- The Corps has completed and published the Donlin Gold final Environmental Impact Statement (EIS)
- A Record of Decision (ROD) is expected to follow in the second half of 2018
VANCOUVER, British Columbia, April 30, 2018 (GLOBE NEWSWIRE) -- NOVAGOLD RESOURCES INC. (TSX:NG) (NYSE
American:NG) is pleased to announce that the U.S. Army Corps of Engineers (the Corps), the lead Federal permitting agency on the
Environmental Impact Statement (EIS) for the Donlin Gold project, has filed the final EIS notice of availability in the Federal
Register and published the document on the Donlin Gold EIS website: www.donlingoldeis.com. Donlin Gold LLC is an Alaska-based
company owned equally by wholly owned subsidiaries of NOVAGOLD RESOURCES INC. (NOVAGOLD), and Barrick Gold U.S. Inc. (Barrick).
“The publication of the final EIS is an important milestone for Donlin Gold and reflects a high degree of professionalism and
teamwork by the entire project team,” said Barrick President Kelvin Dushnisky. “The project partners share common values that
include technical innovation, financial discipline, a deep commitment to safety and environmental stewardship as well as respect
for the traditional way of life in this region. We look forward to ongoing engagement with our community and government partners as
we continue to advance through this important permitting phase.”
“The filing of the Donlin Gold EIS is a major step forward in unlocking the enormous value of our uniquely attractive gold
asset,” said Greg Lang, NOVAGOLD’s President & CEO. “This accomplishment would not have been possible without the excellent
cooperation between a broad community of devoted stakeholders: the Donlin Gold team; NOVAGOLD and our partner Barrick; the Calista
Corporation (Calista) and The Kuskokwim Corporation (TKC); and the dedicated professionals of the Corps as well as the various
state and cooperating agencies. All of those engaged in this endeavor have been steadfast in their commitment to the permitting
activities over the last six years.”
Greg Lang added: “Permitting is a very public and transparent process. We have always welcomed wide-ranging scrutiny of the
project and made multiple modifications in response to extensive public input to ensure that we reach an important balance between
enhancing the project’s technical attributes and the overarching objectives of protecting the traditional way of life of the local
communities, ensuring the safety of our employees, and safeguarding our common environmental inheritance. All of these outcomes are
reflected in an EIS in which all Alaskans can be proud.”
FINAL EIS
The National Environmental Policy Act (NEPA) was enacted in 1969, a milestone in environmental protection. NEPA requires federal
agencies to prepare an EIS when an action, like the construction and operation of the proposed Donlin Gold mine, may affect the
quality of the physical and human environment. The EIS process began when Donlin Gold applied for a federal wetlands permit in July
2012.The Corps worked with cooperating agencies on the EIS including the U.S. Bureau of Land Management, U.S. Fish and Wildlife
Service, U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration, U.S. Environmental Protection
Agency, State of Alaska regulatory agencies and communities of Crooked Creek, Chuathbaluk, Napaimute, Aniak, Akiak, and the Knik
Tribal Council.
The EIS assesses potential impacts on the physical, biological and social environment from all phases of the proposed project,
including construction, mine operation, closure and post-closure and considers a reasonable range of alternatives to the proposed
project consistent with NEPA’s legal mandates. The EIS then analyzes a range of ways in which potential adverse impacts could be
eliminated or lessened, and evaluates monitoring measures that will protect public health, water quality, wildlife and subsistence
resources. NEPA provides opportunities for tribes, local communities, and individuals to participate in the evaluation process by
sharing their comments and concerns and to understand the potential effects of the proposed project. The intent of NEPA is to
advise federal decision makers of the potential impacts of their decisions through a comprehensive, transparent public process that
identifies, considers, and addresses public concerns.
For the past 22 years, Donlin Gold has conducted exploration activities and environmental baseline studies in the Yukon
Kuskokwim (YK) region to determine how to best develop and operate a responsible mining project that is sensitive to the
environment and respectful of the culture of the region’s residents. More importantly, Donlin Gold has been working in partnership
with Calista, owner of the mineral rights, and TKC, owner of the surface rights, who have been involved in every aspect of planning
for the Donlin Gold project, including working with the people of the YK region to ensure the safe and responsible development of
the project. As the owners of the mineral and surface rights at the Donlin Gold project, Calista and TKC have a mandate under the
Alaska Native Claims Settlement Act (ANCSA) to develop the resources for the benefit of their shareholders and all Alaska Native
Corporations.
NEXT STEPS
The next step in the federal permitting process will include the Corps preparing a Record of Decision (ROD), which consists of a
series of findings documenting the process used to determine whether or not to issue a wetlands permit. Prior to a decision to
issue the permit, the Corps must send the draft permit to the State of Alaska, which must certify that the approved activities
comply with State water quality standards. The ROD for a project like Donlin Gold is an extensive and detailed document that takes
into account any final comments received on the EIS and wetlands permit application. In preparing the ROD, the Corps must document
compliance with the Clean Water Act. This detailed evaluation explains why the permitted project represents the Least
Environmentally Damaging Practicable Alternative (LEDPA), compared to other project alternatives. The ROD also documents that the
Corps has completed all required consultations with other federal and state agencies. Finally, the ROD establishes the avoidance,
minimization, mitigation and monitoring requirements applicable to the Donlin Gold project, including the Compensatory Mitigation
Plan proposed by Donlin Gold to mitigate unavoidable impacts to wetlands.
There are many permits needed for the Donlin Gold project and major permits generally include opportunity for public review and
comment prior to issuance. Significant progress is being made on the major state permits, with the issuance of the air quality
permit in June 2017, and the close of the public comment period for the draft Alaska Pollutant Discharge Elimination System
wastewater discharge and integrated waste management permits on February 13, 2018. Other key federal and state permits and
approvals are anticipated to be finalized throughout the balance of 2018.
In addition to permitting, Donlin Gold is advancing project optimization efforts, including incorporating data from the 2017
drill program, and identifying potential innovative ideas for various areas of development to reduce initial capital expenditures.
Once the optimization efforts and financial analyses are completed, the owners will evaluate the path forward for the project.
Donlin Gold is encouraged by the prospect of advancing a mining project of generational and foundational significance for the
YK region in a fiscally-disciplined manner on a timely basis.
ABOUT DONLIN GOLD
Located in Alaska, the second largest gold-producing state in the U.S. offering jurisdictional appeal, Donlin Gold is regarded
to be one of the largest, highest-grade open pit, and among the most prospective known gold deposits in the world with
approximately 39 million ounces of gold in the measured and indicated resource categories, inclusive of proven and probable
reserves1. With a 27-year mine life, Donlin Gold anticipates producing 1.1 million ounces of gold annually as per the
feasibility study, which does not account for the exceptional exploration potential, where the planned pits occupy only three
kilometers of an eight-kilometer mineralized belt, that could further extend the mine life. To find all these attributes in one
project is very rare, especially at a time when no large discoveries have been made in years, average mine grades continue to fall,
and resource nationalism is reaching levels that make mine development unworkable in many resource-based countries in Africa, Asia
and South America.
Scientific and Technical Information
Some scientific and technical information contained herein with respect to the Donlin Gold project is derived from the “Donlin
Creek Gold Project Alaska, USA NI 43-101 Technical Report on Second Updated Feasibility Study” prepared by AMEC with an effective
date of November 18, 2011, as amended January 20, 2012 (the “Second Updated Feasibility Study”). Kirk Hanson, P.E., Technical
Director, Open Pit Mining, North America, (AMEC, Reno), and Gordon Seibel, R.M. SME, Principal Geologist, (AMEC, Reno) are the
Qualified Persons responsible for the preparation of the independent technical report, each of whom are independent “qualified
persons” as defined by NI 43-101.
Clifford Krall, P.E., who is the Mine Engineering Manager for NOVAGOLD and a “qualified person” under
NI 43-101, has approved and verified the scientific and technical information related to the Donlin Gold project contained in this
press release.
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
Allison Pettit
Manager, Investor Relations
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding Forward-Looking Statements
This press release 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, the timing of permitting and potential development of Donlin Gold, statements relating to NOVAGOLD’s future
operating and financial performance, production estimates and 2018 outlook are forward-looking statements. Forward-looking
statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”,
“estimates”, “potential”, “possible”, 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 include statements regarding exploration
potential of Donlin Gold; mine life and production estimates at Donlin Gold; perceived merit of properties; anticipated permitting
timeframes; exploration results and budgets; mineral reserve and resource estimates; work programs; capital expenditures;
timelines; strategic plans; benefits of the project; completion of transactions; market prices for precious and base metals;
or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from
those anticipated in such statements. Important factors that could cause actual results to differ materially from NOVAGOLD’s
expectations include the uncertainties involving the interpretation of the drill results, the need to obtain permits and
governmental approvals; the need for additional financing to explore and develop properties and availability of financing in the
debt and capital markets; uncertainties involved in the interpretation of drilling results and geological tests and the estimation
of reserves and resources; the need for continued cooperation 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; unexpected cost increases, which could include significant increases in estimated capital and operating costs; fluctuations
in metal prices and currency exchange rates; and other risk and uncertainties disclosed in NOVAGOLD’s Annual Report filed on Form
10-K for the year-ended November 30, 2017 with the United States Securities and Exchange Commission, Canadian securities
regulators, and in other NOVAGOLD reports and documents filed with applicable securities regulatory authorities from time to time.
NOVAGOLD’s forward-looking statements reflect the beliefs, opinions and projections 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.
Cautionary Note to United States Investors
This press release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which
differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in
this press release have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for
Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)—CIM Definition Standards on
Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (“CIM Definition Standards”). NI 43-101 is a rule
developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly
from the requirements of the United States Securities and Exchange Commission (SEC), and resource and reserve information contained
herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality
of the foregoing, the term "resource” does not equate to the term "reserves”. Under U.S. standards, mineralization may not be
classified as a "reserve” unless the determination has been made that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made. The SEC's disclosure standards normally do not permit the inclusion of
information concerning "measured mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other
descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves” by U.S. standards in documents
filed with the SEC. Investors are cautioned not to assume that all or any part of “measured” or “indicated resources” will ever be
converted into “reserves”. Investors should also understand that "inferred mineral resources” have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimated "inferred
mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Disclosure of "contained
ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and grade without reference to unit
measures. The requirements of NI 43-101 for identification of "reserves” are also not the same as those of the SEC, and reserves
reported by NOVAGOLD in compliance with NI 43-101 may not qualify as "reserves” under SEC standards. Donlin Gold does not have
known reserves, as defined under SEC Industry Guide 7. Accordingly, information concerning mineral deposits set forth herein
may not be comparable with information made public by companies that report in accordance with U.S. standards.
1 Donlin Gold data as per the second updated feasibility study effective November 18, 2011, as
amended January 20, 2012. Donlin Gold measured resources of 8 Mt grading 2.52 g/t and indicated resources of 534 Mt grading 2.24
g/t, inclusive of proven reserves of 8 Mt grading 2.32 g/t and probable reserves of 497 Mt grading 2.08 g/t.
