Mr. Gregory Lang reports

NOVAGOLD REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

Novagold Resources Inc. has released its first quarter 2024 financial results and an update on its Tier 1 (1) gold development project, Donlin gold, which Novagold owns equally with Barrick Gold Corp.

Details of the financial results for the quarter ended Feb. 29, 2024, are presented in the consolidated financial statements and quarterly report filed on Form 10-Q on April 3, 2024, that is available on the company's website, on SEDAR+ and on EDGAR. All amounts are in U.S. dollars unless otherwise stated.

In the first quarter of 2024, the following milestones were achieved:

• The continuing activities at Donlin gold included:
  • Completion of the scope of work for resource modelling by a third party consultant for an updated resource model;
  • Advancement of metallurgical testwork with a pilot plant in Ontario, Canada, to confirm proposed optimizations to the flow sheet;
  • Continued planning for regional infrastructure support to narrow the scope of work and identify the best path forward;
  • Incorporation of recent field data in geoscience hydrology to update the groundwater model and surface water model;
• In partnership with Calista Corp. and The Kuskokwim Corp., Donlin gold reached significant milestones in education, health and safety, cultural preservation, and environmental initiatives:
  • Finalization of another shared values statement in the Yukon-Kuskokwim region near the project, bringing the total count to 16;
  • Holding the first informational meeting for the subsistence communications advisory committee in Anchorage;
  • Expanding efforts to identify specific project opportunities aimed at monitoring, evaluating and enhancing the health of salmon populations in the Y-K region;
  • Sponsorship of, and active participation in, key winter events: Donlin gold's Pete Kaiser won the 2024 K300 sled dog race in January and Kristina Woolston competed in the Iron Dog in February, the world's longest and toughest snowmobile race that covers 2,500 miles of Alaskan backcountry;
  • Support to various search and rescue teams, including the Chevak and Kipnuk traditional councils.
• As a federally permitted project on private Alaska Native Corp. land designated by law for mining, with key state permits secured, Donlin gold's activities centre on maintaining existing permits and advancing outstanding requirements, including:
  • Continuing work to advance the Alaska dam safety certification preliminary design packages, which are expected to be submitted to the Alaska Department of Natural Resources (ADNR) later this year after review by the independent technical review board;
  • Continuing to support federal and state agencies to uphold the comprehensive Donlin gold permits under appeal.

President's message

Dedicated efforts to fund and advance Donlin gold's project development work

During the first quarter of 2024, with the support from the owners and the Donlin Gold LLC board, numerous important activities were conducted. These included, among others, completing the scope of work for resource modelling by a third party consultant to update the resource model; advancing the metallurgical testwork with a pilot plant in Ontario, Canada, to confirm proposed optimizations to the flow sheet, which are expected to conclude later in the year; continuing to plan the regional infrastructure support to streamline the scope of work and identify the optimal path forward; and integrating recent field data in geoscience hydrology to update the groundwater and surface water models, alongside continuous data collection to update source characteristics for closure planning. In addition, an extensive amount of outreach efforts took place in Alaska, in the Y-K region, and in Washington, D.C., to support community engagement and permitting efforts that help reinforce social licence. The diligent and highly effective work by the Donlin gold team, its partners and broader stakeholders is greatly appreciated.

Novagold remains committed to employing a concerted and inclusive approach to advancing the Donlin gold project, consistent with its pledges to -- and for the benefit of -- all shareholders and stakeholders, and especially to fulfilling the strategy that has been pledged time and again by Novagold, namely, to commence a full bankable feasibility study to optimally position the project, setting up a potential positive construction decision when the time is right.

Nurturing partnerships to reinforce Donlin gold's social licence -- engaging local communities, governments and native corporations

Its dedication to the company's partnerships with Calista and TKC throughout Donlin gold's project development and permitting processes has been strengthened by decades of steadfast and reliable engagement with 62 stakeholder communities. The Donlin gold project is located on private land that is designated by law for mining activities, under the Alaska Native Claims Settlement Act of 1971. The native corporations have thus been instrumental in facilitating comprehensive local stakeholder outreach across the Y-K region, as well as government engagement efforts in the broader reaches of Alaska and Washington, D.C.

In the first quarter of 2024, Donlin gold finalized another shared values statement, bringing the total count to 16. This remarkable accomplishment underscores the commitment to continuous engagement with local communities, strengthening existing long-term relationships and addressing specific community needs. Furthermore, in partnership with Calista and TKC, Donlin gold held the first informational meeting for the subsistence communications advisory committee in Anchorage this past quarter. All attendees, who hold varying perspectives on the Donlin gold project, completed an application to join the SCAC. Central to the partnership between Donlin gold, Calista and TKC, the SCAC was established to maintain a well-defined process for communications, dialogue, problem solving and seeking the views of the broader community regarding subsistence matters.

Persistent support for Y-K region's environmental and social initiatives

Novagold prioritizes community and social responsibility, ensuring shared values are upheld at both the Donlin gold project site and within the communities of the Y-K region. Through initiatives focused on education, community wellness, cultural preservation and environmental stewardship, Donlin gold supports fisheries studies, environmental activities, subsistence and cultural preservation initiatives, and various grants. In collaboration with Calista and TKC, a broad range of activities and projects was undertaken in the last quarter.

Since mid-2023, Novagold, Donlin gold and its Alaska Native Corp. partners have closely monitored and assessed the conditions and management of salmon fisheries in the Kuskokwim and Yukon River watersheds. In the first quarter of 2024, efforts with local tribes were focused on identifying specific potential project opportunities to monitor, evaluate and enhance the health of salmon populations. The projects to be supported will be finalized in early 2024, with plans for implementation beginning in the spring/summer of that year. All such initiatives will be pursued in collaboration and partnership with the people of the Y-K region.

Both Novagold and Donlin gold are committed to advancing educational opportunities in Alaska and actively promote learning through collaborative efforts, including by sponsoring the Lower Kuskokwim School District's annual college and career fair. Donlin gold also maintains its dedication to local community sports initiatives and youth groups, as exemplified by its support of events such as the Donlin gold basketball tournament held at Bethel Regional High School in Bethel, Alaska. Donlin gold also provided an annual contribution to the Rural Alaska Honors Institute, a program running through the University of Alaska Fairbanks, which prepares Alaska native high-school students for college life.

Donlin gold proudly continues to fund and support the Kuskokwim 300, a premier mid-distance dog sled race covering a challenging 300-mile trail from Bethel to Aniak and back. Additionally, Donlin gold sponsors Y-K mushers Isaac Underwood, Mike Williams Jr., and 2019 Iditarod champion and Donlin gold employee Pete Kaiser, winner of his eighth title in the Kuskokwim 300 -- who hails from Bethel and is the first Yupik musher ever and the fifth Alaska native to win an Iditarod championship. Mr. Kaiser actively engages with youth in the community, focusing on suicide prevention in alignment with Donlin gold's commitment to strengthening vital community well-being initiatives. Furthermore, last February, Donlin gold was a sponsor of the Iron Dog, the world's longest and toughest snowmobile race that covers 2,500 miles of Alaskan backcountry, in which Ms. Woolston, Donlin gold's external affairs manager, participated. Other cultural preservation initiatives include supporting the native village Kalskag's annual Cauneq Camp, as well as partnering with Carry the Cure to bring suicide prevention programs to Toksook Bay, Nightmute, Tununak and Kasigluk.

Donlin gold extended support to several search and rescue teams in the region, including the Chevak and Kipnuk traditional councils and Bethel search and rescue. Financial assistance was also provided to Camp Fire Alaska, an organization dedicated to offering summer camps and programs to rural communities across Alaska with various activities, including music, sports, science, field trips and ample outdoor recreation opportunities. In February, 2024, Donlin gold continued its sponsorship of local radio stations in Alaska, which play a crucial role in delivering weather updates and safety messages to rural communities, where Internet connectivity is limited. Furthermore, Donlin gold pursued its support of and active involvement in the Alaska Safe Riders initiative, which focuses on promoting safety for snowmachines, all-terrain vehicles and recreational off-road vehicles.

Meaningful collaboration was also fostered with the native village Napaimute, with Donlin gold extending financial assistance to bolster cultural wellness programs and to maintain the Kuskokwim River ice road -- a critical winter infrastructure that provides for the safe transport of residents to sport and cultural events, as well as a crucial conduit of economic activity for the Kuskokwim River communities.

Maintaining permits in good standing

Despite multiple challenges, all appeals against Donlin gold permits have been unsuccessful to date. The company recognizes the importance of preparedness and organization in these matters. Permitting in the United States and Alaska constitutes a significant and rigorous endeavour, where success relies on years of dedicated efforts to ensure a diligent, thorough, transparent and inclusive process engaging all stakeholders, including those from the Y-K region. Donlin gold, along with its owners and partners Calista and TKC, possesses an intimate understanding of the project's permitting and regulatory procedures. It remains committed to supporting federal and state agencies in defending the rigorous permitting process and focused on securing the remaining state-level permits and certificates required for the project.

Donlin gold recognizes that there is a price to be paid for jurisdictional safety. There are an increasing number of places in the world where permitting is becoming less burdened by the rule of law. The flipside of that relative ease is that these locales are also much less reliable politically or socially than Alaska, the second-largest gold producing state in one of the world's safest countries for free enterprise. It treasures the conviction that, if the mine is built, its investors would be able to enjoy the luxury of knowing that Alaska is a place where they can sleep well at night -- confident that when they awaken in the morning, they would still own what they owned the night before. In an ever more complex and fraught world, this sober reasoning makes it well worth the effort.

During the first quarter of 2024, Donlin gold continued to advance the dam safety certification preliminary design packages, which are expected to be submitted to the ADNR in 2024 after review by the independent technical review board.

Earthjustice filed its opening brief with the Alaska Supreme Court on Jan. 4, 2024, appealing the Alaska Superior Court's decision on Donlin gold's water rights permits, following an unsuccessful appeal to the ADNR commissioner. The State of Alaska, Calista and Donlin gold are scheduled to submit their reply briefs with the Supreme Court in April, 2024.

Earthjustice filed its opening brief with the Alaska Superior Court on Jan. 5, 2024, appealing the Alaska Department of Environmental Conservation Commissioner's decision upholding the 401 water quality certification. The State of Alaska and Donlin gold will file their reply briefs to the Alaska Superior Court in the second quarter 2024.

Briefing on Earthjustice's appeal of the Alaska Superior Court affirmation of ADNR's issuance of the state right-of-way lease to the Alaska Supreme Court was completed in February, 2024. Earthjustice has requested oral argument, which has not been scheduled.

In the federal litigation challenging the Donlin gold joint record of decision, including the 404 permit, Earthjustice filed its opening brief on Feb. 16, 2024. The State of Alaska, Calista and Donlin gold are scheduled to file their reply briefing in April, 2024.

Committed to advancing the Donlin gold project for all shareholders and stakeholders

Novagold's unwavering commitment to advancing Donlin gold is reflected in its stance regarding next steps for the project, as well as in the increased investments and expanded partnerships with communities in the Y-K region that deliver significant value for all stakeholders, including Alaska residents and company shareholders.

Donlin gold is indeed the rarest of the rare: an exceptional gold development project, 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. With a grade that is twice the gold industry average, Donlin gold thus has the potential to be a low-cost, open-pit, million-ounce producer for decades. Superimposed onto this is the blue sky of the excellent exploration opportunities that extend well beyond the current resource area -- three kilometres of an eight-kilometre belt that in itself represents but 5 per cent of its total land package.

With the multiple tailwinds of the macro backdrop, as well as the project's sheer size, quality, low-cost structure and simply outstanding exploration upside, Donlin gold aims to solidify the status as to what it believes is the best gold development story in the world today. As a characteristic Tier 1 asset in a world-leading, Tier 1 jurisdiction (2), it believes that Donlin truly epitomizes a great asset that gives one great leverage in a great place that will allow one to keep the fruits of that leverage.

Of signal importance, Novagold has been blessed with long-term and supportive shareholders whose presence and counsel have been invaluable. It is grateful for the decision of its shareholders to invest in the company and for their continued solidarity and engagement. It reaffirms to each and every one of them that, as a steward of the company, it continues to be focused on delivering on its strategy and enhancing the value of the Donlin gold project, increasing both shareholder and stakeholder wealth in a safe and socially responsible manner.

Last but certainly not least, Gregory A. Lang, president and chief executive officer, wishes to express heartfelt gratitude to colleagues and partners at Donlin gold, Calista, TKC and Novagold for their enduring collaboration. Mr. Lang also extends deep appreciation to the esteemed board of directors for their steadfast determination and guidance.

During the first quarter of 2024, net loss decreased by $300,000 from in 2023, primarily due to lower costs at Donlin gold and increased interest income, partially offset by an increase in interest expense on the promissory note and higher general and administrative costs. In the prior first quarter of 2023, Donlin gold costs included geotechnical drilling for the Alaska dam safety certificates. General and administrative costs increased primarily due to corporate staff additions, including the hiring of a new general counsel.

Liquidity and capital resources

In the first quarter of 2024, cash and cash equivalents decreased by $8.2-million, primarily to finance the share of Donlin gold and for corporate administrative expenses. The decrease in cash used in the first quarter of 2024 compared with 2023 was due to lower financing requirements for Donlin gold, partially offset by the timing of term deposit interest income receipt and higher general and administrative costs.

2024 outlook

Its anticipated expenditures in fiscal year 2024 are approximately $31.2-million, including $14.3-million to finance the Donlin gold project, and $16.9-million for corporate general and administrative costs.

Novagold's primary goals in 2024 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; maintaining a favourable reputation of Novagold; and preserving a healthy balance sheet. Its 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 and maintaining those received in good standing, completion of prefeasibility and feasibility studies, 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 April 4, 2024, at 8 a.m. PT (11 a.m. ET). The 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

Novagold's quarterly reporting schedule for the rest of 2024 will be as follows:

• Annual meeting of shareholders: Thursday, May 16, 2024; the meeting will be held at 4 p.m. ET/1 p.m. PT;
• Second quarter 2024: Wednesday, June 26, 2024; financial statements and a Donlin gold project update will be released after market close; a conference call and webcast will be held on Thursday, June 27, 2024, at 11 a.m. ET/8 a.m. PT, to discuss Q2 financial results;
• Third quarter 2024: Wednesday, Oct. 2, 2024; financial statements and a Donlin gold project update will be released after market close; a conference call and webcast will be held on Thursday, Oct. 3, 2024, at 11 a.m. ET/8 a.m. ET, to discuss Q3 financial results.

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) (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 (both as defined below), 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) Novagold defines Tier 2 jurisdictions as those ranked in the top threshold by the Investment Attractiveness Index in the Fraser Institute annual survey of mining companies, 2022.

(3) Donlin gold 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 gold possesses measured resources of approximately eight million tonnes grading 2.52 grams per tonne and indicated resources of approximately 534 Mt grading 2.24 g/t, each on a 100-per-cent basis and inclusive of mineral reserves, of which approximately four Mt of measured resources and approximately 267 Mt 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 gold possesses measured resources of approximately one Mt grading 2.23 g/t and indicated resources of approximately 69 Mt grading 2.44 g/t, of which approximately 500,000 Mt of measured resources and approximately 35 Mt of indicated resources exclusive of mineral reserves are attributable to Novagold. Donlin gold possesses proven reserves of approximately eight Mt grading 2.32 g/t and probable reserves of approximately 497 Mt grading 2.08 g/t, each on a 100-per-cent basis, of which approximately four Mt of proven reserves and approximately 249 Mt 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.

We seek Safe Harbor.