Donlin Creek The Donlin Creek mine, if constructed, is expected to be one of only a handful of gold mines worldwide that is capable of producing more than one million ounces of gold annually, making it a true world-class asset. Under lease from two Native Alaskan Corporations, Calista Corporation (subsurface rights) and The Kuskokwim Corporation (surface rights), the 10,900 hectare (27,000 acre) property is located in the historic Kuskokwim Gold Belt of southwest Alaska. Donlin Creek is operated by the Donlin Creek LLC, a limited-liability company that is jointly owned by NovaGold Resources Alaska, Inc. and Barrick Gold U.S. Inc. on a 50/50 basis. 2009 Milestones Completed feasibility study Converted measured and indicated resources to reserves  Initiate permitting process, continue community engagement 2010 Objectives Continue with community engagement and permitting activities Complete optimization studies to consider alternate power sources, including natural gas Feasibility Study NovaGold released the results of a feasibility study in April 2009, outlining the production and economic estimates for development of the Donlin Creek asset. The Donlin Creek mine has been designed as a year-round, open-pit operation. With the current 29.3 million ounce reserve base, the anticipated mine life is in excess of 20 years with a mill throughput of 53,500 tonnes per day. Gold production for the first 12 full years is expected to average nearly 1.5 million ounces annually. Life of mine production is estimated at 1.3 million ounces of gold annually, for total production of 26.2 million ounces of gold over 20 years. These production levels would make Donlin Creek one of the major gold producing mines in the world. A construction decision will be made following receipt of permits, with production anticipated in 2015 based on the feasibility study timeline. Industry wide capital costs spiked over the last two years and peaked in the latter half of 2008, which is when Donlin Creek LLC was estimating costs for the project. Recognizing the recent decrease in costs for construction inputs such as steel, concrete, diesel and labor, Donlin Creek LLC will continue to review the capital cost estimates for the project. The feasibility study was completed based on a gold price of US$725/oz for reserves and will act as the basis to begin the permitting process. On a 100% basis, the project currently has a reserve base of 29.3 million ounces of gold, with an additional 6 million ounces of measured and indicated resources and 4 million ounces of inferred resources. The resource is grouped into two main areas: ACMA and Lewis. It is anticipated that mining would initially start with the ACMA mineralization which is slightly higher grade at an average of 2.53 g/t, compared with the Lewis deposit average grade of 2.22 g/t. Under the mine plan, large hydraulic shovels would be the primary loading equipment at the site. All shovels would be equipped with GPS technology to allow for real-time ore control. Large-capacity haul trucks would also have GPS to track the transport of ore and waste from the mine face to the designated stockpiles or dumps. Ore would be processed by crushing and milling followed by flotation, pressure oxidation and CIL recovery. Gold recovery is expected to average 90%. The process plant was designed using the most current technology for both the process systems and equipment selection. Particular attention was paid to incorporating state-of-the-art technology for safety and environmental protection. The Donlin Creek mine is expected to draw an average of 127 MW of power, with peak loads of 152 MW. Project power requirements would be sourced from a combination of on-site turbine diesel generators with supplementation from wind co-generation. In an effort to optimize energy costs and reduce environmental impact, an average of 7.5% of annual energy requirements is expected to come from 14 wind turbine generators installed along a ridge 12 kilometers (7.5 miles) from the mine site. Major infrastructure requirements for the mine include a river port, an access road connecting the port to the mine site, an airstrip, the mine and plant site area, the tailings facility, and the gas and wind power-generating facilities. Cargo and supplies would be shipped on ocean barges to Bethel, one of the largest communities in western Alaska and the main port on the Kuskokwim River. Supplies would then be transported via truck along a 123 kilometer (76 mile) access road to the mine site. A fuel pipeline to the mine site has been incorporated into the road alignment. The pipeline would be buried where it passes through areas of permafrost and supported above ground on piled foundations where the ground is less stable. Advancing Toward Production Work at the Donlin Creek project will now focus on obtaining required permits. The Donlin Creek mine is a large-scale project and will require a considerable number of permits and authorizations from both federal and state agencies. Subject to advancement of the permitting process, Donlin Creek LLC will make a construction decision. Much of the groundwork to support a successful permitting effort is done before permit applications are submitted so that potential concerns can be identified and resolved, supporting baseline data can be acquired and regulators and stakeholders can become familiar with the proposed project. The environmental baseline study program at Donlin Creek was initiated in 1996 and has run continuously since then to collect extensive data for water, air, wetlands, wildlife, plants, cultural sites and many other environmental and social parameters in and around the project site. As the project continued to evolve, and based on feedback from regulatory and public consultation, additional studies were initiated to address issues of concern. Over the nearly 13 years since exploration and environmental baseline data collection began, considerable effort has been spent developing support for the project by fostering local relationships, developing a strong local workforce, educating stakeholders about the project and mining in general and providing stakeholders with regular project updates and site visits. This enabled Donlin Creek LLC to better understand and address the perspectives and concerns of the project stakeholders and has resulted in broad public support for the project in the region. This support has taken the form of resolutions from tribal councils and organizations, participation by individuals and tribal groups in various project-related forums, and permissions granted to conduct environmental baseline studies on tribal lands. Donlin Creek LLC will continue to focus on community and stakeholder relations as it moves through the permitting process and works with regulators to complete an Environmental Impact Statement for the project. Exploration Since acquiring an interest in the Donlin Creek project in 2001, exploration activities have more than doubled the size of the project’s resource base. Since the current reserve/resource is contained within only a small portion of the overall property, NovaGold believes there is considerable potential to expand the gold resource at Donlin Creek. Numerous other targets have been identified along the 8-kilometer-long (5 mile) mineralized gold trend, defined by surface sampling and various historical drill holes containing significant gold values. Although not currently included in the project resource inventory, these targets remain highly prospective for future discovery. In 2009, NovaGold was the co-recepient of the Thayer Lindsley award for its part in the development of the Donlin Creek deposit.

29.3M ozs Gold Reserves 6.0M ozs Gold Measured & Indicated 4.0M ozs Gold Inferred 2.3g/t Average Gold Grade NovaGold's share is 50%