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 BALANCE SHEET
forecast full year 2022 spending4
$169.1M cash and term deposit balance on November 30, 2021
$0
US$ (millions)
due from Newmont in July 20235
$200
  $46M
  treasury
$169M
$25M
  BALANCE SHEET
 PERMITTING
 2022 GOALS & BUDGET
          With federal permitting complete, Donlin Gold, together with Calista and TKC, continued to focus its 2021 permitting efforts on advancing the remaining Alaska permits and approvals for the project. A lot of effort went into supporting the Alaska agencies with various permit applications.
In late 2021, the Donlin Gold project was issued a third extension of the air quality permit by the State of Alaska. This is a rare achievement and speaks to the dedicated effort by
all on the permitting team, including our native partners and Alaska agencies. Three permits held by Donlin Gold came under appeal in 2021, specifically the Clean Water Act Section 401 certification, the 12 water rights permits, and the Right-of- Way (ROW) agreement for the buried natural gas pipeline. The permits remain in effect while these appeals are pending.
Unfortunately, litigation led by environmental non- governmental organizations (ENGOs) that oppose resource development of any kind has become a regular part of business in the U.S. and, as such, is something that must be anticipated in the planning process from the start of permitting. We are
not surprised by these legal challenges. As a consequence, we have built and sustained, in partnership with the Alaska Native landowners and our partner Barrick Gold, a comprehensive, science-based record that we believe will withstand any legal challenge to our permits.
The most significant outstanding Alaska permits are the dam safety certifications. Securing these permits requires a multi-year effort to gather geotechnical data and prepare various engineering studies. It is anticipated that the 2022 work plan will incorporate important milestones to advance the work in this area.
NOVAGOLD’s strong balance sheet allows us to continue taking the company up the value chain without the need for raising more capital and, by extension, diluting shareholder value. We now have approximately $169 million in cash and term deposits as of November 30, 2021, which we believe
is sufficient to advance Donlin Gold to a point when a construction decision would be made. Our treasury includes a payment of $75 million the company received from Newmont Corporation in July 2021 related to the sale of NOVAGOLD’s
50 percent interest in the Galore Creek project in British Columbia6. Another payment of $25 million from Newmont comes due in July 2023. There’s an additional payment of $75 million contingent upon a Galore Creek construction approval.
By all measures, Donlin Gold is an exceptional project. With approximately 39 million ounces7 of gold in measured
and indicated mineral resources, it is one of the largest in the world. Its grade of 2.248 grams per tonne is approximately twice the industry average9. The 2021 drill program has been very successful in reinforcing the robust integrity of this massive endowment.
Donlin Gold is in the rare position of having a sufficient foundation to advance toward construction once the owners make that decision. As currently envisioned, the project would produce an average of about 1.1 million ounces per year over its 27-year mine life10, a very important factor given a frequently held view that global gold production is expected to decline
in the absence of major new discoveries. Furthermore, the fact that it is located in Alaska, where there is long-standing support
PRESIDENT & CEO’S MESSAGE 9







































































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