

shareholder hire preference.

EMPOWERMENT
THAT MAKES A
DIFFERENCE.

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SUSTAINABILITY SUMMARY

H E A L T H A N D S A F E T Y

NOVAGOLD is committed to the safety, health, and welfare

At the project level, Donlin Gold continued high standards

of our employees and their families, our contractors, and our

of health and safety performance with a zero Lost Time Incident

visitors, as well as the safety and well-being of the communities

Frequency Rate1 in 2020. The Total Recordable Incident Frequency

in which we work. NOVAGOLD’s management is committed to

Rate2 in 2020 was 1.2, better than our goal of a maximum rate

providing leadership in health and safety. All team members take

of 1.5. In 2020, Donlin Gold employees and contractors received

accountability for their personal safety and that of others working

more than 550 hours of health, safety, and emergency response

around them. We create a corporate culture that promotes safe

training. Donlin Gold employees and contractors have worked

work practices through individual and group employee motivation,

more than 2.7 million hours over more than a decade without a

safety achievement rewards, and safety performance recognition

Lost Time Incident (LTI) or fatality. Trained medical staff are based

both in the workplace and in our local communities. Our practices

at the project site for response to and treatment of any injuries

reflect the objectives that are codified in our Health and

and any other employee health concerns. For seven consecutive

Safety Policy.

years, Donlin Gold has been honored with the Barrick Gold Merit

NOVAGOLD, Donlin Gold, and our partners are committed to

of Safety Award, a distinction that recognizes 365 consecutive days

providing an environment in which all our people make it home

of zero LTIs. Winning this safety award is an example of Donlin

safely every day and empowering individuals and communities to

Gold’s commitment to providing an injury-free workplace for all

work together to ensure a bright future for everyone. This means:

employees and contractors.

f a focus on health and safety where we implement high

Our commitment to health and safety extends beyond the

standards for the protection of our workforce;

Donlin Gold project and into the communities in the Y-K region.

f promoting safety programs throughout the Y-K region; and,

Donlin Gold purchased 1,400 face mask kits from a local supplier

f developing our current and future workforce with training

that were shipped to 56 Y-K villages as well as to every student and

and educational activities and programs – available

staff member in the Kuspuk School District, home to more than 350

throughout the Y-K region’s communities – that encourage

students over a 12,000 square-mile area. Donlin Gold coordinated

employees and contractors to live a safe and healthy life

with Tribal administrators to identify community members who

beyond the workplace.

2020
0
1.2
2.7M

S A F E T Y

LOST-TIME INCIDENTS (LTI) OR FATALITIES

TOTAL RECORDABLE INCIDENT
FREQUENCY RATE (GOAL: < 1.5) *

CONSECUTIVE HOURS OVER MORE THAN
10 YEARS WITHOUT AN LTI

* Total Recordable Incident Frequency Rate (TRIFR) is defined as an incidence rate of lost time

injuries, fatalities, and medical incidents and is computed using the formula: (number of injuries
and illnesses X 200,000) / employee hours worked = TRIFR. Note: ‘200,000’ represents the number
of hours 100 employees work based on 40 hours per week, 50 weeks per year, and provides the
standard base for calculating incidence rate for an entire year.

could assemble the masks for Elders and people at greater risk

of contracting COVID. Recognizing additional need in Bethel, the

largest community in the region, Donlin Gold provided financial

support to the Y-K Delta COVID-19 Response Fund and the Bethel

Community Services Foundation’s vulnerable youth services fund.

Despite the challenges of COVID-19, Donlin Gold also

continued to work with our Native Corporation partners on major

community health and safety investments throughout the region.

1 Lost Time Incident Frequency Rate is defined using the calculation of number of lost-time injuries

per one million employee hours worked.

2 Total Recordable Incident Frequency Rate is defined as an incidence rate of lost-time injuries,
fatalities, and medical incidents and is computed using the formula: (number of injuries and
illnesses X 200,000) / employee hours worked = medical incidence rate. Note: ‘200,000’ represents
the number of hours 100 employees work based on 40 hours per week, 50 weeks per year, and
provides the standard base for calculating the incidence rate for an entire year.

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4

In partnership with TKC, the village of Crooked Creek,

and the Napaimute Tribe, Donlin Gold was the lead

sponsor of a project to construct and maintain the

upper portions of an ice road on the Kuskokwim River.

IMPROVING THE
HEALTH OF OUR PEOPLE,
OUR COMMUNITIES,
AND OUR REGION.

SUSTAINABILITY SUMMARY

P A R T N E R S H I P S

Barrick, a strong and well-established senior gold producer, is

caused by COVID-19; an ice road that connects remote villages

an equal partner with NOVAGOLD in the Donlin Gold project.

in the Y-K region during the winter months; salmon studies; and

Our relationships in Alaska and in the Y-K region have been

suicide prevention programs.

shaped by working together to achieve project milestones that

In addition, Donlin Gold’s life of mine agreements with both

increase project value for all stakeholders. Calista and TKC have

Calista and TKC call for them to have the opportunity to bid on all

been directly involved in outreach about the Donlin Gold project

contracted work and receive bidders preference to encourage the

for more than two decades, and they have provided a conduit for

use of local businesses. These agreements also require Donlin Gold

sharing local knowledge through the public comment periods in

to prioritize the hire of shareholders of these Native Corporations.

the permitting process. This is consistent with their stated goal to

These provisions have directly led to many contracts being

increase shareholder benefits and economic opportunities through

awarded to Calista- and TKC-owned companies and employment

innovation, growth, leadership, partnership, execution, and

for Y-K region residents at the project site.

financial discipline. To achieve this, they have developed internal

Establishing collaborative working relationships with Y-K

and external workforce programs, including internships, training,

communities that function over the long term is essential to a

apprenticeships, scholarships, and mentorships. Along with Barrick,

solid development foundation based on respect for the values,

Calista and TKC are active participants in our annual strategic

the culture, and the language of the people of the Y-K region.

planning sessions for the Donlin Gold project as well as community

Relationship-building is only possible when based on a sincere

engagement and state and federal government interactions

approach of openness, constructive dialogue, and mutual respect.

and initiatives.

As an example of this approach, Donlin Gold will continue to

All shareholders of Calista (subsurface rights owner) and TKC

discuss options to mitigate or modify any project activities

(surface rights owner) will benefit from the mine as landowners.

that could negatively impact stakeholders based on open and

The Alaska Native Claims Settlement Act (ANSCA) of 1971 resolved

regular communication. Specifically, the natural gas pipeline

Alaska Native land claims, allotting 44 million acres for land use

that is envisioned to supply energy to the project site would

to Native Corporations. Land valuable for resource potential was

reduce barging on the river, including barging of diesel fuel, and

selected by regional Corporations under ANCSA, and resource

could provide a potential alternate energy source for the region.

development companies were invited by the Native Corporations

Following additional feedback, the pipeline was rerouted to avoid

to explore the land. Benefits prescribed under ANCSA include

potential impacts on the Iditarod National Historic Trail. Ongoing

revenue sharing under Sections 7(i) and 7(j) distributions that

feedback on project activities is coordinated through the DATROC,

provide a formula to divide revenues earned from resource

which is composed of senior leadership from Calista and TKC who

extraction between regional and village Native Corporations.

advise the Donlin Gold Board on issues of specific interest to the

Donlin Gold prioritizes local hiring and invests in supporting

communities.

communities throughout the region, benefiting residents directly

During the early part of 2020, Donlin Gold was the lead

and indirectly. One example is that 80 percent of Donlin Gold’s

sponsor of a project to construct and maintain the upper portions

direct hires for the 2020 drill program were Alaska Natives from

of an ice road on the Kuskokwim River from Crooked Creek to

the Y-K region. In addition to already being one of Southwest

Sleetmute, and provided technical data to assist the roadbuilder.

Alaska’s largest employers, Donlin Gold also benefits the region’s

In a region that has few roads, this is a safe, critical pathway for

communities indirectly, through donations to Y-K nonprofit

supplies and access to medical care during the winter. This was the

organizations, schools, training programs, sporting events,

first time the ice road extended as far upriver as Sleetmute, greatly

scholarships, and more.

improving safety and access to nearby communities for residents

In 2020, Donlin Gold signed Friendship Agreements with six

in remote locations, creating economic opportunity for local trade

Y-K villages that formalize current engagement. These Friendship

and, pre-COVID-19, facilitating increased community cooperation

Agreements build upon long-term relationships and address needs

for sports, social activities, and academics. At its completion in

that are specific to each village, including water, sewer, and landfill

February 2020, the ice road’s length constituted a record for the

projects; medical and other critical supplies to address hardships

Kuskokwim River at 355 miles long.

As part of Donlin Gold’s ongoing community engagement

efforts, Friendship Agreements were approved and

signed by six Y-K communities.

TANGIBLE, LONG-
LASTING BENEFITS
FOR ALL.

SUSTAINABILITY SUMMARYE N V I R O N M E N T A L

R E S P O N S I B I L I T Y

NOVAGOLD recognizes environmental management

Any water that comes in contact with mine facilities would be

as a corporate priority. Our employees, as well as Donlin

used in the milling process to the maximum extent practicable or

Gold employees and contractors, care about preserving the

treated and discharged according to stringent permit standards.

environment for future generations while also providing for safe,

Also of importance to stakeholders is the traffic plan for the river

responsible, and profitable operations for the benefit of employees,

barges needed to transport fuel and other supplies to the site.

shareholders, and communities. We set and maintain standards

Many of these materials will be transported up the Kuskokwim

of excellence for environmental performance at all our office and

River during the open water shipping season, between June and

project locations. In this regard, the NOVAGOLD environmental

October. Following completion of geotechnical and planning work,

policy sets out a statement of principles for all stages of a project:

a comprehensive tailings management plan will be finalized. Donlin

exploration, development, operation, and closure. Part of this

Gold is committed to the design, construction, operation, and

commitment means preserving the local community’s way of

closure of a tailings storage facility that will meet the requirements

life: Donlin Gold is dedicated to protecting subsistence rights on

of the Global Industry Standard for Tailings Management as well

the waters and lands that surround the project and honoring the

as exceed design specifications of the State of Alaska’s Dam Safety

traditions of Alaska Native culture practiced by our employees

Program. The Donlin Gold tailings storage facility will be fully lined,

and neighbors.

NOVAGOLD’s current environmental performance relates

and the main dam will be constructed using the Downstream
Method,1 globally considered to be the most stable design for

almost entirely to activities at the Donlin Gold project. It is our

tailings storage.

duty to support a project development plan that considers full

The potential environmental effects of the proposed mine

life-of-mine risks and opportunities – from exploration through

project were detailed and evaluated as part of the National

to construction, operation, and finally closure and reclamation.

Environmental Policy Act process. The FEIS was issued in August

Dialogue with local communities and our Alaska Native partners,

2018 and not only includes the potential effects of the project on

who offered generations of traditional knowledge about the

climate change, but also the potential effects of climate change

local environment, began early in the project’s history. Donlin

on the project itself; these risks are considered and have been

Gold used this information to help guide the location, layout, and

incorporated in the project design. The effects of climate change,

design of the project infrastructure to avoid sensitive and culturally

including the impacts of extreme weather conditions and melting

important habitats and landscapes; this information was included

permafrost, are incorporated into all permitting submissions, as

in the Donlin Gold Final Environmental Impact Statement (FEIS),

well as design engineering and operational and closure planning.

with project adjustments informed by engagement with Y-K

Further, the FEIS considered biodiversity by evaluating in detail the

region stakeholders.

potential project effects on local, regional, and statewide flora and

An extensive environmental baseline-study program has

fauna populations, including important and sensitive species. The

been ongoing since 1996 to provide a foundation for responsible

analysis specifically addressed how the ecosystem may change over

development. Resources and topics in the baseline-study program

time due to climate change. The project plan and permits include

include air quality, fish and other aquatic resources, geotechnical

extensive biodiversity monitoring and mitigation requirements

conditions, hydrology/ground and surface water quality and

that will be fully implemented as Donlin Gold moves to project

quantity, land use, mercury, public health, socioeconomics,

construction and operation. Finally, a reclamation and closure

sediment quality, subsistence, vegetation, wetlands, and wildlife.

plan for the proposed mine project has already been developed

Data from these studies have been used in the planning and

and approved by the State of Alaska to ensure that, when mining

design of the mine, and to establish environmental conditions prior

activity ceases, the mine is closed, and the land is reclaimed and

to project development. All of this data has been submitted to

restored. As required by state law and consistent with leading

regulatory agencies as part of the FEIS and permitting processes.

practice, this plan will be reviewed and updated periodically

The Donlin Gold project team has been collecting background

throughout operations.

data for a fish protection plan with the understanding that

protecting fish starts with protecting water. The project has been

designed for no uncontrolled discharge of mine-contacted water.

See more information about different tailings storage facility designs at https://donlingold.com/
environment/tailings-management-plan/.

COLLABORATING
WITH REGIONAL
STAKEHOLDERS
TO MINIMIZE
IMPACTS.

(Top to bottom) Donlin Gold employees sample water near

the project to update baseline data; environmental tech

Gerald Beans; Marguerite Tibbles of Owl Ridge Resource

Consultants conducts an aquatic resource survey.

SUSTAINABILITY SUMMARYAt Donlin Gold’s current development stage, the site’s existing

potential for environmental impacts is based on a site camp of

generally fewer than 100 employees and contractors, as was the

stream and pond habitats that will support Coho salmon and

case in 2020, at peak occupancy. Donlin Gold does not generate

resident fish populations in the drainage. Finally, in 2020, Donlin

operational process waste or wastewater, produce tailings nor

Gold also conducted extensive water quality monitoring and

waste rock, or use any cyanide. All runoff from field activities,

aquatic resource surveys throughout the Crooked Creek watershed.

including drill sites, is managed to protect water quality under state

Due to Donlin Gold’s remote location, on-site diesel-fired

permit requirements. All sanitary wastewater from the camp is

power generation and heaters are used to support current project

treated prior to disposal. Therefore, current activities pose very

site activities. In 2020, Donlin Gold’s greenhouse gas emissions

low risk to the environment.

totaled 1,500 metric tonnes of CO2. As the mine project moves

Consistent with our permit requirements and the corporate

forward – and as practicable – the use of more renewable energy

policies of NOVAGOLD and Donlin Gold, a very high level of

sources such as wind or solar will be evaluated.

environmental performance has been maintained at the project

Donlin Gold used approximately 184,000 gallons of pumped

site in the past – and this continued throughout 2020. Detailed

ground water to support camp operations during 2020. Some

operating and monitoring plans and policies have been established

additional surface water was temporarily used for drilling

for and implemented at the Donlin Gold project site that address

operations, but this water was quickly and safely returned to area

safe drinking water and sanitary wastewater systems; stormwater

streams. As previously noted, the project site is located in a remote

management; spill prevention and control; fuel, oil, and hazardous

part of western Alaska where there are few other water users

materials management; wetlands protection; wildlife interactions;

and water scarcity has not been a concern. In addition, all water

and many others. When the project site was occupied in 2020, the

withdrawals and uses are authorized by the State of Alaska. This

environmental team conducted daily inspections of all ongoing site

process provides for protection of other local water uses, including

activities as well as monitoring for potential releases to land and

ensuring no adverse impacts to streams and aquatic life use.

water. These areas include water and wastewater management, air

At a broader level, hazardous waste management is a major

quality, hazardous and other solid waste management, fuel storage

community concern in the Y-K region because there are no

and use (and associated spill risk), and the protection of biological

safe, authorized sites in the region for long-term management

resources around the site. Donlin Gold and its contractors have

and disposal. In the fall of 2020, Donlin Gold collaborated with

never been cited for any non-compliance with environmental

28 community partners, including regional and village tribal

regulations, standards, or permit requirements. All hazardous waste

governments and Y-K region businesses, on the Donlin Gold

is strictly managed according to state and federal regulations. In

Backhaul Hazardous Waste Removal Partnership to collect and

2020, Donlin Gold had no spills to water and no fuel or oil spills

remove approximately 45,000 pounds of household hazardous

greater than 10 gallons (the threshold for reporting to government

materials – such as fluorescent tubes, lead acid batteries, and

agencies). Per state permit requirements, Donlin Gold also

electronic waste – for proper disposal. Donlin Gold was the primary

stabilized and reclaimed all of the 2020 drill sites and associated

funder of this endeavor, which built upon two previous disposal

drill access roads after work was completed in these areas.

events. In 2019, nearly 100,000 pounds of hazardous and electronic

In 2020, Donlin Gold continued studies to monitor and

waste was removed from 14 villages and Bethel on the Kuskokwim

document environmental conditions in the project area. These

River and in 2018, the initial Green Star® Waste Backhaul Project

included fish and wildlife studies in the Middle Kuskokwim

removed close to 40,000 pounds of hazardous waste and materials

River, such as the multi-year program to characterize rainbow

from six Middle Kuskokwim villages. Donlin Gold is also working

smelt spawning. In this effort, Donlin Gold partnered with local

with TKC, the State of Alaska, and the Alaska Native Tribal Health

residents to continue to update the species behavior under current

Consortium to upgrade, as well as improve, health and safety

conditions and how it is used locally as an important subsistence

standards of water and sewer services in Middle Kuskokwim

resource. Closer to the project site, Donlin Gold advanced fish

area communities.

habitat restoration plans for areas of the Crooked Creek watershed

previously affected by historical placer mining. With construction

planned to start in 2021, these projects will restore and reconnect

Applicable Corporate Policies, including Environmental Policy and Social License and Sustainable
Development, can be found at https://www.novagold.com/company/governance/.

1.5k
184k
0
0
28
45k

METRIC TONNES OF CO2 IN GREENHOUSE
GAS EMISSIONS

GALLONS OF WATER USED TO SUPPORT
CAMP OPERATIONS

CITATIONS OR FINES

HAZARDOUS MATERIAL SPILLS TO WATER
OR LAND (>10 GALLONS)

COMMUNITY PARTNERS HELPED WITH THE
DONLIN GOLD BACKHAUL HAZARDOUS
WASTE REMOVAL PROGRAM

POUNDS OF HOUSEHOLD HAZARDOUS
MATERIALS REMOVED FROM Y-K VILLAGES

A barge arrives in Sleetmute, where it will be loaded up

with household hazardous and electronic waste. Trained

volunteers helped to remove 45,000 pounds of material

from 10 Y-K villages in 2020.

SUSTAINABILITY SUMMARYNOVAGOLD is committed to respecting the history, culture,

and customs of Indigenous communities who own, inhabit, or

use lands on which the company operates. We respect the social,

economic, and cultural rights of local and Indigenous people, strive

to communicate with communities, stakeholders, and shareholders

in an accurate and transparent manner, and endeavor to share

success through partnerships with stakeholders in community

development programs.

Donlin Gold promotes economic self-reliance among Native

communities through employment opportunities, business

enterprise support, economic diversification, maintenance of

subsistence lifestyles, and preferential contract consideration for

Native-owned suppliers. As noted above, these are consistent with

the specific Native employment and contracting requirements

included in our life-of-mine agreements with Calista and TKC.

As the project progresses, Donlin Gold will continue to focus on

developing programs that benefit local communities, including

improved infrastructure, support for education and health

services, cultural heritage preservation, employment and business

opportunities, income from royalty streams and compensation

payments, and environmental restoration and protection. Donlin

Gold supports applicable principles and commitments in the

International Council on Mining & Metals Position Statement on

Mining and Indigenous Peoples, which promotes constructive

relationships between the mining and metals industry and

Indigenous people based on respect, meaningful engagement,

and mutual benefit.

NOVAGOLD and its project partners are committed to

preserving traditional lifestyles and providing economic

opportunities to communities throughout the Y-K region, whose

political and social structure is represented by a diverse group of

social, business, and governmental entities. Relationships between

these entities are often complex and influenced by competing

political and economic interests. Calista, TKC, and a variety of

other Alaska Native business entities and associations have an

interest in the Donlin Gold project and its potential impact on the

region. Engaging with communities in a respectful and culturally

sensitive manner while developing long-term, mutually beneficial

relationships has been our approach since the early exploration

of the Donlin Gold project – and will continue throughout the life

cycle of the project.

In 2020, we supported Donlin Gold as it continued a multi-

decade collaboration on community development programs

with Native Corporation partners. These programs throughout

the region benefit education, community wellness, cultural

preservation, and environmental stewardship. Donlin Gold

supports a wide range of organizations and causes, from youth

sports to scholarships to search and rescue.

C O M M U N I T Y

A N D S O C I A L

R E S P O N S I B I L I T Y

Engaging with

communities in a

respectful and culturally

sensitive manner while

developing long-term,

mutually beneficial

relationships has been

our approach since the

early exploration of the

Donlin Gold project.

$3M
320
$8M
17

IN DIRECT PAYMENTS, SPONSORSHIPS,
AND COMMUNITY INITIATIVES

ENGAGEMENTS WITH COMMUNITIES
AND STAKEHOLDERS

IN PURCHASES FROM 146 ALASKA-BASED
SUPPLIERS

NATIVE VILLAGES THAT DONLIN GOLD
EMPLOYEES CALL HOME

STRONG
ALASKA NATIVE
PARTNERSHIPS
BENEFITING PEOPLE
AND COMMUNITIES
THROUGHOUT THE
REGION.

NOVAGOLD and its project partners are

committed to preserving traditional lifestyles

and providing economic opportunities to

communities throughout the Y-K region.

SUSTAINABILITY SUMMARYThe arrival of the COVID-19 pandemic in Alaska deepened

these strong relationships while introducing the Donlin Gold

community relations team to new – and primarily virtual –

Donlin Gold’s multi-decade collaboration on community

collaborations with villages in the Y-K region. Donlin Gold had

development programs with Native Corporation partners is

more than 320 contacts with key individual stakeholders and

one aspect of the stakeholder outreach program. Another is the

community organizations in 2020, twice the usual number of

sponsorship of local events and participants. The Kuskokwim 300

contact events made in previous years, with most communication

is considered to be the premiere mid-distance dog sled race in

occurring by telephone or video conference. Donlin Gold was

the world, covering a 300-mile trail stretching from Bethel across

able to reach out to communities and Tribes multiple times

tundra and the Kuskokwim River to Aniak upriver and back. It is

during 2020, including many they had not connected with in prior

a popular regional event that is supported through community

years. Usual stakeholder engagement involves regular in-person

investment funding by Donlin Gold. In January 2020, prior to the

meetings with key community leaders, community group update

arrival of COVID-19 in Alaska, Pete Kaiser, a Donlin Gold-sponsored

presentations, program development consultation, responding to

musher and 2019 Iditarod sled dog race champion, won the

environmental issues, and education and assistance with health

Kuskokwim 300. Kaiser was born and raised in Bethel and is the

and safety matters. From regular engagement with tribal councils

first Yup’ik musher and the fifth Alaska Native to win an Iditarod

to seeking partnerships with new parties, Donlin Gold was able to

championship.

stay connected to advance key activities and projects throughout

Kaiser takes a leadership role in speaking with youth in the

the region. Donlin Gold is guided in its approach by a detailed

community about suicide prevention and his musher coat has a

stakeholder engagement plan that uses stakeholder identification

stitched-on patch that states “Suicide is never the answer.” Suicide

and looks at their level of responsibility, influence, proximity,

is the second leading cause of death in the United States among

dependency, and representation in the project region. As part of

individuals between the ages of 10 and 34. Based on CDC 2019

ongoing stakeholder mapping, organizations and individuals are

data, Alaska has the second-highest suicide rate of any state, with

categorized as low- or high-influence as well as low- or high-impact

suicide being the leading cause of death among Alaska youth over

in their relationship to the project. In addition, stakeholder surveys

the age of 15.

are regularly conducted in Alaska to uncover information or identify

Donlin Gold also sponsored four Iron Dog teams for the annual

communication gaps and provide perception mapping of the

snowmobile race in February. The Iron Dog is the world’s longest

project. An example of this is Calista’s 2020 media campaign “Truly

snowmobile race and covers more than 2,600 miles as it traverses

Our Project,” which communicated that the Donlin Gold project is

the Alaskan backcountry. These races are traditions in the region

located on Calista land – something surveys had indicated most

and receive much local support, international media coverage,

Calista shareholders were not aware of.

and fans along the route and at each checkpoint.

Donlin Gold works hard to address all concerns raised by

Following the temporary closure of the project camp due

residents of the Y-K region through its ongoing stakeholder

to COVID-19 travel restrictions, Donlin Gold donated thousands

engagement efforts. Community concerns or complaints may be

of pounds of food to shelters and to every home in eight Middle

conveyed in-person or by telephone with one of the community

Kuskokwim villages. Additional support of communities during

development or community relations personnel, or submitted

the pandemic was the result of partnering with the Campfire

through an anonymous online contact form. There were no

Organization, the Association of Village Council Presidents, and

grievances related to human rights (or any topic) filed in 2020, and

the Yukon-Kuskokwim Health Corporation to fund Elder and youth

there were no unresolved complaints outstanding at the end of

meals throughout the summer – serving 22 communities, 4,189

the previous year. Still, Y-K region stakeholders regularly request

individuals, and a total of 34,000 meals to Elders and youth in the

information or share topics of concern with community relations

region. In addition, 260 boxes of fresh produce were distributed

staff, including employment opportunities, timing of project

to 56 villages.

development, and increased health and safety protocols related

Donlin Gold is also supporting TKC in a local community

to COVID-19.

development project to improve energy efficiency and develop

reliable energy generation in all villages in the Middle Kuskokwim

region. Other ongoing initiatives include providing online activities

and programs for youth and Elders, strengthening sponsorships

with investments in the First Alaskans Institute at the 2020 Elders &

Youth Statewide conference and the Alaska Federation of Natives

annual convention.

The coastal village of Kongiganak is located

approximately 220 miles from the Donlin Gold

project. The 430-person village is one of the

56 villages in the Y-K region that Donlin Gold

engages with.

SUSTAINABILITY SUMMARYG O V E R N A N C E A N D

C O R P O R A T E P O L I C I E S

NOVAGOLD is committed to maintaining robust corporate

environment, and sustainability policies, including the company’s

governance practices that enable us to achieve our company

ESG performance and disclosures. There are five members on the

goals and maintain the trust and confidence of our investors,

committee with a cumulative total of senior mining management

employees, regulatory agencies, and other stakeholders. We

industry experience of greater than 160 years. All committee

recognize the importance of consistent, transparent, and proactive

members except NOVAGOLD’s president and CEO, Greg Lang,

communication, and feel that facilitating our stakeholders’

are independent. The committee is composed of directors

opportunities to share their perspectives with us help deepen our

with knowledge and experience in the areas of environmental

understanding of their interests, concerns, and priorities.

stewardship and compliance, social license, worker safety, and

The company establishes rigorous annual goals and discloses

technical expertise in the permitting, planning, development, and

details of levels of achievement for the goals of the previous

operation of large mines. While the board is ultimately responsible

year and for the upcoming year in the Management Information

for oversight of the company’s ESG performance, the committee

Circular. The executive team and the board work together to set

reviews the company’s environmental and social engagement

long-term strategic company goals and short-term annual goals.

performance at every committee meeting and provides strategic

The assessment of performance against these goals is monitored

direction to management on these matters. The committee

regularly during the year by the board. At the end of each year, the

provides a report at each regular board meeting.

compensation committee leads the annual review of company

After our 2017 and 2018 annual shareholder meetings, we

goal-setting and performance, executive performance evaluations,

commenced post-proxy shareholder engagement campaigns in

and setting of the executive and director compensation programs,

response to suboptimal approval rates for our annual advisory say-

as well as provides recommendations on those topics to the board

on-pay resolution. Members of management, and, in some cases,

for its consideration.

members of both the compensation and the corporate governance

NOVAGOLD’s board of directors and management team

and nominations committees participated in these meetings. The

acknowledge the importance of diversity, including experience,

engagement resulted in the implementation of changes to the

race, ethnicity, gender, age, and cultural background, because we

executive compensation program, the adoption of a board service

value the contributions of differing perspectives (which have also

policy, and adoption of an executive compensation clawback

been shown to correlate with long-term business success). When

policy. We were pleased to see that the changes implemented after

considering candidates for executive positions, the company’s

listening to our shareholders resulted in higher approval ratings of

evaluation considers the broadest possible assessment of each

the say-on-pay proposal at our 2019 and 2020 annual

candidate’s skills and background, the overriding objective to

shareholder meetings.

ensure the appropriate balance of skills, experience, and capacity

Other governance changes in the past three years include the

necessary to be successful. Because of this objective, the company

departure of four long-tenured directors and the addition of three

has not set targets for specific percentages of women, or other

new independent directors; the reduction of the board size from

aspects of diversity, in executive positions. Forty-six percent of

11 to 10 seats; an increase in the number of women on the board

NOVAGOLD’s employees are women.

from one to three; and the adoption of a board service policy to

NOVAGOLD’s board of directors’ obligation is to oversee

prevent over-boarding. There have also been numerous changes

corporate strategy and governance, key functions in advising

to the company’s executive compensation program since 2017 that

management on strategic direction and practices, employee well-

have had the cumulative effect of reduced total compensation. The

being, and partnerships. Eight of the company’s 10 board members

company’s revised approach to executive compensation resulted in

are independent, three of whom are women.

the say-on-pay resolution receiving 87 percent approval at the 2020

The environmental, health, safety and sustainability

annual shareholder meeting.

and technical committee is a standing sub-committee of the

For more information, please refer to the Sustainability page

NOVAGOLD board, to which the board has delegated certain

on our website at www.novagold.com/sustainability/.

responsibilities relating to oversight for the development,

implementation, and monitoring of the company’s health, safety,

CORPORATE GOVERNANCE SUMMARY – CHANGES, 2017-2020

BOARD OF DIRECTORS

f four directors have stepped down: Dr. Marc Faber,

SHARE OWNERSHIP REQUIREMENTS
f increased director share ownership

Gerald McConnell, Gil Leathley, Rick Van Nieuwenhuyse

requirements to an amount equal to

f three directors have been added: Dr. Diane Garrett,

3X annual retainer within five years of

Ethan Schutt, Dr. Elaine Dorward-King

f reduced board size from 11 to 10

f increased gender diversity from 9% to 30%

f board nominee slate is 80% independent

joining board (effective August 2020)

f increased CEO share ownership

requirement to an amount equal to

5X annual salary from 3X (effective

f adopted a board service policy to prevent overboarding

August 2020)

EXECUTIVE COMPENSATION

f Summary Compensation Table (SCT) shows reduction in

executive comp since 2017

f Realized pay is generally lower than realizable pay and

SCT pay*

STOCK AWARD, PERFORMANCE
SHARE UNIT, AND DEFERRED
SHARE UNIT PLANS APPROVED BY
SHAREHOLDERS IN 2020†

f stock award plan amendment –

reduced plan share pool size to 8%

f extended vesting period for options and Performance

of issued and outstanding shares

Share Units (PSUs) from two to three years (effective

down from 10%

* Refer to Realized and Realizable Pay Tables in Management

Information Circular.
Required every three years by the TSX.

†

December 2017)

f eliminated individual performance rating as a multiplier

for long-term incentive award value

f CEO base salary unchanged for three years (2017-2019)

f added a double-trigger change of control provision to

option plan and PSU plan before award vesting is

accelerated (effective January 2019)

f adopted an executive compensation clawback policy

f enhanced the description of annual company goals,

including threshold, target, and maximum

achievement descriptions

SUSTAINABILITY SUMMARYM I N E R A L R E S E R V E S & M I N E R A L R E S O U R C E S

Donlin Gold

(100% basis)*

GOLD

Reserves1
Proven

Probable

P&P
Resources,2 inclusive of Reserves
Measured

Indicated

M&I

Inferred

Notes:

Tonnage

7,683

497,128

504,811

7,731

533,607

541,337

92,216

Grade

g/t Au

2.32

2.08

2.09

2.52

2.24

2.02

Metal content

koz Au

573

33,276

33,849

626

38,380

39,007

5,993

* Mineral Reserves & Mineral Resources

are reported on a 100% basis.
NOVAGOLD and Barrick each own 50%
of the Donlin Gold project.

Donlin Gold approximate cut-off grades
(see Resources Footnotes):
Reserves:1
Resources:2

0.57 g/t gold
0.46 g/t gold

= metric tonne
grams/tonne
ounce
thousand

t
g/t =
=
oz
=
k
= million
M

a) This resource estimate has been prepared in accordance with NI 43-101 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 is reported as troy ounces.

Resources 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 cut-off grade would be approximately 0.57 g/t, or the gold grade that would equate to a 0.001 NSR cut-off 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 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$1,200/oz – (1.85 + ((US$1,200/oz –1.85) * 0.045)) – (10.65 + 2.1874 * (S%) + 2.29 + 0.20)) and reported in US$/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 great
uncertainty as to their existence and whether they can be mined legally or economically.

Regarding Forward-Looking Statements

This report includes certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation, 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 regarding the permitting, potential development, exploration, construction
and operation of Donlin Gold and statements relating to NOVAGOLD’s future operating and financial performance and production estimates are forward-looking statements. Forward-looking statements are frequently, but not
always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, “poised”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, “would” or “should”
occur or be achieved. These forward-looking statements may also include statements regarding the exploration potential of Donlin Gold; anticipated mine life; perceived merit of properties; anticipated permitting timeframes;
exploration and drilling results and budgets; mineral reserve and resource estimates; work programs; capital expenditures; timelines; strategic plans; benefits of the project; market prices for precious metals, including the potential
performance of the price of gold; whether the final $75 million promissory note from the sale of Galore Creek will mature and be payable; potential shareholder returns; the timing and outcome of ADNR’s decision to reconsider
the ROW lease for the natural gas pipeline 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 NOVAGOLD’s expectations include the
uncertainties involving unexpected cost increases, which could include significant increases in estimated capital and operating costs; the need for additional financing to explore and develop properties and availability of financing
in the debt and capital markets; risks related to the outbreak of the coronavirus global pandemic (COVID-19); uncertainties involved in the interpretation of drilling results and geological tests and the estimation of reserves and
resources; the need for continued cooperation with Barrick Gold Corporation for the continued exploration and development of the Donlin Gold property; the need for cooperation of government agencies and native groups
in the development and operation of properties; 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; the need to obtain permits and governmental approvals; fluctuations in metal prices and currency exchange rates; whether a positive construction decision will be
made regarding Donlin Gold or Galore Creek; the timing and outcome of ADNR’s decision to reconsider the ROW lease for the natural gas pipeline and other risks and uncertainties disclosed in NOVAGOLD’s annual report filed on
Form 10-K for the year-ended November 30, 2020, and subsequently in NOVAGOLD’s quarterly reports filed on Form 10-Q, with the United States Securities and Exchange Commission (SEC), Canadian securities regulators, and in
other NOVAGOLD reports and documents filed with applicable securities regulatory authorities from time to time. Copies of these filings may be obtained at no charge by visiting our Investor Relations website at www.novagold.
com or the SEC’s website at www.sec.gov or at www.sedar.com. NOVAGOLD’s forward-looking statements reflect the beliefs, opinions and projections of management on the date the statements are made. NOVAGOLD assumes no
obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Forward-looking statements are based on a number of material assumptions, including but not limited to the following, which could prove to be significantly incorrect: our ability to achieve production at any of our mineral
exploration and development properties; estimated capital costs, operating costs, production and economic returns; estimated metal pricing, metallurgy, mineability, marketability and operating and capital costs, together with
other assumptions underlying our resource and reserve estimates; our expected ability to develop adequate infrastructure and that the cost of doing so will be reasonable; assumptions that all necessary permits and governmental
approvals will be obtained and the timing of such approvals; assumptions made in the interpretation of drill results, the geology, grade and continuity of our mineral deposits; our expectations regarding demand for equipment,
skilled labor and services needed for exploration and development of mineral properties; and that our activities will not be adversely disrupted or impeded by development, operating or regulatory risks.

Cautionary Note Concerning Reserve & Resource Estimates

This presentation uses the terms “mineral resources”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. United States investors are advised that, while such terms are recognized and
required by Canadian securities laws, the SEC Industry Guide 7 (“Industry Guide 7”) does not recognize them. Under Industry Guide 7, 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 that they should not assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. Further, inferred mineral resources have a great amount of
uncertainty as to their existence and as to whether they can be mined legally or economically. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations, however, Industry Guide 7 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 mineral resources contained in this presentation may not be
comparable to information made public by United States companies subject to Industry Guide 7 reporting and disclosure requirements. The Company has no reserves, as that term is defined under Industry Guide 7.

On October 31, 2018, the SEC adopted a final rule (“New Final Rule”) that will replace Industry Guide 7 with new disclosure requirements that are more closely aligned with current industry and global regulatory practices and
standards, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”). Companies must comply with the New Final Rule for the first fiscal year beginning on or after January 1, 2021, which for
NOVAGOLD would be the fiscal year beginning December 1, 2021. While early voluntary compliance with the New Final Rule is permitted, NOVAGOLD has not elected to comply with the New Final Rule at this time.

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 presentation 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 the Donlin Gold project.

Project
Donlin Gold

Qualified Person(s)
Kirk Hanson P.E.

Most Recent Disclosures
“Donlin Creek Gold Project Alaska, USA, NI 43-101 Technical Report on Second Updated Feasibility Study” prepared by AMEC, effective November 18, 2011,
amended January 20, 2012 (the “Second Updated Feasibility Study”).

Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under NI 43-101, has approved the scientific and technical information contained in this annual report.

Wood Canada Limited (“Wood” formerly AMEC Americas Limited) is currently updating all sections of the Second Updated Feasibility Study with updated costs, economic assessment, permitting information, and technical
information related to permitting, generated on the Donlin Gold project since 2011, which is anticipated to be finalized and filed during 2021. Based on that cost review, Wood determined that updating the Second Updated
Feasibility Study using 2020 costs and new gold price guidance results in no material change to the mineral resources or mineral reserves. The economic assessment in the updated study may be materially different than in the
2011 study.

An aerial image of the Y-K Delta, close to the village

of Kongiganak, which is about 220 miles from the

Donlin Gold project.

C O R P O R A T E

I N F O R M A T I O N

MANAGEMENT TEAM

Gregory A. Lang

President and Chief Executive Officer

David Ottewell

Vice President and Chief Financial Officer

Mélanie Hennessey

Vice President, Corporate Communications

Ron Rimelman

BOARD OF DIRECTORS

Dr. Thomas Kaplan

Chairman, NOVAGOLD RESOURCES INC.;

Chairman and CEO, The Electrum Group

Elaine Dorward-King (2, 3)

Corporate Director

Sharon Dowdall (2, 4)

Corporate Director

Vice President, Environment, Health, Safety, and Sustainability

Diane Garrett (3, 4)

Richard Williams

President, CEO, and Director of Hycroft Mining

Vice President, Engineering and Development

Holding Corporation

Gregory A. Lang (3, 5)

TRANSFER AGENT

President and CEO, NOVAGOLD RESOURCES INC.

For information on share transfers, lost certificates, or a change of

Igor Levental (4, 5)

address, contact:

Computershare

1.800.564.6253 (toll-free in Canada and the U.S.)

1.514.982.7555 (international direct dial)

computershare.com

AUDITORS

PricewaterhouseCoopers LLP

SHARE LISTINGS

TSX, NYSE American: NG

President, The Electrum Group

Kalidas Madhavpeddi (2, 3)

Corporate Director

Clynton Nauman (1, 3)

CEO, Alexco Resource Corp., and

CEO, Asset Liability Management Group ULC

Ethan Schutt (1, 4, 5)

Executive Vice President and General Counsel, Bristol Bay

Native Corporation

Anthony Walsh (1, 2)

Corporate Director

Issued and outstanding at March 24, 2021, 331.3 million

Independent Lead Director, NOVAGOLD RESOURCES INC.

Members of:

1. Audit Committee
2. Compensation Committee
3. Environment, Health, Safety, Sustainability, and Technical Committee
4. Corporate Governance and Nominations Committee
5. Corporate Communications Committee

This annual report was printed
carbon neutral, investing in
renewable energy and clean
technology projects.

2020 FINANCIAL REPORT

From NOVAGOLD’s Annual Report on Form 10-K for the fiscal year ended November 30, 2020
For full Annual Report on Form 10-K, please visit www.novagold.com, www.sec.gov, or www.sedar.com
Or call Investor Relations at 1.866.669.6227

ANNUAL AND SPECIAL MEETING

OF SHAREHOLDERS

(virtual format)

Wednesday, May 12, 2021 – 1pm PT

Live Webcast at:

www.virtualshareholdermeeting.com/NG2021

INVESTOR INQUIRIES

T: 604.669.6227

Toll free: 1.866.669.6227

info@novagold.com

novagold.com

linkedin.com/company/novagold

twitter.com/novagold

facebook.com/novagold

CORPORATE OFFICE

400 Burrard Street, Suite 1860

Vancouver, BC, Canada V6C 3A6

T: 604.669.6227

Toll free: 1.866.669.6227

F: 604.669.6272

info@novagold.com

SALT LAKE CITY EXECUTIVE OFFICE

201 South Main Street, Suite 400

Salt Lake City, UT, USA 84111

T: 801.639.0511

F: 801.649.0509

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