Mr. Gregory Lang reports

NOVAGOLD REPORTS FISCAL YEAR 2023 FINANCIAL RESULTS

Novagold Resources Inc. has released its fiscal year 2023 financial results and an update on Donlin gold, its Tier 1 gold development project, which Novagold owns equally with Barrick Gold Corp.

Details of the financial results for the year ended Nov. 30, 2023, are presented in the consolidated financial statements and annual report on Form 10-K filed on Jan. 24, 2024, that are available on the company's website, on SEDAR+ and on EDGAR. All amounts are in U.S. dollars unless otherwise stated.

In 2023, the following milestones were achieved at Novagold and Donlin gold:

• Completed the Donlin goldfield program in July, which encompassed:
  • The completion of comprehensive fieldwork and geotechnical drilling required to complete the Alaska dam safety certification applications;
  • Fieldwork to further characterize groundwater flow at the site, including 1,279 metres of hydrogeologic drilling with instrumentation and pump tests, providing important information for mine planning and design;
  • Lyman family's historic placer site restoration, with pond habitat creation advanced; anticipated aquatic life access and use planned for the 2024 field season;
• Held meetings in Alaska with state officials and the U.S. Army Corps of Engineers -- in partnership with Calista Corp. and the Village of Crooked Creek -- to emphasize the project's comprehensive environmental review and permitting processes, as well as the close collaboration with native Alaskan landowners;
• Further enhanced Novagold's environmental, social and governance disclosure by reporting in alignment with the Carbon Disclosure Project (CDP) and Task Force on Climate-related Financial Disclosures (TCFD) frameworks;
• Approved in December a Donlin gold budget of $28.5-million (100-per-cent basis) for 2024 comprising resource modelling, mine planning work, metallurgical testwork (pilot plant), regional infrastructure support plan, geoscience hydrology and closure planning, advance dam safety certificates, and support litigation activities, as well as government affairs, community engagement and sponsorships at the Donlin Gold LLC board level.

President's message

"Driving the Donlin gold project toward development through unwavering commitment and persistent work

"Novagold's singular focus on advancing its exceptional project up the value chain is first and foremost demonstrated through the company's increased investments in, and expanded partnerships with, communities of the Y-K region. The extensive work completed on the Donlin gold project in 2023 and to date has added considerable value for all stakeholders, including Alaska residents and Novagold shareholders, and contributed significantly to positioning the project for the next stage of development. The safe and successful completion of this latest fieldwork program serves as yet another testament to the exceptional teamwork, dedication, strategic planning, and adherence to health and safety protocols by our employees, contractors and the communities where we operate.

"In February, 2023, the Donlin gold camp reopened with a total work force of 44 direct hire employees, 63 per cent of whom came from the Y-K region. The 2023 program was completed in July and included comprehensive fieldwork and geotechnical drilling required to complete the Alaska dam safety certificate applications. This involved data collection at the locations earmarked for water retention structures, including the proposed tailings storage facility (TSF). The fieldwork included 1,840 metres of geotechnical drilling, 74 test pits, 25 kilometres of seismic survey and TSF test plot liner installation. Fieldwork to further define groundwater at the site included 1,279 metres of hydrogeologic drilling with instrumentation and pump tests, providing important information for mine planning and design.

"At the historic Lyman placer site, restoration work included significant pond habitat creation. Additional work including reconnecting the pond to Crooked Creek to facilitate aquatic life access and use is planned for the 2024 field season.

"Work included advancing the geologic and resource models, trade-off studies, extensive analysis on key project assumptions, inputs, and design components for validation and optimization (mine engineering, metallurgy, hydrology and infrastructure) to inform the next steps in taking the project further up the value chain. Additionally, remaining permits were advanced through the regulatory process (it had continued support of the federal and state agencies in maintaining the existing permits) and through continued engagement, sustaining and expanding project support in the Y-K region.

"The Donlin Gold LLC board and the project's owners are firmly committed to prioritizing engineering excellence, environmental stewardship, a robust safety culture and sustained community engagement in this endeavour.

"Alongside native corporation partners, Calista and The Kuskokwim Corp., upholding Donlin gold's social licence through continuous and meaningful engagement with all stakeholders

"In collaboration with Calista and TKC, Donlin gold actively engages stakeholders and governments in the Y-K region, Alaska, and Washington, D.C. The project's location on private land designated by law for mining under the 1971 Alaska Native Claims Settlement Act is a distinctive feature, setting it apart from other mining assets in Alaska and guiding our advocacy efforts. Donlin gold's enduring partnerships with Calista and TKC are pivotal in facilitating comprehensive outreach throughout the Y-K region. Our commitment to meaningful tribal engagement, reinforced by decades of deep community involvement, is integral to the project's development. These time-tested bonds continue to drive all aspects of our outreach and engagement activities.

"In 2023, Donlin gold reaffirmed this commitment by appointing additional community liaison representatives from the local villages of Nunapitchuk, Tuluksak, Pilot Station and Kwigillingok -- expanding the group's total to eight. It also established three additional shared values statements, for a total of 16, which formalize Donlin gold's continuing engagement with local communities, reinforce existing long-term relationships and address specific community needs. This past year, Donlin gold conducted over 7,000 direct engagements, establishing meaningful interactions and communication channels with key stakeholders. These activities encompassed a diverse range of interactions -- including discussions, consultations and collaborative sessions -- underscoring our commitment to fostering transparent and open dialogue with those individuals and institutions that are essential to Donlin gold's success.

"In collaboration with Calista and the Village of Crooked Creek, Donlin gold continued its pro-active bipartisan outreach in Alaska to emphasize the thoroughness of the project's environmental review and permitting procedures, alongside strong partnerships with native Alaskans who own the land. This comprehensive effort extended to Washington, D.C., where gatherings were held with members of Alaska's Congressional delegation and senior leadership from the U.S. Department of Interior. The continuing bipartisan outreach campaign targeted the Biden administration and the U.S. Congress, with notable participants including U.S. senators Lisa Murkowski and Dan Sullivan, along with U.S. representative Mary Peltola from the Y-K region. Furthermore, Donlin gold received recognition from Rep. Peltola at the Alaska Oil & Gas Association's Annual Conference, acknowledging the company's exceptional project outreach and community engagement efforts. Donlin gold's commitment to fostering positive relationships and actively involving local communities in the Y-K region reflects the importance we place on responsible and sustainable resource development in Alaska.

"Advancing cultural preservation, education, community wellness and environmental initiatives in the Y-K region

"Novagold maintains a long-standing commitment to education, community wellness, cultural preservation and environmental stewardship -- actively reinforcing these goals at the Donlin gold project site and within the communities of the Y-K region. With a focus on supporting initiatives such as fisheries studies, environmental activities, subsistence, cultural preservation and grants, Novagold strongly emphasizes community and social responsibility. Through continuous collaboration with Calista and TKC, alongside other key representatives of local communities, our collective efforts provide critical support to the Y-K region. This continuing commitment ensures the sustainable and profitable development of Donlin gold in the years to come, with a diverse array of projects and activities contributing to these overarching objectives in 2023.

"Donlin gold supported various search and rescue teams throughout the Y-K region, and provided funding to the Bethel Community Services Foundation and Special Olympics Alaska, as well as sponsored and participated in the Alaska Safe Riders initiative, which promotes the safe riding of snow machines, all-terrain vehicles and recreational off-road vehicles. In addition, Novagold, in collaboration with Covenant House Alaska and Bethel Community Services, is developing an action plan to help address chronic and continuing youth food insecurity in the Y-K region. These parties have leased space from Bethel Winter House toward establishing a housing and service hub for young adults aged 18 to 24. Furthermore, Donlin gold partnered with the Bethel Community Services Foundation and the Aruqutet project on a regional program to address food insecurity throughout the Bethel community. Over 550 local households are enrolled in the program to date. Employing local staff and committed volunteers has proved critical to the program's success.

"As an annual sponsor of the rural Alaska community action program, Donlin gold upholds its long-standing support by recruiting and placing local elders in Y-K schools. This program facilitates the transmission of traditional knowledge and values, enriching the educational experience for students across the region. In addition, Donlin gold has strengthened its sponsorship of the First Alaskans Institute, as well as extended support and actively participated in key events such as the Elders & Youth statewide conference and the Alaska Federation of Natives annual convention. These sustained efforts foster cultural enrichment and community engagement.

"In collaboration with the village of Napaimute, Donlin gold actively participated in and provided principal support to 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 wastes from villages across the Y-K region, preventing its adverse impact on landfills and waterways. The program achieved significant new milestones in 2023, including the removal of waste from fish camps in the Middle Kuskokwim area and the initiation of waste backhaul operations along the Yukon River. In total, this year's program collected and disposed of approximately 235,000 pounds of waste. Donlin gold also supported 52 villages as part of the annual Clean-Up Green-Up program, which seeks to collect and dispose of trash from the tundra, roads, public areas and beaches in the Y-K region that accumulate over the winter months.

"Donlin gold has been increasingly focused on collaborating with our Alaska native corporation partners to monitor and assess the conditions and management of salmon fisheries in the Kuskokwim and Yukon River watersheds. In the fourth quarter of 2023, we initiated the identification of specific potential project opportunities aimed at monitoring, evaluating and enhancing the health of salmon populations. In the coming first quarter, Donlin gold will identify key projects to support with work expected to commence in the third quarter of 2024. All such projects will be executed in full collaboration and partnership with the people of the Y-K region. Furthermore, in collaboration with TKC, the Village of Crooked Creek, the Akiak native community and the Napaimute tribe, Donlin gold provided financial support for the construction and maintenance of the ice roads that allow for winter travel between the remote Kuskokwim River communities -- which, in turn, led to increased participation in community events, including cultural activities and sports, but also provided critical access for emergency services, law enforcement and travel. On average, a total of 300 miles of ice road is constructed and maintained annually.

"Education is a cornerstone of Donlin gold's community engagement efforts, characterized by a steadfast commitment to advancing educational opportunities in Alaska. Collaborating closely with Alaska Resource Education, Donlin gold actively supports the mission of educating Alaskan students about the state's natural resources. In addition, the company extends its dedication to education by backing the Alaska School Activities Association -- a statewide non-profit organization that directs, develops and supports high school interscholastic sports, academic and fine arts activities across Alaska. Novagold also contributes to educational advancement by funding an annual scholarship at the University of Alaska. This scholarship is specifically designed to support underrepresented students pursuing majors in mine engineering and geology, thereby contributing to the development of future talent in these essential professional fields.

"Collaborating to maintain existing permits in good standing and secure outstanding state permits

"Navigating the intricate permitting process in the United States and Alaska constitutes a rigorous undertaking, demanding years of dedicated effort to ensure a diligent, thorough, transparent and inclusive approach that engages all stakeholders -- particularly those from the Y-K region. Donlin gold, alongside both its owners and its partners Calista and TKC, possesses a strong command of the project's permitting and regulatory procedures, and works closely with the federal and state agencies to maintain the project's permits in good standing, with a specific focus on advancing the Alaska dam safety certificates.

"Part of the 2023 field program was focused on geotechnical and hydrological drilling to gather supplementary data for the Alaska dam safety certificate application process. The fieldwork concluded in July, and the team is on track to submit the preliminary design packages to the Alaska Department of Natural Resources in the first half of 2024. We anticipate the certificates will be issued in 2026.

"The new air quality permit based on updated air quality modelling and emission control information was issued in July, 2023. The Alaska pollutant discharge elimination system permit, which originally expired in 2023, and the waste management permit, which originally was to expire in January, 2024, are administratively extended pending renewal by the Alaska Department of Environmental Conservation. The reclamation plan approval, which was also to expire in January, 2024, is administratively extended to January, 2025.

"On Aug. 18, 2023, the ADNR commissioner reaffirmed ADEC's issuance of the 401 certification (Alaska water quality certification) -- following an appeal by Earthjustice, representing the Orutsararmiut Native Council (ONC). The suspension of the previously filed Alaska Superior Court case was then lifted, and the Earthjustice and ONC's opening brief was filed on Jan. 5, 2024.

"On Sept. 1, 2023, the Alaska Superior Court affirmed the ADNR's decision on Donlin gold's water rights permits, following unsuccessful appeal to the ADNR commissioner. On Oct. 2, 2023, Earthjustice appealed the Superior Court decision to the Alaska Supreme Court. Earthjustice filed its opening brief with the Supreme Court on Jan. 4, 2023.

"On April 12 and July 3, 2023, the Alaska Superior Court affirmed the ADNR's issuance of the state right-of-way lease in the Earthjustice and Robert Fithian cases, respectively. The decision in the Earthjustice case has been appealed to the Alaska Supreme Court. Earthjustice's opening brief was submitted on Sept. 22, 2023. The State of Alaska, Calista and Donlin gold's reply briefs were submitted on Jan. 3, 2023. Mr. Fithian did not appeal to the Alaska Supreme Court.

"In the federal litigation challenging the Donlin gold joint record of decision, including the 404 permit issued by the Corps and ROW lease for the portions of the pipeline located 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 finalizing compilation of the administrative record for the court. The briefing schedule was agreed upon in the fourth quarter and will extend through the first half of 2024.

"Despite the challenges mentioned above, all appeals against Donlin gold permits have been unsuccessful to date -- thereby reinforcing our confidence in the thorough permitting process. Acknowledging the importance of readiness and organization, along with unwavering support from Donlin gold and its owners, we remain committed to backing all agencies in defending the comprehensive permitting processes. Our approach emphasizes preparedness for potential challenges to federal and state permits, reflecting the normative landscape in the United States. The project's leadership and litigation teams -- which are intimately familiar with the permitting process and procedures -- closely collaborate with Donlin gold and its owners, supported by the unwavering advocacy of Calista and TKC, to provide steadfast support to state and federal government agencies in defending the permitting process.

"Protecting a valuable asset in a rising gold price environment while maintaining a strong treasury to steward the advancement of Donlin gold

"Novagold believes the Donlin gold project represents a premier investment opportunity to leverage a surge in the gold market among gold equities -- hence establishing Novagold as the optimal choice to pursue such a thesis. Situated in Alaska, a secure and proven mining jurisdiction, our project holds unparalleled potential, reflecting our long-standing commitment to guide this remarkable asset through its progression up the value chain in a responsible and prudent manner. With unrivalled attributes, and encompassing industry-leading size, grade and considerable exploration potential, Donlin gold stands as one of the best development assets in the gold industry. Boasting approximately 39 million ounces of gold with a grade of 2.24 grams per tonne in measured and indicated mineral resources (100-per-cent basis), inclusive of proven and probable mineral reserves, and projecting an annual production of 1.1 million ounces over a 27-year period, Donlin gold has the potential to constitute a cost-effective generational gold mine. Furthermore, exploration opportunities extend well beyond the current resource areas, which cover only a fraction of the extensive land package. These factors collectively position Donlin gold as a compelling narrative in gold development, underscored by Novagold's unwavering commitment to responsible mining, trust building and sustained project improvement.

"Novagold's thorough and time-tested strategy has continuously elevated Donlin gold up the value chain, maintaining robust financial health without requiring additional equity issuances since January, 2012. As of Nov. 30, 2023, our treasury stands at $126-million, strengthened by a $25-million note payment from Newmont in July, 2023, and providing ample resources to finance our share of the Donlin gold project over at least the next three years at current spending levels. Over the past decade, our leadership team has demonstrated diligence, responsible stewardship and effective risk reduction -- a commitment that aligns with fulfilling every single promise made to shareholders since 2012.

"2024 activities and next steps for Donlin gold

"At the December, 2023, Donlin Gold LLC board meeting, Novagold proposed proceeding to an updated feasibility study while Barrick proposed continued drilling campaigns. Even though the owners did not agree to either proposal at the December meeting, they found common ground on value-adding activities that advance the project. Thus, while discussions continue regarding next steps, the Donlin Gold LLC board approved a budget of $28.5-million (100-per-cent basis) for 2024, comprising resource modelling, mine planning work, metallurgical testwork (pilot plant), regional infrastructure support planning, geoscience hydrology and closure planning, advancement of the dam safety certificate applications, and continued support of pending litigation, government affairs, community engagement activities and sponsorships. Novagold will continue to employ concerted and inclusive efforts to advance the Donlin gold project for the benefit of all our shareholders and Donlin gold stakeholders.

"Novagold management appointments and promotions

"I would also like to congratulate Richard Williams on his promotion as chief operating officer for Novagold, effective Jan. 1, 2024, and welcome Benjamin Machlis, who recently joined us as Novagold's vice-president and general counsel.

"Mr. Williams has led the engineering and technical program at Novagold for over a decade. His knowledge and commitment to the company have been pivotal in the development and continued success of the Donlin gold project since joining the Novagold team in 2012. Previously, he spent over 30 years with Barrick Gold developing and operating major mines. He has extensive experience in autoclave technology and served as project director of the Pueblo Viejo mine in the Dominican Republic. His seven-year tenure at Pueblo Viejo capped a career where he progressively held top operating roles, which included the design, construction and operation of mineral processing facilities of major mines such as Goldstrike in Nevada and Mercur in Utah.

"Mr. Machlis is an experienced natural resource and environmental attorney. He spent the last seven years as a partner at Dorsey & Whitney, where he chaired its regulatory affairs practice group, which houses its natural resources, energy, environmental, cybersecurity, workplace safety and telecom attorneys, and represented mining, renewable development and other industrial companies on permitting, project development, operational compliance, closure and remediation issues. Prior to Dorsey & Whitney, he was with the law firm Holland & Hart and served as an environmental policy adviser at the Utah Governor's office. He received his undergraduate and JD degrees from the University of Utah.

"With Novagold consistently delivering on its commitments, Donlin gold is poised for gold development success. Mitigating risks, embracing responsible mining and fostering trust, we have unlocked the value of our high-quality asset while safeguarding a robust treasury. These accomplishments are the result of sustained and dedicated teamwork across various fronts -- from Donlin gold site programs and permitting efforts to community outreach and environmental initiatives.

"Heartfelt gratitude and appreciation go to our colleagues, partners, board members and indeed our shareholders for their unwavering support. As we begin 2024, we remain steadfastly committed to delivering on promises made and ever more excited to achieve further milestones -- together.

"Sincerely,

"Gregory A. Lang,

"President and chief executive officer"

The net loss decreased by $6,540 from 2022, primarily due to lower field expenses at Donlin gold, increased interest income 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 general and administrative expenses.

Donlin gold expenses were lower in 2023 with fieldwork and geotechnical drilling completed in July for the Alaska dam safety certificate applications and hydrological drilling to support mine planning and design, compared with the large exploration drilling program in 2022. General and administrative costs increased due to higher corporate travel costs, legal expenses and performance share units granted to the company's executive officers on Dec. 15, 2022, as a retention incentive that will vest if their employment continues through June 30, 2024. Higher interest rates in 2023 impacted interest income on cash and term deposits and interest expense on the promissory note. The average effective interest rate on the promissory note increased from 6.8 per cent in 2022 to 10.3 per cent in 2023.

During the fourth quarter of 2023, the company incurred a net loss of $10,421 compared with a net loss of $12,255 in 2022. The decrease in net loss primarily resulted from reduced activity at Donlin gold and higher interest income, partially offset by increased interest on the promissory note. The average effective interest rate on the promissory note increased from 6.8 per cent in 2022 to 10.3 per cent in 2023.

Liquidity and capital resources

In 2023, cash and cash equivalents decreased by $18,133, mainly to finance its share of Donlin gold, corporate administrative expenses and net purchases of term deposits, partially offset by the note proceeds received from Newmont.

Net spending on operating activities decreased by $4,585, primarily due to increased interest proceeds received on cash and term deposits, and the timing of corporate liability insurance payments in the prior year, partially offset by higher corporate travel costs, legal expenses and remediation expenditures. Cash used in investing activities decreased by $2,034, primarily due to Newmont note proceeds and lower Donlin gold financing requirements, partially offset by net purchases of term deposits in 2023 compared with net proceeds from term deposits in 2022. In financing activities, the PSU awards that matured in 2023 did not meet the performance criteria; therefore, no common shares were issued, and no withholding tax was paid.

2024 outlook

Its anticipated expenditures in fiscal year 2024 are approximately $31,200, including $14,250 to finance the Donlin gold project, and $16,950 for corporate general and administrative costs.

Novagold's main objectives include continuing to advance the Donlin gold project toward a construction decision; maintaining support for Donlin gold among the project's stakeholders; promoting a strong safety, sustainability and environmental culture; upholding a favourable reputation of Novagold; and preserving a healthy balance sheet. Our 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 feasibility studies, preparation of engineering designs, and the financing for these objectives.

Conference call and webcast details

Novagold's conference call and webcast to discuss these results will take place on Jan. 25, 2024, 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:  at the Novagold website

North American callers:  1-800-319-4610

International callers:  1-604-638-5340

About Novagold Resources Inc.

Novagold is a well-financed precious metal 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), 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.

We seek Safe Harbor.