Mr. Gregory Lang reports

NOVAGOLD REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

Novagold Resources Inc. today released its 2023 third quarter financial results and provided an update on its Tier 1 (1) gold development project, the Donlin gold project, which Novagold owns equally with Barrick.

Details of the financial results for the quarter ended Aug. 31, 2023, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on Oct. 3, 2023, available on the company's website, on SEDAR+ and on EDGAR. All amounts are in U.S. dollars unless otherwise stated.

Third quarter 2023 Donlin highlights:

• The field program was successfully completed in July and encompassed:
  • The completion of comprehensive fieldwork and geotechnical drilling required to complete the Alaska dam safety certification applications;
  • Fieldwork to further define groundwater at the site, including 1,279 metres (m) of hydrogeologic drilling with instrumentation and pump tests, providing essential information for mine planning and design;
  • Lyman family's historic placer site stream restoration, with stream and pond habitat creation advanced in 2023, and final work including anticipated aquatic life access and use planned for the 2024 field season.
• State permitting activities were successful, including the following:
  • The air quality permit was reissued;
  • The second of the two right-of-way (ROW) permit appeals by a local lodge owner was denied in Alaska Superior Court and not further appealed. The first appeal by Earthjustice that was denied by the Superior Court was appealed to the Alaska Supreme Court and the briefing process is under way;
  • The Alaska pollutant discharge elimination system permit was extended and is expected to be reissued in 2024;
  • The Alaska water rights permits were upheld in Alaska Superior Court;
  • The Alaska Department of Environmental Conservation (ADEC) commissioner upheld the Clean Water Act Section 401 certification of the U.S. Army Corps of Engineers permit.
• The State of Alaska was granted intervenor status along with Donlin and Calista Corp. with respect to the federal litigation on the Donlin joint record of decision and 404 permit. Donlin will continue to support the agencies in defending their thorough and diligent permitting process.
• Trade-off studies and extensive analysis on project assumptions, inputs, design components for optimization (mine engineering, metallurgy, hydrology, power and infrastructure) were completed to inform the next steps in taking the project further up the value chain.
• In collaboration with Calista and The Kuskokwim Corp. (TKC), Donlin achieved the following milestones in areas spanning education, health and safety, cultural traditions, and environmental initiatives:
  • Added a new community liaison representative from the local village of Nunapitchuk, bringing the total to six team members;
  • Participated and provided support to the annual "in it for the long haul" waste backhaul program for the sixth year in a row;
  • Supported the Alaska EXCEL initiative, a non-profit organization providing supplemental academic, career and technical education programming for rural youth and young adults across the Y-K region.
• The company held numerous stakeholder engagement meetings in Alaska with state officials and the U.S. Army Corps, in partnership with Calista and the village of Crooked Creek. These sessions emphasized the project's comprehensive environmental review and permitting processes, as well as the company's close collaboration with native Alaskan landowners.

President's message

An exceptional asset paving the way for further value creation

Donlin's steadfast commitment to advancing its extraordinary project up the value chain is reflected in its increased investments and expanded partnerships with the communities of the Y-K region. The extensive work done on the project to date has added considerable value in a responsible manner for all stakeholders, including Alaska residents and Novagold shareholders. Donlin is a truly remarkable open-pit gold development project -- characterized by its unique combination of rarity, sheer size and development status. Located on private land designated by law for mining in Alaska, the second-largest gold-producing state in the United States, Donlin aligns perfectly with the state's commitment to environmentally and socially responsible resource development, making it an extremely appealing investment for those seeking peace of mind. This project holds the esteemed status of a true Tier 1 asset in a world-leading jurisdiction and is anticipated to provide exceptional gold leverage and economic benefits for all stakeholders. As the leading gold development project in Alaska, a state renowned for its responsible mining practices, Donlin, when built, is expected to serve as a cornerstone for genuine and sustainable economic growth in the Y-K region for years to come.

Boasting approximately 39 million ounces of gold with an impressive grade for an open-pit project of 2.24 grams per tonne in measured and indicated mineral resources, including proven and probable mineral reserves, and a projected mine life over 27 years, Donlin possesses the potential to emerge as a sizable low-cost gold producer with a solid foundation and significant growth opportunities (2). Exploration opportunities extend well beyond the current resource areas, which cover only a fraction of the extensive land package. These factors collectively position Donlin as a captivating story in gold development, underscored by Novagold's unwavering commitment to responsible mining, trust-building and continual project improvement.

Dedication, discipline and preparation for the next phase in the Donlin gold project

In the third quarter, the Donlin team safely wrapped up site activities on schedule. These included comprehensive fieldwork and geotechnical drilling required for the Alaska dam safety certificate applications, which involved data collection at the locations earmarked for water retention structures with 74 geotechnical test pits, including for the proposed tailings storage facility, 1,840 metres of geotechnical drilling, 25 kilometres of seismic survey and tailings storage facility test plot liner installation. Donlin will now assemble the data for the next step in advancing the Alaska dam safety certificates, submittal of the preliminary design packages to the State of Alaska. Issuance of the certificates based on detailed engineering design is expected in 2026. Additional fieldwork also took place to further define groundwater at the site, which included 1,279 metres of hydrogeologic drilling with instrumentation and pump tests, providing essential information for mine planning and design. At the historic Lyman placer site, restoration work encompassed significant stream and pond habitat creation. Final work including anticipated aquatic life access and use is planned for the 2024 field season.

During this past quarter, the owners were doing work to validate the update geologic and resource model, which is also being utilized for mine planning work. Donlin, with support from the owners and third party consultants, also completed the trade-off studies and extensive analysis on project assumptions, inputs and design components for optimization, such as mine engineering, metallurgy, hydrology, power and infrastructure.

The recently completed comprehensive work provided valuable information for the Donlin Gold LLC board and its owners. These were further discussed during the most recent workshop in Alaska and are helping the company define the next steps in the advancement of the Donlin gold project and work plan for the coming years. The owners are committed to advancing the Donlin gold project in a financially disciplined manner, with a strong focus on engineering excellence, environmental stewardship, a robust health and safety culture, and continued community engagement.

Fostering partnerships with regional stakeholders, with consistent support from Alaska's U.S. representatives

A crucial differentiating factor, which sets Donlin apart from many other mining assets in the United States, is its location on private land designated for mining activities under the Alaska Native Claims Settlement Act of 1971. Donlin's enduring partnerships with Calista and TKC have been pivotal in facilitating broad and inclusive local stakeholder outreach throughout the Y-K region. The company's dedication to fostering genuine tribal involvement throughout the project's development and permitting phases follows from the company's decades-long and consistent engagement with the communities in the project's vicinity. In June, 2023, Donlin reaffirmed this commitment by appointing an additional community liaison representative from the local village of Nunapitchuk, thereby increasing the total number of team members to six. These collaborative efforts are reinforced by the establishment of 14 shared values statements with key villages in the Y-K region. These statements formalize Donlin's consistent engagement with local communities, build upon existing long-term relationships and address specific community needs.

During the third quarter, Donlin collaborated with Calista and the village of Crooked Creek to conduct additional meetings in Alaska to engage state officials and the U.S. Army Corps. Additional gatherings were held in Washington with members of the congressional delegation and with senior leadership from the U.S. Department of Interior, as part of a continuing bipartisan outreach campaign directed at the Biden administration and the U.S. Congress. Notable participants included senators Lisa Murkowski and Dan Sullivan, along with representative Mary Peltola from the Y-K region. In all of these interactions, Calista, Donlin and Crooked Creek placed great emphasis on the thoroughness of the project's environmental review and permitting procedures, as well as on the company's strong partnerships with native Alaskans who own the land.

In August, Donlin received special recognition from U.S. representative Mary Peltola during the 2023 Alaska Oil and Gas Association Annual Conference for its exceptional project outreach and community engagement efforts. This acknowledgment underscores Donlin's commitment to fostering positive relationships and actively involving local communities in the Y-K region and reflects the importance of responsible and sustainable resource development in Alaska.

Steadfast commitment to community wellness, social responsibility and education in the Y-K region

Novagold places a strong emphasis on community and social responsibility -- a commitment to shared values that is fulfilled at both the Donlin gold project site and within the communities of the Y-K region. The company's efforts are concentrated on education, community well-being, cultural preservation and environmental stewardship. Donlin reinforces these goals through fisheries studies, conservation initiatives, cultural preservation activities and targeted grants. During the third quarter, a diverse array of projects and activities took place that built on the company's long-standing engagement.

In collaboration with the village of Napaimute, Donlin actively participated in and provided principal support for the "in it for the long haul" backhaul program for the sixth year in a row. This vital project is dedicated to the collection, removal and safe disposal of household hazardous and electronic waste from villages across the Y-K region, preventing its adverse impact on landfills and waterways. This year's program achieved significant milestones, including the removal of waste from fish camps in the middle Kuskokwim. In addition, Donlin employees from three villages (Marshall, Pilot Station and Pitka's Point) played a pivotal role in initiating waste backhaul operations along the Yukon River, culminating in the collection and proper disposal of approximately 17,000 pounds of hazardous and electronic waste. Used appliances were collected and removed from Kuskokwim villages and assembled in Bethel, where the annual event with the company's partners took place. Moreover, Donlin supported the Chevak search and rescue team and provided financing to various health and safety initiatives throughout the Y-K and Cook Inlet regions, such as Skwentna and Nikolai.

Education lies at the heart of Donlin's community engagement efforts, with a high priority placed on advancing educational opportunities in Alaska. In June, 2023, Donlin provided support to the Alaska EXCEL program, a non-profit organization offering supplemental academic, career development and technical education initiatives for rural youth and young adults across the Y-K region. This program allows students to earn high school credits toward graduation while simultaneously acquiring college credits. Furthermore, Donlin continues to offer financial support to the Alaska School Activities Association, a statewide non-profit organization dedicated to overseeing and promoting Alaska's high school interscholastic athletic, academic and fine arts activities. Novagold also affirms its commitment to education by financing an annual scholarship at the University of Alaska, designed to benefit underrepresented students pursuing majors in mine engineering and geology, hence contributing to the development of future talent in these critical professional fields.

Providing support in permitting process and efficient issuance of remaining state-level permits

Permitting in the United States and Alaska represents a significant and rigorous endeavour, where success hinges on years of dedicated efforts to ensure a diligent, thorough, transparent and inclusive process that engages all stakeholders, including those from the Y-K region. Donlin, its owners, and partners Calista and TKC possess an intimate understanding of the project's permitting and regulatory procedures and remain committed to supporting the federal and state agencies in defending such a rigorous permitting process.

The new air quality permit based on updated air quality modelling and emissions controls information was issued on July 1, 2023, and was not appealed. The regularly scheduled reissuance of the project's Alaska pollutant discharge elimination system permit from ADEC is under way and was extended indefinitely through reissuance, which is expected to occur in 2024. On Aug. 18, 2023, the commissioner reaffirmed ADEC's issuance of the 401 certification (Alaska water quality certification), following an appeal by Earthjustice and ONC.

On Sept. 1, 2023, the Alaska Superior Court affirmed the State of Alaska Department of Natural Resources' (ADNR) decision on Donlin's water rights permits. This followed an unsuccessful appeal to the ADNR commissioner.

On April 12, 2023, and July 3, 2023, the Alaska Superior Court affirmed the ADNR's issuance of the state ROW lease in the Earthjustice and Robert Fithian cases, respectively. The decision in the Earthjustice case has been appealed to the Alaska Supreme Court. The briefing process is under way. Mr. Fithian did not appeal to the Alaska Supreme Court.

In the third quarter, the State of Alaska was granted intervenor status along with Donlin and Calista with respect to the federal litigation challenging the Donlin joint record of decision, including the 404 permit issued by the U.S. Army Corps and ROW lease for the portions of the pipeline on federal lands issued by the Bureau of Land Management of the U.S. Department of Interior. The U.S. Department of Justice (DOJ) is currently compiling the administrative record for the court and the briefing process is expected to be scheduled in 2024. The DOJ is defending the issuance of the permits by those federal agencies.

Despite multiple challenges, all appeals against Donlin permits have been unsuccessful to date, underscoring the company's continuing confidence in the process. The company recognizes the importance of preparedness and organization in these matters. With the unwavering support of Donlin and its owners, the company will continue to back the agencies in defending their thorough and diligent permitting process.

A strong treasury

With $130-million in cash and term deposits as of Aug. 31, 2023, including the receipt of a $25-million note payment from Newmont in July, 2023, Novagold is confident in its financial ability to cover projected expenses for its contribution to the Donlin gold project through an updated feasibility study. Over the past decade, Novagold's leadership team has managed the project with characteristic diligence and a strong focus on responsible stewardship of capital, while fulfilling commitments made to shareholders since taking over the company in 2012. Led by an experienced management team, the company has prioritized risk reduction and value enhancement, notably avoiding the need for further equity issuance for more than 10 years in order to execute on the company's strategy.

These considerable achievements are the product of an incredible amount of work, only made possible by the dedication of the company's entire team: from the programs at the Donlin gold site to the permitting efforts with the state and federal agencies, the studies and workshops conducted with third parties, the community outreach spanning a region that covers tens of thousands of square miles, to the environmental, educational and social initiatives which the company holds so dear. The company is deeply thankful to all of its colleagues and partners at Donlin, Calista, TKC and Novagold for their constant collaboration, and indeed to its esteemed board members for their determination and guidance.

In the third quarter of 2023, net loss decreased by $5,049 from 2022, primarily due to lower field expenses at Donlin compared with the same period in 2022, and increased interest income on cash and term deposits, partially offset by an increase in interest expense on the promissory note, as well as higher corporate travel and legal expenses. Donlin expenses were lower in the third quarter of 2023, compared with costs associated with the large exploration drilling program that took place in the third quarter of 2022, because expenses for the fieldwork and geotechnical drilling for the Alaska dam safety certificates applications and hydrological drilling to support mine planning and design that were completed in July were lower.

In the first nine months of 2023, net loss decreased by $4,706 from 2022, primarily due to lower field expenses at Donlin, increased interest income on cash and term deposits, and other income related to the 2021 sale of the company's interest in the San Roque mineral property, partially offset by an increase in interest expense on the promissory note and higher corporate travel and legal expenses. Donlin expenses were lower in 2023, compared with costs associated with the large exploration drilling program that took place in 2022, because expenses for the fieldwork and geotechnical drilling for the Alaska dam safety certificates applications and hydrological drilling to support mine planning and design that were completed in July were lower.

Liquidity and capital resources

In the third quarter of 2023, cash and cash equivalents decreased by $2,875, mainly to finance the company's share of Donlin and for corporate administrative expenses. The decrease in cash used in operating activities in the third quarter of 2023 compared with 2022 was primarily due to interest proceeds received on cash and term deposits. The decrease in cash used in investing activities was primarily due to lower Donlin financing requirements. The Newmont note payment of $25,000 was received in July, 2023, and $24,000 of that payment was invested in term deposits.

In the first nine months of 2023, cash and cash equivalents decreased by $19,803, mainly to finance the company's share of Donlin and for corporate administrative expenses, offset by the note proceeds received from Newmont. The decrease in cash used in operating activities in the first nine months of 2023 compared with 2022 was primarily due to increased interest proceeds received on cash and term deposits in 2023, the timing of corporate liability insurance payments, and withholding tax paid on share-based compensation in 2022 (no PSUs (performance share units) vested in 2023). The decrease in cash used in investing activities was primarily due to the note proceeds received from Newmont, lower Donlin financing requirements, partially offset by net proceeds from term deposits in 2022.

2023 outlook

The company's anticipated expenditures in fiscal year 2023 are approximately $32,000, including $18,000 to finance its share of the Donlin gold project, $13,000 for corporate general and administrative costs, and $1,000 for working capital and other items, representing an increase of $1,000 to finance additional mining studies at the Donlin gold project.

Novagold's main objectives include continuing to advance the Donlin gold project toward a construction decision; maintaining support for Donlin among the project's stakeholders; promoting a strong health and safety, sustainability and environmental culture; maintaining a favourable reputation of Novagold; and preserving a healthy balance sheet. The company's operations primarily relate to the delivery of project milestones, including the achievement of various technical, environmental, sustainable development, economic and legal objectives, obtaining necessary permits, completion of an updated feasibility study, preparation of engineering designs, and the financing to finance these objectives.

Conference call and webcast details

Novagold's conference call and webcast to discuss these results will take place on Oct. 4, 2023, at 8 a.m. PT (11 a.m. ET). The webcast and conference call-in details are provided below.

The video webcast and conference call-in details are provided below.

Video webcast:  See the company's website.

North American callers:  1-800-319-4610

International callers:  1-604-638-5340

About Novagold Resources Inc.

Novagold is a well-financed precious metals company focused on the development of its 50-per-cent-owned Donlin gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the measured and indicated mineral resource categories, inclusive of proven and probable mineral reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne, in the measured and indicated resource categories on a 100-per-cent basis) (3), the Donlin gold project is regarded to be one of the largest, highest-grade and most prospective known open-pit gold deposits in the world. According to the 2021 technical report and the S-K 1300 report, once in production, the Donlin gold project is expected to produce an average of more than one million ounces per year over a 27-year mine life on a 100-per-cent basis. The Donlin gold project has substantial exploration potential beyond the designed footprint of the open pit, which currently covers three kilometres of an approximately eight-kilometre-long gold-bearing trend. Current activities at the Donlin gold project are focused on state permitting, engineering studies, community outreach and work force development in preparation for the eventual construction and operation of this project. With a strong balance sheet, Novagold is well positioned to finance its share of permitting and advancement efforts at the Donlin gold project.

(1) Novagold defines a Tier 1 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.

(2) Donlin data as per the report entitled, "NI 43-101 Technical Report on the Donlin gold project, Alaska, USA," with an effective date of June 1, 2021, and the report titled, "S-K 1300 Technical Report Summary on the Donlin Gold Project, Alaska, USA," dated Nov. 30, 2021. Donlin possesses measured resources of approximately eight million tonnes grading 2.52 g/t and indicated resources of approximately 534 million tonnes grading 2.24 g/t, each on a 100-per-cent basis and inclusive of mineral reserves, of which approximately four million tonnes of measured resources and approximately 267 million tonnes of indicated resources, inclusive of reserves, are attributable to Novagold through its 50-per-cent ownership interest in Donlin Gold LLC. Exclusive of mineral reserves, Donlin possesses measured resources of approximately one million tonnes grading 2.23 g/t and indicated resources of approximately 69 million tonnes grading 2.44 g/t, of which approximately 500,000 tonnes of measured resources and approximately 35 million tonnes of indicated resources, exclusive of mineral reserves, are attributable to Novagold. Donlin possesses proven reserves of approximately eight million tones grading 2.32 g/t and probable reserves of approximately 497 million tonnes grading 2.08 g/t, each on a 100-per-cent basis, of which approximately four million tonnes of proven reserves and approximately 249 million tonnes of probable reserves, are attributable to Novagold. Mineral reserves and resources have been estimated in accordance with National Instrument 43-101 and S-K 1300.

(3) Donlin data as per the 2021 technical report and the S-K 1300 report.

We seek Safe Harbor.