News Release - Monday, April 16, 2007
NovaGold First Quarter Financial Results and Project Update
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April 16, 2007 - Vancouver, British Columbia - NovaGold Resources Inc.
(AMEX, TSX: NG) today announced its financial and operating results for
the three months ended February 28, 2007, along with an update on the
Company's project development activities. Details of the Company's
financial results are described in the unaudited consolidated financial
statements and Management's Discussion and Analysis which, together
with further details on each of the Company's projects including
resource estimates, will be available on the Company's website at
www.novagold.net and on SEDAR at www.sedar.com. All amounts are in
Canadian dollars unless otherwise stated.

Highlights

.. Galore Creek Resource update significantly increased Measured &
Indicated Resources
.. Galore Creek Environmental Assessment Certificate issued. Permits
expected shortly, with construction anticipated by mid-2007
.. Exercised option to acquire 100% of mining claims of the main Galore
Creek deposit
.. Modified wetlands permit for Rock Creek issued on March 13. First
production targeted for Q3-2007, with commercial production by year end
.. Resource updates for Donlin Creek and Ambler targeted for Q2-2007
.. 2007 drill campaigns underway
.. $53.7 million of unrestricted cash at February 28, 2007
.. Preliminary US$500 million 25-month universal base shelf prospectus
filed
.. Conference call set for April 25, 2007 at 11 am PST (2 pm EST); toll
free 1-877-323-2090

NovaGold remains focused on transitioning to a gold producer at its
Rock Creek mine in Nome, Alaska and starting construction at its
world-class Galore Creek copper-gold project in northwestern British
Columbia. By consistently meeting its targets in a rising gold and
copper market, NovaGold continues to advance its portfolio of projects
and deliver strong shareholder returns.

NovaGold is finalizing initial Galore Creek project financing plans so
its Board of Directors can make a construction decision once permits
are received later this quarter. The Galore Creek Construction team is
making final preparations to begin construction. Major equipment has
been mobilized to site and critical contracts have been negotiated.
Galore Creek construction has been planned in two Phases. Phase 1
construction will focus on providing access to the Galore Creek Valley.
Significant activities during Phase 1 include the construction of mine
access roads, bridges, access tunnels, concentrate and diesel pipelines
and a power transmission line from Bob Quinn on Highway 37 to the
Galore Creek Valley. Phase 1 construction is anticipated to take 24
months, with access to the Galore Creek Valley in the second half of
2009. Phase 2 construction will focus on mine facilities and
earthworks, including construction of mine infrastructure, a tailings
dam, open pit stripping and process plant facilities. Full commercial
mine production is anticipated to begin in mid-2012 after 3 months of
commissioning.

Construction at NovaGold's Rock Creek mine is progressing well.
Following receipt of a modified wetlands permit on March 13, NovaGold
has cleared the mill and tailings facilities areas and continues to
work toward its production target of Q3-2007. Commercial production
estimated at 100,000 ounces annually is expected by year end,
transitioning NovaGold to a gold producer. NovaGold has initiated a
preliminary economic assessment for its Nome Gold project to assess
restarting gold production with a combined gold and aggregate
production facility. NovaGold's current business plan for Nome Gold
includes the potential to ultimately produce 25,000 ounces of gold
annually, along with several million tonnes of sand-and-gravel
co-product.

NovaGold's Donlin Creek project is one of the world's largest
undeveloped gold deposits, in a joint venture with Barrick Gold
Corporation (NovaGold 70%, Barrick 30%). As currently envisioned,
Donlin Creek would be one of only a handful of gold mines worldwide
that produce over 1 million ounces of gold per year, making it a true
world-class asset. Final drill assay results from the 92,000 meter 2006
drill program were received at the end of March. Once the results have
been evaluated, NovaGold will release a resource update that is
expected to significantly expand the Measured and Indicated Resource
base at Donlin Creek.

NovaGold recently engaged SRK Consulting (US), Inc., an independent
engineering firm, to complete a review of capital and operating cost
estimates in their September 2006 Preliminary Economic Assessment
("PEA") Study for the Donlin Creek project. In its review, SRK
considered the capital cost estimate in light of current trends in
capital cost increases as well as other developments in the sector such
as product availability, lead times, premiums and U.S. dollar
depreciation. SRK concluded that given the intended purpose of the PEA,
and the parameters and operating philosophy upon which it was based,
the cost estimates set forth in the PEA continue to be valid as of the
dates therein, within the contingencies and accuracy level outlined in
the PEA.

Exploration campaigns are underway at Rock Creek, Galore Creek, Donlin
Creek and Ambler, with the focus of identifying new mineralization and
converting Inferred Resources to the Measured and Indicated categories
and ultimately additional Proven and Probable Reserves. In addition,
NovaGold has acquired a new portfolio of exploration-stage projects in
North America. These projects represent the next generation of
discovery and growth.

NovaGold made exceptional progress in the first quarter of 2007, and
continues to build its experienced construction, operations and
management teams. NovaGold is well positioned to become North America's
next mid-tier gold and copper producer as it moves toward construction
at Galore Creek and production at Rock Creek. We look forward to
reporting on further positive developments on the Company's projects
during the coming months.

Results of Operations

The Company reported a net loss of $4.9 million (or $0.05 per share)
for the quarter ended February 28, 2007, compared with a net income of
$0.1 million (or $0.00 per share) for the same quarter in 2006. The
major factors contributing to the loss in the quarter were an increase
of corporate development and communication costs of $0.8 million, a
movement of $1.4 million in foreign exchange from a gain to a loss, a
$0.5 million loss from equity investment, and an increase in
administrative expenditures of $1.6 million due to the Company's growth
and increased activities.

Revenues from the Company's land and gravel sales, gold royalties and
other revenues decreased by $0.7 million in the quarter ended February
28, 2007, compared with the same quarter in 2006. The decrease in
revenues for this year's reporting period was mainly a result of a
large land sale within the Nome, Alaska city limits that occurred
during the first quarter in 2006. Interest income for the quarter
increased by $0.3 million compared with the previous year due to the
investment of excess cash from the Company's public offering completed
in early February 2006.

Expenses were $5.7 million for the quarter ended February 28, 2007
compared with $1.8 million for the same quarter in 2006. During the
quarter, the Company recorded a foreign exchange loss of $0.7 million
compared with a gain of $0.7 million in the same period in 2006. During
both periods there was a weakening in the Canadian dollar, but in 2006
the Company held significant US dollar cash balances whereas in 2007
the dominant factor was a high level of US dollar payables related to
large US dollar denominated expenditures. Corporate development and
communication costs increased by $0.8 million in the quarter as a
result of increased activities following the unsuccessful bid by
Barrick for all the common shares of the Company that expired on
December 7, 2006.

Also in the quarter the Company recorded increased general,
administrative, professional fees and salary costs of $1.6 million as a
result of the significant increase in activities of the Company from
the first quarter of 2006 to the first quarter of 2007. The Company has
expanded staff resources in all areas to meet the needs created by the
more advanced stages of the Company's projects and an expanded
shareholder base.

The Company recorded a loss from the equity investment in Alexco
Resource Corp. ("Alexco") of $0.5 million as a result of the losses
recorded in Alexco. In 2006, the Company had a dilution gain of $0.5
million from the initial public offering of Alexco, while in December
2006 (in the first fiscal quarter of 2007) the Company chose to
maintain its pro-rata interest in Alexco and purchased $5.0 million of
units (each one common share and one half share purchase warrant) at
$4.75 per unit. At February 28, 2007, the Company had an unrecorded
gain of $28.8 million in its Alexco holdings.

Outlook

The Company has budgeted to expend $37 million, net of revenues, on
Rock Creek construction in fiscal 2007, plus an additional $6 million
on exploration and other costs at Rock Creek. The Company budgeted $1.5
million for exploration and studies at the Ambler project and $8.5
million for exploration at the Company's smaller Alaska and British
Columbia properties. A further $2 million was budgeted for work on the
assets obtained through the acquisition of Coast Mountain. At Donlin
Creek, Barrick budgeted to expend US$87 million in calendar 2007
including 70,000 meters of infill and inpit exploration drilling,
environmental baseline studies, studies of alternative power sources,
permitting work, and feasibility and engineering work.

At the Galore Creek project, the Company is in the later stages of
obtaining approval to construct a mine on the property that will have a
nominal throughput of 65,000 tonnes per day that is planned to produce,
when in operation, annually 432 million pounds of copper, 341,000
ounces of gold and 4 million ounces of silver during the first 5 years
of mine life.

On February 23, 2007, NovaGold announced that it had received its BC
Provincial Environmental Assessment Certificate for Galore Creek. The
certificate outlines the commitments and conditions required to ensure
that the project can proceed without resulting in any significant
adverse environmental impacts. The Canadian Environmental Assessment
Agency initiated the final 30-day public review and comment period on
January 19, 2007 when it filed a Public Notice inviting comments. The
comment period closed on February 19. The responsible Federal
Government agencies will review all input and make a recommendation to
the Federal Minister of the Environment for approval of the
Comprehensive Study Report. Once this approval is granted, the Federal
agencies can grant the necessary Federal authorizations associated with
the project. Provincial permits to allow construction to proceed are
now being reviewed and are expected to be granted in the second quarter
of 2007.

NovaGold has applied to the government of British Columbia for a
surface lease on the adjacent Grace property, under option to NovaGold,
for use as a tailings and waste rock storage facility. Pioneer Metals
Corporation, which is controlled by Barrick and holds subsurface rights
in the property, is contesting the application. The government of
British Columbia is the owner of the surface rights and has the sole
authority to issue a surface lease on the property. NovaGold
anticipates that a surface lease for the tailings and waste facility
approved by the government in the Environmental Assessment Certificate
will be issued in a timely manner.

The Galore Creek Construction team is making final preparations to be
able to commence construction with Board approval, upon receipt of
permits. Installation of project information systems is continuing, as
is the purchase of critical equipment required for rapid implementation
and control of construction activities. Contracts are in various stages
of negotiation for access road, tunnel, bridge building, helicopter
support, design and engineering and other project-related activities as
required within the project schedule.

Phase 1 construction, anticipated to take approximately 24 months, will
focus on access infrastructure including a mine access road, a power
transmission line and an access tunnel, and represents approximately
20% of the overall capital costs for the project. Electrical power will
be supplied from a connection to the BC Hydro grid where the project
access road meets Highway 37. Phase 2 construction will focus on mine
facilities and valley infrastructure, with the largest portion of
capital cost expended in this latter construction period. Phase 2
construction is expected to take approximately 36 months.

In the Galore Creek Feasibility Study, a total of $375 million (US$303
million) was planned to be expended in 2007, and an additional $50
million was expected to be spent in 2007 by NovaGreenPower Inc.
(formerly, Coast Mountain Power Corp.) on powerline construction
necessary for Galore Creek operations, excluding any bonding costs. The
NovaGold construction team has rescheduled and re-estimated costs for
2007 based on the longer development schedule contemplated above. This
rescheduling contemplates a total of $262 million being expended in
2007 and an unchanged overall construction budget of $2.2 billion
(US$1.8 billion) with start-up of operations in 2012 rather than 2011.
The Company plans to ultimately obtain a joint venture partner (or
syndicate of partners) for Galore Creek that will share costs.

On January 30, 2007, the Company exercised its common share purchase
warrants issued to NovaGold Canada Inc. for $686,000 receiving
1,960,784 common shares of Pioneer Metals Corporation ("Pioneer"). This
transaction brought the Company's holdings of Pioneer to 5,882,352
common shares. On March 14, 2007, the Company sold its entire holdings
to Pioneer as part of Pioneer's amalgamation plans with its parent
company, Barrick Gold Corporation as per a Letter of Transmittal and
agreed upon price of $1.00 per share. The Company received $5,882,352
for the sale of such shares. The Company anticipates that it will
record a gain of approximately $4.2 million on the sale of the shares
and believes that there are sufficient tax pools to shelter any gains
arising from this sale.

On March 19, 2007, the Company filed a preliminary short form universal
base shelf prospectus with the securities commissions in each of the
provinces of Canada and a corresponding registration statement with the
United States Securities and Exchange Commission. These filings, when
made final, will allow the Company to make offerings of debt securities
("Debt Securities"), preferred shares and common shares ("Equity
Securities"), warrants to purchase Equity Securities and warrants to
purchase Debt Securities, share purchase contracts and share purchase
or equity units (all of the foregoing, collectively, "Securities") or
any combination thereof up to an aggregate initial offering of
US$500,000,000 during the 25-month period that the final short form
universal base shelf prospectus remains effective. Securities may be
offered separately or together, in amounts, at prices and on terms to
be determined based on market conditions at the time of sale and set
forth in an accompanying shelf prospectus supplement. The net proceeds
from the sale of the Securities will be used for general corporate
purposes, including funding potential future acquisitions and capital
expenditures.

As of April 12, 2007, NovaGold anticipates funding its planned
activities for 2007 from available cash, proceeds from its marketable
securities held for sale, proceeds from the issuance of Securities
described above and/or from potential joint venture partners for the
Galore Creek project, although there can be no assurance that NovaGold
can obtain financing on terms favorable to it. NovaGold anticipates
that construction permits will be received in April 2007 and is
currently entering into contracts to enable a smooth transition into
construction without delay. Competition for contractors is currently
extremely high in Western Canada, and NovaGold is committing early in
order to assure availability when needed.

During 1992, the Limited Partners of the Murray Brook Processing
Limited Partnership commenced a legal action against the Company and
Murray Brook Resources Inc. seeking $882,000 plus interest and general
damages. The Company filed a counterclaim for damages. The trial was
concluded in April 2003 and the judge dismissed the action in November
2005. In December 2005 the plaintiffs appealed the judgment. On March
29, 2007, the appeal was dismissed with minimal costs to the Company.

Conference Call Wednesday, April 25, 2007

NovaGold will hold a conference call and webcast on Wednesday, April
25, 2007 at 11 am PST (2 pm EST) to discuss its financial results for
the three months ended February 28, 2007 and give an update on the
Company's project development activities. To participate in the
conference call, dial 416-695-9757 or toll-free 1-877-323-2090. Live
audio and a presentation will be simultaneously broadcast on NovaGold's
website at www.novagold.net.

Cautionary Note Concerning Forward-Looking Statements

This press release includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform
Act of 1995. All statements, other than statements of historical fact,
included herein including, without limitation; anticipated dates for
receipt of permits and approvals, construction and production, and
other milestones; anticipated results of drilling programs, feasibility
studies and other analyses; anticipated availability and terms of
future financing; estimated timing and amounts of future expenditures,
and NovaGold's future production, operating and capital costs,
operating or financial performance, are forward-looking statements.
Information concerning mineral reserve and resource estimates also may
be deemed to be forward-looking statements in that it reflects a
prediction of the mineralization that would be encountered if a mineral
deposit were developed and mined. Forward-looking statements involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from NovaGold's expectations include uncertainties involved
in disputes and litigation, including disputes and litigation with
Pioneer Metals Corporation concerning the Galore Creek property and the
Grace claims, and with Barrick Gold Corporation concerning ownership
and management of the Donlin Creek project; fluctuations in gold,
copper and other commodity prices and currency exchange rates;
uncertainties relating to interpretation of drill results and the
geology, continuity and grade of mineral deposits; uncertainty of
estimates of capital and operating costs, recovery rates, production
estimates and estimated economic return; the need for cooperation of
government agencies and native groups in the exploration and
development of properties and the issuance of required permits; the
need to obtain additional financing to develop properties and
uncertainty as to the availability and terms of future financing; the
possibility of delay in exploration or development programs or in
construction projects and uncertainty of meeting anticipated program
milestones; uncertainty as to timely availability of permits and other
governmental approvals for Galore Creek, Rock Creek and other projects;
and other risks and uncertainties disclosed in NovaGold's Annual
Information Form for the year ended November 30, 2006, filed with the
Canadian securities regulatory authorities, NovaGold's annual report on
Form 40-F filed with the United States Securities and Exchange
Commission, and other information released by NovaGold and filed with
the appropriate regulatory agencies.



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Contacts

Don MacDonald, CA
Senior Vice President & CFO

Greg Johnson
Vice President, Corporate Communications and Strategic Development

Rhylin Bailie
Manager, Corporate & Investor Relations

604-669-6227 or 1-866-669-6227

Associated File:
http://www.novagold.net/i/pdf/NGPR16Apr07Q1Financials.pdf
Link to a PDF version of this news release.
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Message sent on Mon Apr 16, 2007 at 2:24:00 PM Pacific Time
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