NovaGold’s Donlin Creek project is one of the world’s largest undeveloped gold deposits, in a joint venture with Barrick Gold (NovaGold 70%, Barrick 30%). As current manager of the project, Barrick has budgeted $87 million for the project for 2007, which includes a 70,000 m in-fill drill program and further development work. Barrick has indicated it plans to complete a first feasibility study for the project, which would be the basis for converting the Measured and Indicated resources to Proven and Probable Reserves. Barrick also plans to complete the work necessary to submit a draft Environmental Impact document next year to start the environmental assessment process.

NovaGold says it continues to believe that Barrick cannot meet the back-in milestones required to earn an additional 40% interest in the Donlin Creek project. “By November 13, 2007, Barrick must complete a final, bankable feasibility study and make a Board decision to construct a mine producing not less than 600,000 oz of gold annually. NovaGold believes Barrick cannot deliver a meaningful construction decision, plan or budget without completing the environmental assessment process. NovaGold’s lawsuit against Barrick on Breach of Contractual Obligations and Breach of Fiduciary Responsibility is currently before US Federal Court in Alaska.