NOVAGOLD Reports that the Corps is on Track to Publish the Draft Environmental Impact Statement on Donlin Gold

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NOVAGOLD RESOURCES INC.
NG
(NYSE MKT:
NG
) today released its third quarter financial results and updates for its flagship 50%-owned Donlin Gold project (the "Project") in Alaska and its 50%-owned Galore Creek copper-gold-silver project in British Columbia. Details of the financial results for the three and nine months ended August 31, 2015 are presented in the consolidated financial statements and quarterly report filed on Form 10-Q with the SEC and Canadian securities regulators that is available on the Company's website at www.novagold.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless otherwise stated and all resource and reserve estimates are shown on a 100% project basis. In the third quarter of 2015, NOVAGOLD achieved the following: -- The cooperating agencies completed the review of the Donlin Gold preliminary draft EIS (PDEIS) in July -- The Corps is on track to publish the Donlin Gold draft EIS for public comment -- Donlin Gold hired two additional senior permitting staff members who have taken lead roles on key permitting tasks as major permits also continue to progress -- Site visits were conducted at Galore Creek to continue to optimize integrated mining, waste and water management concepts in the Galore Valley -- Outreach activities continued in Alaska and British Columbia -- Donlin Gold delivered project updates, safety messages and lifejackets in over 50 villages across the Yukon-Kuskokwim (Y-K) region -- Galore Creek sponsored and participated in the Tahltan Literacy Camps, among other activities -- Released third segment of a four-part Alaska video series, People's Connection to the River, which describes the importance of the Kuskokwim River as both a food source and "highway" connecting communities President's Message An incredible amount of work was completed in the third quarter by all of the parties involved on the advancement of the Donlin Gold EIS. The Corps, along with the cooperating agencies, is on track with the previously released schedule and anticipates filing the draft EIS for public comment in the coming months. The constructive exchange, commitment and insight provided throughout this permitting process will further strengthen the quality of the Donlin Gold EIS, which represents a very thorough and thoughtful analysis of the project and its potential impacts. I was equally pleased to hear that the draft EIS Executive Summary will be provided in both English and Yup'ik, facilitating communication with stakeholders in the Y-K region who wish to provide input during the public comment period. This is the most comprehensive permitting process I have undertaken to date in my career. The activities this quarter at Donlin Gold consisted mainly of permitting and outreach efforts. The EIS continued to advance with the cooperating agencies and Donlin Gold submitting the PDEIS comments, as well as Donlin Gold providing all remaining data analysis to the Corps. The agencies' overall comments were constructive and helped strengthen the analysis of the Donlin Gold project's potential impacts on the environment. Once the draft EIS is published, the public comment period, which is anticipated to take approximately five months, will follow. The Corps continues to work toward the publication of the final Donlin Gold EIS in 2017. The Company believes this timeline provides ample opportunity for stakeholders to comment on the draft EIS, while respecting the cultural practices of the Y-K region. Donlin Gold also progressed other major permit applications with the agencies, such as working toward finalizing the air quality permit; completing approaches to water management, treatment, and discharge to facilitate issuance of the water discharge and use permits; obtaining concurrence of the Calista Corporation and The Kuskokwim Corporation, the Alaska Native landowners, on relocating existing trails that cross the project site, advancing the rights-of-way and lease applications for the gas pipeline; and finalizing plans for the Clean Water Act section 404 permitting process. Given the permitting deliverables that accompany a project such as Donlin Gold, two additional permitting experts were added to the team and have taken lead roles on key permitting tasks. Each has extensive experience with the National Environmental Policy Act and mine permitting in Alaska. With a gold industry declining in size and quality, Donlin Gold presents an outstanding asset with an endowment of 39 million ounces of gold resources in the measured and indicated category, at an average grade of 2.2 grams per tonne, and a planned output of approximately 1,100,000 ounces of gold per year over its projected 27-year life. Beyond size, quality and longevity, Donlin Gold's other key attributes that distinguish it are geo-political stability, superb exploration potential, its location in a mining-friendly jurisdiction, and incredible leverage to a higher price of gold. When investor sentiment demands that a new mine be built, Donlin Gold will be the development project of choice. Galore Creek technical studies advanced during the third quarter. Field visits were conducted to continue to optimize integrated mining, waste and water management concepts, as well as provide a basis for a long-term site management plan. Additionally, a request for expressions of interest was issued for a study of the access tunnel into the Galore Valley. We are satisfied to maintain our interest in Galore Creek at minimal spend and until such time that market conditions become more favorable for valuable polymetallic deposits such as this project. Community investment and outreach is very important to us, especially in the regions where our assets are located. It's about more than obtaining a social license to operate; it's about making connections and communicating transparently with all stakeholders. Throughout these busy summer months, the project teams were out in force to maintain a high level of engagement with surrounding communities. Donlin Gold visited with more than 50 villages throughout the Y-K region year-to-date by giving project updates and encouraging participation in and feedback at the upcoming draft EIS public meetings, as well as delivering safety messages and donating lifejackets. Furthermore, Donlin Gold sponsored and participated in 12 fairs, festivals and camps in the region. A Donlin Gold site tour was also completed with the local school district superintendent, local officials and Y-K Watershed Council. Other initiatives in the third quarter included the partnership between Donlin Gold, Calista and Yulista to donate school supplies as part of the 2015 Yulista Backpack Campaign; and encouraging the younger generation to further their education through various training programs and scholarships. Galore Creek sponsored local fundraising events and volunteered at the Tahltan Literacy Camps which took place in three villages in northern British Columbia. Having the foresight to raise capital almost four years ago, at a time when the window of opportunity was limited, was exactly what NOVAGOLD needed ahead of a significant market decline. Our cash and term deposits of approximately $130 million are more than sufficient to take Donlin Gold through the permitting process and could sustain NOVAGOLD if current market conditions persist. The support and contribution of our shareholders, native corporations, joint venture partners and various government agencies is integral to the progress achieved to date on the Donlin Gold and Galore Creek projects. We are also privileged to have a dedicated Board of Directors providing valuable guidance as NOVAGOLD advances two exceptional deposits to the next stage of development. Financial Results in thousands of U.S. dollars, except for per share amounts Three Three Nine Nine months months months months ended ended ended ended August August August August 31, 2015 31, 2014 31, 2015 31, 2014 $ $ $ $ --------------- -------- -------- --------- --------- General and administrative expense (1) 4,062 5,037 15,714 17,379 Share of losses - Donlin Gold 2,803 5,439 8,953 11,426 Share of losses - Galore Creek (346) 270 65 1,520 Exploration and evaluation 52 - 353 - Depreciation 8 9 26 27 ---------------- -------- -------- --------- --------- Total operating expenses 6,579 10,755 25,111 30,352 Loss from operations (6,579) (10,755) (25,111) (30,352) Other income (expense) 288 (1,253) 341 (3,034) Loss for the period (6,301) (12,009) (24,784) (33,381) Loss per share, basic and diluted (0.02) (0.04) (0.08) (0.11) ---------------- -------- -------- --------- --------- At At August November 31, 2015 30, 2014 $ $ --------------- -------- -------- --------- --------- Cash and term deposits 129,987 165,325 Total assets 442,454 524,546 Total liabilities 103,173 119,430
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