Slide 1: 2023 Year-End Financial Results & Donlin Gold Update
2023 Year-End Financial Results & Donlin Gold Update January 25, 2024 TSX, NYSE American: NG | novagold.com
Slide 2: 2023 Year-End webcast & conference call agenda
Introduction 2023 Year-End webcast Mélanie Hennessey Vice President, Corporate Communications 2023 Year-End Update & conference call Greg Lang President & Chief Executive Officer agenda 2023 Year-End Financials David Ottewell Vice President & Chief Financial Officer Gold Market Commentary & Closing
Slide 3: Cautionary Statements Regarding Forward-Looking Statements
CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS Forward-looking statements are based on a number of material assumptions, including but not limited to the following, which could prove to be This presentation includescertain “forward-looking information” and “forward-looking statements” (c
Slide 4: Investment Thesis
Investment Thesis Greg Lang President & Chief Executive Officer 4 NOVAGOLD | 2023 Year-End Financial Results
Slide 5: Donlin Gold: A Tier-One Asset in a World-Leading Jurisdiction
DONLIN GOLD: A TIER-ONE ASSET IN A WORLD-LEADING JURISDICTION Generational asset with strong, investor-friendly attributes SIZE GRADE EXPLORATION POTENTIAL 39Moz gold contained 2.24 g/t Au², more Endowment is contained within three in measured and than double the kilometers of an eight- kilometer- i
Slide 6: Advancing the Donlin Gold Project Up the Value Chain
NOVAGOLD ADVANCING THE DONLIN GOLD PROJECT UP THE VALUE CHAIN Unlocking value from a pure play on what we and many of our largest shareholders regard as the most exciting development project in the gold industry globally Successful strategic repositioning as a pure gold play Advancement of Donlin Go
Slide 7: Alaska: World-Leading Mining Jurisdiction
DONLIN GOLD ALASKA: WORLD-LEADING MINING JURISDICTION 2nd largest gold-producing state in the U.S.¹ Well-defined state permitting process $4.5B value of non-fuel mineral (Donlin Gold community employees not included) production in Alaska (6th highest in U.S.)² $2.6B allotted to Alaska from U
Slide 8: ESG Performance
NOVAGOLD ESG PERFORMANCE (Fiscal Year 2022) Committed to Responsible and Economic Development in Alaska’s Y-K Region (Scope 1) 8 NOVAGOLD | 2023 Year-End Financial Results
Slide 9: Positioned to Become a Million-Ounce Gold Producer
DONLIN GOLD POSITIONED TO BECOME A MILLION-OUNCE GOLD PRODUCER 1 Anticipated to be one of the highest annual gold producers in the Americas Projected annual gold production (millions of ounces) 1.20 1.13 1.03 Donlin Gold’s 1.00 27-year mine life 0.80 1.13 Moz/yr1 0.60 0.40 0.42 0.40 0.34 0.36 0.38 0
Slide 10: Double the Global Average Gold Grade
DONLIN GOLD DOUBLE THE GLOBAL AVERAGE GOLD GRADE 1 Among the world’s highest-grade known open-pit gold deposits 2.24 g/t While global average gold grades are declining, Donlin Gold’s grade provides 1.04 resilience through commodity price cycles g/t Global average grade1 Donlin Gold average grade2 Se
Slide 11: The Next Big Gold Discovery Could Be at Donlin Gold
DONLIN GOLD THE NEXT BIG GOLD DISCOVERY COULD BE AT DONLIN GOLD Significant potential to expand current resource at depth and along strike 8km Far Side From 2006 to 2011, M&I Queen resources increased 135% (16.6Moz1 to Snow Quartz Ophir ACMA Pit Dome 39.0Moz2 on 100% basis) Lewis Pit Gold resour
Slide 12: Alaska Native Corporation Partnerships Elevate the Project
DONLIN GOLD ALASKA NATIVE CORPORATION PARTNERSHIPS ELEVATE THE PROJECT Donlin Gold is situated on private land designated by law for mining activities five decades ago and holds life-of- mine agreements with Alaska Native Corporations Calista and TKC Calista Corporation Resource development “ The Do
Slide 13: 2023 Year-End Highlights
2023 Year-End Highlights 13 NOVAGOLD | 2023 Year-End Financial Results
Slide 14: Year-End Highlights
DONLIN GOLD YEAR-END HIGHLIGHTS The 2023 field program successfully completed in July with a total workforce of 44 direct hire employees with 63% from the Y-K region Donlin Gold 2023 field program Completion of comprehensive fieldwork and geotechnical drilling required to complete the Alaska Dam S
Slide 15: Year End Highlights (Continued)
DONLIN GOLD YEAR END HIGHLIGHTS (CONTINUED) Considerable outreach and engagement activities throughout the Y-K region Community Investments & Engagement Provided funding and participated in various health and safety initiatives – Bethel Community Services Foundation – Special Olympics Alaska – Ala
Slide 16: Permitting Update
DONLIN GOLD PERMITTING UPDATE Key federal permits for the project have been received and state permitting is well-advanced Federal Permitting Completed State Permitting Completed ✓ Final Environmental Impact Statement (EIS)* ✓ Air Quality ✓ Alaska Pollutant Discharge Elimination System ✓ Joint Recor
Slide 17: Year-End Activities
DONLIN GOLD YEAR-END ACTIVITIES Providing support in permitting process and efficient issuance of remaining state-level permits and defending federal and state permits in litigation State permitting and litigation activities Air quality permit was reissued The second of the two Right-of-Way perm
Slide 18: 2023 Year-End Financial Results
2023 Year-End Financial Results David Ottewell Vice President & Chief Financial Officer 18 NOVAGOLD | 2023 Year-End Financial Results
Slide 19: 2023 Operating Performance
NOVAGOLD 2023 OPERATING PERFORMANCE Three months ended November 30, Year ended November 30, (US$ millions) 2023 2022 2023 2022 General and administrative $5.4 $4.7 $21.8 $20.1 Donlin Gold 2.5 6.3 18.5 28.2 Operating loss 7.9 11.0 40.3 48.3 Interest expense on promissory note 3.5 2.6 13.1 8.0 Interes
Slide 20: 2023 Cash Flow
NOVAGOLD 2023 CASH FLOW Three months ended November 30, Year ended November 30, (US$ millions) 2023 2022 2023 2022 General and administrative1 $(3.2) $(2.8) $(13.1) $(11.9) Donlin Gold (2.6) (3.5) (17.8) (28.4) Working capital, interest and other 1.4 0.3 5.7 (0.8) Withholding tax on share-based comp
Slide 21: Maintaining a Strong Treasury
NOVAGOLD MAINTAINING A STRONG TREASURY $126M cash and term deposits balance on November 30, 2023 Treasury $126M $0 $50 $100 $150 $200 US$ (millions) 2024 Forecast Spending Donlin Gold project expenditures $14.25M Corporate G&A $16.95M Total $31.2M See endnotes for this slide in Appendix 21 NOVAGOLD
Slide 22: Upcoming Catalysts
NOVAGOLD UPCOMING CATALYSTS Taking the Donlin Gold project up the value chain 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 proposa
Slide 23: Quote from Dr. Thomas Kaplan
“As an investor, I find that the ability to make money is very much a function of developing a thesis, scrubbing that thesis to the point where one enjoys massive conviction, finding the right assets that will allow one to benefit from the underlying theme, increasingly so in a jurisdiction that sec
Slide 24: Supply Decreases as Demand Pressure Increases
NOVAGOLD SUPPLY DECREASES AS DEMAND PRESSURE INCREASES Demand drivers Asset Central bank diversification purchasing Historic Inflation/deflation safe-haven appeal protection Currency Emerging market debasement demand Supply pressures Rising Dwindling production costs discovery rates Inadequate Juris
Slide 25: Gold Equities Have Underperformed the Price of Gold
NOVAGOLD Gold Equities Have Underperformed the Price of Gold Over time, gold equities have underperformed both their implied operating leverage provided by gold as well as the gold price itself. This performance has broadly been a function of poor capital allocation, shareholder dilution and cost in
Slide 26: Central Banks Continue Robust Acquisition of Gold
NOVAGOLD Central Banks Continue Robust Acquisition of Gold Central Bank Net Quarterly Gold Purchases (2013-2023) Escalating geopolitical tensions further support gold as an ideal substitute for sovereign debt, positioning gold to reclaim a crucial role in enhancing the credibility of Central Banks
Slide 27: Declining reserves and lower grades
NOVAGOLD Declining reserves and lower grades • Top 10 mining companies' reserves dropped by 33% in the past 15 years, with no significant new precious metals' projects turning into producing mines in quite a while • The world’s top 10 miners are experiencing a notable decline in asset quality, with
Slide 28: Gold – A Protective Hedge Against Recessions
NOVAGOLD Gold – A Protective Hedge Against Recessions • Despite a soft-landing narrative, multiple macro factors, including an inverted yield curve, indicate an impending recession, challenging the logic of inflated financial asset valuations, and putting the equity market at risk of a significant s
Slide 29: Extraordinary Leverage to Gold in a Place Where You Can Keep It
DONLIN GOLD Gold will emerge as the asset class with the most EXTRAORDINARY LEVERAGE TO GOLD potential this decade, no matter the financial or IN A PLACE WHERE YOU CAN KEEP IT geopolitical backdrop. – “The Upcoming Gold Bull Market: How High Will Gold Prices Go?” Goehring & Rozencwajg (August 31, 20
Slide 30: Strong Institutional Shareholder and Management Support
NOVAGOLD STRONG INSTITUTIONAL SHAREHOLDER AND MANAGEMENT SUPPORT The10 largest shareholders represent almost 70% of shares issued and outstanding Named Executive Officers’ ownership has increased to ~2.8 million shares since joining the company 69.5% 31.1% top 10 shareholders 25.4% Electrum Strategi
Slide 31: Appendix
Appendix 31 NOVAGOLD | 2023 Year-End Financial Results
Slide 32: Mineral Reserves
MINERAL RESERVES Attributable to Donlin Gold Tonnage Grade Metal content NOVAGOLD *Mineral reserves and mineral resources GOLD kt g/t Au koz Au koz Au are reported on a 100% basis and on a 50% basis. Reserves1 NOVAGOLD and Barrick each own 50% Proven 7,683 2.32 573 287 of the Donlin Gold project. Pr
Slide 33: Mineral Resources
MINERAL RESOURCES Attributable to *Mineral reserves and mineral resources are Donlin Gold Tonnage Grade Metal content NOVAGOLD reported on a 100% basis and on a 50% basis. GOLD kt g/t Au koz Au koz Au NOVAGOLD and Barrick each own 50% of the Donlin Gold project. Resources2, exclusive of Reserves Don
Slide 34: Donlin Gold S-K 1300 Technical Report Summary
DONLIN GOLD S-K 1300 Technical Report Summary – Donlin Gold project, Alaska, USA dated November 30, 2021 (100% basis) Key financial economic & production data LOM operating costs Initial capital costs $7.4B Area $/t Processed $/t Mined $/oz Au Sustaining capital costs over LOM (27 years) $1.7B Mine
Slide 35: Management
MANAGEMENT Gregory Lang Former President of Barrick Gold North America Mélanie Hennessey 20 years of experience in financial markets, President 40+ years of experience building & operating VP, Corporate corporate governance, indigenous relations, and CEO major open-pit and underground mines Co
Slide 36: Board of Directors
BOARD OF DIRECTORS Dr. Thomas Chairman and CEO of The Electrum Group LLC, a privately President of Azteca Consulting LLC, and director of Glencore plc, Trilogy held natural resources investment management company Kalidas Metals and Dundee Precious Metals Kaplan Former CEO of China Moly Corp and
Slide 37: Endnotes
ENDNOTES SLIDE 5– Donlin Gold: A tier-one asset in a world-leading jurisdiction SLIDE 11- The next big gold discovery could be at Donlin Gold 1. Represents 100% of measured and indicated resources, inclusive of mineral reserves, of which 50% is 1. Represents measured and indicated mineral resources
Slide 38: Endnotes
ENDNOTES SLIDE 28 – Gold – a protective hedge against recessions 2. Except as noted, Mineral Resources are inclusive of Mineral Reserves. Mineral Resources that are not Mineral 1. Per the World Gold Council article titled “Gold Outlook 2024” dated December 7, 2023 - Reserves do not have demonstrated
Slide 39: NOVAGOLD Resources Inc. contact details
NOVAGOLD RESOURCES INC. Mélanie Hennessey Suite 1860 – 400 Burrard Street VP, Corporate Communications Vancouver BC Canada V6C melanie.hennessey@novagold.com 3A6 T: 604 669 6227 TF: 1 866 669 6227 Frank Gagnon F: 604 669 6272 Manager, Investor Relations E: info@novagold.com frank.gagnon@novagold.com