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f While the quality of the gold grade has reduced by half in the last decade – and is continuing to fall – the average grade at Donlin Gold is 2.2 grams per tonne, and could commence production even higher than that.
f At a time when the gold industry can’t sustain current production levels – let alone replace its depleting reserves
or meet the growing global demand – when in production according to the feasibility study, it would be the largest, and one of the lowest-cost, pure-gold-producing mines in the world.
f Donlin Gold is located in the right part of the world. The State of Alaska, already the country’s second largest gold producer, is a state that welcomes responsible resource development within the rare mining jurisdiction that scrupulously adheres to the
rule of law – a decisive investment criterion when seen against the backdrop of jurisdictional risk which has so altered how the market views investment opportunities on the frontier.
f Company-making mines have a long life. Once built, the mine is expected to operate for 27 years, and, considering its superb exploration potential, likely for many years beyond that.
f The project’s stakeholders – from Native Corporations to project partners Barrick Gold and NOVAGOLD to state and federal agencies – are perfectly aligned to ensure that Donlin Gold is built to the highest standard of safety and environmental stewardship.
f At a time when it takes, on average, more than 20 years to
go from discovery to production, our project is in the advanced stages of the permitting process, which will allow the partners to be in the ready mode for development once macro-economic conditions are optimal for its stakeholders.
f Project optimization e orts are well underway to ensure that all stakeholders’ resources are e ciently and e ectively utilized when the project is constructed.
f The project is managed by a highly experienced team of professionals led by Greg Lang, one of the best mine builders and operators in the world.
While the above attributes aptly describe Donlin Gold, our  agship asset, a very similar case can be made for Galore Creek, our major copper-gold-silver project, which NOVAGOLD owns 50/50 with Teck Resources, one of the most respected diversi ed mining companies in the world. Once this valuable asset becomes a mine, it is expected to constitute the largest and most modern copper mine in Canada. And, just like Donlin Gold, this project has been
steadily advancing up the value chain and stands in an exceptional position to bene t from the recent escalation in the price of copper, as battery technology gains more and more ground in electric car applications worldwide. While we would very much welcome staying involved with this incredible venture, a company-maker in its own right, we recognize that an entity of the size of NOVAGOLD has to allocate its resources sparingly to make sure that shareholder value
is not compromised. Hence, we will continue to work on prudently monetizing our interest in Galore Creek and apply the proceeds toward advancement of Donlin Gold. This represents the most shareholder-friendly strategy we believe we can pursue.
2018 should be a momentous year for NOVAGOLD. We are well within a year of securing necessary permits for Donlin Gold, one of
the most signi cant gold projects of our time. In addition, our joint optimization e orts with Barrick are likely to yield enhanced value possibilities that should streamline project parameters and potentially improve its economics. That means that any positive development in the macro-economic environment for gold could produce what we call a perfect storm for all of our stakeholders. I happen to be more bullish about that occurring than ever before.
As chairman and largest shareholder of NOVAGOLD, I am extremely proud of this company’s accomplishments. For me, it’s been a remarkable 10-year journey of value-building. As we approach our important milestones, it is exciting to realize that we have the opportunity to unlock tremendous value for all of our stakeholders. On a personal level, I look forward to that because I am convinced that the rewards I received from my past investments in silver, energy, and platinum were in many ways a rehearsal for the main event:
Donlin Gold.
In conclusion, on behalf of the board of directors, I would like
to extend our sincere thanks to all of our stakeholders, including the many  ne  nancial institutions that have become shareholders of this great company. In addition, I wish to convey our profound appreciation to our partners, Barrick and Teck, as well as the Native Corporations and First Nations of the jurisdictions where we have been operating for many years. I would also like to give a well-deserved tribute to the representatives of all various levels of government for their e orts to ensure that we do things right. Finally, I wish to express my heartfelt gratitude to the extended family of NOVAGOLD employees, as well
as Donlin Gold and Galore Creek employees, for their hard work and commitment to excellence in everything we do. I feel truly blessed to be in their midst.
Dr. Thomas Kaplan
chairman, board of directors February 12, 2018

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