NovaGold Resources Inc.

NovaGold Resources Inc.

March 21, 2005 12:54 ET

NovaGold Resources Inc.: Donlin Creek Joint Venture Appoints new Project Manager and Commences In-Fill Drilling


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NOVAGOLD RESOURCES INC.

TSX, AMEX SYMBOL: NG

MARCH 21, 2005 - 12:54 ET

NovaGold Resources Inc.: Donlin Creek Joint Venture
Appoints new Project Manager and Commences In-Fill
Drilling

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2005) - NovaGold
Resources Inc. (TSX:NG)(AMEX:NG)

Highlights

- New Project Manager Appointed to oversee the Donlin Creek project

- Donlin Creek Joint Venture initiates US$11 million program

- 20,000 meter in-fill drill program

- Detailed Engineering and Design for Pre-Feasibility Study

- Preparation of Environmental Assessment Documentation

New Project Manager Appointed

NovaGold Resources is pleased to announce that Placer Dome has appointed
Mr. Stan Foo to the position of Donlin Creek Project Manager effective
March 14, 2005. Prior to this appointment, Stan was the Mining Section
Chief at the Alaska Department of Natural Resources from 2001 to 2005.
Stan's career includes an outstanding list of qualifications to support
the Donlin Creek Project including General Superintendent at the highly
successful Cortez Joint Venture gold mine in Nevada, and a two year
period in the late 1990s as Placer Dome's Alaska State Manager. Stan
will be based in Anchorage, Alaska and will report directly to George
Paspalas, Senior Vice-President, Projects, Technical Development, Placer
Dome Inc.

Project Update - Drilling now underway

Placer Dome continues to advance the Donlin Creek gold project toward a
development decision. Placer Dome has initiated an US$11 million
program. The 2005 Donlin Creek work program has three key components:

- A 20,000 meter drill program designed to increase the existing 11
million ounce measured and indicated gold mineral resource by converting
a portion of the 14.3 million ounce inferred gold mineral resource into
the indicated category. Three drill rigs will be working on site by
month end under the direction of NovaGold's Senior Geologist Stan Dodd
who was recently been seconded to the Donlin JV to direct the program.

- Detailed engineering and design studies to bring all capital and
operating cost estimates up to a pre-feasibility level of confidence.

- Preparation of Environmental Assessment Documentation and gathering of
a large amount of baseline environmental data.

NovaGold has been advised that the completion of a pre-feasibility study
and submission of environmental permit applications will follow this
work program.

During 2004, Placer Dome spent approximately US$5 million on engineering
and environmental studies regarding logistics, power supply, and various
site engineering and geotechnical specifications. As a result of this
work in 2004 Placer Dome is expanding the 2005 budget to US$11 million.

The measured, indicated and inferred resource estimates at Donlin Creek
were updated April 2003 by AMEC E&C Services Limited (AMEC), Placer Dome
and NovaGold. Dr. Harry Parker, P.Geo of AMEC and Mark Jutras, Senior
Mining Engineer, for Placer Dome, supervised the resource estimate and
approved of all procedures, protocols and methodology used in the
estimation. Dr. Parker and Mr. Jutras are Qualified Persons as defined
by National Instrument 43-101.

About the Donlin Creek Project

The Donlin Creek property contains a measured and indicated mineral
resource estimated at 11 million ounces of gold, and an inferred mineral
resource estimated at 14.3 million ounces of gold, making it one of the
largest undeveloped gold resources in North America. The Company's 70%
interest in Donlin Creek is held through a joint venture with Placer
Dome. Placer Dome became manager of the joint venture effective November
2002 and can earn an additional 40% interest (bringing its total to 70%
interest) in the joint venture by expending US$32 million on the
property, completing a Bankable Feasibility Study and making a positive
construction decision on or before November 2007 for a mine that would
produce at least 600,000 ounces of gold per year.

About NovaGold

NovaGold is a precious metals company focused on the exploration and
development of high quality mineral properties in Alaska and Western
Canada. NovaGold is advancing three of the largest undeveloped resources
in North America: the Galore Creek gold-silver-copper project, the
Donlin Creek project in partnership with Placer Dome, and the Ambler
project in partnership with subsidiaries of Rio Tinto. The Company's
Nome Operations (Rock Creek, Big Hurrah and Nome Gold properties) also
contain significant gold resources and are expected to be the first to
enter commercial production. A construction decision is expected later
this year upon completion of a positive feasibility study. NovaGold has
66.1 million shares outstanding, is well financed with no long-term
debt, and one of the largest resource bases of any exploration or
development stage precious metals company. More information is available
online at: www.novagold.net.

Forward Looking Statements: This press release contains forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Forward looking statements are statements
that are not historical facts and are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements,
including, risks related to exploration stage of the Company's projects;
market fluctuations in prices for securities of exploration stage
companies; uncertainties about the availability of additional financing;
uncertainties related to fluctuations in gold prices and other risks and
uncertainties described in the Company's registration statement on Form
40-F and Reports on Form 6-K filed with the Securities and Exchange
Commission. Although we believe the expectations reflected in our
forward looking statements are reasonable, results may vary, and we
cannot guarantee future results, levels of activity, performance or
achievements.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    NovaGold Resources Inc.
    Greg Johnson, Vice President
    Corporate Communications and Strategic Development
    (604) 669-6227 or Toll Free: 1-866-669-6227
    Greg.Johnson@NovaGold.net
    or
    NovaGold Resources Inc.
    Don MacDonald, CA
    Senior VP & CFO
    (604) 669-6227 or Toll Free: 1-866-669-6227
    Don.MacDonald@NovaGold.net
    www.novagold.net