NovaGold 3Q16 Earnings Call Notes

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NovaGold Resources’ (NG) CEO Greg Lang on Q3 2016 Results

Just a matter of time before we secure necessary permit

“There is a still a lot of work ahead prior to making a construction decision. But we can all see that it is just a matter of time before we can expect to have secured the necessary permit for Donlin Gold. This is a major achievement and an important step of project derisking as we work to unlock Donlin Gold’s ability to become a significant cash flow generator for many decades to come.”

We are getting close to the finish line

“We are getting close to the finish line.”

Few new issues ahead of final EIS

“Carefully reviewing the draft EIS comments is an important part of preparing a final EIS, and ensures that all technical issues are thoroughly considered and addressed in the analysis. Overall, few new issues were raised during the public comment period and most matters had already been addressed in the draft EIS. The Corps is working to release the target date for the final EIS, which will bring forward a record of decision on Donlin Gold’s Clean Water Act Section 404 (wetland) permit.

40m ounces of gold reserves

“‘ll briefly recap the attributes that makes the Donlin Gold project unique. We’ve got reserve and resources of almost 40 million ounces of gold and addition of 6 million ounces inferred material. Turning to Slide 12, when you compare Donlin to the other development stage projects throughout the industry, it is far and away the largest. When you look at the production profile of these emerging producers, Donlin Gold is better than twice the closest competitor. It will produce 1.5 million ounces a year at first five years followed by a life mine average of 1 million ounces a year.”

Final EIS should be in the next 10-16 months

“John, the corps of engineers is updating the work plan to get to the final EIS. Could be 10 months, could be 16 somewhere in that range. At this stage, we are not overly concerned about a month or two either way but will certainly update everyone when the corps publishes their final schedule.”

Construction decision will be made next year

“right now we are working with our partner on developing the plan of action for next year. That will really drive the schedule to a construction decision. And I’d expect we will provide you detail on that with our yearend news release.”